Forced to Do More With Less: The Impact of Inflation on Charities and Nonprofits

The erosion of money’s purchasing power caused by the high inflation we are experiencing today has many impacts on charities and nonprofits, some of which are unique to their sector. The latest survey of consumer expectations from the Bank of Canada finds that among the Canadians surveyed, 57% reported being more concerned about inflation in November 2021 than at the beginning of the pandemic. In addition, Canadians surveyed perceived public authorities to have less ability to control inflation, citing reasons including climate change that extend beyond the pandemic. Notably, Canadians reported that they view inflation as the most important economic variable, above taxes and jobs. 

The survey also found that workers do not anticipate that wage growth will keep up with inflation (most workers' wages are not adjusted to inflation). This long-term trend creates an expectation among workers that they will have less disposable income in the near future.

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