Canada’s charitable sector is being asked to do more and deliver to more people with limited resources. Canadian charities face many of the same financial and operational challenges as their global peers, but they also contend with uniquely Canadian requirements and funder expectations.

Nearly half of Canadian nonprofits (49%) report pressure from funders to quantify impact even when meaningful measurement is not always possible, compared to 29% globally. In response, organizations are placing a stronger focus on building relationships with individual donors – their top engagement priority (46%, vs. 28% globally). Long-term giving also remains a defining feature of the Canadian landscape, with 60% of organizations receiving support through wills, legacies, and endowments, more than double the global average (29%).

Aligning with global trends, demand for services from Canadian charities continues to outpace capacity. Most organizations report increased demand over the past year, and many expect that trend to continue. In response, charities are taking action, with 39% reporting they are prioritizing services by need and 33% hiring more staff where possible. While many express confidence in their ability to weather short-term disruptions, fewer feel their funding mix is diverse enough to offset the loss of a key revenue source, highlighting the need for more sustainable and flexible funding.

Despite these pressures, the sector benefits from a solid foundation. Three-quarters of Canadian organizations report strong networks with other organizations, and 89% of those say these relationships are important to achieving their goals. Collaboration is widely viewed as a strength, with 78% believing civil society in Canada works well together for the greater good. This reflects the strong culture of generosity and civic participation that has long characterized communities across Canada. At the same time, leaders acknowledge that day-to-day demands often leave too little time for long-term planning, network building, and strategic growth.

Overall, the findings point to a sector that remains resilient despite growing pressures. Nearly two-thirds of Canadian organizations (64%) consider the sector healthy, citing its strong culture of giving, active civil society, and ability to adapt to challenges. Continued investment in flexible funding, organizational capacity, and leadership development will be critical to ensure nonprofit organizations can meet community needs in the years ahead.