Alberta pauses crowdfunding program, raising concerns for smaller non-profits

The Alberta government is pausing its crowdfunding platform, which helped non-profits stretch their cash. Some say the cuts could affect smaller groups.

Alberta’s decision to pause its Crowdfunding Alberta program is raising concerns among non-profit organizations and sector experts, who say the move could disproportionately affect smaller groups already facing financial strain.

The online platform, launched in 2021, allowed charities and non-profits to raise money directly from donors, with the provincial government matching contributions up to $5,000.

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Since its inception, roughly 220 organizations have used the program, raising about $1 million, with the province contributing an estimated $230,000 in matching funds.

Now, with the program on hold and no longer accepting new campaigns, organizations that relied on the matching model say they are losing a flexible and accessible source of funding.

‘You do come to rely on it’

At Bear Valley Rescue Society, a horse rescue operation near Sundre, the impact is already being felt.

President Kathy Bartley says her organization which has been operating since 2003 currently cares for about 150 horses on-site and dozens more in foster homes.

The crowdfunding program had been considered a yearly and reliable funding boost.

“It’s disappointing that it only lasted for five years,” Bartley said.

“It’s a bit of an impact for sure and you do come to rely on it.”

Bartley said the appeal of the program was its simplicity and immediacy compared to traditional grants.

“You could do your fundraiser and once you’ve been approved into the program, it just automatically happens that this added amount of money is there,” she said.

“It’s a nice thing to be able to do, without too much hoping for, it’s just there and you could rely on it.”

That reliability, she added, is particularly important for smaller organizations that may not have the capacity to navigate complex grant applications or wait months for approval decisions.

A lifeline for emergency costs

The program’s impact is perhaps best illustrated by a recent rescue at the organization.

On April 1, Bartley said staff responded to a call about a distressed foal named Stryker who required urgent medical care.

“He went straight to the clinic, he hadn’t received any colostrum, he had no antibodies. He was sick and he had to have a plasma transfusion,” she said.

The foal remained at a veterinary clinic in Calgary for a week, resulting in a significant bill.

Bartley said the timing of their crowdfunding campaign and the matching funds made a critical difference.

“It was just so fortuitous that we had the crowdfunding matching grant at that time,” she said.

“There was that extra $5,000 which ultimately helped us to save this foal’s life.”

Without that support in the future, Bartley now worries similar emergencies will be harder to manage.

“Not being able to get that sort of funding really makes it more difficult when we have these types of emergency situations,” she said.

“It’s just sad that it’s not going to be available.”

Government points to broader funding

In a statement, the office of Arts, Culture and Status of Women Minister Tanya Fir said the crowdfunding initiative was always intended as a pilot project.

“Through Budget 2026, Alberta’s government is investing $70 million in community grants and other programs to support Alberta’s non-profit sector,” the statement said.

“The Crowdfunding Alberta program was a pilot designed to explore different ways to support the non-profit sector in Alberta. There are already many similar crowdfunding platforms available, and the pilot showed there are more effective ways government can deliver meaningful support.”

The province added it will continue to work with the sector and encouraged organizations to explore other grant opportunities.

But some in the sector say grants and crowdfunding serve very different purposes.

Ron Smith, president of the Association of Fundraising Professionals Calgary, said he was “a little surprised” by the decision to pause the program, noting the strong response matching campaigns tend to generate.

“It’s commonly known that Albertans love matching funds,” Smith said.

“It is incredible actually to see the response that we get as charities whenever there’s a matching pool put into place.”

He adds that the program helped smaller charities access matching funds they might not otherwise be able to offer.

“To a smaller organization, raising $5,000 can be a difficult thing to do, so there will be an impact,” he said.

Smith also noted the program played a role in engaging younger donors.

“Some of the younger donors, they typically support crowdfunding and kick-starting and things like that at a much greater level,” he said.

“So this does give them the opportunity to participate.”

While the province’s $70-million commitment to community grants is significant, Smith said it likely comes with more formal processes and competition.

“With funds of that size, there is a grant application process, people that review these applications and look for the greatest impact,” he said.

That shift, he added, could pose challenges.

“The reality is that there are less funds available for an increasing number of charities overall,” Smith said.

‘A rounding error’ for government, but not for charities

Experts say the financial impact of the program may be relatively small for the province, but meaningful for organizations on the ground.

David Ohreen, an associate professor at Mount Royal University, said the government’s contribution to the program is modest in the context of overall spending.

“It costs the government roughly around $230,000 so it’s really a rounding error,” he said.

“But from a non-profit point of view, it could have a particular impact, for sure.”

Ohreen said the crowdfunding model also offered a key advantage: reducing administrative burden.

“You don’t have to spend time and money filling out particular kinds of grants, which can be very time consuming,” he said.

“What you want is your staff and your frontline workers to actually be helping people in need.”

He added the move could also affect donation patterns, particularly for smaller groups.

“Within the nonprofit sector in Alberta, about 22 per cent of all of the revenue comes from individual donations for charities,” Ohreen said.

“Individual donations make up 50 per cent of the revenue generated. So again, this crowdfunding program is part of that mix, and it could have an impact, especially on smaller nonprofits.

Sector already under pressure

The change comes at a time when Alberta’s non-profit sector is facing mounting challenges, with many organizations already struggling to keep up with demand.

The sector employs an estimated 314,000 people and contributes about $6.2 billion to the province’s GDP, with volunteer work adding billions more in value.

Data from the 2025 State of the Sector report from the Nonprofit Chamber suggests many of the pressures facing organizations have not eased.

The report notes that many organizations are operating with limited resources, employing fewer than five employees and more than half have no paid staff.

Non-profits across Alberta continue to see rising demand for services, driven by economic instability and affordability challenges as well.

Food banks across the country, for example, recorded their highest-ever number of visits in March 2025 — roughly double the levels seen in March 2019.

According to Statistics Canada, more than half of Alberta non-profits reported increasing demand in 2023, while capacity largely remained the same or declined.

The Nonprofit Chamber’s survey found 68 per cent of respondents said their ability to meet demand is a challenge.

“Without structural changes to funding and workforce conditions, these challenges will continue to hinder the ability of nonprofits to meet rising need and deliver on their missions,” the report states.

Rising costs are also compounding the strain.

Even as inflation has eased, organizations report tight budgets, flat or stagnant core funding, and increasing administrative demands, forcing difficult trade-offs, particularly for small and mid-sized groups.

Workforce pressures remain another key concern.

The report found 41 per cent of organizations cite staff recruitment as a challenge, while 46 per cent report difficulties recruiting volunteers.

Burnout and mental health strain remain widespread across the sector, particularly among frontline workers.

At the same time, 72 per cent of non-profits say their capacity has either stayed the same or decreased, despite 52 per cent reporting increased demand for services.