The strike at Canada Post hit many Canadian charities like an earthquake, crumbling the investments they had made in their end-of-year direct mail fundraising campaigns, leaving a financial hole that will be hard to recover from, especially at the most important time of the year for fundraising at organizations across the country.
It is unplanned events like this and the COVID-19 pandemic in recent years that have acted as a stark reminder that digital is the present and future key to success for Canadian charities to survive and effectively deliver their vital programs and services such as food, shelter, healthcare, and so much more.
The earthquake aftershock that charities may not withstand stems from the results of a new Ipsos poll commissioned by CanadaHelps which highlights how nearly half (43 percent) of Canadians who typically mail their donations reported that they would not be shifting to online giving despite the postal disruption this holiday season. This couldn’t come at a worse time as most charities raise the bulk of their fundraising dollars at the end of the year. At CanadaHelps, Canada’s largest online donation and fundraising platform, we process approximately 40 percent of the nearly half a billion dollars we raise annually in November and December, making it a consequential time for the health and vitality of charitable programs to sustain themselves year-round.
At Distress Centres of Greater Toronto, for example, their team provide crisis and suicide intervention and prevention and recorded more than 145,000 interactions with people who reached out for their services last year. As their direct mail campaign represents 22 percent of their annual revenue, their services could be impacted without those critical funds.
At TB Vets Charitable Foundation, an organization providing critical respiratory equipment, research and education in British Columbia that relies on a high volume of mailed-in gifts, donations are already down 20 percent compared to last year. The organization has had to lay off their seasonal staff in the middle of their largest annual campaign, straining their ability to serve the community.
This isn’t the first time that Canadian charities have had to scramble to pivot from offline to online fundraising methods. During the onset of the COVID-19 pandemic, our team at CanadaHelps had charities from across the country banging down our doors for support to level up their online fundraising suite or just simply get online.
While we support the call by the charitable sector to extend the tax deadline because of anticipated mail delivery delays, it is critical that charities transition offline supporters to online means before the next crisis hits. The work will include transitioning reluctant supporters, but also embracing opportunities for new ways of giving, and also engaging a new generation of Canadians.
Subscription Giving is Gaining Momentum
The growing popularity of subscription-based donations, also known as monthly giving, offers several advantages for both Canadians and charities. For supporters, it simplifies the process, making it easier to budget and manage their contributions. For charities, subscription giving provides a predictable revenue stream, enabling better resource planning and sustained support for communities year-round. Online platforms have been pivotal in driving this trend, offering supporters a seamless way to set up and manage monthly contributions with just a few clicks.
In 2024, subscription-based giving continued to gain traction among Canadians, with monthly donations increasing by nearly 6 percent year-over-year, totalling more than $75.8 million on CanadaHelps as of November 15th. This trend reflects a broader shift toward convenience and commitment, as Canadians embrace the flexibility and impact of regular contributions online.
Capturing the Next Generation of Canadian Supporters
Another major area of investment for charities is going to be engaging the next generation of supporters. Younger Canadians, particularly Millennials and Generation Z, are leading the way in adopting modern, online giving practices. According to our Ipsos poll, 33 percent of these younger supporters shifted to online donations during the Canada Post strike, compared to just 28 percent of older generations (Generation X and Baby Boomers). This generational divide highlights an important opportunity for charities to invest in digital engagement strategies to build lasting relationships with younger audiences.
Embracing Digital Innovation in 2025
As we look to the year ahead, Canadian charities that prioritize digital transformation and embrace subscription giving in the new year will be better positioned to weather future disruptions. With days left until the clock strikes midnight and we ring in a new year, Canadians who care about the essential work done by charities can help them recover from the strike, and invest in their future work, by making a gift online before the December 31st tax deadline.
Duke Chang is the President and Chief Executive Officer of CanadaHelps.
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