Philanthropic organizations are optimistic despite inflation

(Montreal) The inflationary wave will force the philanthropic community to work twice as hard to financially support charities facing growing needs. Foundations are optimistic about the generosity of their donors, even if they themselves are suffering from the drastic increase in the cost of living.

Posted at 1:13 pm

Frederic Lacroix-Couture
The Canadian Press

The increase in consumer prices that reached 6.8% in April compared to last year’s month could ask for much more than they can choose to provide. According to a recent report from the CanadaHelps platform, one in four Canadians plans to give less in 2022 than in 2021.

Others may decide to keep their charitable spending at the same level. But the $ 100 donated in recent days, compared to the same time in 2021, will have less value in the budget of a charity that is also feeling severe inflation.

“In the coming months, we will have to work hard to get more donations and more because in reality we are also expecting a significant increase in requests from youth and families supported by DPJ”, acknowledged the director general of the DPJ Youth Foundation, Fabienne Audette.

Organizations, such as food banks, are faced with two or three more requests, cited for his part the president and director general of Centraide of Greater Montreal, Claude Pinard.

In a crisis situation, a good sense of solidarity usually comes, and donors are more generous, expects the chairman of the board of directors of the Association of professionals in philanthropy in Quebec, which has more than 300 members from others. other organizations and community foundations. .

“The level of donations is usually maintained. Some give more, others will give more than they can or won’t give. But there is a balance to be seen in different levels of income and living, and therefore different levels of donations, ”Daniel Lanteigne said.

Statistics Canada data shows that public goodwill has not weakened over the years. Although the number of donors decreased between 2016 and 2020, the total amount of donations increased to just over $ 10.5 billion.

During the pandemic, the DPJ Youth Foundation relied on loyal donors, who, having survived the crisis, decided to contribute more, Ms.ako Audetta.

Centraide of Greater Montreal has also seen an increase in money raised during its fundraising campaigns over the past two years, Mr. Pinard said.

keep the links

The CEO of Centraide of Greater Montreal sees the inflationary crisis as an opportunity to raise awareness among the largest donors and generate an outpouring of generosity.

“We have a group of major donors giving $ 10,000 and more. So we’ll definitely call them. The team is looking at different strategies to raise awareness to see how we can increase donations from the category. it’s by donors, but also from all corporate donations, ”Claude Pinard explains.

Maintaining an ongoing link to your network remains key, crisis or not.

“The organizations that have gone through the pandemic the easiest, and will go through inflation as easily, are the ones that check in with their donors, present projects, but also go back to them and tell them here’s what we did in your money and why we will eventually ask you for more, ”Mr. Lanteigne said.

Major fundraising events help maintain a sense of belonging. Their return after a long absence will give impetus to this fundraising strategy, even if it still has to do with pandemic risk management.

“It’s going to be like a novelty in itself, since we haven’t had it in a few years. It’s a rainbow on the horizon, if I may say so, ”M saidako Audetta.

The message of fundraising campaigns aimed at the general public should carry a level of insecurity in perspective relative to what others have experienced, suggests the co-director of the Canadian Network for Partnership Research on Philanthropy (PhiLab), Jean-Marc Fontan.

“We realize we’re not very received, and we still have room for maneuver available to give. […] You may need to tell yourself to consume a little, but not necessarily give less, ”said the professor in the sociology department at UQAM.

The foundations also rely on capital market investments and reserves that they can use to put more money to work for charities, Fontan added.

If our wallet does not allow us to contribute an amount, a time contribution is also accepted at a time when community organizations see their teams as thin.

“We all need as people to give back, argues Mako Audetta. When you get involved by volunteering, it also has great value. »

This article was produced with the financial support of Meta Fellowships and The Canadian Press for News.

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