Mind the Gap: Demand and Capacity in Canada’s Charitable Sector
Charities are woven into everyday life in communities across Canada. They contribute to people’s well-being and quality of life, address issues that matter to Canadians, and are there for communities during times of hardship. Given this vital role, the evolving capacity of Canadian charities must be monitored. The gap between demand and capacity, and how that gap has changed over time, can help us understand how the sector is positioned to respond.
The Charity Insights Canada Project (CICP) has been surveying hundreds of registered charities in Canada over the past three years about both sides of this equation. So, what findings stand out?
Constant Demand
Demand for charitable services and programs continues to be substantial. In 2023, 63% of responding charities said demand for their services/programs had increased in recent years (CICP 1.7.30). In 2025, 75% of respondents said demand had increased in the last year to some degree, and in 2026, this number dropped to 66% (CICP 3.06.18; 4.05.16). Only a very small percentage of charities in any of these years reported that demand had decreased. While the year-over-year percentages have varied, the overall pattern suggests that a majority of charities are experiencing growing demand for their services/programs.
Capacity is a growing concern
Demand is outpacing capacity for a majority of respondents. The percentage of charities reporting that demand exceeds their capacity has remained relatively high – 72% in 2024 and 73% in 2025 and 65% in 2026 (CICP 2.05.19; 3.06.18; 4.05.16). At the same time, the percentage reporting that demand roughly matches their capacity increased to 26% in 2026, up from 18% in 2025 (CICP 3.06.18; 4.05.16).
Although the gap appears to have narrowed somewhat in 2026, demand has exceeded capacity for a majority of responding charities each year.
| Year | Demand is much higher than capacity | Demand is higher than capacity | Demand for services is roughly equal to capacity |
|---|---|---|---|
| 2024 (885 responses) | 28% | 44% | 21% |
| 2025 (717 responses) | 29% | 44% | 18% |
| 2026 (867 responses) | 22% | 43% | 26% |
Notably, the percentage of charities reporting that they have increased their capacity has declined over the same three years.
| – | 2024 | 2025 | 2026 |
|---|---|---|---|
| Has the capacity of your organization to provide services/programs changed? | 55% increased 21% no change 22% decreased (883 responses) | 51% increased 23% no change 24% decreased (715 responses) | 35% increased 46% no change 18% decreased (867 responses) |
In 2026, 35% of respondents reported that they had increased their capacity in the last 12 months, down considerably from 51% in 2025 and 55% in 2024. At the same time, 46% reported no change in their capacity, compared with 21% in 2024 and 23% in 2025 (CICP 2.05.19; 3.06.18; 4.05.16). This year, reporting no change in capacity was more common than reporting an increase, which is a reversal from the previous two years.
| 2024 | 2025 | 2026 | |
|---|---|---|---|
| Plans to increase current capacity | 61% (882 responses) | 59% (716 response) | 52% (866 responses) |
Many responding organizations indicate that they have plans to expand their capacity going forward; however, the percentage of charities intending to increase their capacity has declined slightly over time.
More clients and more complexity
This year more than half (55%) of responding charities reported that the number of clients they served or engaged had increased in the last twelve months (CICP 4.07.22). At the same time, 47% of respondents reported that the complexity of their clients’ needs or the severity of the issues they are dealing with had also increased (CICP 4.07.22). More complex needs require the charities to have specialized and highly skilled capacity to address those clients.
But time and space are always in demand at charitable organizations. For example, only 22% said that the hours or availability of their programs, services or activities had increased, while 63% said they had remained about the same (CICP 4.07.22). Similarly, only 18% reported an increase in the amount of physical space used to deliver programs and services while 64% said it had remained about the same (CICP 4.07.22).
What does this data tell us about adaptation?
Charities are adapting to changing demand, and many are planning to expand their capacity in the future. However, the year-over-year pattern so far is that most Canadian charities are experiencing demand that is higher than their capacity. This raises an important question: what conditions or forms of support are needed currently to help minimize these gaps? In 2026, growing demand for services was the second most frequently cited major risk facing the charitable sector (59%), only after financial instability (91%), which suggests concern around this complex issue is widespread (CICP 4.02.01).
These findings take on added significance given the trade tensions with the United States where changes in the broader economic environment will likely impact both the demand charities experience and their ability to respond. For a sector so closely connected to the well-being of Canadians and their communities, the gap between demand and capacity is a significant indicator of the country’s health and resilience.
-The CICP team
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