Over 170 of Canada’s leading charities to call on the Federal Government for emergency support to face the COVID-19 crisis

This week, leaders of over 170 Canadian charities sent a letter to the Government of Canada asking for urgent financial support to prevent the irreparable collapse of the charity sector and their vital programs due to the COVID-19 crisis. Canada’s charities are a critical part of the Canadian economy, contributing more than eight percent to Canada’s GDP ($162 billion in 2017) and employing more than ten percent (1.4 million) of working Canadians.

Bill Chambers, CEO of Save the Children in Canada said:
“Canada’s not-for-profit sector is at risk. If the very organizations that provide essential support and services to people in crisis both here at home and overseas are left behind in Canada’s response to this pandemic, it would be a tragedy, particularly for those most vulnerable who need our support now more than ever.”

The letter sent to the Government of Canada includes the following recommendations
1. The immediate establishment of an emergency $10 billion stabilization fund that will allow charities to survive, retain staff, cover critical expenses, and continue essential, front line operations during the pandemic;
2. Loan guarantees to Canada’s banks to ensure that charitable organizations have easy access to urgent, substantial short-term low- or no-interest loans to support their operations;
3. Increase the Charitable Donation Tax Credit through to the end of 2021 from 50% to 75% (in line with the rate that is provided for political donations) to encourage Canadians to donate;
4. Continue to flow already-contracted funds to charities and allow for maximum flexibility and re-budgeting as charities struggle to deliver and/or redesign their programs in the wake of COVID-19; and
5. Ensure that charities have access to the same recovery programs that businesses do at every step.

These measures will help ensure Canada’s charitable sector survives and can continue providing vital support to vulnerable Canadians and families hit hard by COVID-19.

Dr. Samantha Nutt, Founder and President of War Child Canada said: “The impact of current events on charities cannot be overstated. Few charities have the financial reserves and access to capital that will allow them to stay afloat through this pandemic.  It is a brutal irony that as vulnerable groups in Canada and around the world are confronting the social hardship and economic fallout of COVID-19, charities who might support and assist them are struggling themselves to figure out how they will continue to resource their operations, employ their staff and provide vital support to vulnerable people.”

David Morley, CEO of UNICEF Canada commented: ““We risk losing the core of the non-profit sector in Canada. We will have to rebuild these non-profits that are so important for the life of Canada, we mustn’t lose this incredible social structure.”

Without the presence of charities supporting Canada and the world’s recovery, more and more vulnerable members of our society will be at risk, which in turn will worsen and deepen the impact of COVID-19 for all Canadians.

Roberta Jamieson, President and CEO of Indspire, a national Indigenous charity that invests in education, said: “Throughout Canada, charitable organizations are serving the needs of citizens. Every dollar donated to Canadian charities goes back into the community to continue serving the needs of the most vulnerable which includes Indigenous peoples. We call on the Government of Canada to establish an emergency stabilization fund that will allow charities to stay afloat and continue to meet the need of groups at risk, including First Nations, Inuit and Metis youth who are working to create a better future for their communities.”

Read the letter here.