The recession and the non-profit sector

Often during tough financial times like a recession, people find themselves asking for more help from the government and the non-profit sector. But at the same time economic downturns are tough on the non-profit sectors. The needs increase in a recession, but often the funding to support such needs go down.

The Social Planning Network of Ontario released a report last week that details the effects of the recession, “Hard hit: Impact of the economic downturn on non-profit community social services.” According to the report, about 57% of non-profit organizations experienced an increase in demand of services since the recession began. But at the same time funding from all sources, including all levels of government, private and corporate donors, and the United Way, decreased. In some cases the decrease was drastic.

The support from all levels of government is a particular concern. As Carol Goar from the Toronto Star argued, it is clear that the federal government has no immediate plans at all to intervene in the non-profit crisis and neither does the Ontario provincial government.

The report made several recommendations, many referring to a need for increased funding for government social programs, while others included a productive dialogue between government representatives and non-profit workers in order to adequately address the rising needs within society.

Despite the difficulties in funding, the non-profit sector continues to support those hit hard by difficult economic times. Armine Yalnizyan from the Canadian Centre for Policy Alternatives urged non-profit workers to persevere. "With or without money, we have a job to do."