Charitable donors in B.C. remain among the most resilient despite the recesssion, according to Malcolm Burrows, head of Scotiabank’s philanthropic advisory services.
In a recent interview, Burrows noted, “For the last few years, B.C. has been growing at a greater rate in terms of giving, than say Alberta. It’s one of the leading provinces in the country in the growth of giving.”
He said the level of growth in B.C. outpaced Alberta, even during the boom a few years ago. But the growth in donations doesn’t necessarily translate into stronger balance sheets for B.C.’s charities.
A Vancouver Foundation report released last October noted that government remained the primary source of revenue for the bulk of non-profit organizations in B.C., with an average 41% coming from various levels of government. Only 13% came from individual donations, just under foundation grants (15%), user or membership fees (20%), and other sources of income (21%).
An Imagine Canada survey released this spring noted that 19% of Canadian charities expect to face difficulties covering expenses this year, and 22% expect the same in 2011 with growing concerns over cutbacks in government support to non-profits.
Smaller charities face a catch-22 when it comes to funding because they are the most likely to be severely impacted by government cut backs since many have project-specific funding. Burrows suggested charities interested in diversifying their revenue should look to broaden their donor base, both by creating systems to strengthen relationships with donors as well as sharing their organization’s mission and value to the community.
“It’s not just about having a good cause; you have to be able to deliver on it. So fundraising comes after these basic business elements are in place.”
For more on trends in B.C.’s non-profit sector, be sure to check out next week’s edition of Business in Vancouver in print and online.