You’ve probably noticed it: things feel a little different lately.
Across Canada, we’re all feeling the effects of global confusion. Changing border policies, unpredictable tariffs, and a shifting economic landscape are bringing more uncertainty into every day life.
For nonprofits and charities, these changes bring real challenges. Rising program costs, increased demand for services, and potential dips in donor support are becoming everyday realities.
The dismantling of USAID, which Oxfam Canada has called a “global catastrophe in the making,” has sent shockwaves through the global development space, affecting countless organizations and the people they serve. For those serving immigrants and refugees, new cross-border policies are creating confusion and in some cases, limiting the number of newcomers whom organizations can welcome and support.
Though the uncertainty may feel overwhelming, many of us are feeling the call to take action.
At Cadence, we believe there’s always a way to make a difference.
How to respond if…
…You’re a Charity or Nonprofit
Consider making grants to American 501(c)(3)s
American organizations are among the hardest hit by recent funding changes. If your mission aligns with that of an American organization and your resources allow, think about making a grant to a U.S. 501(c)(3) that’s lost access to critical funding.
Thanks to recent rule changes, Canadian charities can now make grants to non-qualified donees, opening doors for more collaboration with grassroots and community-led organizations.
This type of partnership could be a way to scale your own work with US organizations who have a complementary mission, or whose own work makes it easier for you to fulfill yours.
Check out our post on four questions you should ask before partnering with a non-qualified donee
Fill gaps created by funding cuts
From medical research to climate science to international aid, U.S. funding cuts have created significant gaps. Though these cuts have had devastating effects, they have also opened the doors for Canadian and international organizations to step up and lead in these areas.
Consider how you can look to fill gaps related to international aid work, immigrant resettlement, or research funding. If you feel called to move or work in these areas but they aren’t currently in your charitable purposes, you can update them—reach out and we can help!
Diversify Your Revenue Streams
This may have been on your to-do list for a while, and now’s the time to act. As we noted above, as the economy tightens, charitable giving goes down and needs go up.
If you rely heavily on one funding source—whether individual donors or government grants—start exploring other avenues for generating revenue: corporate partnerships, legacy giving, foundation support, or annual campaigns.
Looking for guidance? Reach out—we’d love to start a conversation.
… You Want to Support Benevolent Organizations
Focus on the local
Cuts to international funding have exposed the urgent need for organizations to reshift their focus to grassroots, local, and Indigenous leadership.
Focus your support on organizations that are deeply embedded in the communities they serve—especially those led by Indigenous or local voices. These programs tend to be more resilient when major changes happen “higher up” in the development sector, as the hub of action and decision making remains in the community itself.
A great starting point for learning about this type of work is Bridgespan’s Community Driven Change initiative.
Respond to the Moment
We always applaud donors who have a long-term relationship to the charities they support. However, this may be a moment where you want to consider giving where the need is greatest. Think of smaller international NGOs, climate justice organizations, or those supporting vulnerable populations like HIV patients, displaced people, or low-income Canadians hit hardest by inflation. You might want to give directly to a local organization that lost its USAID funding to help it through the transition, or take time to research organization that are having to reimagine their programming and purpose, such as those supporting newcomers to Canada.
Ask yourself: Who’s most vulnerable right now? Where can my donation have the most immediate impact?
Of course, giving to organizations that support long-term, systemic change is also essential. However, in this moment, many organizations can use your immediate support to weather this transition and continue fulfilling their mission in the world.
Expect Shifting Costs
Unfortunately, inflation, tariffs, and an unpredictable economic situation might mean that your donation doesn’t stretch as far as it used to. Food banks, for example, may not be able to purchase as much food per dollar. That doesn’t mean they’re doing less—it means your support is needed more than ever.
If a nonprofit shares that the impact your donation will have has changed, it’s best to respond with curiosity and compassion. It might even be a good time to send an encouraging message or a few extra bucks to a do-gooder you love!
Photo by Mick Haupt on Unsplash