As we kick off 2025, charities risk being unprepared for what’s next if they fail to learn from the challenges of recent years. The head of CanadaHelps pinpoints three areas worth investing in to ensure that your charity remains resilient in an increasingly uncertain world.
Somehow the old adage “Fool me once, shame on you; fool me twice, shame on me” feels especially relevant in 2025, as charities risk being unprepared for what’s next if they fail to learn from the challenges of recent years.
With a Trump presidency threatening tariffs on Canadian goods that could throw the Canadian economy into a recession, an unresolved labour dispute between Canada Post and the Canadian Union of Postal Workers, heightened cybersecurity risks, and a Canadian federal election that may pose significant shifts in government funding and priorities, 2025 will undoubtedly be another year of uncertainty and more pivoting that Canadian charities must adapt to.
Having transitioned to the charitable sector after a long career in finance and tech companies, it’s clear to me that charities are not evolving quickly enough to close critical gaps. This leaves these organizations and the communities they serve vulnerable, particularly in the face of unforeseen disruptive events.
As we kick off 2025, there are areas worth investing in to ensure that your charity remains resilient in an increasingly uncertain world.
Diversify your revenue streams – but especially the digital ones
When the early days of the COVID-19 pandemic restrictions cancelled all in-person events, charities that relied on this fundraising tactic scrambled to make up the significant revenue loss. Flash forward to more recent times, the 2024 Canada Post strike halted all direct mail campaigns and mailed-in donations and threatened the existence of some charities that relied on as much as 20% of their annual income through this channel of fundraising. The disruption was a stark reminder of the importance of diversifying both revenue sources and the methods used to collect them to withstand unexpected crises.
The Canada Post strike was a stark reminder of the importance of diversifying both revenue sources and the methods used to collect them to withstand unexpected crises.
In this context, developing strategies to lean on growing giving channels like monthly donations and gifts of securities is crucial.
Canadians are already accustomed to subscriptions that bring value to their lives, whether it’s Disney+, Netflix, or Spotify. Monthly donations work in much the same way; they provide supporters with an easy, predictable way to give while benefiting the causes they care about. For charities, the impact is even greater: monthly giving offers a steady and reliable income stream, even during uncertain times. In 2024, dollars raised via monthly giving grew by nearly 6% year over year, surpassing $75.8 million on CanadaHelps. If your charity is lacking a strategy to grow monthly giving as a revenue source, now is the time to invest.
Another growing opportunity is gifts of securities. Securities donations, which allow donors to eliminate capital gains tax in many cases, are increasingly popular and raised more than $57.6 million on CanadaHelps in 2024, a 39% increase from the year prior.
For charities, this trend represents a golden opportunity. While the average size of securities donations has dipped slightly, the overall growth in dollars raised indicates that more Canadians are exploring this giving option. The work you put toward encouraging securities donations could unlock a new revenue stream for your organization, which could prove to be a lifeline for any future unplanned disruption.
Get your digital house in order
As a charity, you’ve undoubtedly heard the growing call to prioritize digital transformation – a necessity to adapt to shifting demographics and evolving donor expectations. If your organization hasn’t embraced this yet, now is the time to act. The urgency to modernize and innovate has never been greater.
The CanadaHelps 2024 Giving Report highlights a significant shift toward online giving among Canadians. In 2023, more than $430 million was donated through the platform by more than 839,000 individuals, supporting thousands of charities across the country. This data underscores the growing trend of Canadians choosing online platforms for charitable contributions, emphasizing the importance for charities to enhance their digital presence and fundraising strategies.
The urgency to modernize and innovate has never been greater.
Digital transformation is more than the use of certain hardware or software – or being tech savvy; it’s about changing mindset and culture so your charity doesn’t get left behind during this digital era. While the COVID-19 pandemic was a catalyst for many organizations that have been slower to adapt, many charities remain rooted in outdated practices and have been unwilling or unable to set up digital basics for future growth, success, and resilience.
More recently, the Canada Post strike created massive challenges for charities that rely on direct mail fundraising. According to an Ipsos poll conducted for CanadaHelps, 43% of Canadians who traditionally mail donations did not pivot online during the strike last year. However, the same poll revealed that more than a third of Generation Z and millennials did in fact embrace online giving as a modern alternative in place of mailing donations.
It’s true that it takes time to build new skills, habits, and behaviours. However, if charity leaders prioritize digital enablement now, starting with small steps, their organizations will be far better positioned to remain resilient during future disruptive events. CanadaHelps offers a free platform, Charity Growth Academy, for organizations to assess their current state and offers a road map for short- and long-term improvements.
Boost your cybersecurity resiliency
If you are going to embrace digital transformation, boosting your cybersecurity resilience is key. Warnings about cybersecurity threats aren’t new, and neither is the fact that charities of all sizes remain extremely vulnerable. Limited resources, outdated technology, lack of cybersecurity training, and valuable donor data position charities as an attractive soft target to cybercriminals.
According to a report by Imagine Canada, about a third of large organizations and a quarter of medium-sized organizations reported cybersecurity incidents in 2021. Sixteen percent of small organizations experienced a cybersecurity incident in 2021, according to the Imagine Canada report.
A 2023 CanadaHelps report also revealed significant gaps in charities’ understanding of cyber risks and the steps needed to prevent them. Only 15% ranked cybersecurity and data-privacy compliance as their top digital transformation priority. Alarmingly, one in five small charities lack basic data-protection policies, and about one in 10 haven’t taken any steps at all to safeguard against cyber threats.
While specific instances of cyberattacks targeting smaller charities in Canada are not often publicized, they’re not immune. For example, the Hamilton Community Foundation faced this first-hand in 2023, losing more than $920,000 through a sophisticated cyber incident.
Not only would a cyberattack be devastating to those who rely on your services; it would undermine your charity’s reputation and public trust.
Whether it is phishing, ransomware, or a malicious link in your inbox, it is important that your organization has a plan in place to minimize disruption by proactively evaluating and boosting protection against cybersecurity threats before irreparable damage is done. Not only would a cyberattack be devastating to those who rely on your services; it would undermine your charity’s reputation and public trust.
Free assessments and resources exist. The Government of Canada offers foundational tips. Mastercard offers a free cybersecurity assessment for small businesses, which share many of the same challenges as non-profits, and the Cyber Readiness Institute offers a free training program.
Building a strong foundation before the next challenge arises is essential to adapting to the next unplanned event, and by investing in the right areas now, charities can ensure they’re equipped to navigate uncertainty. Preparedness isn’t just about survival; it’s about creating a resilient foundation that allows your organization to thrive in uncertain times. With the new year here, now is the time to act – because while we can’t predict the future, we can prepare for it.
