Programs on the chopping block as B.C. charities face funding crisis

Those working in the non-profit industry in B.C. say they’re facing a crisis.

Many who work in B.C.’s non-profit industry say they’re grappling with a decline in donations paired with a growing demand for their services – forcing them to make challenging financial decisions.

Lisa Curry, the executive director of Megaphone Magazine, said the charity and social enterprise is looking at a potential deficit of around $50,000 this year.

“We lost some major funding,” Curry said.

“We’re also seeing funders pulling back, and we’re worried more about the individual donations that we rely on every year because a lot of people are struggling.”

Megaphone produces a community-driven publication, and trains about 150 people who are living in poverty to sell the magazine to earn an income.

Curry said the charity has already had to reduce staffing hours.

“It’s looking like a lot of non-profits will have to cut key programs, at the same time that poverty and homelessness are growing across the country,” she said.

‘Tragic situation’

Megaphone isn’t the only charity facing uncertainty.

Only a few blocks away on East Hastings Street, Potluck Cafe Society is at risk of closing if it doesn’t raise $100,000 over the next few weeks.

Maz Artang, a board director with the Downtown Eastside catering company, said donations have dried up, and the charity is down about 35 per cent in revenue.

The social enterprise trains and hires people with barriers to employment.

The thought of closing the organization would be tragic, Artang said, as it would force some who have been working there for decades to start over in a tough job market.

“These are jobs with dignity, with rights and responsibility,” Artang said. “It’s just a tragic situation.”

Industry calls for help

In September, around 200 non-profit leaders signed an open letter asking for help to stabilize the sector, pointing to issues around funding.

“Most funding is short-term, project-specific, and highly restricted,” the letter said.

“It rarely covers basic operating costs like salaries, rent, or administration.”

Zahra Esmail, the CEO of Vantage Point, a non-profit that supports others across the sector in B.C., said many in the industry are struggling with how to respond.

“The callout really is to say, you know, we need some help,” she said.

“We want to show up for our community in so many different ways. I think communities, governments, foundations, partners and our neighbors want us to show up also. So, it’s a question of, how do we all gather together to create the solutions that we know will help communities be stronger, healthier, and better connected?”

Esmailsaid it’s crucial for the sector to be recognized for the important work it does.

“Because if we’re not seen as essential, and if cuts are made in our sector, the impacts will be felt by communities for the next many, many years,” she said.

‘A crisis’

An affordability crisis during a weakening economy is placing even more pressure on the industry, according to one economist.

“When there’s unemployment, when wages are stagnating, when things are very uncertain, and there is still an affordability crisis for everyone, donations are less than they used to be,” said Iglika Ivanova, an economist and the co-executive director of BC Policy Solutions.

“In fact, people who used to donate are now coming up as clients, at the food bank or one of these other organizations providing services.”

She said in her two decades of experience, she’s never seen the industry in such a dire situation.

“There’s been downturns and even the financial crisis,” she said. ”But I feel like what’s happening to the nonprofit sector now is different, it really is more of a crisis.”