{"id":4253,"date":"2025-06-19T11:00:00","date_gmt":"2025-06-19T15:00:00","guid":{"rendered":"https:\/\/carleton.ca\/cicp-pcpob\/?p=4253"},"modified":"2025-06-09T11:57:47","modified_gmt":"2025-06-09T15:57:47","slug":"financial-and-hr-challenges","status":"publish","type":"post","link":"https:\/\/carleton.ca\/cicp-pcpob\/2025\/financial-and-hr-challenges\/","title":{"rendered":"Financial and HR Challenges: A Look into Charitable Capacity Expansion"},"content":{"rendered":"\n
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\n Financial and HR Challenges: A Look into Charitable Capacity Expansion\n <\/h1>\n \n \n <\/header>\n\n <\/div>\n\n <\/div>\n\n <\/div>\n<\/section>\n\n\n\n

Recent data from the Charity Insights Canada Project (CICP)<\/a> show that 57% of charities have increased capacity in recent years and a further 66% have plans to increase service capacity going forward. Yet, a staggering 74% of charities surveyed are still facing higher demands for services than they can meet.* This push to increase service capacity is in response to the increased demand for services that charities are facing. According to an Ipsos report<\/a> in 2023, <\/a>20% Canadians were accessing charitable services, with 70% of those individuals doing so for the first time.<\/p>\n\n\n\n

But changing service capacity isn\u2019t a straightforward process; our survey results show how it often depends on two critical factors: adequate funding and staffing. Increasing capacity often rests on securing new funding and hiring more staff or recruiting volunteers, and charities who are unable to expand frequently cite financial and staffing challenges as key limiting factors. These findings point to the urgent need for improved staffing supports and financial investments in the charitable sector as charities seek to address increased service demands or maintain current services.<\/p>\n\n\n\n

How Many Charities Have Plans to Expand?<\/strong><\/strong><\/p>\n\n\n\n

In May 2023, 66% of charities across the country had plans to expand their operations, while only a small fraction, 2.5%, anticipated a reduction (see chart below).<\/p>\n\n\n\n

Planned Changes to Capacity<\/strong><\/th>% of Total<\/strong><\/th><\/tr><\/thead>
Yes, we have plans to significantly increase capacity<\/td>8%<\/td><\/tr>
Yes, we have plans to increase capacity<\/td>59%<\/td><\/tr>
No planned changes to capacity<\/td>32%<\/td><\/tr>
Yes, we have plans to decrease capacity<\/td>3%<\/td><\/tr>
Yes, we have plans to significantly decrease capacity<\/td>0%<\/td><\/tr><\/tbody><\/table>
Margin of Error 3%, 812 Responses (Excludes \u2018N\/A\u2019 and \u2018Not sure\u2019 responses)<\/em><\/figcaption><\/figure>\n\n\n\n

How Do Charities Plan to Increase Capacity?<\/strong><\/p>\n\n\n\n

Most charities will need to increase funding or expand their human resources in order to meet capacity expansion targets. Survey respondents were asked: \u201cIf your organization plans to increase its capacity to provide programs and services \u2013 can you please describe why and how your organization plans to do so?\u201d Out of the 498 who provided comments, many plan on increasing or diversifying funding sources (42%) followed by hiring more staff (26%).<\/p>\n\n\n\n

Making investments in infrastructure, such as increasing program space and resources are mentioned by some (13%). Other less common strategies include restructuring existing services (8%), increasing the number of volunteers (7%) and developing and expanding partnerships (6%). Innovation and tech investments (3%), enhancing outreach efforts (2%) and increasing marketing and advertising of services (1%) were only mentioned by a few panellists.<\/p>\n\n\n\n

Limiting Factors of Capacity Change in Charities<\/strong><\/p>\n\n\n\n

Some charities, however, do not have any plans to increase capacity. Survey respondents were asked: \u201cIf your organization does not have plans to change the capacity of its programs and services \u2013 can you please explain why?\u201d. Of the 239 who commented, financial and human resource constraints were the most frequently cited factors in guiding their decisions to maintain their current capacity levels. Approximately half (53%) of those who responded cite a lack of funding and 29% human resource constraints. These constraints often coincide as well, as about half of those citing human resource constraints mention the need for funding to increase staffing levels. As one panellist noted:<\/p>\n\n\n

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\u201cOur organization does not have plans to expand because unless our funding increases, we lack the capacity to run more programs. Funding directly impacts staff time.\u201d<\/em> Another panellist remarked, \u201cwe all work part-time. Without additional funding, we cannot afford to increase working hours.<\/em>\u201d<\/p>\n<\/blockquote>\n<\/div>\n\n\n

Beyond the common issues of funding and staffing, 4% of organizations also discuss a lack of adequate infrastructure or space limitations that prevent expansion. Other reasons for maintaining current service capacity mentioned by panellists are related to balancing demand for services with capacity:<\/p>\n\n\n\n