Women’s Support Organizations and Current Fundraising Conditions
Women’s Support Organizations and Current Fundraising Conditions
Introduction
Almost two years since the onset of the COVID-19 pandemic, the effects of the crisis are still being deeply felt by many charities across the country. An August 2021 survey by Imagine Canada shows how the pandemic continues to challenge the non-profit sector and suggests that recovery will be challenging for many organizations.
The uneven pandemic: Many charities continue to be severely affected while others are doing alright
· More than 4 in 10 charities are still facing declines in revenue
· Among these charities, the average revenue decline is 44%, unchanged since the last survey in late 2020, and more than half are dealing with revenue declines of more than 40%
· On the other hand, about a third of charities are now reporting that their revenues are about the same as before the pandemic and almost a quarter report increased revenues
These findings mirror what is going on in the economy as a whole, with some industries affected by the pandemic far more than others and some of those affected likely to take much longer to recover than others. Revenues in the travel industry, for example, plummeted in 2020 and will likely take years to recover as many would-be travellers are deterred by financial concerns, complex and ever-changing entry requirements, and continued fear of the virus. Revenues in other industries were less affected to start with and are already showing strong signs of recovery (e.g., manufacturing).
This is what economists describe as a K-shaped recovery. In this scenario, after a recession, some industries recover, while others stagnate or continue to decline.
56% of charities are struggling and their recovery is at risk
There are two groups that are still struggling and whose recovery is at risk:
· Charities that have seen a significant decline in demand, largely because they have been unable to operate and therefore deliver most or all of their programs and services due to public health restrictions (14% of all charities).
· Charities that are facing demands for their programs and services that exceed their capacity to deliver (42% of all charities).
44% of charities are coping better and already recovering
The charities in this group report that they are keeping up with demand.
Charities that are struggling because of a significant drop in demand due to the fact that they are largely unable to operate
· Arts, culture, and recreation organizations are more likely than other types to be in this category, as are smaller organizations and organizations that rely on earned income
· 82% of organizations in this category report decreased revenues and the average decline is almost 46%
· Among arts, culture, and recreation organizations in this category, the average revenue decline is 59%
Organizations in this category have, in many ways, been hardest hit by the pandemic. They have been largely unable to operate for more than a year because of the measures put in place to combat the pandemic. Examples include performing arts centres, museums, music festivals, organizations that operate health and fitness facilities, and organizations that deliver in-person programming of various types for children, seniors, the disabled, and others.
More than 80% of these organizations are reporting decreased revenues. Although their expenses have also decreased, the reduction in expenses rarely matches the reduction in revenues. This is because most organizations continue to have significant, ongoing costs (e.g., mortgage, rent, insurance, bookkeeping, payroll, audit, IT infrastructure) that must be paid regardless of their ability to operate. For these organizations, the situation hasn’t improved in the past year and is as critical now as it has ever been. Recovery for them will likely be long and slow and some will not survive.
Likely due to vaccination efforts ramping up and the gradual lifting of restrictions across the country, these organizations are slightly more optimistic about the future when it comes to demand: about two fifths say they think demand will increase in the next three to six months.
Charities that are struggling because demand for their programs and services exceeds their capacity to deliver
· This category is more likely to include mid-sized and large organizations and less likely to include arts, culture, and recreation organizations; in other ways, it is very diverse
· Half of organizations in this category report decreased revenues, with the average decline being just under 16%
· More than two thirds expect demand to grow even further but less than half expect their capacity to increase
During the pandemic, more Canadians turned to charities for assistance and support. As a result, the sector as a whole has been experiencing a steady increase in demand for the programs and services it provides. More than a year since the start of the pandemic, almost half of organizations are reporting an increase in demand, up from about a third a year ago. Moreover, 60% say they expect demand will continue to increase, with almost 20% saying they anticipate the increase will be significant.
Increased demand for programs and services is not necessarily problematic. It becomes a problem only when organizations are unable to expand their capacity to meet the greater demand. Unfortunately, this is what has happened to many organizations during the pandemic: demand increased and their capacity to meet it either did not increase at all or did not increase sufficiently. In Imagine Canada’s most recent survey, two fifths of charities were in this category, compared to one third a year ago.
Most charities in this category do not expect their situation to change in the near future. Fully 70% say they expect demand to continue to increase but only half anticipate any improvement in their capacity to meet this growing demand.
Staff and volunteers in these charities are likely overworked, tired, and stressed. Even more troubling is that many people are not receiving all the services they need and/or may be waiting much longer than usual for support. New clients may not be able to receive services at all. Canada is likely to be dealing with the consequences of these unmet needs for many years to come.
What does the future hold?
· Almost 1 in 4 charity leaders believe their organizations will not be able to operate for more than a year; this rises to 1 in 3 among charities that have experienced a collapse in demand due to public health measures
· The majority of charity leaders expect the financial health of their organizations to remain about the same for the next few months but 1 in 7 now say they expect it to improve (up from 1 in 14 late last year)
· Most leaders predict staffing levels will remain the same (59%) or increase (25%) over the next few months
Organizations’ experiences during the pandemic strongly colour their predictions for the future. Those that have experienced a significant decline in demand are more likely than others to say they won’t be able to operate for more than 12 months; their financial health is likely to worsen; and the number of staff and volunteers in their organizations will decrease.
Those that have been dealing with demand/capacity imbalances are somewhat more optimistic. Most say they can continue operating for more than 12 months or for an indefinite period; their financial health is likely to remain the same, at least for the next few months; and their staff and volunteer numbers are also likely to remain unchanged.
Charities that have been able to keep up with demand for their programs and services are the most optimistic. Almost three quarters say they can continue to operate for more than 12 months or indefinitely and their financial health will likely remain the same for the next few months. They are also more likely to predict increases in staff, although not in volunteers.
These findings suggest that, just as charities have had diverse experiences during the pandemic, they are likely to have diverse experiences during the recovery. Some are already on the road to recovery. Others are likely to struggle for some time to come.
Ripple effects: Impact on staff’s mental health
· Half of organizations have increased the time and resources they dedicate to their employees’ or volunteers’ mental health and wellness
· However, just over one third have an Employee Assistance Program or a similar resource to support employees or volunteers
The pandemic has had a significant impact on the mental health of many Canadians, and non-profit staff and volunteers have not been spared. The pressure of increased demands and stresses of layoff and lost revenue is undoubtedly taking a toll on the sector’s workforce.
The survey shows that organizations have stepped up to ensure the wellbeing of their staff. Almost half of organizations have increased the time and resources they dedicate to their employees’ or volunteers’ mental health and wellness since the beginning of the pandemic. However, only 36% currently have an Employee Assistance Program or a similar resource to support employees or volunteers, which indicates that some workers and volunteers requiring assistance may not receive the support they need.
This is even more concerning as 77% of the non-profit workforce are female workers, and studies have shown that women have been disproportionately affected by the pandemic, as they often have to juggle childcare, or caring for other family members, in addition to work.
What a struggling charitable sector means for communities
When charities are unable to deliver services and programs, and can’t keep up with demand, it means that some individuals don’t receive the support they need. Demand is expected to continue to increase in the coming months, as people start to re-engage with their communities. Facilities such as community centres and libraries are reopening, and various programs will be available again soon.
Among the charities struggling the most are organizations that have not been able to continue their activities up until now. When these charities resume their programs and services, they will seek to increase their revenue sources. Other organizations that have been experiencing revenue declines will also need support, including charities that rely on earned income activities for funding. It may take a long time before some people are comfortable participating in activities in group settings and attending large events. As a result, there is a strong possibility that we will see increased competition for funding, notably for donations. At a time when donations are needed more than ever, Imagine Canada’s previous Sector Monitor report as well as CanadaHelps’ recently released Giving Report show troubling declines in overall giving.
While Canada is poised for reopening and recovery, their revenue models mean that many charities will take longer to recover than the rest of the economy. This is especially true of organizations that are already lagging behind. Government support measures, which many organizations have been relying on to continue to offer services and programs, are expected to end with the economy reopening. This may create a funding gap for charities, pushing many to a breaking point even after the pandemic is largely over. With demand likely to reach an unprecedented high post-pandemic, this poses a serious challenge for charities and the communities they serve.
Overview of Fundraising for Women’s Support Organizations
Many women’s organizations that help women survive are themselves now struggling to survive due to the financial pressures caused by COVID 19. The cancellation of fundraising events, the closing of thrift stores, and the economic downturn, with its subsequent deleterious impact on charitable giving, employment, and endowment and RRSP values, has forced non-profits to seek new and creative ways to fundraise. Moreover, increases in domestic violence during the pandemic have put a strain on resources and service delivery.
The pandemic has been particularly devastating for the social services enterprise sectors in terms of loss of earned income. These organizations are unable to effectively meet their core mandate through remote work and virtual programming. This not only leaves many employees — including disadvantaged workers — unemployed, but it also leaves many who rely on services for their mental health and wellbeing without support.
Charities report that domestic violence is intensifying under lockdown and women and their families need additional support to find safety and support. Often during a crisis, pre-existing inequities and challenges in communities surface or are intensified. The consequences regarding the issues and problems society faces will be reliant on the programs and services provided by the knowledgeable and professional people within the sector. If the sector is allowed to falter, people who are most in need of their support will suffer.
Foodbanks, mental health supports, and shelters have received important support from governments during the pandemic. However, a recent study by Imagine Canada found that four out of five Canadians are either unsure or pessimistic about Canada’s economic recovery after COVID 19.
Kathryn Babcock, the CEO of capitalW and a leading revenue strategist for the advancement of women, has proposed five fundraising areas for shelters to focus on in the short term:
Build a response with existing partners; many people are searching for meaning and ways to help and even if they are not able to help, this is a way to honor their past support
Move to virtual events
Improve donor stewardship
Emergency grants; shelters are excellently situated to benefit from these resources
Support sector initiatives (e.g. Imagine Canada)
In terms of on-going resilience, Babcock makes the following recommendations:
Build capital reserves
Migrate to online fundraising and build skill levels in this area
Offer donor opportunities to support capital improvements (for future pandemic challenges, etc.)
Look at social enterprise opportunities
Non-profits play a significant role in fostering a healthy democracy, fostering social cohesion, facilitating meaningful political dialogue, and mediating citizens’ participation in the democratic process. Vulnerable and marginalized communities are impacted the most in this crisis and non-profits can give voice to groups who may be silenced or cannot raise their voice. Non-profits are ideally positioned to make space to understand inequities that exist among vulnerable groups – such as women, people of colour, immigrants, and people with lower-income status. This is the space needed to find solutions that can best level the playing field.
As past research on the large-scale disasters of the 2016 Fort McMurray wildfires and the 2013 Calgary floods have shown, communities must collaboratively negotiate the recovery process and formulate policies with the government. Research from the Fort McMurray wildfires finds that factors related to reduced organizational capacity, such as staffing capacity, knowledge, and financial capacity during the recovery period, reduced organizations’ ability to participate in recovery decision-making activities. As we shift from response to recovery during the COVID-19 crisis, the capacity of organizations plays a large role in their ability to provide programs and services to the community, access equipment to keep employees and clients safe, and advocate on behalf of the sector and their organization to ensure recognition and support.
Fundraising is a core part of maintaining a financially healthy non-profit and it must continue during an emergency, with an effective pivot. As the priorities of donors and the community experience a drastic shift, non-profits will benefit from building a compelling case to demonstrate the impact of the emergency on their operations. Recent reporting shows that organizations targeting their fundraising efforts specifically to the effects of the pandemic on their organizations and the people they serve are having success in their efforts.
Past experiences in difficult times have many lessons to offer non-profits in managing fundraising efforts in a crisis. This list of suggestions from Mal Warwick, former chairman of Social Venture Network and a co-founder of Business for Social Responsibility, may help with managing fundraising in challenging times:
Strengthen your case for giving. A crisis is a good opportunity to reassess your case for giving and communicate the urgent need for funds – as well as the specific need for those funds.
Stick with what works. While your messaging and funding requests will likely need to recalibrate, this is not a time to get rid of all strategies that work for your organization.
Cut costs with a scalpel, not an ax. All non-profits will be looking at cost-saving measures as they experience the economic downturn as a result of the global pandemic. Fundraising efforts must continue to maintain financial health, and any cost-cutting in this area needs to be considered in the context of long-term planning.
Fish where the big fish are. This recommendation comes with the suggestion to segment your donors based on giving history so that fundraising efforts can yield a higher return for an investment of time and money. If your organization already has a segmentation plan, this is a good time to target donors with a greater history of giving.
Be attentive to your donors. Resist the temptation to assume that your donors will know your organization is working to address the needs of your clients and communities. Communicate regularly, with attention given to the current context and with an understanding that donors also have pressing needs in their own lives.
Do your due diligence. Research prospective donors and personalize your communications.
Step up your efforts online. With current limits on group gatherings and a shared respect for people’s health and well-being, online fundraising efforts are more important now than ever. If your organization does not already have it, now may be the right time to invest in technology to better support online fundraising efforts.
Break down the silos. It might seem like a counter-intuitive suggestion to coordinate fundraising with other organizations, but there is some precedent for that in Calgary. The RESOLVE campaign saw nine housing and homeless organizations collaborate to raise capital funds, which made it possible to provide housing support for more than 1,800 Calgarians. This initiative was prompted by funding organizations and saw a more efficient effort to raise funds for much-needed housing, without multiple agencies submitting multiple applications for the same dollars. In the current context, non-profits might want to seriously consider how they can work together to raise support for their causes.
Shelters and Pandemic Recovery
Resent research conducted by Women’s Shelters Canada’s (WSC) found that violence against women (VAW) shelters/transition houses (THs) were facing many challenges before the pandemic. These included funding, staffing, capacity, and service delivery challenges affecting shelters/THs from coast to coast. Shelters/THs located in rural, remote, and northern regions, many of which are Indigenous, were particularly challenged due to isolation and the high costs of living, transportation, and consumer goods.
It is likely that the pandemic has caused or exacerbated existing trauma to people served, as well as staff. Whenever and wherever possible the shelter system must be trauma-informed. Regaining control over activities, decisions, and choices is essential for people’s recovery and must be honoured in engagement.
A recent survey by WSC found the majority (66%) of respondents said they will continue some of the practices they have put in place during the pandemic when it is over. Many comments suggested that the pandemic allowed them to “think outside the box” and “become more empathetic and creative.”
Among the responses, some emerging practices stood out. Many commented that they would continue to provide remote services and were looking to expand their virtual, texting, and telephone capacities. For emergency VAW shelters, several said they would continue to prepare all meals for residents so that physical distancing and safe food handling could be maintained. Respondents indicated that pandemic planning, stocked personal protection equipment, and maintaining handwashing were health and safety practices that would remain.
The pandemic has prompted many emergency shelters/THs to rethink their physical space, including shared bedrooms and bathrooms and communal spaces. While the VAW shelter/TH sector has been having these conversations for some time, the pandemic has “caused us to seriously look at alternative shelter options.” Several listed self-contained units with ensuites or apartments as an ideal model. This would require significant capital investment and advocacy with funders to recognize and fund this need.
Several respondents explained the positive outcomes of remote staffing, which they planned to keep in place following the pandemic – “We have worked in two teams alternating days in the office with days out. This way, if one member of a team becomes ill, we will still be able to deliver services. The days at home have allowed us to do telephone calls and keep up with the case files better than we have ever been able to and have reduced the stress on staff in dealing with extreme cases all the time.” With innovation and the courage to capitalize on emerging opportunities, the housing support system can emerge from this situation stronger and better than before the pandemic hit.
Overall, VAW shelters/THs are working in incredibly challenging and ever-changing environments as the pandemic persists. However, they have continued to keep countless women and children safe, both from violence and from COVID-19, in what some have called the double pandemic. Creating a system of care that diligently espouses evidence informed, strength based, and person-centred design, processes, and practices is the opportunity that exists in each Canadian community in the post-disaster reality.
Conclusion
The non-profit sector’s immediate role and invaluable work have never been more visible than they are now. However, while organizations continue to deliver necessary services, a change in operations as a result of the pandemic means that many non-profits can no longer fill other essential roles, such as providing social cohesion and connection – which represents a significant loss for people who rely on these for social well-being. Physical distancing rules have meant a change in operations for many organizations that can no longer provide the kinds of connections that they previously did, compounded by a decrease in various sources of revenues, such as event cancellations. As a result, not only are many non-profits faced with revamping how they deliver services, they are also seeing an increase in demand for those services in a time when their revenues and abilities are decreasing.
Many current issues are emerging for non-profits that reflect past economic challenges and give some guidance as to what actions the sector can take during these exceptional circumstances. A human resources crisis, a financial crisis, and the illumination of the inequities that are leaving some people more vulnerable to the effects of this pandemic are all issues that must be addressed.
It is quite probable that government budget cuts and austerity measures will follow when the pandemic subsides making it all the more important for the future success of private fundraising efforts. It is crucial that governments at all levels and those in the private sector are made to understand that domestic violence is a community public-health issue and financial support is needed to provide full services for individuals and families experiencing violence.
In order to reduce and eventually end violence against women, communities need to address immediate needs while also working on long-term change. All non-profits are seeking new opportunities to build support during challenging times. How to react and rebuild when the bottom falls out is something that those who work with women’s shelters are experts at and they can use that expertise and experience to lead and build resources.
For Further Information
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