As the prime minister seeks investment to counter the U.S. trade war, Canadian nonprofits and charities hope he’ll also invest in their sector to address the conflict’s human costs.
That is the message delivered by Bruce MacDonald, CEO of Imagine Canada, which represents 670 Canadian charities and nonprofits, and Dan Clement, CEO of United Way Centraide Canada, the national body that supports United Way organizations.
In a joint statement, the two said they are concerned about a potential surge in demand for services — at a time when the sector’s ability to deal with increased requests is severely strained.
The sector itself is not targeted by tariffs or import bans. But “the ripple effect will be felt in both a surge in demand for services and weakening revenues,” said MacDonald.
For Clement, the challenge is that economic disruption can quickly become community disruption.
“When families are facing rising costs, job uncertainty and growing financial anxiety, they turn to local charities and nonprofits for food, housing, mental health, employment and other essential supports,” he said.
Charities and nonprofits must be included in discussions about the impact of the trade war on Canadian communities, he added.
“It is critical that this sector is working in partnership with governments and the business community to support Canadian families,” MacDonald said.
June Muir is CEO of HC—Hub of Opportunities in Windsor, Ont., a nonprofit that supports 15 food banks in the area. “We have seen increases each year,” she said.
A border city like Windsor, which is dependent on the auto sector, could see a big increase in demand due to the tariffs. “It could skyrocket,” she said, adding they are already inundated with requests.
“All of our services could really feel the pinch if demand keeps rising,” she said.
‘Already struggling’
In an interview, Clement cited a new report from United Way Centraide Canada indicating the sector was under considerable strain even before the trade war started.
More than 70 per cent of Canadian charities say demand for their services exceeds capacity.
At the same time, nonprofits are facing problems recruiting and retaining staff due to low wages, he said. A quarter of workers in the sector say they are considering leaving in the next six months.
The trade war is “falling on a system that is already struggling,” Clement said.
Both Clement and MacDonald say Ottawa needs to see the sector as providing essential services at an economically uncertain time.
“There’s no disagreement that improving our economic sovereignty and ensuring that Canadians have good paying jobs is a good thing,” MacDonald said in an interview.
“[But] we’re not sure there’s a clear understanding about how the ripple effect of this kind of disruption will be felt most keenly by charities and nonprofits.”
Ottawa must ensure “the nonprofit sector is part of the conversation,” he said. “They need to view this sector as critical partners in achieving the kind of Canada that they aspire to achieve.”
In addition to increased demand for services, the secondary consequence of the trade war may be fewer donations to charities, MacDonald observed.
“Families who may have been donating, if one of the parents loses a job, they’re now thinking about life’s necessities rather than charitable giving,” he said.
Companies may also reduce their corporate giving as they face rising costs or lost revenue.
The end result of all this for nonprofits may be cutbacks to programs and services —at a time when demand may be rising.
“All this is a problematic recipe for the sector,” MacDonald said. “That’s why it’s critically important that we talk about this, that we give voice to it.
“Because at the end of the day we want to be part of the solution during this time of transition.”
