Skip to main content

Policy priority: Grants and Contribution

collage of charities
Policy priority: Core funding to support nonprofit missions, resilience and impact

The federal government frequently relies on the sector to deliver crucial programs and services but very rarely allows nonprofits to use its funding to cover essential core costs.

Why it matters

Nonprofits, like businesses and government, have basic core operating costs such as insurance, rent, and computers that they must cover in order to function. When nonprofits are reliant on project-based funding and cannot access core funding to cover these essential costs, it negatively impacts the quality of services they can offer their community, the employment conditions of nonprofit workers, and the long-term sustainability of their organizations.

Did you know?
  • Jumping from one project-based contract to another shifts the focus away from developing and improving the quality of programs and services or building organizational sustainability. Ultimately, this negatively impacts the communities that nonprofits serve. 
  • 77% of nonprofit workers are women, 47% are immigrants and 34% are racialized and Indigenous. The prevalence of short-term project funding and underfunding leads to low wages, few benefits and precarious work for our workforce.
  • Core funding is a crucial tool to help the nonprofit sector prepare for and weather crises, such as public health emergencies and economic downturns, when communities need the sector more than ever.
Our Ask
  • Reclassify 30% of all current project-based funding that is destined for charities and nonprofits to be eligible as core funding.
  • Improve project-based funding as recommended in the 2019 Catalyst for Change Senate Report. 
  • Take an equity approach to the provision of core funding to address historical inequities.
Stay in the know with our policy & advocacy newsletter
Get the latest in policy, advocacy and research news impacting the nonprofit and charitable sector. Our weekly Early Alert newsletter is curated to deliver the most important Government announcements, legislative updates, data, calls for policy or RFP submissions, advocacy campaigns, and opportunities to get involved in policy and advocacy.