Mid-summer update 2022
You may have been alarmed by recent news headlines that claim charities are struggling. We tested these headlines with the facts we see.
We just crossed the mid-summer mark and have updated 271 charities. These updates are the most recent financial analysis for charities with fiscal year ends in 2021 and even some March 2022 year ends.
Most charities we analyze are in a strong position to weather a recession or high food and shelter prices. So far, in year-over-year comparisons
62% of charities report an increase in donations
38% of charities report a decrease in donations
Annual results vary. To date, the largest increases in donations are CanadaHelps +$103 million, Federation CJA $62 million and Foodbanks Canada $60 million. The notable decreases are CAMH Foundation -$40 million, Canadian Red Cross -$40 million and WE Charity -$23 million. Canadian Red Cross donations for F2022 will rebound with the $138 million donated for Ukraine appeal.
Looking at the financial health of charities – their balance sheets – we see unprecedented strength. Adding up a charity's cash and investments less any interest-bearing debts, these funding reserves are up 23% to $28 billion for 2021.
This trend isn’t just the largest charities. For charities with donations between $1 million and $5 million – mid-sized charities - funding reserves increased by nearly the same amount, 22%.
These funding reserves will benefit from the Bank of Canada’s interest rate hikes. Their cash holdings will earn more interest. This is the opposite of what some news headlines claim.
Charity Intelligence’s research focuses on 800 Canadian charities that account for 57% of annual Canadian giving. This is a small sample of all of Canada’s registered charities but the charities most Canadians support.
Be sure to read the numbers rather than making a giving decision based solely on news headlines. You can search a charity here on Charity Intelligence’s A-Z listing or use Charity Data’s website to see the charity’s historical annual filing.
Be informed. Give intelligently.
Recent news headlines:
CTV News Vancouver Island, Rising food prices, fewer donations hit Victoria charity as demand for meals increases, July 12, 2022
CBC News, Canadian charities hit by double whammy of rising costs, more demand, July 11, 2022
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Legal disclaimer: The information in this report was prepared by Charity Intelligence Canada and its independent analysts from publicly available information. Charity Intelligence and its analysts have made endeavours to ensure that the data in this report is accurate and complete, but accepts no liability.
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