The Problem to Solve: Financial Vulnerability in Canada’s Non-Profit Sector

Canada's non-profit sector is a cornerstone of our economy and communities, with the financial resilience of non-profits and charities being key to their ability to deliver impact for good. Despite facing financial and organizational challenges, there is currently no standardized, evidence-based way to measure, track the financial resilience of non-profit organizations, or their capacity to sustain and deliver impact.  

Without robust outcomes-based measurement, funders, governments, policymakers and sector leaders also lack the intelligence needed to identify risks early, target interventions effectively, strengthen organizational resilience and measure whether investments are improving outcomes for non-profit organizations, and the people and communities they serve over time.

At the same time, individual non-profit organizations have no standardized way to understand, benchmark or track their own financial resilience over time, recognize emerging vulnerabilities or identify the actions, programs, resources and supports that can help them maintain or strengthen their financial resilience, overall resilience and sustainability. Ultimately, this weakens efforts to build a stronger, more resilient non-profit sector, and a more resilient Canada, while affecting the individuals, families and communities served by non-profits and charities.

Financial Resilience Institute is committed to helping to solve this problem in collaboration with strategic partners and funders and in line with our Purpose: Building financial resilience and well-being together. This aligns closely with our Vision: A better world where financial health and resilience strengthen overall resilience and well-being.

The Non-Profit Financial Resilience Initiative

The flagship initiative is a flagship, the first of its kind Canadian Initiative offering an opportunity to drive positive change across the non-profit sector through innovation and collaboration.

Vision

A stronger, more financially resilient non-profit sector with the capacity to deliver sustained impact for Canadians and their communities.

Purpose

Catalyze collective action to transform how non-profit financial resilience is understood, measured and strengthened across Canada. Under the Financial Resilience Institute’s leadership, a leading Non-Profit Financial Resilience Index and robust sector evidence can support outcomes-focused reporting, targeted advocacy, responsive policy and program development, helping non-profits thrive and communities to become more resilient and thrive.

Led by Financial Resilience Institute and involving a select number of leading foundations and financial institutions that are strategically committed to and interested in non-profit financial resilience, we will be developing a world-leading Non-Profit Financial Resilience Index and providing independent reporting for the ecosystem, combined with a free score tool and resources.

This Initiative will give non-profits and key sector players the ability to understand, measure and act to work to maintain or improve their financial resilience and overall resilience in meaningful ways. This will complement the existing sector building work, leadership and impact work being progressed by leading organizations working to build a more resilient non-profit sector.

At a time where funding is scarce and other challenges are evident, the Initiative will help equip funders, policymakers, social finance leaders and non-profit organizations themselves strengthened ability to be financially resilient, and in turn maintain, accelerate or strengthen the impact they provide over time to by the individuals, families and communities they serve across Canada.

If you are interested in learning more about this Initiative, please contact Katie Sutter, Senior Impact and Engagement Consultant at katie@finresilienceinstitute.org.