Giving Is Up, But Donors Are Down. Here’s What Canada’s “Generosity Gap” Means for Your Charity
There’s a good-news headline in Canadian philanthropy this year, and a worrying story hiding underneath it. The good news: online donations through CanadaHelps reached $529 million in 2025, up 10% over the previous year: the biggest annual jump since the pandemic surge. The worry is that money is coming from fewer and fewer people. Donations of $100 or less fell 17% between 2020 and 2025, and less than half a percent of donors accounted for more than 16% of all giving. Zoom out further and the trend is a decade long: the share of Canadian tax filers who donate to charity has slipped from roughly 22% in 2013 to under 17% in 2023.
Sector researchers have a name for this: the “generosity gap.” More money, from a smaller, older, wealthier group of donors. For a large hospital foundation, concentration at the top can be manageable. For a small or mid-sized community charity (the kind we work with every day), it’s a structural risk. When your base narrows, a single lapsed major donor or a tough economic year can put real strain on your mission.
The bright spots worth leaning into
The same research points to exactly where the momentum is, and it plays to the strengths of community-rooted organizations:
Local giving is booming. Donations to local and regional charities have nearly tripled since 2019, reaching $121.8 million in 2025. Canadians increasingly want to support causes they can see in their own communities.
Monthly giving has doubled. Recurring donations through CanadaHelps grew from $51 million to $93 million between 2020 and 2025, and the share of donors giving monthly has doubled to more than 15%.
New donors are still arriving. Nearly 30% of donors in recent campaigns were giving for the first time.
Friction is the enemy. Across the board, donors give more when giving is easier. Clunky donation pages and long forms quietly cost you gifts.
Five things to focus on now
You can’t single-handedly reverse a national trend, but you can build a donor base that’s more resilient to it. In order of impact:
Treat retention as job number one. Keeping a donor is far cheaper than finding a new one, and it’s the single best defense against a shrinking pool. A simple, warm welcome series for first-time donors and a genuine second-gift ask will move the needle more than another acquisition push.
Make monthly giving a core strategy. Every one-time donor is a candidate for a monthly ask. Sustainers give you predictable revenue and, on average, far more over their lifetime.
Reduce friction everywhere. Review your donation page on a phone. Count the clicks and form fields. Make it easy for donors to give.
Welcome local and younger donors on their terms. Community-based, digital-first, and cause-specific messaging is where the growth is. Traditional appeal language alone won’t reach them.
Don’t over-rely on your top donors. Be grateful for major gifts, and deliberately invest in the broad, everyday base that keeps you independent.
Where does your donor base stand?
If you’re not sure whether you’re gaining or quietly losing everyday donors, that’s worth knowing before your next campaign. V Formation helps small and mid-sized charities read their own numbers, build retention and monthly-giving programs, and design donation experiences that convert. Reach out for a conversation, we’d be glad to help you find your footing.