The ONN 2026 State of the Sector survey is the seventh annual bilingual survey conducted by ONN.
The 2026 State of the Sector survey is the seventh annual bilingual survey conducted by Ontario Nonprofit Network (ONN). Since 2020, the core purpose of the survey has remained consistent: to identify and share the state of the sector at a given moment in time, track sector trends, and provide explanations for changes (or lack thereof). It also provides the sector, and other key interest holders, access to consistent, credible, disaggregated data about Ontario’s nonprofits.
Ultimately, the data is collected, shared, and used to increase the ability of nonprofits to influence systems shaping the sector’s landscape in Ontario. This policy report highlights the context shaping the sector’s responses in 2026 and broad trends informed by the last 7 years of data. It ends with policy recommendations for the Ontario government, alongside calls to action for the nonprofit sector and the public.
This year’s report shows how a focus on preparedness during uncertainty is framing its survey findings in the form of indicators that evaluate the health of the sector year-over-year, through crises and beyond. With these indicators – capacity and demand, revenue and expenses, access to and use of reserve funds, human resources, volunteers, and risk of nonprofit closures – we hope to underscore the health of the sector and ultimately the health of Ontario’s communities.
A total of 741 organizations filled out the survey this year, without which the survey would not be possible nor credible.
Key findings from 2026
Highlights from the 2026 State of the Sector survey:
- Demand is slowing, but is still at a high level, causing some improvements in capacity to meet demand. 77 percent of nonprofits report an increase in demand for services, while 60 percent report they can only somewhat meet demand
- Expenses are outpacing revenues as revenues continue to flatline and decline and expenses plateau, at a high level. While 44 percent of nonprofits report revenue increases, 84 percent of nonprofits report increases in expenses. Just under a third (31 percent) of respondents do not have access to a reserve fund, and over a third (34 percent) have used their reserve funds
- HR crisis persists. 53 percent report staff recruitment and retention challenges. Nearly half of the respondents (47 percent) report using volunteers to fill staffing gaps
- Volunteer crisis is growing. 45 percent report volunteer recruitment and retention challenges, with board members being the most difficult roles to fill
- Risk of nonprofit closures at all levels is not improving. 59 percent of nonprofits report being at low risk of not existing in the next three years
- Nearly 2 in 10 nonprofits report experiencing hostility against their missions in the past year or prior to April 1, 2025
Evolving megatrends
Ongoing economic turmoil is driving financial pressures and shaping key organizational decisions amidst sustained, elevated demand.
A weakening social safety net for Ontarians is creating a domino effect in the sector.
Overlooking the nonprofit sector. The current federal and provincial public policy landscape is focused on bolstering the economy with traditional methods (e.g. resource extraction, stimulating male-class job sectors), and is overlooking the nonprofit sector’s needs, priorities, and potential during times of crises.
Shorter time between crises, such as raging wildfires, increasing poverty, anti-equity social unrest, continue to require quick organizational pivots without sufficient support, diminishing the sector’s capacity to respond.
The rapid integration of AI technology in the day-to-day lives of people is fuelling adoption pressures on nonprofits of all missions and sizes.
Deepening polarization, backlash to equity, global rise in far-right movements, and measures undermining democracy are all threatening progressive social policy gains and protections that nonprofits and communities have championed.
“I believe the power of the NFP sector is more important today as we see a continued lack of understanding of the GDP that this sector produces and the level of service that is often more fiscally efficient than the corporate sector but which is generally underpaid and overworked.”
Actioning 2026 survey results
Policy recommendations by the ONN for the provincial government:
- Create a home in government for nonprofits and charities.
- Remove red-tape in transfer payment agreements.
- Establish targeted, short-term stabilization grants for nonprofits in regions most susceptible to economic turmoil.
Our call to action for nonprofits is to engage in collective advocacy:
- Build diverse advocacy networks around shared, burning issues.
- Use the survey results to turn up the volume on sector health.
The sector’s organizations can join ONN’s collective advocacy efforts by sending a letter to your MPP about supporting a home in government and participating in our funding reform coalition. The ONN is inviting all Ontarians to use this template to write a letter to your local MPP and tell them why nonprofits are vital to your community.
Read the full report and survey results.
