Fewer Donors, More Demand: The State of Philanthropy in Canada 

Canadian Philanthropy Needs to change

Let’s examine philanthropy in Canada today. 

While individual charitable giving and donor participation in Canada have hit multi-year lows due to a high cost-of-living and a “precarity mindset”, formal Canadian philanthropic foundations are actually bound by strict federal payout rules. However, many foundations face internal strains, and grants may feel tighter due to record-high community demand. 

If foundation funding is part of your nonprofit’s strategy, it is increasingly important to understand not only how much money is available, but which foundations are actually aligned with your work. Grant Advance’s Search Engines can help you research historical giving, funding interests, geography and previous recipients before deciding which funders to approach. 

What is the “precarity mindset”? 

Precarity Mindset? That sounds ominous. What is it, and why should it affect foundation giving? 

From an Article in Canadian Affairs, published July 26, 2026, John Longhurst talks about a growing sense of ‘precarity’, reshaping Canadian giving. 

Read the Canadian Affairs article on the “precarity mindset” 

For years, Canada has remained stable, following a predictable path. But then, all in the space of a couple of years, we had “a pandemic on top of a housing crisis, on top of inflation, on top of climate disasters, on top of technological disruption, on top of demographic strain, and then add a U.S. president openly threatening your country with tariffs and annexation fantasies,” to quote David Coletto of Abacus Data. 

He feels that “something has shifted in the public psyche” as a result. Most Canadians now feel precarious as a result and have accepted that instability and uncertainty are now the new normal. 

In the midst of this cascade of events, we also see economic and financial pressures growing. There’s surging demand for assistance with food banks, shelters, and community groups facing historic demand, meaning foundation dollars do not stretch as far as they used to. 

The general public is facing household strain. That means individual donors—who traditionally fuel smaller community charities—are cutting back due to high housing, mortgage, insurance and grocery costs. 

Foundations are facing changes too 

There are also regulatory and operational shifts in the works. For example the Canada Revenue Agency (CRA) has tightened enforcement of the mandatory 5% disbursement quota for foundations holding large investment assets, pushing closer tracking of annual spending. Not only is there stricter CRA enforcement, there are new compliance rules. Changes to filing systems and lobbying thresholds have increased administrative burdens on smaller or volunteer-run foundation teams. 

You can read more about how the CRA calculates the current disbursement quota for Canadian charities and foundations. 

Online giving is growing, but the donor picture is changing 

Canada Helps reports a $47 million increase from the previous year, but adds that smaller, ‘bread and butter’ gifts of $25 to $50 have declined and that the increased total of donations is fueled by more large donations – especially in the form of securities donations like stocks and mutual funds. 

Read the CanadaHelps 2026 Giving Report 

Online giving is increasingly important, and according to the Giving Report, even small charities need to be digitally enabled to compete in the new charitable landscape. 

Despite Canada Helps’ optimism, the Fraser Institute states categorically that ‘approximately one in five Canadians have skipped paying a bill over the past year so they can buy groceries,’ which implies to me that there is an increased dependence on food banks. 

According to the Fraser Institute, “Specifically, over the last 10 years (2013 to 2023, the latest year of available data) the share of tax-filers who reported donating to charity fell from 21.9 per cent to 16.8 per cent. And while fewer Canadians are donating to charity, they’re also donating a smaller share of their income—during the same 10-year period, the share of aggregate income donated to charity fell from 0.55 per cent to 0.52 per cent.” 

Read the Fraser Institute’s research on charitable giving in Canada 

So what can Canadian nonprofits do about it? 

So what can we do about this situation? 

Here’s what I believe. To help Canadian nonprofits persuade foundations to give more, we must encourage transparent impact reporting, advocate for higher disbursement quotas, and foster genuine institutional partnerships. 

These are strategies you can begin to employ right now with the funders to whom you’re applying. 

And that starts with making sure you are approaching the right funders in the first place. Our guide on how to find aligned foundations can help you look beyond a broad funding category and consider giving history, geography, grant amounts and previous recipients. 

Make the impact of the grant clear 

We all need to shift funder communication to focus on clear outcomes. By this I mean replacing vague taglines with concrete, measurable data showing just how those foundation dollars change local communities. Clearly demonstrate the impact a grant can have. 

Share transparent metrics. Offer clear evidence of program successes to build high credibility with your chosen foundation. 

Before approaching a funder, Grant Advance’s Foundation Profile Pages can help you see who that foundation has funded before, the types of grants it has made and where its giving has historically gone. 

Treat foundations like partners, not piggy banks 

Treat grantmakers as long-term partners by providing regular updates between funding cycles rather than relegating them to the role of piggy bank and only communicating with them when applying for funds. 

If this is an area your organization needs to work on, we have a full guide on how to build relationships with foundations before and after you apply. 

Less directly, you can advocate for systemic shifts, by endorsing broader payouts by foundations to assist with mounting philanthropic needs. Advocate for higher baseline spending from the larger charitable endowments and donor advised funds. 

There is a movement to require greater granting from Canadian charitable foundations, calling for a 10% distribution quota. You should visit ‘increasethegrants.ca’ to read more on this topic. 

Explore the Increase the Grants campaign 

I recommend that you explore the Philanthropic Foundations Canada website, too. They are also supporting shifts such as these. 

Explore Philanthropic Foundations Canada 

Make the case for the funding you actually need 

When we are applying for a grant, we can and should wherever possible promote unrestricted funding and encourage funders to adopt progressive grantmaking practices that offer multi-year, flexible support for operations rather than project only grants. 

This needs to be done carefully. 

Ensure that you have a strategic plan to support your request. 

The same principle applies when deciding which foundations belong in your funding pipeline. Instead of applying everywhere, research how foundations have actually funded organizations in the past. Grant Advance’s grant search tools can help you compare giving history, typical grant amounts, geographic patterns and funding interests before you make the ask. 

Don’t forget your local Community Foundation 

In the short term, look to your local Community Foundation. 

These funders don’t just support local initiatives, they also increasingly manage donor advised funds, so start tapping into them where you can. Their assets are growing, and so should their disbursements. 

Community Foundations of Canada has a directory that can help you find a community foundation serving your area. 

And if you want to expand your foundation research beyond the obvious funders, you can also book a complimentary consultation with Grant Advance to see foundations researched specifically around your nonprofit’s mission, programs and geography.