Affordability impacting charitable giving

Video: why are we giving less?

A recent Vancity report found the percentage of British Columbians making charitable donations dropped 20% over the last five years.

One-third (32%) report donating less money today compared to three years ago. Of that group, 82% attribute giving less because of financial factors like living on a fixed or low income, the increased cost of living and the state of the economy.

British Columbians also report significant concerns about the economy and their finances:

  • 81% say the affordability of housing in their area has gotten worse in the past three years
  • 69% say their family’s income is falling behind the cost of living
  • 43% say their personal finances are worse than four years ago
  • 38% say affordability of housing has made them less willing to donate over the last three years

Despite this decline in charitable giving, 58% intend to maintain their commitment to the charities they care about, and 40% say financially giving to charitable causes is a priority.

The growing gap between actual incomes and the cost of living presents a real dilemma for British Columbians. Increasingly, individuals and families are relying more heavily on the programs and services delivered by charitable organizations.

As the need for services increases and government support for the charitable sector decreases, individuals find themselves less capable of sustaining their charitable financial commitments (much less expanding them to fill the growing gap).

If you want to donate to a charity or already do, check out our 9 tips for giving charitable donations for tax advice and financial planning tips.

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