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Economic impact of charities and nonprofits
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A significant contributor to the economy of Canada, the charitable and nonprofit sector accounts for major parts of the GDP and employment index (compared to other major industries such as automotive and retail).  In addition, the social impact measurement, accounting for positive impacts from volunteerism and service to communities adds another dimension to how the sector contributes to Canadian society. This resource guide is to provide information on facts and research on the charitable and nonprofit sector in Canada.

There are about 161,000 charities and nonprofit organizations (National Survey of Nonprofit and Voluntary Organizations, Hall et al., 2004) of which charities represent around half or 82,000 (Giving to charity: Information for donors, Canada Revenue Agency). 

The following facts are taken from the Satellite Account of Non-profit Institutions and Volunteering report (2007) published by Statistics Canada, updated annually, it is an excellent source for information on the sector in economic context.

Total Nonprofit Sector

  • 6.8% of GDP or more than $86.9 billion this is a greater contribution than the retail trade industry and close to the value of the mining, oil and gas extraction industry

Core Nonprofit Sector (excluding Hospitals, Colleges and Universities)

  • 2.5% of GDP for core nonprofit sector (excluding hospitals, colleges and universities) in 2005 or $31 billion (2008 Satellite Account)
  • This represents more than three times that of the motor vehicle manufacturing industry.

 

The Contribution of Volunteering to GDP

 

Total Nonprofit Sector

  • The value of volunteer work in 2000 was $14 billion or 1.4% of 2000 GDP

Core Nonprofit Sector (excluding Hospitals, Colleges and Universities)

  • Value of volunteer work in 2000 was 1.2% of 2000 GDP or $12.1 billion (86% of volunteer effort)

Sources of Funding for the Sector

Total Nonprofit Sector

  • 49% of total revenues from government
  • 35% from earned income
  • 12% from donations
    • Individuals = $8.4 billion (8% of total revenues)
    • Foundations (also United Ways) = $1.1 Billion (1% of revenues)
    • Corporate gifts and sponsorships = $2.8 billion (3% of revenues)

Core Nonprofit Sector (excluding Hospitals, Colleges and Universities)

  • 36% revenues from government
  • 49% from earned income
  • 17% from donations (11% from individuals, 4% foundations including United Ways), 3% corporate donations and sponsorships)

This uses data from the 2003 National Survey of Nonprofit and Voluntary Organizations (Hall, et al., 2005)

 

Donations

  • Total charitable donations claimed on tax returns in 2007 was $8.6 billion ( this was a 1.4% increase from 2006)
  • 24% of taxfilers claimed donations (but there was a .9% decrease in taxfilers claiming compared to 2006)
  • Total donations of $10.0 billion to charities and nonprofit organizations
  • 84% of Canadians aged 15 and over (22.8 million) made a donation
  • Average annual donation of $437
  • Median annual donation of $120
  • 10% of donors (8% of all Canadians) contribute 62% of all dollars
  • 25% of donors (21% of all Canadians) contribute 82% of all dollars
    (this was compiled from Stats Canada, 2007 CSGVP, Hall, Lasby, Ayer and Gibbons, 2009)

 

Volunteering

  • 46% of population 15 and over volunteer (12.5 million Canadians)
  • Contribute 2.1 billion hours or equivalent of 1.1 million full time jobs
  • Average annual contribution of 166 hours
  • Median contribution of 56 hours
  • 10% of volunteers (4.6%of all Canadians) contribute 54% of all hours
  • 25% of volunteers (12% of Canadians) contribute 78% of total hours

Information from 2007 CSGVP (Hall, Lasby, Ayer and Gibbons, 2009)

 

Research and Reports

Caring Canadians, involved Canadians: Highlights from the 2000 national survey of giving volunteering and participating.  (Hall et al. 2001)  [available online]
The Canadian nonprofit and voluntary sector in comparative perspective. (Hall et al. 2005)  [available online]
Cornerstones of community: Highlights of the National Survey of Nonprofit and Voluntary Organizations (Catalogue no. 61-533-XPE). (Hall et al. 2005). [available online]
Caring Canadians, involved Canadians: Highlights from the 2007 Canada survey of giving, volunteering and participating (Catalogue no. 71-542-XPE). (Hall et al.2009) [available online]
Satellite Account of Non-profit Institutions and Volunteering 1997 to 2005 (Catalogue no. 13-015-X). (Statistics Canada, 2008).  [available online]
Charitable donors : The Daily, November 4 2008. (Statistics Canada, 2008).  [available online]