Pandemic presents ‘challenging time’ for charities and those who rely on their services

Impact of COVID-19 on charities Bruce MacDonald, President of Imagine Canada joins CTV News to discuss the impact the COVID-19 pandemic is having on Canadian charities.

HALIFAX — The COVID-19 pandemic has hampered the ability of charities to fundraise at a time when many of them are in high demand.

Bruce MacDonald is the CEO of Imagine Canada, an organization representing the nation’s non-profits. He says the charitable sector isn’t constructed for a crises of this sort.

“Most charities don’t have reserves, and if they do, they are not very deep. It is also difficult for charities to get bank loans,” says MacDonald.

“Revenues are absolutely down, but the first issue for charities is cash to make sure they can keep those vital services going.”

MacDonald says the lack of cash and reserves has forced many organizations to close their doors or lay off employees. Layoffs can be especially challenging, as physical-distancing guidelines during the pandemic are preventing volunteers from stepping in to help in ways they once would have.

“Imagine Canada has done some work and it’s our estimation that, if this were a six-month social-distancing lockdown combined with a severe recession, we’d be looking at 194,000 jobs in the charitable sector affected by layoffs,” says MacDonald.

“So it’s a challenging time, not just for the organization, but more importantly, for the people who receive those services.”

The most immediate effect on charitable organizations is the cancellation of events during the COVID-19 pandemic, according to MacDonald.

“One of things that we are hoping is that people who are able, if their financial situation still allows, that maybe they convert that event ticket for a now-cancelled event … to a donation, rather than asking for their money back,” says MacDonald.

If you are not able to donate, MacDonald says there are a variety of ways you can volunteer.

“I know that organizations are looking to adapt to working in a virtual way and not all of them are set up to do that. If there is IT professionals from companies who are now working from home, they might be able to donate their time and talent to help organizations sort of make this pivot,” says MacDonald.

“Of course, if people are still able, it would be wonderful for our donors to maintain, or if they can increase their support, because we know it is slipping in other areas.”

MacDonald says Imagine Canada, and a collective of other organizations, has requested a stimulus package from the federal government to ensure charitable organizations don’t have to close their doors.

“We’ve asked for part of that stimulus package to be grant funding, dollars that could go out the door to organizations to help them operate and we would be specifically looking to make sure that organizations of all sizes would be able to benefit from that,” says MacDonald.