The non-profit and charity sectors have a big impact on the lives of Canadians and they are an important part of the country’s economy. The Canadian non-profit sector helps to address various issues from education and health to cultural preservation and environmental conservation. The sector includes a diverse array of organisations such as charities, service agencies, and advocacy groups.

In this article, we use the latest statistical information to give you a comprehensive overview of the non-profit sector in Canada.

Not-for-Profit Sector Statistics for Canadians

  • Over 86,000 registered not-for-profit organisations operate in Canada.
  • The not-for-profit accounted for over 8% of Canada’s gross domestic product.
  • ⅓ of not-for-profit organisations in Canada focus on sports and recreation.
  • Less than half of non-profit directors are women.
  • Over 40% of Canada’s not-for-profit organisations provide support and services for the “general public” rather than a specific target group.
  • Larger not-for-profit organisations are more likely to rely on funding from provincial or territorial governments.
  • Registered charities are more likely to rely on individual funding than unregistered not-for-profit organisations.
  • Over 80% of not-for-profit organisations had volunteer workers in 2023.
  • Not-for-profits experienced increased demand for their products or services in 2023 and many could not meet the growing demand.

What Are Not-For-Profit Organisations?

Not-for-profits are organisations that provide services or products to benefit or improve a community. They are organisations that are generally concerned with generating adequate revenues to support their chosen community.

Any money raised or made by not-for-profit organisations is not for personal gain but is used to further the organisation’s aims and projects. Examples of not-for-profit organisations include sports and athletic clubs, service and social clubs, charities, and professional or community organisations.

Canada Has Over 86,000 Registered Not-For-Profit Organisations

There are over 86,000 registered not-for-profit organisations operating in Canada. In addition, there are between 80,000 and 100,000 non-profits that are not registered. While there is relatively detailed and up-to-date information available on the registered not-for-profits, there is very little information on the size and scope of the sector’s not-registered organisations.

Canada’s Not-For-Profit Organisations Contribute Over $200 Billion to the Economy

The not-for-profit sector in Canada encompasses a wide range of organisations that contribute to areas such as community development, social welfare, and advocacy. These organisations are essential to the Canadian economy and help to bridge gaps, for example, by facilitating access to health care, housing, and education, as well as providing a variety of other products and services.

In 2022, the not-for-profit sector contributed $216.5 billion to the Canadian economy, accounting for 8.2% of Canada’s gross domestic product. The not-for-profit sector is also an important employer in Canada, providing employment to over two million people.

One-third of Non-Profits in Canada Are Sports and Recreation Organisations

In 2023, 33.3% of non-profit organisations in Canada were focused on sports and recreation. This was the largest sub-sector of the not-for-profit sector. Next were religious organisations with 19.8%, while at the other end were environment-focused non-profits with 0.4%, and health-focused non-profits with 1%.

Demographics of Not-For-Profit Board of Directors

Having diversity brings many benefits as it can broaden perspectives and experiences and people from different genders and backgrounds all add their own expertise into the mix. At 92.6% almost all registered not-for-profit organisations in Canada have boards of directors.

In 2023, 47.3% of all board of director positions were filled by women. However, the proportion of women and men directors varied between organisation types. For example, in non-profits related to social services and the environment, the majority of board director positions were filled by women at 70.4% and 56%, respectively. On the other hand, in business and professional-related non-profits only 36.4% of directors were women and 37.1% were women in religion-related non-profits.

While there is an almost even representation of men and women directors in the not-for-profit sector, there is more need for diversity of ethnic backgrounds. In 2023, only 9.8% of the board of directors in the sector came from racialised groups. There is variation between different types of not-for-profits with religious organisations having the highest proportion of directors from racialised groups at 15.7% while the lowest representation, at 2.9% is in non-profits related to the environment.

Over 2/5 of Not-For-Profit Organisations Serve the General Public

In Canada, many non-profit organisations exist to serve the general public and the wide range of diverse groups that call Canada home. In 2023, 42.1% of not-for-profits served the general public, while 14.2% served primarily children and youth, 9.1% religious or spiritual groups, and 4.7% served people in union groups or particular occupations.

While some population groups were target groups for lower proportions of not-for-profit organisations, they often still received services and support from a wide range of not-for-profits. For example, households and individuals on low incomes were the primary focus group for 3.4% of organisations yet received support or services from 26.8% of all organisations, including those who focus on the general public or children and youth.

Funding for Canadian Not-For-Profit Organisations

Organisations in the not-for-profit sector rely on funding from diverse sources to operate. The most common source of revenue came from individual donations in 2023 at 21.7%, while 17.7% came from membership fees or dues, and 10.5% from transfers from provincial and territorial governments.

The non-profits that received the largest proportion of their money through provincial and territorial funding were related to health and social services at 43.6% and 42.5%, respectively. The non-profits that relied on provincial or territorial funding the least were religious organisations at 0.4%.

Donations from individuals were more important funding sources for smaller organisations than those with over 100 employees. Non-profits with one to four employees received 31.6%% of their funds from individual donations, while those with no employees received 21.4% and those with 5 to 19 employees received 17.3%. In contrast, not-for-profits with over 100 employees only received 6.4% of their funds from individual donations.

Non-profits that focused on professional and business associations and unions were the most likely to receive most of their funding from memberships or dues at 49.7%, followed by sports and recreation non-profits at 29.2%.

Registered Charities Rely More on Donations Than Other Not-For-Profit Organisations

In Canada, registered charities are recognised by the CRA, Canada Revenue Agency. They are recognised either as a public or private organisation that operates exclusively for the public benefit of the Canadian people. When a non-profit is registered with the CRA, it is granted a charity tax exemption, which allows it to issue tax receipts to donors to incentivize giving.

In 2023, donations made by individuals were the main source of funds for registered charities at 41.5%. In comparison, other not-for-profit organisations received just 4% of their funding from individual donations. For all the other non-profits, membership fees were the main source of funds at 29.1%, while only 4.9% of funding for registered charities came from memberships.

Many Non-Profits Cannot Meet the Demand for Their Services

In 2023, 46.1% of Canada’s not-for-profit organisations said the demand for their services or products had increased. 21.4% had seen a significant increase, while 24.7% had seen a modest increase in demand.

Many not-for-profit organisations were not able to meet the increased demand for their products or services with 24.3% reporting that their capacity to meet demand had increased. 18.2% reported they had experienced a modest capacity increase and 6.1% had experienced a significant capacity increase.

Large not-for-profit organisations were more likely to report increased demand for services than smaller organisations. Organisations with no employees were the least likely to report increased demand at 37.4%, while organisations with 20 to 99 employees were the most likely at 70%. However, across the sector, the organisations’ capacity to meet the demand grew at a slower rate than the demand for products or services.

In the aftermath of COVID-19, social services and health organisations experienced the most increases in demand at 70.2% and 69.7%. However, their capacity to meet the growing demand grew at a much slower rate. Only 35.6% of health non-profits and 40.3% of social services non-profits reported their capacity to meet demand for products or services had increased.

Volunteers Are Essential to Most Not-For-Profit Organisations

Many not-for-profit sector organisations rely on volunteers and in 2023, 81.8% of not-for-profit organisations had volunteer workers. Of these organisations, 44.7% had up to 19 volunteers, 29.1% had between 20 and 99 volunteers, and 8% had more than 100 volunteers.

Arts and culture-related not-for-profit organisations were the most likely to have volunteers at 93%. They were closely followed by religious not-for-profits at 92.5% and law, advocacy, and politics not-for-profits at 92.2%. The least likely non-profits to have volunteers were those focused on business and professional unions and associates at 64% and development and housing-related organisations at 71%.

According to Imagine Canada, 41% of Canadians volunteer at charities and not-for-profit organisations. This means approximately 13 million Canadians volunteer their time to some extent. In total, these volunteers contribute close to 1.7 billion hours. On average, volunteers contribute 131 hours in a year, which is equal to 860,000 full-time jobs.

Conclusion

Canada’s not-for-profit sector makes a vital contribution to the country’s well-being and has a significant impact on many aspects of Canadians’ lives. It contributes around 8% of Canada’s gross domestic product and employs over two million people. The non-profit sector is also important in bridging gaps, for example, in healthcare or education.

In recent years, many not-for-profits have noticed increased demand for their products and services. However, their capacity to meet the demand has increased at a considerably slower rate leaving some charities unable to support all the members of the communities they serve.

As Canada continues to navigate challenges arising from, for example, the recent COVID-19 pandemic and increased cost of living, the not-for-profit sector will play an important role in supporting all Canadians and Canada’s social progress.

Frequently Asked Questions

There are over 86,000 registered non-profit organisations in Canada. However, not all not-for-profit organisations are registered. It is estimated that there are anywhere between 80,000 and 100,000 unregistered not-for-profit organisations in Canada. Unregistered non-profits are perfectly legal, it simply means they have not registered with the Canada Revenue Agency and cannot issue tax receipts to donors.

There are different ways non-profit organisations can raise money. They may, for example, sell products, get money from membership fees, receive funding from individual donations, or receive money from the provincial or territorial governments.

The Canadian not-for-profit sector employs around 2 million people. In addition, around 13 million Canadians volunteer their time to work for charitable causes that are important to them. Over 80% of Canadian not-for-profit organisations had volunteer workers in 2023.

There are different ways to support the work not-for-profit organisations do. Some people like to donate money or items, while others prefer to volunteer their time. If there is a cause you wish to support, the best thing to do is to speak to the non-profit in question to find out the best ways to help.