Our goal is to catalyze improvements in the Ontario nonprofit sector’s funding environment by advocating for the reform of the sector’s investment relationship with government and the removal of barriers for nonprofits to earn income.
Channelling the purchasing power of the public and nonprofit sectors to provide further benefits for local communities.
A community hub can be a school, a neighbourhood centre or another public space offering coordinated services in education, health care and social services.
Beyond administrative modernization, the sector grapples with a range of funding challenges and trends, such as funding levels (including cost-of-living increases and investments for innovation/systems change work), investment in core mission support, changing modes of funding and the need for data and evaluation capacity to measure outcomes. Because of the power dynamic with funders, nonprofit advocacy on funding reform is best conducted as a collective effort. Our work on funding reform involves not just the Ontario government, but also municipal and federal governments, charitable foundations and private funders.
Provincially, the nonprofit sector is a $50 billion economic driver which generates 5.2% of Ontario’s gross domestic product and employs a million people. Rather than extracting shareholder profit, nonprofits leverage government and other investments via earned income, donations, and volunteer hours to promote community benefit throughout the economic sectors in which they are active. The growth of nonprofit social enterprise is constrained by our regulatory environment, that restrict opportunities. Investment in nonprofit social enterprise (loans, grants, and tax incentives) should be expanded to help this sector grow.
We’ve been watching the development of social impact bonds (SIBs) and the interest surrounding them for some time. SIBs as currently designed are not sustainable for the nonprofit sector unless they include the delivery organization in contract negotiation, program and evaluation design, ensure full cost recovery and include revenue sharing for the nonprofit. Find out more about our work developing SIB policy principles from a nonprofit perspective.
Funding agreements (called “transfer payment agreements”) with the Ontario government take up a significant amount of nonprofits’ administrative capacity, especially when it comes to financial accountability and budget constraints. There is a need to simplify and streamline application processes, budget templates, and reporting requirements.