A new report released by Pillar Nonprofit Network (Pillar) reveals growing concern among nonprofits across Southwestern Ontario over the potential impact of U.S. tariffs on their operations and sustainability. Based on survey responses from nearly 100 organizations, the Tariff Survey Analysis shows that nonprofits are bracing for increased costs, reduced funding, and deeper instability if tariff threats are realized.

The report, titled Nonprofits Under Pressure: Surveying Local Sector Concerns Amid U.S. Tariff Threats, highlights how rising costs, declining charitable donations, and reduced government support are exacerbating the already significant financial strain on community organizations. “We’ve seen a sharp shift in confidence from the end of 2024 to early 2025,” said Victor Igboanusi, Policy Analyst at Pillar. “Tariffs have become the latest in a series of economic disruptions that nonprofits are expected to absorb—without sufficient support or recognition from decision-makers.”

Among the findings:

• Over 65% of nonprofits expect increased costs due to tariffs
• More than half anticipate a decline in both government funding and charitable donations
• Many report potential impacts on staffing, volunteerism, and service delivery
• Smaller nonprofits are especially vulnerable and reliant on sector networks for advocacy and support

The report also outlines specific recommendations to local and provincial governments, including:

• Establishing a dedicated government office for the nonprofit sector
• Transitioning to long-term operational funding
• Including nonprofits in local economic response and procurement strategies

Pillar’s CEO, Maureen Cassidy, emphasized the role of nonprofits as critical infrastructure. “This sector represents more than 8% of Canada’s GDP and delivers essential services. The impacts of trade policy aren’t just economic—they're deeply social. Our communities will feel them.”

The report is part of Pillar’s ongoing efforts to provide evidence-based advocacy and ensure nonprofits have a voice in policy decisions that affect them.

Download the full Report.