It’s difficult to gauge exactly how many small non-profits and registered charities operate in Canada. There is great debate on how to define a small shop. Should the definition be based on the number of individuals responsible for fundraising? The operational budget of the organization? The fundraising revenue or the total number of salaried employees? Or should it be a combination of these or other factors?

There is presently little consensus around what constitutes a small shop for fundraising. For the sake of this discussion, a small shop is defined as a non-profit or registered charity with no more than one full-time or part-time professional dedicated to the fundraising function.

There are 170,000 non-profits and registered charities in Canada. Small organizations comprise three-quarters of the Canadian non-profits and employ approximately 168,000 people.^[1] This translates into over 127,500 "small" charitable and non-profit organizations in Canada.

However, the top 1% of non-profits and registered charities take home 60% of the revenue.^[2] On the surface, this doesn’t bode well for small shop fundraisers who struggle on a daily basis to raise the necessary funds to run a shelter for battered women, a dance company for emerging artists, a school for autistic children or an immigrant defence agency.

The DNA of a small shop

Small non-profits have a different DNA than their larger counterparts. The differences are most notable in the management approach, human resources, financial resources, capacity building, networks and access to technology.

Large organizations tend to have greater access to financial resources, networks, volunteers, and visibility. But, they aren’t as nimble and change can be challenging. Multiple levels of management can slow down the decision-making process and be a detriment to fundraising efforts.

Conversely, small non-profits benefit from significant advantages that allow them considerable freedom and that can be the envy of large organizations.

Advantages of small shop fundraising

• Lateral management style
• Fewer (if any) silos
• Collaborative work environment
• Flexible and cohesive
• Less bureaucracy
• Greater team integration
• Very “roll up your sleeves” approach
• Easier to make decisions (less management layers)
• Greater access to Board members and senior management
• Quick to respond to opportunities
• Greater sense of belonging
• More ability to set direction
• Closer connection to the mission and case
• Often times led by visionary founders who are still present 

Despite the advantages, however, small non-profits display less attractive attributes that inevitably pose challenges to fundraising, and often times weaken the organization’s capacity to raise money and to succeed.

Disadvantages of small shop fundraising

• Little to no risk tolerance therefore no innovation
• Reactive rather than being proactive
• Board members and senior management may have less tolerance or appreciation for the ongoing need to invest time and money to building a loyal donor base
• Organizational self-esteem issue (we’re too small thinking)
• Higher risk of burnout by the professional
• High staff turnover
• There are less people to brainstorm with
• Unrealistic expectations
• Lack of human and financial resources to meet fundraising expectations
• Board members may not see the value of hiring a fundraising professional
• Fewer people to help with strategy and planning
• More difficulty prioritizing work or strategies that maximize efficiency 

To survive, the small shop non-profit must grow. To grow, the organization must think beyond the current financial needs and think bigger by focusing on inspiring donors to give bigger gifts and think differently by demonstrating its impact in the community.