[Report] How is inflation affecting Canadian charities?

Week published: April 21, 2026

This week's report explores the impact of current economic pressures on Canadian charities. The survey examines the effects of economic issues such as inflation, tariffs, and interest rates on the sector. More than half of participating charities reported that the cost of materials/services have increased (43% increased, 12% major increase). At the same time, a large percentage of these organizations also experienced an increase (39%) or major increase (16%) in demand for services. Not surprising, most respondents described the overall impact of economic pressures as either negative (62%) or very negative (11%). 

Survey Highlights: 

Respondents indicated the areas most affected by current economic conditions were reduced funding/donor contributions (52%) and increased service provision/programming costs (50%), increased maintenance/facility costs and utilities (both 43%), with very few organizations reporting no significant impact (7%). Respondents have taken various actions in response, such as:

• Increased fundraising efforts overall (40%)
• Dipped into financial reserves (38%)
• Increased reliance on volunteers (30%)
• Delayed planned programs/services (25%)
• Reduced staffing levels (22%)

One survey participant commented, "The current social sector climate is something we have never seen before, it's making us be creative and react strategically like never before."

Advice from the Sector: 

Participating charities listed the most helpful types of support needed at this difficult time include Increased access to core funding (73%), increased public awareness of our work (45%), greater flexibility of future contracts and grants (36%), short-term inflation-specific funding assistance (22%), and greater access to social financing (15%).