{"id":10533,"date":"2026-10-27T21:24:20","date_gmt":"2026-10-28T01:24:20","guid":{"rendered":"https:\/\/carleton.ca\/panl\/?p=10533"},"modified":"2026-10-27T22:21:13","modified_gmt":"2026-10-28T02:21:13","slug":"the-state-of-philanthropy-in-canada-should-we-be-concerned","status":"publish","type":"post","link":"https:\/\/carleton.ca\/panl\/2026\/the-state-of-philanthropy-in-canada-should-we-be-concerned\/","title":{"rendered":"The State of Philanthropy in Canada: Should We be Concerned?"},"content":{"rendered":"

\"\"By Susan D. Phillips, CM<\/a> (part of our ongoing series, “Building a Stronger Culture of Philanthropy in Canada<\/a>“).<\/p>\n

In the first installment of this series<\/a>, Calum Carmichael defines a culture of philanthropy as the societal norms that encourage our readiness to help, say by voluntarism or charitable donation, and our readiness to understand and respect the outlooks and priorities of others despite not sharing them. Philanthropy amounts to more than single acts of giving treasure, time and talent. Rather, philanthropy is active citizenship: how people engage with each other to build more robust, inclusive communities and societies. While how much people give is critical to sustaining a strong charitable sector, how many people give is equally important. In this, the second installment, I ask: what is the current state of philanthropy in Canada?<\/p>\n

Should we be concerned?<\/h2>\n
\"A<\/a>

Read “Why We Should Build a Stronger Culture of Philanthropy,” by Calum Carmichael.<\/p><\/div>\n

A generalized pattern of donating and volunteering has been widely demonstrated to be beneficial for the givers, for the communities in which they live and for society as a whole. As Calum Carmichael explains<\/a>, the evidence is clear. People who give and participate are happier and healthier. Collectively, philanthropy supports more robust charities and nonprofits able to serve the needs of citizens and enhance the quality of life in communities through faith, arts, sports and more. When a culture of philanthropy is embedded across society, it generates a sense of belonging that further boosts civic engagement and contributes to community and democratic resilience.<\/p>\n

Canada has a long history of strong philanthropic traditions across the country, in terms of both formal giving and volunteering through organizations, as well as informal caring and helping neighbours. However, over the past decade or so, the percentage of Canadians who give, volunteer and participate has been decreasing. Should we, as a country, be concerned about declining participation in giving and volunteering? I argue, emphatically, yes, we should be concerned, and I\u2019ll explain why. First, let\u2019s look at the evidence which is, at best, incomplete.<\/p>\n

Trends in giving in Canada<\/strong><\/h2>\n

Government data on how many Canadians claim a credit for charitable donations on their annual tax returns is often used as the indicator of formal giving. At the time of writing, 2023 was the most recent year in which income tax data are available. Over the 10 years preceding, the donation rate \u2013 the percentage of Canadians who give to charities \u2013 shows a marked decline from the 25.5% of tax filers who claimed a charitable credit in 2013 to the 16.8% who did so in 2023.\u00a0 While the donation rate across tax filers has dropped substantially, the total amount that Canadians have given has risen over time. This is due to very large gifts that bump up the overall amount. Although over those ten years the average donation<\/a> among tax filers increased (due to larger gifts) by almost 30%, from $1,543 to $1,974 (measured in 2023 dollars<\/a>), the median donation (indicating half of donors gave more and half gave less, and thus is not sensitive to extremes) increased by only 9%, from $358 to $390.<\/p>\n

\"A<\/a>

Source: “A Tipping Balance? Update: Preliminary Data on 2023 Charitable Donations,” by David Lasby (Imagine Canada).<\/p><\/div>\n

Because these official Statistics Canada data include only tax filers who claim the charitable credit, they don’t capture all forms of giving for a variety of reasons. People give in small amounts and don’t bother with a tax receipt, or the receipts are in a shoebox somewhere and can\u2019t be found at income tax time. Or donations are made to organizations that are not registered charities, such as GoFund Me campaigns to help neighbours, which can\u2019t be claimed and counted. In addition, spouses can pool their charitable tax credits, allowing the higher income earner to claim a greater credit, which then counts two donors as one.<\/p>\n

Although the tax filer data provide an incomplete picture, they are the best we have, and the trend is clear. Overall, donation rates are declining, and giving is increasingly dependent on a smaller cadre of older Canadians and the very wealthy. Canadians aged 65 and older represent about 35% of all donors and half of total donations, with almost one in four of them reporting a tax credit.<\/p><\/blockquote>\n

Trends in volunteering in Canada<\/strong><\/h2>\n
\"Total

Total number of hours of informal volunteering to improve the community, by type of volunteer activity, 2018 to 2023<\/p><\/div>\n

Volunteering \u2013 both formal participation with an organization and informal helping of others \u2013 shows a similar decline. Canadians have long demonstrated a commitment to volunteering, and we continue to do so. Nevertheless, between 2018 and 2023, the percentage of Canadians volunteering, whether formally or informally, dropped from 74% to 66% (Volunteer Canada, 2026<\/a>). The long-term decrease in the numbers of people formally volunteering and the hours they volunteer is significant: about 1 in 3 Canadians volunteered for charities and nonprofits in 2023, a drop of 9% since 2018 and 44% over the decade (Imagine Canada, 2026).<\/p>\n

Not only has the number of volunteers decreased, but so too has the amount of time they give. The good news is that younger people have the highest rates of overall participation: 81% of 15-to-24-year-olds and 76% of 25-to-34-year-olds report volunteering in 2023. The less good news is that the sharpest decline was among these cohorts. For 15-to-24-year-olds, formal volunteering fell from 52% to under 40%, indicating that 1 in 4 stopped volunteering in any formal way (Volunteer Canada, 2026<\/a>); and the 25-to-34 -year-old group dropped the most in formal volunteer hours. Women and seniors, who historically have been the backbone of volunteering, also reduced their engagement. In particular, women cut their average hours by 21%. Among 65-to-74-year-olds, who were long assumed to spend their retirement years as volunteers, participation is increasingly concentrated among a smaller number who continue to commit large amounts of time.<\/p>\n

\"A<\/a>A particularly disturbing trend is that Canadians are less inclined to engage in civic affairs and volunteer in informal ways to improve their communities (Statistics Canada, 2025<\/a>). This loss greatly diminishes the important connection between active community engagement and a sense of belonging.<\/p>\n

The reason for these declines in giving and volunteering may seem obvious: it\u2019s the economy, stupid! Canadians are pressed for money and time. There’s no doubt that economic challenges are a major concern and a key factor, but they aren’t the only factor, and not the one that’s most worrisome for the overall culture of philanthropy. The main concern is that those who can afford to give aren’t giving close to their capacity to do so, and Canada hasn’t created a shared social norm that links philanthropy with our collective well-being and national identity.<\/p>\n

Giving trends in specific income brackets and generations<\/strong><\/h2>\n

Canada has generous tax incentives for charitable giving. Depending on the province, a donor could get between 30-50% back on charitable donations over $200, claiming up to 75% of income in a year and 100% upon death. Although tax incentives aren’t a primary reason that people give, they become a significant consideration for major gifts and for managing taxation after a wealth event (such as sale of a business or professional practice).\"Above<\/a><\/p>\n

Lower income Canadians give considerably more as a percentage of their income than do affluent ones. Those earning under $20,000 annually gave roughly 1.1% of their income in 2023 and those in the $40,000-$59,999 bracket gave 0.6%. In contrast, those with incomes of $500,000 to $999,999 gave only 0.2%, and one-third of them didn’t claim a tax credit at all. Even among those with incomes over $4 million, 1 in 5 do not claim a donation. Of course, the actual amounts donated by higher income households are greater, but as a percentage of income (excluding other wealth), affluent Canadians fall far short of an international average of 1% that’s considered a minimal standard in other high-income countries (CAF World Giving Report, 2026<\/a>). Canadian philanthropy is being propped up by very large gifts from the ultra-wealthy and by entrepreneurs who have experienced a wealth event and for whom Donor-Advised Funds (DAFs) are the vehicle of choice.<\/p>\n

The Personal Philanthropy Project, an initiative aimed at increasing giving by the affluent, hosted at Imagine Canada in 2016-2017, explored some of the reasons for this lack of generosity. \u00a0The main reason (31%) is that high net worth (HNW) Canadians said they don\u2019t want to give; 27% said family needs are a higher priority; and 20% said they lack connections to charities<\/a>. The majority of those who donate do so without a plan or benchmark. Even though they’re giving far below average, these HNW households believe they give above average and are very generous.<\/p>\n

\"A<\/a>

Read more from our series, “Building a Stronger Culture of Philanthropy in Canada”: https:\/\/carleton.ca\/panl\/building-a-stronger-culture-of-philanthropy<\/p><\/div>\n

This points to the need to create a better benchmark and communicate a social norm for philanthropy. The value of a \u2018generosity\u2019 social norm is reinforced by the well-documented cohort effect. Whereas life stage is how old we are now, our cohort is \u2018how old we were when.\u2019 A generation who, in their 20s, shared the music of Bob Dylan and Motown, anti-war protests and mobilizing around the women\u2019s movement can be expected to differ in values, attitudes and behaviour than the generations who grew up with disco or grunge, an emphasis on materialism or a sense of individualism. As Robert Putnam popularized in his book, \u2018Bowling Alone,\u2019 younger cohorts have been less socialized into civic life and philanthropy than their parents and grandparents. The disappearing Long Civic Generation (1910-1945) was more engaged than their Baby Boomer children (1946-1964) \u2013 who are still strong givers and volunteers. The Boomers remain more engaged than their Gen X (1965-1980) children who stand out as distinctively the least philanthropic cohort, although they’re now significant wealth holders. This pattern doesn’t bode well for philanthropy because, as the Boomers age out, Gen X philanthropy won’t fully replace their giving. Shared expectations and norms around philanthropy particularly matter for youth, as research demonstrates that early socialization and positive experiences with philanthropy are a major factor in promoting lifelong giving and participation.<\/p>\n

In sum, Canada faces short- and long-term challenges in our shared commitment to philanthropy.<\/p>\n

Charities and communities feel the effects<\/strong><\/h2>\n

\"A<\/a>The effects of unstable and shrinking philanthropy on Canadian charities are real and becoming more serious. As Carleton\u2019s Charity Insights Canada Project (CICP) weekly surveys show, charities are feeling a \u2018trilemma\u2019 of pressures<\/a> \u2013 rising demands, unstable or declining finances, and overburdened volunteers and workforce. Economic challenges mean that 1 in 4 Canadians already rely on charities for essential services such as food, clothing, or shelter (IPSOS, 2023<\/a>). With continued disruption due to a prolonged trade war with the US and the labour market reconfiguration created by AI, demands can be expected to increase. It’s not clear that charities will be able to continue to meet growing demand under their current conditions.<\/p>\n

Charities indicate that their funding is increasingly precarious, with only 12% describing themselves as being very financially stable in 2024, down from 21% in 2023 (CICP 1.10.40; 2.08.30<\/a>). Over half (53%) expressed moderate to high concern about their long-term sustainability (CICP 2.07.26<\/a>). Donations have the advantage of usually being unrestricted and thus are a vital complement to more targeted government or foundation funding. However, 28% of charities indicate that donations have decreased over the past three years<\/a>. The pinch is also felt for volunteers, with 51% of charities saying they lacked enough volunteers for both front line and leadership positions<\/a>, with a notable 45% indicating it’s difficult to recruit board members<\/a>.<\/p>\n

Philanthropy is more than support for charities; it\u2019s a foundation for our sense of belonging, which has societal and individual benefits, as Calum Carmichael notes<\/a>. A recent study by the YMCA<\/a> reveals a substantial gap between Canadians\u2019 desire for connection and their experiences: only 36% report a sense of belonging to the community where they live and, as community foundation Vital Signs\u2019 report shows, this has dropped over the past decade<\/a>.<\/p>\n

A time for action <\/strong><\/h2>\n

Canadians and our governments shouldn’t sit on the sidelines watching the slow but persistent decline in our culture of philanthropy. As this series argues, Canadian philanthropy is at an inflection point, in both negative and positive ways. If we allow participation rates in giving and volunteering to continue trending downward, it will be increasingly difficult to reverse direction, as too many people will have opted out.<\/p>\n

But we’re also at a critical moment of opportunity in at least two important ways: the impending intergenerational transfer of wealth and the rise of women and multicultural communities who have increased wealth and are new driving forces in philanthropy. Both trends present us with opportunities to create a stronger culture of philanthropy. As Canada seeks to reinvent the economy through a national project of \u2018Canada Strong,\u2019 we have a chance \u2013 indeed, an imperative \u2013 to reinforce our collective sense of nationhood. As a pluralist and tolerant society, accompanied by a strong \u2013 perhaps distinctive \u2013 culture of philanthropy, we could demonstrate leadership globally.<\/p><\/blockquote>\n

To build a stronger, shared culture, we need to see philanthropy as more than contributions of money or time. In a broader sense, philanthropy as active citizenship is part of our responsibilities to each other as members of society. As Prime Minister Mark Carney said in his September 2026 video address to the nation, \u201cCanadians have faced difficult stretches before, and what\u2019s carried us through has never been any one measure. It\u2019s been Canadians looking out for each other\u2026 This is about who we are as Canadians. It\u2019s about our livelihoods and the country we leave to our kids. It\u2019s about making Canada strong, and the compassion that makes us who we are.\u201d<\/p>\n

It\u2019s time for all Canadians to act on that compassion, recognizing it as part of our collective identity, through more engaged, more purposeful and more deliberate philanthropy.<\/p>\n

Banner photo is courtesy of James Sullivan.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Susan D. Phillips, CM (part of our ongoing series, “Building a Stronger Culture of Philanthropy in Canada“). In the first installment of this series, Calum Carmichael defines a culture of philanthropy as the societal norms that encourage our readiness to help, say by voluntarism or charitable donation, and our readiness to understand and respect […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"yoast_head":"\nThe State of Philanthropy in Canada: Should We be Concerned? | PANL<\/title>\n<meta name=\"description\" content=\"By Susan D. Phillips, CM (part of our ongoing series, "Building a Stronger Culture of Philanthropy in Canada"). 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