Trends in the Nonprofit Sector for Q4 2024

Imagine Canada recently shared their findings on trends affecting charities and nonprofits for the final quarter of 2024 in a blog post by Emily Jensen, What trends will impact charities and nonprofits in the last quarter of 2024?.

The nonprofit sector continues to navigate a complex economic landscape, marked by lingering effects from the COVID-19 pandemic, and we’re seeing similar impacts within the arts & culture sector.

While some positive signs emerge, including declining inflation and easing labour market pressures, financial challenges persist for many organizations. The sector faces ongoing pressure to secure funding for core operations, while simultaneously grappling with increased demand for services. As organizations strive to meet these needs, they may find themselves constrained by limited resources and capacity.

To address these challenges, Young Associates offers specialized financial solutions tailored to the unique needs of the nonprofit/charitable and arts and culture sector.

For a deeper understanding of how you can plan for upcoming challenges impacting the sector, consider purchasing Finance for the Arts in Canada: a unique Canadian reference guide, self-study resource, and textbook for the accounting and financial management functions in not-for-profit cultural organizations. Equip yourself with the knowledge you need to succeed!

The Average vs the Median Revenue of Canadian Registered Charities

The Canadian charity sector is a diverse landscape, ranging from small, grassroots organizations to large, well-established institutions. While the sector is often perceived through the lens of a few high-profile organizations, the reality is that most charities operate on modest budgets. Despite their size, every charity, big or small, relies on sound financial management to ensure their sustainability and impact.

To gain a deeper understanding of the sector, it's essential to examine the average and median size of Canadian charities.

Mark Blumberg runs down the numbers for us in this recent article.

While the mean revenue provides an overall picture, it can be skewed by a few large organizations with exceptionally high revenues. A more accurate representation of the "typical" charity can be obtained by looking at the median revenue, which is less susceptible to outliers. By analyzing these metrics, we can better appreciate the diverse nature of the Canadian charity sector and the challenges and opportunities faced by organizations of all sizes.

Finance for the Arts in Canada can help you and your organization better understand your financial footing and maintain solid financial management.

New Report from ONN on the Future of the Nonprofit Sector

The Ontario Nonprofit Network (ONN) has recently issued a stark warning about the state of the nonprofit sector. Their publication, "Creating bold, thriving, sustainable nonprofit leadership requires disruption" paints a picture of a sector under siege. The pandemic and its aftermath have exacerbated an already precarious situation, with the nonprofit labour force facing a significant crisis. Increased competition, both within and outside the sector, coupled with decreasing resources and shifting external threats, are driving many to leave. The relentless demand is leading to burnout among those who remain. 

To address these challenges, ONN argues for a sector-driven, collaborative approach that combines decent work and labour force strategies. They emphasize the need to pool resources and avoid reinventing the wheel organization by organization. 

Three key takeaways emerge from the report: 

• a shift in leadership mindset, 

• collective mobilization, 

• and the operationalization of good practices. 

At Young Associates, we believe that education is crucial in developing future nonprofit leaders. Heather Young’s book, Finance for the Arts in Canada, offers a valuable resource for those looking to strengthen their financial knowledge and skills. 

What are your thoughts on the challenges facing the nonprofit sector and the proposed solutions?