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On Friday, March 26, 2004 a headline in the Ottawa Citizen read: “Funding crisis puts charities on edge.” There is no doubt that concerns about non-profit organizational sustainability have been increasing across the country over the past five years, because of declining revenues from traditional sources such as governments, foundations, and United Ways; a growing number of registered charities; increasing competition for donors and community funds; and increasing costs and demands for services.
Organizational sustainability, however, is not just about financial issues. Non-profit organizations now operate in a much more complex environment. Attention has to be paid to changing Provincial legislation and regulations such as those regarding employee standards, privacy protection, and health and safety issues. Reporting as a charity is more demanding. Accountability expectations are expanding and changing to outcome-based approaches. Many non-profits are unionized and have to live within the frameworks of collective agreements. Insurance coverage is more difficult to find, and risk management takes more time, particularly after the decisions of the courts regarding vicarious liability.
Further, over the next decade, trends in Canadian society will have significant impacts on how non-profit organizations can best operate and be sustainable. Examples would be changing demographics and projected labour skill shortages; and, the changing social values and attitudes of young people, and projected shifts in volunteering and giving.
It is easy to fall into gloom and despair. However, a number of non-profit organizations, including Big Brother Big Sister agencies and Boys and Girls Clubs, have discovered new approaches to sustainability that are successfully working for them.
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