Ontario’s nonprofits and charities are facing a triple threat as a result of COVID-19: an abrupt loss of revenue from the cancellation of fundraising events and a steep drop-off in donations; the closure of offices and cancellation of programs and services due to pandemic restrictions; and unprecedented human resource challenges in terms of both paid staff and volunteers.
The Ontario Nonprofit Network conducted a flash survey to examine how organizations across Ontario are being impacted by the COVID- 19 pandemic.
Nonprofit leaders are concerned about the safety of their employees, many of whom are front-line staff with insufficient access to personal protective equipment (community workers, personal support workers, child care workers, and shelter staff). Leaders are also deeply worried about the capacity of their organizations to carry out their missions amid the crisis.
Arts organizations are having to cancel shows, recreation centres have been shut due to the state of emergency, and front-line social services and residential homes are struggling to provide services safely without access to adequate testing and personal protection equipment (PPE). Catering, courier, and retail social enterprises that employ people with disabilities have had to close up shop. Food banks are running low on provisions and volunteers. The situation is dire.
But, even in the face of what are challenging times, nonprofits remain resilient, working on the frontlines to support their communities they serve in an unparalleled time of need.
Key findings
Operations
Over three-quarters of respondents have experienced disruption of services to clients and communities.
Almost one in five nonprofits have closed their doors - at least for now - because of the pandemic or are making plans to do so.
Revenue
Close to 75 percent of respondents have seen reduced revenue from fundraising, with the hard-hit arts sector reporting an 81 percent reduction in ticket and event sales.
The impact of the COVID-19 pandemic will cost almost half (43 percent) of organizations between $50,000 and $249,999 each. Another 10 percent estimate the financial impact to be $1 million or more. Seventeen percent estimate the impact on their organization at less than $50,000.
Of those that are continuing operation during Ontario’s state of emergency, one in four (27 percent) indicated that they would need less than $50,000 of emergency funding to remain operational. A small minority (7 percent) indicated they would need over $1 million to continue to meet (often increasing) demand.
Human Resources
Nonprofits are experiencing staff and volunteer absences of 35 percent (45 percent in the social services sector) due to concerns about contagion in doing their work. Many respondents from nonprofits performing essential services, including community health organizations and long-term care homes, commented on a lack of personal protective equipment (PPE).
One third (36 percent) of respondents indicated that their organization has either reduced hours for workers or have had to lay off staff. The pandemic and state of emergency have been particularly devastating for workers in arts and culture, sports and recreation, child care, and nonprofit social enterprises.
To read the full report, click here.
ONN is the independent nonprofit network for the 58,000 nonprofits in Ontario, focused on policy, advocacy and services to strengthen Ontario's nonprofit sector as a key pillar of our society and economy. ONN works to create a public policy environment that allows nonprofits to thrive. We engage our network of diverse nonprofit organizations across Ontario to work together on issues affecting the sector and channel the voices of our network to governments, funders, and other stakeholders.
