Tariffs can sound like someone else’s problem. They belong to economists, manufacturers, politicians, and people who understand supply chains.
But the escalating trade war between Canada and the United States will not stop just outside the doors of the charitable and nonprofit sector.
As Bruce MacDonald recently argued in his Hilborn article Disrupted Charitable Services Will Be the Less Visible Impact of Trump’s Tariffs, charities and nonprofits must be part of the broader conversation about the impact of the Canada-U.S. trade war. I agree. But from a fundraising perspective, there is another question leaders must ask: What should organizations do right now?
On August 22, the United States imposed an additional 50 percent tariff on approximately $27.6 billion worth of specified Canadian-origin goods. Canada responded with counter-tariffs of 15, 25 and 50 percent on approximately $27.6 billion in annual imports of U.S.-origin goods. The Canadian measures took effect September 8 and cover sectors including steel, dairy, agricultural equipment, pulp and paper, appliances, and electronics.
Most charities and nonprofits do not trade goods directly. But as businesses, workers and households feel the effects of these increases, the sector will too.
A Three-Way Squeeze
The impact can be understood as a three-way squeeze: higher operating costs, greater demand for services and increased pressure on fundraising as donors have fewer disposable dollars and face tougher choices about where their money goes.
Equipment, technology, paper, food, and capital projects may become more expensive, and suppliers facing higher costs will pass along some increases. Economic uncertainty will also affect communities charities and nonprofits serve, increasing demand just as donors, corporations and governments face competing financial pressures. For many households rising costs may mean less discretionary income available for charitable giving.
A 2025 PricewaterhouseCoopers (PwC) Canada analysis identified the same three risks: reduced funding, higher operating costs and increased demand for services. It estimated that tariffs could reduce charitable giving in 2026 by as much as $100 million relative to pre-tariff expectations. Because the analysis predates the latest escalation, the figure indicates potential sector-wide exposure, not what any one organization should expect.
What Charity Leaders Should Watch and Do
1. Monitor and Optimize Fundraising
Track retention, monthly giving, average gift and acquisition results. Make evidence-based adjustments, not broad cuts that weaken long-term revenue.
COVID-19 showed that organizations that stayed visible and invested in donor relationships were better positioned to come through disruption. The same lesson applies today.
For annual giving, scrutinize channel mix and return on investment. Direct mail remains highly effective, but rising paper and production costs make efficiency more important. Lean into high-performing segments, review formats and paper specifications, and explore alternative suppliers.
At the same time, invest in digital. Strong digital fundraising allows charities and nonprofits to test offers, optimize campaigns, personalize the donor journey and shift investment quickly. The answer is not in choosing between mail and digital. It is building an integrated, donor-first program that can adapt as costs, behaviour and market conditions change.
2. Prepare for Increased Service Demand
Rising requests for help, longer waitlists or growing demand for emergency support can signal community pressure. Track those changes and communicate them clearly to donors and funders.
3. Budget for Higher Supplier and Operating Costs
Review technology, equipment, facilities, food, paper, and capital plans. Canada’s counter-tariffs include products in sectors such as pulp and paper, appliances, and electronics. Explore alternatives, review suppliers, and build more flexibility into next year’s budget.
4. Make a Stronger Case for Support
Never let a good crisis go to waste.
That does not mean exploiting anxiety. It means using a moment of heightened attention to explain, honestly and specifically, why your mission matters.
Donors do not need a lesson in trade policy. They need to understand how economic pressures are affecting the people and communities you serve, what it costs to respond and what their gift can make possible.
If need is growing, say so. If costs are rising, explain why. If more people are turning to your organization for help, tell that story. Share the human impact with empathy, clarity and urgency.
This is not the moment for vague language, passive appeals or overly polite asks. Donors facing competing demands need a compelling reason to make your cause a priority. Be empathetic but also be confident. Make the need urgent, the solution tangible and the donor’s role unmistakable.
Too often, organizations become hesitant to ask when times are uncertain. In reality, periods of disruption can create some of the strongest fundraising opportunities. You don’t ask, you don’t get.
One Last Word
Economic uncertainty changes how we fundraise. It does not eliminate the need.
Stay close to donors. Demonstrate impact. Keep building sustainable revenue.
There will be no shortage of commentary about the trade war in the months ahead. For charity leaders, the more important question is this: How will you use this moment to deepen donor relationships, demonstrate impact and secure the resources your mission needs?
Donors cannot respond to needs they never hear about.
As CEO of Stephen Thomas Ltd (ST) Paula Attfield is passionate about helping nonprofit clients raise more money, particularly in the realm of integrated direct response annual giving. Contact her, PaulaA@stephenthomas.ca
Notes
- Department of Finance Canada. Canada announces targeted countermeasures and substantive support for workers and businesses in response to U.S. tariffs. August 25, 2026. Confirms the U.S. tariffs on approximately $27.6 billion of specified Canadian-origin goods and Canada’s corresponding countermeasures. [canada.ca]
- Department of Finance Canada. List of products from the United States subject to counter-tariffs effective September 8, 2026. Updated August 26, 2026. Details Canada’s 15, 25 and 50 percent counter-tariffs and affected product categories. [canada.ca]
- PwC Canada. The Impact of U.S. Tariffs for Canada’s Not-for-Profit Sector. 2025. Summarized through sector publications reporting three principal nonprofit impacts: reduced funding, increased input costs and greater demand for services.
