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The Nonprofit and Voluntary Sector in Ontario

Regional Highlights of the National Survey of Nonprofit and Voluntary Organizations

Authors: Katherine Scott Spyridoula Tsoukalas Paul Roberts David Lasby

ImagineCanada,2006 CopyrightforTheNonprofitandVoluntarySectorinOntario:RegionalHighlights fromtheNationalSurveyofNonprofitandVoluntaryOrganizationsiswaivedfor charitableandnonprofitorganizationsfornoncommercialuse.Allcharitable andnonprofitorganizationsareencouragedtocopyanddistributethis document,withproperacknowledgementtotheauthorandImagineCanada. FormoreinformationaboutImagineCanadasResearchProgram,pleasevisit www.imaginecanada.ca. ImagineCanada 425UniversityAvenue,Suite900 Toronto,Ontario CanadaM5G1T6 Tell:416.597.2293/1.800.263.1178 Fax:416.597.2294 research@imaginecanada.ca ISBN:1-55401-178-7
ThisresearchwassupportedbyfundingfromtheVoluntary SectorInitiative(VSI)throughtheSocialDevelopment PartnershipsProgramofSocialDevelopmentCanada(SDC). Theviewsexpressedinthispublicationdonotnecessarily reflectthoseoftheGovernmentofCanada.

The Nonprofit and Voluntary Sector in Ontario Regional Highlights from the National Survey of Nonprofit and Voluntary Organizations By Katherine Scott, Canadian Council on Social Development Spyridoula Tsoukalas, Canadian Council on Social Development Paul Roberts, Canadian Council on Social Development David Lasby, Imagine Canada

Table of Contents
TableofContents............................................................................................................. i ListofFigures ................................................................................................................ iii ListofTables.................................................................................................................... v ExecutiveSummary .......................................................................................................vi Introduction ..................................................................................................................... 1 Methodology.................................................................................................................... 2 KeyCharacteristics ......................................................................................................... 3 HowmanyorganizationsarethereinOntario? ...................................................... 3 Whatdoorganizationsdo?......................................................................................... 4 WhodoOntarioorganizationsserve? ...................................................................... 6 GeographicReach .................................................................................................... 6 PopulationServed.................................................................................................... 7 WhatroledomembersplayinOntarioorganizations? ......................................... 9 FinancialResources ...................................................................................................... 12 HowisrevenuedistributedacrossOntarioorganizations? ................................ 13 HowdoOntarioorganizationsgeneraterevenue?............................................... 16 Whatisthemixoffundingamongsubsectororganizations?............................ 17 Howdosourcesofrevenuesvarybysizeoforganization? ................................ 21 Howmuchrevenueistransferredtootherorganizations? ............................. 22 Howmuchdoorganizationsrelyoninkinddonationsofgoodsand services?................................................................................................................... 22 WhatisthepatternoffinancialresourcedependencyamongOntario organizations?......................................................................................................... 24 Howdidrevenueslevelsvarybetween2000and2003? .................................. 25 HumanResources ......................................................................................................... 28 Volunteers ................................................................................................................... 29 HowmanyvolunteersworkinOntarioorganizations? .................................. 29 Wheredovolunteerscontributetheirtime? ...................................................... 29 Whichareasofthenonprofitandvoluntarysectordrawthegreatest numbersofvolunteers?......................................................................................... 31 Howhavevolunteernumberschangedbetween2000and2003? .................. 33 Arechangesinrevenueslinkedtochangesinvolunteerlevels?.................... 34 PaidStaff ..................................................................................................................... 35

Ontarios Nonprofit and Voluntary Sector

Howmanypeopleareemployedinthenonprofitandvoluntarysectorin Ontario? ................................................................................................................... 35 Arepaidstaffmorelikelytoworkfulltimeorparttime,oronapermanent ortemporarybasis? ............................................................................................... 36 Whichareasofthenonprofitandvoluntarysectoremploythegreatest numbersofpaidstaff?........................................................................................... 37 Wherearepaidstaffconcentrated? ..................................................................... 38 Howhaveemploymentlevelschangedbetween2000and2003? .................. 40 Arechangesinrevenueslinkedtochangesinemploymentlevels? .............. 42 Whatistheconnectionbetweenstaffandvolunteernumbers? ..................... 43 OrganizationalCapacity .............................................................................................. 45 Doallorganizationssharethesamecapacityproblems? .................................... 46 Doesthesourceoffundingaffectorganizationalcapacity? ................................ 51 Howdoesprimaryareaofactivityaffectcapacity?.............................................. 55 Conclusions.................................................................................................................... 63

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List of Figures
Figure1:Percentageoforganizationsandnumberoforganizationsper100,000 populationbyregion ................................................................................................ 3 Figure2:Percentageoforganizationsbyprimaryactivityarea ............................... 5 Figure3:Maingeographicareasserved....................................................................... 6 Figure4:Populationserved............................................................................................ 8 Figure5:Membershipcomposition............................................................................... 9 Figure6:Primarybeneficiariesofservicesorproducts ........................................... 10 Figure7:Percentageoforganizationsandpercentageoftotalrevenuesbyregion .................................................................................................................................... 12 Figure8:Percentageoforganizationsandpercentageoftotalrevenuesby primaryactivityarea............................................................................................... 14 Figure9:Percentageoforganizationsandpercentageoftotalrevenuesby revenuesize,excludingHospitals,UniversitiesandColleges ......................... 15 Figure10:Sourcesofrevenue ...................................................................................... 16 Figure11:Sourcesofrevenue,excludingHospitals,UniversitiesandColleges.. 17 Figure12:Sourcesofrevenuebyprimaryactivityarea........................................... 18 Figure13:Sourcesofgovernmentrevenuebyprimaryactivityarea .................... 20 Figure14:Sourcesofgovernmentrevenuebyrevenuesize,excludingHospitals, UniversitiesandColleges....................................................................................... 22 Figure15:Percentageoforganizationsreceivinginkinddonationsbyregion ... 23 Figure16:Revenuedependencybyregion ................................................................ 25 Figure17:Reportedchangeinrevenuesoverthepastthreeyearsbyregion ...... 26 Figure18:Reportedchangeinrevenuesoverthepastthreeyearsbyrevenue dependency .............................................................................................................. 27 Figure19:Percentageoforganizations,percentageofvolunteers,andpercentage ofpaidstaffbyregion............................................................................................. 28 Figure20:Percentageoforganizationsbynumberofvolunteers .......................... 30 Figure21:Percentageoforganizationsandpercentageofvolunteersbyrevenue size ............................................................................................................................. 31 Figure22:Percentageoforganizationsandpercentageofvolunteersbyprimary activityarea .............................................................................................................. 32 Figure23:Reportedchangeinvolunteersoverthepastthreeyearsbyregion.... 34 Figure24:Reportedchangeinvolunteersoverthepastthreeyearsbyreported changeinrevenues.................................................................................................. 35 Figure25:Percentageoforganizationsandpaidstaffbyprimaryactivityarea.. 38 Figure26:Percentageoforganizationsandpaidstaffbyrevenuesize ................. 39

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Figure27:Percentageoforganizationsandpaidstaffbyrevenuesize,excluding Hospitals,UniversitiesandColleges.................................................................... 40 Figure28:Reportedchangeinpaidstaffoverthepastthreeyearsbyregion...... 41 Figure29:Reportedchangeinpaidstaffoverthepastthreeyearsbynumberof paidstaff ................................................................................................................... 42 Figure30:Reportedchangeinpaidstaffoverthepastthreeyearsbyreported changeinrevenues.................................................................................................. 43 Figure31:Reportedchangeinvolunteersoverthepastthreeyearsbyreported changeinpaidstaff ................................................................................................. 44

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List of Tables
Table1:Detailedsourcesofrevenue........................................................................... 19 Table2:Percentageoforganizationsthatreceiveinkinddonations..................... 23 Table3:Approximatevalueofinkinddonationsreceivedbyorganizations...... 23 Table4:Numberofpaidstaff....................................................................................... 37 Table5:TopthreeseriousproblemsforOntarioorganizations ........................... 46 Table6:Financialissuesbyrevenuesize ................................................................... 47 Table7:Externalfundingissuesbyrevenuesize...................................................... 48 Table8:Paidstaffissuesbyrevenuesize ................................................................... 49 Table9:Volunteerissuesbyrevenuesize .................................................................. 50 Table10:Structuralissuesbyrevenuesize ................................................................ 51 Table11:Financialcapacityissuesbyrevenuedependency ................................... 52 Table12:Paidstaffissuesbyrevenuedependency .................................................. 52 Table13:Volunteerissuesbyrevenuedependency ................................................. 53 Table14:Structuralissuesbyrevenuedependency ................................................. 53 Table15:Externalfundingissuesbyrevenuedependency..................................... 54 Table16:Externalfundingissuesbyprimaryactivityarea..................................... 56 Table17:Financialissuesbyprimaryactivityarea .................................................. 57 Table18:Paidstaffissuesbyprimaryactivityarea.................................................. 58 Table19:Volunteerissuesbyprimaryactivityarea................................................. 59 Table20:Structuralissuesbyprimaryactivityarea ................................................. 60 Table21:Severityofcapacityproblemsbyactivityarea ......................................... 61

Ontarios Nonprofit and Voluntary Sector

Executive Summary
Organizationswithinthenonprofitandvoluntarysectorprovideawiderangeof essentialservicesandprogramsthattouchvirtuallyallaspectsofsocietysocialjustice, sport,environment,health,faith,artsandculture.Over45,000organizationswerein operationin2003,369organizationsper100,000population. ThetwolargestareasofactivityareReligion(23%oforganizations)andSportsand Recreation(16%oforganizations).OntariohasalargershareofReligiongroupsand organizationsinvolvedinGrantmaking,FundraisingandVoluntarismPromotionthan theCanadianaverage.Bycontrast,thereareproportionallyfewerSportandRecreation groupscomparedtotheaverageforCanada. AsistruefortherestofCanada,mostnonprofitandvoluntaryorganizationsinOntario servetheirlocalcommunities,althoughOntariohasarelativelylargeshareof organizationswithanationalandinternationalreach. ThenonprofitandvoluntarysectorinOntariocommandsasubstantialeconomic presence.Ontarioorganizationsreported$47.7billioninannualrevenuesin2003.This represents43%ofallrevenuesgeneratedbyallorganizationsacrossCanadaatotalof nearly$112billion.TotalsectorrevenuesinOntarioarehighlyskewed.Hospitals, UniversitiesandCollegesaccountforlessthan1%ofallorganizationsbutreceived38% oftotalsectorrevenuesin2003.Indeed,Ontariohasacomparativelylargenumberof organizationsinthetoprevenuebracketcomparedtootherregionscombined,including manyinHospitals,UniversitiesandColleges(38versus33%). In2003,governmentswerethelargestsinglesourceofrevenueforOntariononprofit andvoluntaryorganizations,providingjustunderhalf(45%)ofallrevenuesreceived. Earnedrevenues(36%)anddonationsandgifts(15%)weremuchsmallersourcesof revenuefororganizationsinOntario.Largeorganizations,particularlythosein HospitalsandUniversitiesandColleges,dependongovernmentastheirprimarysource offunds.Forthisgroup,70%ofrevenuescomefromgovernmentwhereastheremaining amountcomesfromothersourcessuchasmembershipsandthesalesofgoodsand services.Bycontrast,giftsanddonationsareanimportantsourceofrevenueamong smallergroups,asmeasuredbyannualrevenues. Ontarioorganizationsengagethelargestnumberandshareofpaidstaffandvolunteers inCanada.Ontarioorganizationsemploy47%EofallsuchpaidstaffinCanada,more thantwiceasmanyasQuebecwith23%andAlbertaandthePrairies,eachwith9%.In

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Ontario,justunderonemillionpeople15%oftheactiveworkforce1were employedinnonprofitandvoluntaryorganizationsin2003. FortypercentofallvolunteersareengagedwithOntariovoluntaryorganizations, comparedto23%EinQuebecand13%inAlberta.Theoverallnumberofvolunteers reportedbyorganizationsis7.8million,representingroughly400,000boardvolunteers and7.4millionnonboardvolunteers.Thesesubstantialnumbersresultinpartfromthe factthatvolunteersoftenvolunteerformorethanoneorganization. Justasthedistributionofrevenuesisskewed,soisthedistributionofvolunteersand staff.Largerorganizationstendtohavelargerstaffandvolunteercomplementsthan smallerones.Forinstance,morethanhalfofthevoluntaryandnonprofitorganizations inOntario(53%)havenopaidstaffandarewhollyvoluntary. AsistrueforCanadaasawhole,thereappearstobetwodistinctrealitiesinthe nonprofitandvoluntarysectorinOntario.Atoneextreme,overhalfofOntario organizationsoperatewiththeassistanceofvolunteerswithverylowrevenuesinareas suchasSportandRecreationandReligion;attheotherextremethereareanumberof verylargeorganizationswithsignificantrevenues,staffandvolunteercomplements. Ofcourse,thechallengesfacingeachgrouparedistinct.Nevertheless,themajorityof organizationsclearlyreportproblemswithacquiringadequateresources,whether humanorfinancial.Ontarioorganizationsexpressedconsiderableconcernabouttheir capacitytopursueandsustaintheirgoalsandactivitieswithinthecontextofachanging social,politicalandeconomicenvironment.Boththelevelandstructureofavailable supportareidentifiedaskeyissues.Aswell,therearesignificanthumanresources concerns,mostnotablywiththeabilitytoretainpaidstaffandtorecruitthetypesof volunteersneeded. Largeorganizationsdependentongovernmentfunding,suchasthoseworkingin Hospitals,UniversitiesandColleges,HealthorSocialServices,aremostlikelytoreport problemsacrossarangeofareas,despitetheirpositiverevenuegrowthandreported increasesinbothvolunteersandpaidstaff.Atthesametime,organizationsinthetwo largestsectorsReligionandSportsandRecreationdonotappeartobeexperiencing thesamelevelofdifficulty. Thenonprofitandvoluntarysectorisavitalcontributortooursocialandeconomic qualityoflifeinOntario.Thesectordeliversmanycriticalservicestocommunities acrosstheprovinceandplaysakeyroleinbringingtogetherandengagingcitizens. Unfortunately,manyorganizationsinOntariofaceseriouscapacitychallengeswhich impedetheirabilitytofulfilltheirmission.TheNSNVOdataprovidesinsightintothe

1StatisticsCanada,LabourForceSurveyHistoricalReview,2003.CDRomCatalogueNo.

71F0004XCB Ontarios Nonprofit and Voluntary Sector

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characteristicsandchallengesofnonprofitandvoluntaryorganizationinOntario,and presentsuswithanopportunitytoaddressthosechallenges.

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Introduction
ThenonprofitandvoluntarysectorhasbeendescribedasthethirdpillarofCanadian societyanditseconomy.2Organizationswithinthesectorprovideawiderangeof essentialservicesandprogramsthattouchvirtuallyallaspectsofoursocietysocial justice,sports,environment,health,faith,artsandculture.Theyplayacriticalrolein promotingactivecitizenship,supportingeconomicandcommunitydevelopment,and advocatingonbehalfofdiversecommunitiesandcausesestablishingconnections betweencitizens,communitiesandgovernmentsthatbuildsocialcapitalandsustain democracy. NonprofitandvoluntaryorganizationsinOntariohavearichhistory,datingbackover 100years.Historiesoftheprovinceidentifythecentralrolethatcharitableandother communitybasedvoluntaryorganizationsplayedinitssocial,culturalandpolitical development.Today,anestimated45,360incorporatednonprofitsandregistered charitiesoperateintheprovinceinmanydifferentfieldswithinlargediverseurban areasaswellasruraldistrictsandvillages. Untilrecently,however,therewaslittleawarenessofthesectoringeneral,thetypesof activitiesorganizationsengagedin,ortheregionalsimilaritiesanddifferencesacross Canada.TheNSNVOallowsustoexplorethesequestionsforthefirsttime. Inthisreport,wepresentanoverviewofthenonprofitandvoluntarysectorinOntario, includingbasicinformationaboutitscomposition,itsfinancialresourcesandthepeople engagedinitsactivitiesasvolunteersandpaidstaff.Inthelastsection,weexplorethe capacitychallengesthatorganizationsareexperiencingintheireffortstopursuetheir missions.

2LiberalPartyofCanada,RedBookII,1997.

Ontarios Nonprofit and Voluntary Sector

Methodology
NSNVOdatawerecollectedbyStatisticsCanadaviapersonalinterviewswith13,000 individualsrepresentingincorporatednonprofitorganizationsandregisteredcharities3 in2003.TheNSNVOdefinesnonprofitandvoluntaryorganizationsas: nongovernmental(i.e.,areinstitutionallyseparatefromgovernment); nonprofitdistributing(i.e.,donotreturnanyprofitsgeneratedtotheir ownersordirectors); selfgoverning(i.e.,areindependentandabletoregulatetheirownactivities); voluntary(i.e.,theybenefittosomedegreefromvoluntarycontributionsof timeormoney);and formallyincorporatedorregisteredunderspecificlegislation4with provincial,territorial,orfederalgovernments.

Symbols:
Thefollowingsymbolshavebeenusedinthispublication: * E SuppressedtomeettheconfidentialityrequirementsoftheStatisticsAct. Usewithcaution.

3Registeredcharitiesareorganizationsthathaveobtainedregisteredcharitablestatusfromthe

GovernmentofCanada.
4TheNSNVOexcludedgrassrootsorganizationsorcitizensgroupsthatarenotformally

incorporatedorregisteredwithprovincial,territorial,orfederalgovernments.Italsoexcluded someregisteredcharitiesthatareconsideredtobepublicsectoragencies(e.g.,schoolboards, publiclibraries,andpublicschools) Ontarios Nonprofit and Voluntary Sector 2

Key Characteristics
How many organizations are there in Ontario?
Therewere45,360nonprofitandvoluntaryorganizationsoperatinginOntarioin2003, representing28%ofallorganizationsinCanada(seeFigure1).Theseorganizations includebothregisteredcharitiesandincorporatednonprofits.5Ontarioissecondonlyto Quebecinnumberoforganizations,yetgiventhesizeofOntariospopulationover12 millionin2003therearefewerorganizationsperpopulationthanineveryotherregion ofthecountry.InCanadathereisanaverageof508organizationsper100,000 populationcomparedtoonly369organizationsper100,000populationinOntario.In viewofOntariospredominantdemographicandeconomicpositioninCanadian society,therelativelylownumberoforganizationsintheprovince,comparedtoother partsofthecountry,requiresfurtherexploration. Figure1:Percentageoforganizationsandnumberoforganizationsper100,000 populationbyregion
30% 25% 20% 15% 10% 5% 0% British Columbia Alberta Prairies & Territories Ontario Quebec Atlantic 752 28% 29% 800 700 610 486 13% 369 12% 11% 8% 200 100 0 617 549 600 500 400 300

% all organizations

Number of organizations per 100,000 population

5AccordingtotheNSNVO,60%ofOntariononprofitandvoluntaryorganizationsareregistered

charitiesand40%areincorporatednonprofits. Ontarios Nonprofit and Voluntary Sector 3

What do organizations do?


Nonprofitandvoluntaryorganizationsareengagedinawiderangeofactivitiesin communitiesacrosstheprovince.6AsseeninFigure2,thetwolargestareasofactivityin OntarioareReligion(23%oforganizations)andSportsandRecreation(16%of organizations).OrganizationsworkingintheareasofGrantmaking,Fundraisingand VoluntarismPromotion(12%)andSocialServices(11%)rankthirdandfourth, respectively.Eachoftheremaininggroupsmakesup9%orlessofallnonprofitand voluntaryorganizations. ThecompositionoftheOntariononprofitandvoluntarysectormirrorstheCanadian sectorquiteclosely,withtheexceptionofthetoptwogroups.Overall,inCanada,a greaterproportionoforganizationslistSportsandRecreationastheirprimaryactivity thaninOntario(21%comparedto16%,seeFigure2).Conversely,theproportionof OntarioorganizationswhoseprimaryactivityisReligionishigherthanthenational average(23%comparedto19%).

6TheNSNVOemployedtheInternationalClassificationofNonprofitOrganizations(ICNPO)to

grouporganizationsintoprimaryareasofactivity.ThistypologywasdevelopedbyL.M. SalamonandH.K.Anheier.SeeSalamon,L.M.andAnheier,H.K.DefiningtheNonprofitSector:A CrossnationalAnalysis.Manchester,N.Y.ManchesterUniversityPress,1997.TheICNPOhasbeen modifiedforuseinCanadaandisdividedinto15broadcategorieswith71broadsubcategories. Ontarios Nonprofit and Voluntary Sector 4

Figure2:Percentageoforganizationsbyprimaryactivityarea
Religion Sports & Recreation Grantmaking, Fundraising & Voluntarism Promotion Social Services Development & Housing Arts & Culture Education & Research Business, Professional Associations, Unions Health Environment Law, Advocacy & Politics International Hospitals, Universities & Colleges Other 0% 3% 3% 2% 3% 2% 2% 1% 1% 1% 1% 2% 2% 5% 10% 15% 20% 25% 5% 5% 5% 5% 9% 8% 8% 9% 12% 10% 11% 12% 16% 21% 23% 19%

% Ontario organizations

% all organizations

Ontarios Nonprofit and Voluntary Sector

Who do Ontario organizations serve?


OrganizationsinOntarioserveavarietyofgroupsandgeographicareas.Thissection willexaminethegeographicscopeofnonprofitandvoluntaryorganizationsinOntario andthepopulationsserved.

Geographic Reach
NonprofitandvoluntaryorganizationsinOntario,aswiththoseintherestofCanada, primarilyservelocalconstituenciessuchasneighbourhoods,towns,citiesandregional municipalities.TwothirdsofOntarioorganizations(65%)reportthattheyservetheir localcommunity(seeFigure3).Oneinsixorganizations(18%)hasaregionalmandate. Notsurprisingly,giventhenumberofnationalofficesandinternationalorganizationsin Ontario,Ontariohasalargerproportionoforganizationsthatserveabroadaudience(at 11%)comparedtothenationalaverage(6%). Figure3:Maingeographicareasserved
80% 70% 60% 50% 40% 30% 20% 10% 0% 18% 19% 6% 9% 6% 1% 2% 3% 5% 3% 0.4% 0.5% 65% 64%

Local, Region of a Province More than Canada International Other municipality province one province % Ontario organizations % all organizations

Ontarios Nonprofit and Voluntary Sector

Population Served
OrganizationsinOntarioserveavarietyofgroupsthroughtheirprogramsand activities.7ThelargestnumberofOntarioorganizationsreportthattheirmainclienteleis thegeneralpublic(42%),slightlylessthantheCanadaaverageof46%(seeFigure4).A significantnumberinOntarioprimarilyservechildrenandyouth(22%),whileamuch smallerproportionservetheelderly(8%),apatternofserviceissimilartotheoverall Canadianaverage.ComparativelyfewnonprofitandvoluntaryorganizationsinOntario specificallyservetheneedyordisadvantaged,Aboriginals,ethnicgroups,orpersons withdisabilities,asappearstobetrueforCanadaasawhole.

7Thesefiguresapplyonlytothe75%oforganizationsthatprovideservicesorproductsdirectly

topeople. Ontarios Nonprofit and Voluntary Sector 7

Figure4:Populationserved

General public Children/young people Elderly people People with disabilities/special needs Specific ethnicity/culture or immigrants Members Disadvantaged, needy, offenders Geographic area Single sex Professionals or professional groups Religious community Parents/families Medical problems Aboriginal people or organizations Adults Athletes, participants, enthusiasts Students/schools Other 8% 11% 7% 8% 6% 5% 6% 4% 5% 4% 4% 8% 4% 3% 4% 5% 3% 2% 3% 3% 2% 2% 1% 2% 1% 1% 1% 2% 1% 1% 4% 5% 10% 20% 30% 40% 50% 22% 23% 42% 46%

0%

% Ontario organizations

% all organizations

Ontarios Nonprofit and Voluntary Sector

What role do members play in Ontario organizations?


Adistinguishingfeatureofmanynonprofitandvoluntaryorganizationsisthatthey havemembers.Memberscanincludepeople,organizations,orboth.8Eightinten(79%) ofallnonprofitandvoluntaryorganizationsinCanadahavemembers(people,other organizationsorboth,seeFigure5).InOntario,thefigureisslightlylowerat77%. AlmostonequarterofallorganizationsinOntario(23%)havenomembers.Averysmall proportionservesotherorganizationsexclusively. Nonprofitandvoluntaryorganizationscountpeopleandotherorganizationsastheir members.InOntario,74%ofnonprofitandvoluntaryorganizationsdirectlyserve peopleasmembersbyprovidingservicesorproducts(seeFigure5).Bycontrast,the nationalaverageis76%. Figure5:Membershipcomposition
80% 70% 60% 50% 40% 30% 20% 10% 3% 0% People as members 8% 3% Both as members No members Organizations as members % Ontario organizations 10% 23% 66% 66%

21%

% all organizations

ManyCanadiansandOntariansareactiveinnonprofitandvoluntaryorganizations. OrganizationsinCanadareportatotalof139.4millionmembers;thoseinOntarioreport

8Thedefinitionofmembershipissomewhatarbitrarysincethedecisionislefttoindividual

organizationstodefinetheconcept.Therefore,allcomparisonsacrossCanadashouldbe interpretedwithcaution. Ontarios Nonprofit and Voluntary Sector 9

atotalmembershipof68.8million.Thus,justunderhalfofallmembers(49%)arefound inOntario. Thirteenpercentofallorganizationshaveorganizationsasmembers,theircollective membershiptotalingnearly4millioninCanada.InOntario,11%haveorganizational members,foratotalof780,230.Clearly,manyindividualsandorganizationshold multiplememberships. Alittleoveronequarteroforganizations(27%),withpeopleasmembers,providetheir memberswithspecialbenefitsorprivileges,beyondvotingrightsornewsletters,suchas discountsonproductsorservices.ThisisthesameastheCanadianaverage.9 Oftheorganizationsthathavepeopleasmembers,43%ofOntariononprofitsand volunteerorganizationsreportthattheybenefitbothmembersandnonmembers equally,while39%indicatethatonlytheirmembersbenefitmost(seeFigure6).Amuch smallerproportion(17%)benefitnonmembersovermembers,anumberslightlygreater thantheCanadianaverageof15%. Figure6:Primarybeneficiariesofservicesorproducts
60% 50% 43% 40% 30% 20% 10% 0% 17% 39% 39%

46%

15%

Members benefit most

Non-members benefit most

Both members & non-members benefit most % all organizations

% Ontario organizations

9AmongorganizationsinOntariothathaveanindividualmembershipbase,41%restrict

membership,while59%allowanyonetojoin.Amongorganizationsthathaveanorganizational membershipbase,55%restrictmembershipand45%allowanyorganizationtojoin. Ontarios Nonprofit and Voluntary Sector 10

OntarioorganizationsinReligion(87%),SportsandRecreation(83%)andEnvironment (78%)arethemostlikelytohaveindividualmemberships,whereasorganizationsin Law,AdvocacyandPolitics(19%)andBusinessandProfessionalAssociationsand Unions(18%)arethemostlikelytohaveorganizationalmemberships.Overhalfof HospitalsandUniversitiesandColleges(56%)andorganizationsinvolvedinGrant making,FundraisingandVoluntarismPromotion(51%)reportedthattheyhaveno members.

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Financial Resources
Nonprofitandvoluntaryorganizationscommandsignificantresourcesandrepresenta sizeableproportionoftheCanadianeconomy.Ontarioorganizationsreported$47.7 billioninannualrevenuesin2003.Thisrepresents43%ofallrevenuesgeneratedbyall organizationsacrossCanadaatotalof$112billion(seeFigure7).Thisfarexceeds revenuesreportedbyorganizationsinallotherregions.Itisinterestingtoseethatthe Ontarioshareoftotalsectorrevenuesisclosertotheirpopulationshare(38%)thanits shareofallorganizations(28%).EvenwithHospitalsandUniversitiesandColleges excluded,Ontariostotalshareofsectorrevenuesis39%.EThesignificantnumberof largerevenue,nationalorganizations14%comparedwith4%fortherestofthe countryisonefactorbehindOntariosrelativelylargeshareoftotalsectorrevenues.10 Figure7:Percentageoforganizationsandpercentageoftotalrevenuesbyregion
All organizations 13% 10% 12% 9% 11% 11% 28% 43% 29% 22% 8% 5% 10% British Columbia Alberta Prairies & Territories Ontario Quebec Atlantic 0% % all organizations 0% 8% 6% 10% 20% 30% 40% 50% All organizations, not including Hospitals, Universities & Colleges 13% 12% 12% 12% 11% 9% 28% 39% E 29% 23%

50%

40%

30%

20%

% total revenues

usewithcaution

Eusewithcaution 10Largerevenueisdefinedhereasover$500,000peryear.CornerstonesofCommunity(2004).

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How is revenue distributed across Ontario organizations?


Ofthe$47.7billiongeneratedinOntarioin2003,38%(approximately$18.3billion)was generatedbyonepercentoforganizationsthatidentifythemselvesasHospitals, UniversitiesorColleges,comparedto33%nationally. Itisalsoofinteresttoexaminehowrevenuesaredistributedamongtheothersub sectors.Specifically,therearetwootherareaswheretheproportionofrevenuesis greaterthantheirorganizationalshare.InOntario,11%ofSocialServiceorganizations generated12%oftotalrevenueswhile5%ofBusinessandProfessionalAssociationsand Unionsgenerated11%oftotalrevenues(seeFigure8).Bycontrast,therevenueshareof SportsandRecreationandReligionismuchsmallerthantheirorganizationalshare; whilemakingup39%ofallorganizations,theygeneratedjust11%Eofallrevenues.

Eusewithcaution

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Figure8:Percentageoforganizationsandpercentageoftotalrevenuesbyprimary activityarea
Canada
19% 6% E 21% 5% 10% 7% 12% 10% 8% 6% 9% 3% 5% 6% 5% 10% 3% 8% 3% 1% 2% 1% 1% 1% 1% 33% 2% 2% 40% 30% 20% 10% 0%
Environment Law, Advocacy & Politics International Hospitals, Universities & Colleges Other Sports & Recreation Grantmaking, Fundraising, & Voluntarism Promotion Social Services Development & Housing Arts & Culture Education & Research Business, Professional Associations, Unions Health Religion

Ontario
23% 6% E 16% 5% 12% 6% 11% 12% 9% 4% 8% 3% 5% 3% 5% 11% 3% 5% 2% 1% E 2% 2% 1% 2% 1% 38% 2% 2% 0% 10% 20% 30% 40%

% organizations

% total revenues

usewithcaution

TherevenueportraitofOntarioorganizationsishighlyskewed,asisthecaseelsewhere inCanada.OnepercentoforganizationsinOntariohaveannualrevenuesof$10million ormorewhereas34%ofallOntariononprofitandvoluntaryorganizationshave revenuesoflessthan$30,000.11Lookingatthedistributionoftotalrevenues,thetopone

11AbouttwopercentofOntarioorganizationsreportzerorevenues.

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percentofrevenueearnersaccountedfor63%ofallrevenuesreceivedin2003,12while organizationswithrevenuesunder$30,000receivedlessthanonepercent.Excluding Hospitals,UniversitiesandColleges,organizationswithrevenuesover$10millionstill accountfor42%Eoftotalrevenues(seeFigure9).Alltogether,organizationswith revenuesover$1million10%ofallOntarioorganizationsareinreceiptof80%Eof sectorrevenues. Figure9:Percentageoforganizationsandpercentageoftotalrevenuesbyrevenuesize, excludingHospitals,UniversitiesandColleges


Canada 42% 1% 21% 3% 16% 5% 8% 6% 5% 8% 6% 36% 1% 41 % E 50% 40% 30% 20% 10% $29.9K or less $30K $99.9K $100K $249.9K $250K $499.9K $500K $999.9K $1M $9.9M $10M + 0% 1% 42% E 10% 20% 30% 40% 50% Ontario 34% 1% 21% 2% 16% 4% 11% 6% 7% 7% 9% 38%

0%

% organizations
E

% total revenues

usewithcaution

12InCanada,thetoponepercentofrevenueearners(thosewithrevenuesover$10millionper

year)accountfor59%oftotalsectorrevenues.TherelativelylargesizeoftheHospitals, UniversitiesandCollegessectorinOntarioisonereasonbehindthelargershareofrevenuesthat Ontario$10millionplusorganizationshave.


Eusewithcaution

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15

How do Ontario organizations generate revenue?


Nonprofitandvoluntaryorganizationsgeneraterevenuefromavarietyofsources,with theparticularmixoffundingsourcesvaryingacrossthesector.Historically, governmentsinCanadahavebeenamajorfunder,asstillseemstobethecasein2003, withgovernmentsasthelargestsinglesourceofrevenues(49%)forCanadiannonprofit andvoluntaryorganizations(seeFigure10).Onethird(35%)ofrevenueswereearned fromnongovernmentsourcessuchasmembershipsandthesalesofgoodsandservices and13%wasreceivedthroughgiftsanddonationsfromindividuals,corporationand otherorganizations. AsseeninFigure10,Ontarioorganizationsaresomewhatlesslikelytorelyon governmentsforrevenuecomparedtothenationalaverage(45%comparedto49%)and slightlymorelikelytorelyonearnedincome(36%)andgiftsanddonations(15%). Figure10:Sourcesofrevenue
75%

50%

49% 45% 36% 35%

25% 15% E 13% 4% 0% Government Earned income Gifts & donations 3%

Other income

% total revenues, all Ontario organizations


E

% total revenues, all organizations

usewithcaution

ExcludingHospitalsandUniversitiesandColleges,29%EofrevenuesinOntariocome fromgovernments,45%fromearnedincome;22%Efromdonationsandgifts;andthe remaining4%fromothersources(seeFigure11).Relianceongovernmentsources dropsby16%onceHospitals,UniversitiesandCollegesarefactoredout.

Eusewithcaution

Ontarios Nonprofit and Voluntary Sector

16

Figure11:Sourcesofrevenue,excludingHospitals,UniversitiesandColleges
75%

50% 36% 29% E 25%

45% 43%

22% E 17% E

4% 0% Government Earned Income Gifts & donations

4%

Other Income

% total revenues, Ontario organizations except Hospitals, Universities & Colleges


E

% total revenues, all organizations except Hospitals, Universities & Colleges

usewithcaution

ThissamepatternisalsoevidentacrossCanadaaswellwhereearnedincomeisthe largestsinglesourceofrevenues(43%)onceHospitalsandUniversitiesandCollegesare excludedfromthetotals.

What is the mix of funding among sub-sector organizations?


ThefundingmixofnonprofitandvoluntaryorganizationsinOntariovariesaccording totheirprimaryactivity.Healthorganizations,SocialServicesandHospitals, UniversitiesandCollegesrelyprimarilyongovernmentsources;with61%to70%of theirrevenuescomingfromgovernmentsources(seeFigure12).Businessand ProfessionalAssociationsandUnions,EducationandResearch,ArtsandCultureand SportsandRecreation,alternatively,relyprimarilyonearnedincome.Giftsand donationsplayaparticularlyimportantroleforReligion(70%E)andGrantmaking, FundraisingandVoluntarismPromotionorganizations(53%). OrganizationsworkinginDevelopmentandHousing,EnvironmentandLaw,Advocacy andPoliticshaveadiversifiedfundingbase,drawingprimarilyonamixofgovernment

Eusewithcaution

Ontarios Nonprofit and Voluntary Sector

17

revenuesandearnedincome.Internationalorganizationsalsohavediversefunding sources;giftsanddonations,however,areamuchlargersourceoffundsforthese groups. Figure12:Sourcesofrevenuebyprimaryactivityarea

5% 17% 3% 20% 4% 9% 2% 9% 18% 3% 111% 20% 6% 23% 50% 41% 32% 39% 64%E 85% 73% 69% 24% 35% 13% 44% 40% 70% Health 66% Social Services 27% Environment 4% 2% 3% 9% 3% 7% 5% 5% 2% 3% 4% 20% 3% 4% 44% 47% 30% 42% 24%E 8%E Religion 7% Business, 4% Professional Associations, Unions Hospitals, Universities & Colleges 18% Other 0% 20% 89% 70% 78% 3% 4%E 22% 4% 4% 2%E 1% Development & Housing Law, Advocacy & Politics Grantmaking, 8% Fundraising & Voluntarism Promotion International 41% 42% 34% 49% 6% 46% 47% 53% 35% 70%E 2%E 11% 9%2% 5% 9% 2% 34% E 68% 47% E 21% 8% 2% 18% 2% 50% 65% 46% Canada 28% 12% Arts & Culture Sports & Recreation Education & Research 61% 20% Ontario 21% 7% 17% 56% 66% 54% 19% 6% 36% 1%

15%3%E 17%1%

11%E 17% E

100% 80%

60%

40%

20%

0%

40%

60%

80%

100%

Government

Earned income

Gifts & donations

Other income

usewithcaution

InOntario,45%ofallrevenuesreceivedbynonprofitandvoluntaryorganizationscome fromgovernment(seeTable1).However,itistheprovincialgovernmentthatprovides mostofgovernmentfunding(84%).OnlyBusiness,ProfessionalAssociationsand Unions(67%),Internationalorganizations(95%E),andorganizationsinLaw,Advocacy andPolitics(69%)relyprimarilyonthefederalgovernmentfortheirgovernment funding(seeFigure13).


Ontarios Nonprofit and Voluntary Sector 18

Table1:Detailedsourcesofrevenue

Ontario organizations Revenues Revenues from government Government payments for goods and services Payments from the federal government Payments from provincial government Payments from municipal government Government payments from other Total government payments for goods and services $828,624,326 $8,389,654,925 $779,047,373 $60,038,972
E

All organizations Revenues % total revenues

% total revenues

2% 18% 2% 0% 21%

$1,629,494,890 $17,202,528,730 $1,035,070,183 $85,258,416


E

1% 15% 1% 0% 18%

$10,057,310,715

$19,952,383,088

Government grants and contributions Grants from the federal government Grants from provincial government Grants from municipal government Government grants from other Total government grants and contributions Total revenues from government $1,012,314,751 $9,788,107,676 $624,954,018
E

2% 21% 1% 0%

$6,039,958,845 $26,944,104,382 $1,068,108,183 $155,583,730 $34,207,876,777 $54,160,259,865


E

5% 24% 1% 0% 31% 49%

$77,410,928 $11,502,695,348
E

24% 45%

$21,560,006,062

Earned income from non-governmental sources Charitable gaming Membership fees Fees for goods or services (non-government) Investment income (including interest) Total revenues from earned income $411,976,444 $6,428,373,933 $8,948,332,860 $1,480,905,205 $17,269,588,442 1% 13% 19% 3% 36% $1,242,885,015 $12,033,551,619 $21,844,521,113 $4,173,428,911 $39,294,386,657 1% 11% 20% 4% 35%

Gifts and donations Individual donations Fundraising organizations/family community foundations Disbursements from nonprofits Corporate sponsorships, donations or grants Total revenues from gifts and donations $4,299,673,243 $535,370,236 $825,897,666 $1,533,078,209 $7,194,019,353
E E

9% 1% 2% 3% 15%

$8,369,669,565

8% 1% 2% 3% 13%

$1,137,834,369 $1,935,468,417 $2,815,372,908 $14,258,345,259

Other income

$1,695,893,378

4%

$3,882,569,114

3%

Total revenues

$47,719,507,235

100%

$111,595,560,896

100%

usewithcaution

Ontarios Nonprofit and Voluntary Sector

19

Figure13:Sourcesofgovernmentrevenuebyprimaryactivityarea

usewithcaution

Bycontrast,municipalgovernmentprovidesasmallproportionoftheoverallrevenues (7%oftotalgovernmentrevenuesinOntario,seeFigure13).Afeworganizations, however,dorelyonmunicipalgovernment:ofthe27%ofrevenuesthatEnvironment groupsreceivefromthegovernment,79%Eisobtainedfrommunicipalsources.Other organizationswhosegovernmentfundingcomesprimarilyfrommunicipalitiesinclude DevelopmentandHousingandReligionorganizations(where37%and35%respectively

Eusewithcaution

Ontarios Nonprofit and Voluntary Sector

20

ofgovernmentrevenuescomefrommunicipalsources)andtheArtsandCulturesector (where34%Eofgovernmentrevenuescomefrommunicipalsources). Therearealsonotableregionaldifferencesinthefundingmixamongsubsectorslike HealthandEducationandResearch(seeFigure12).Forinstance,Grantmaking, FundraisingandVolunteerismPromotionorganizationsderiveroughly8%oftheir revenuesfromgovernmentsourcesinOntarioand53%fromgiftsanddonations.Atthe nationallevel,however,similarorganizationsrelyongovernmentfor30%oftheir revenuesbutreceiveonly32%fromgiftsanddonations.OntarioEducationand Researchorganizationsreceiveonly17%ofrevenuesfromgovernmentsourceswhile theirCanadiancounterpartsreceive46%.Overall,earnedincome(at66%)isamuch moreimportantsourceofincomeinOntariothanelsewhere.Further,OntarioSportsand Recreationgroupsraiseoveronethirdofrevenuesthroughgiftsanddonationsrelative tothenationalaverageof20%.Thesetypesofdifferencesinthewaysinwhich organizationsgeneraterevenueshighlightthediversityofCanadasnonprofitand voluntarysectorbothbetweensubsectorsandacrossregions.

How do sources of revenues vary by size of organization?


Largerrevenueorganizationstendtorelymoreheavilyongovernmentfundingthando smallerorganizations.ExcludingHospitals,UniversitiesandColleges,whichrely disproportionatelyongovernmentsources,27%Eofrevenuesfororganizationswith revenuesover$10millionand37%fororganizationswithrevenuesbetween$1million and$9,999,999,comefromgovernment.Interestingly,Canadianorganizations (excludingHospitals,UniversitiesandColleges)withrevenuesover$10millionrelyto evenagreaterextentongovernmentrevenue(41%E). Bycontrast,giftsanddonationsmakeupagreaterproportionoftherevenuesofsmaller organizations.13BothlargeandsmallorganizationsinOntario,withafewnotable exceptions,derivethebulkoftheirrevenuesfromearnedincome.

Eusewithcaution 13ThereisagreaterrelianceongiftsanddonationsamongOntarioorganizations(excluding

Hospitals,UniversitiesandColleges)withannualrevenuesover$10million(22%)comparedtothe nationalaverage(12%). Ontarios Nonprofit and Voluntary Sector 21

Figure14:Sourcesofgovernmentrevenuebyrevenuesize,excludingHospitals, UniversitiesandColleges
6% 6% 4% 4% 31% 34% 32% 26% 51% 44% 43% 43% 43% 40% 45% Canada 11% 16% 21% 27% 35% 38% 41% E $10M + 100% 80% 60% 40% 20% 0% 0% Earned income 20% 40% 60% 80% 100% Ontario 10% 6% 14% 17% 31% 37% 27%E 51% 48% 43% 49% 47% 39% 49%E 34% 38% 40% 31% 6% 8% 3% 3%

$29.9K or less $30K$99.9K $100K$249.9K $250K$499.9K $500K$999.9K $1M$9.9M

4% 18% 5% 17% 2%12% E

19% 3%E 19% 5% 22%E 2%

Government
E

Gifts & donations

Other income

usewithcaution

How much revenue is transferred to other organizations?14

ThirtypercentofOntariononprofitandvoluntaryorganizationstransferordisburse fundstootherorganizations,slightlyhigherthanthenationalaverageat27%.These transfersmakeupto6%ofthetotalrevenuesofnonprofitandvoluntaryorganizations inOntario.Thevastmajorityofthesetransfers,88%,aremadetononprofitand voluntaryorganizationswithinCanada,whilesome10%ofthetransfersaremadeto organizationsoutsideofCanada.Asmallproportion,1%istransferredtotheCanadian government.

How much do organizations rely on in-kind donations of goods and services?


TwentyeightpercentoforganizationsinCanadareportedreceivinginkinddonations ofgoodsandservices.AcrossCanada,BritishColumbiaandAlbertareceivethelargest proportionofinkinddonationsat36%,eightpercentagepointsabovethenational average.InOntario,26%oforganizationsreceivedinkinddonations,foratotalvalueof $1.15billion,representingtwopercentoftotalrevenuesreceivedbyOntario organizations(seeFigure15).

14Thesefiguresarebasedonreportsoforganizationsthattransferfundstootherorganizations.

Ontarios Nonprofit and Voluntary Sector

22

Figure15:Percentageoforganizationsreceivinginkinddonationsbyregion
40% 36% 35% 30% 25% 20% 15% 10% 5% 0% British Columbia Alberta Prairies & Territories Ontario Quebec Atlantic 29% 26% 24% 27% 36%

Table2:Percentageoforganizationsthatreceiveinkinddonations
Ontario Receive in-kind donations of goods or materials Receive in-kind donations of business services 20% 15% Canada 21% 15%

Table3:Approximatevalueofinkinddonationsreceivedbyorganizations
Ontario Percentage of total revenues 2% 1% 100% Canada Percentage of total revenues 2% 0.5% 100%

Dollar value Approximate value of in-kind donations of goods or materials Approximate value of in-kind donations of business services Total revenues

Dollar value

$845,353,548 $301,935,153 $47,719,507,235

$1,822,095,032 $527,142,627 $111,595,560,896

Ontarios Nonprofit and Voluntary Sector

23

What is the pattern of financial resource dependency among Ontario organizations?15

Overall,organizationsinOntariohaveaverydiversifiedpatternofrevenuesources. However,withingivensectors,thereisalsoconsiderablevariationintheextentof dependencyonparticularsources.AlargegroupoforganizationsinOntario(46%)are primarilydependentonearnedincome,inthattheyderivemorethan50%oftheir incomefromearnedincomesources(seeFigure16).Onethird(32%)isdependentupon giftsanddonationswhileonly12%ofnonprofitandvoluntaryorganizationsare dependentongovernmentsources.Tenpercentrelyonadiversemixoffunding sources.16 Thereissignificantregionalvariationwhenitcomestorevenuedependency.When comparedtootherregions,Ontario,BritishColumbiaandAlbertahavethesmallest proportionoforganizationsdependentongovernmentrevenues.Quebechasthelargest proportionoforganizations(25%)thatdependongovernmentsourcesformorethan 50%ofannualrevenues.Theproportionoforganizationsdependentonearnedincome withtheexceptionoftheAtlanticregionrangesfrom40%to51%.Theproportion oforganizationsdependentongiftsanddonationswiththeexceptionofQuebecis roughlyonethirdoforganizations.

15Organizationsthatreceivemorethan50%ofortheirrevenuesfromaspecificsourcefor

example,governmentorearnedincomeareconsideredtobedependentonthatsourceof income.
16Organizationswithadiversemixoffundingdonotrelyonanyonesourceoffundingformore

than50%oftheirrevenues. Ontarios Nonprofit and Voluntary Sector 24

Figure16:Revenuedependencybyregion
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% British Columbia 9% Alberta 9% 11% Ontario 10% Quebec Prairies & Territories Earned income 28% 30% 31% 32% 14% 13% Atlantic 34% 51% 50% 40% 46% 48% 37% 12% 11% 17% 12% 25% 19%

11%

Government

Gifts & donations

Diverse

How did revenues levels vary between 2000 and 2003?


Economically,theperiodbetween2000and2003wasfairlystronginOntario, continuingtheperiodofrecoveryaftertherecessionoftheearly1990s.17Employment levelswerealsostable,edgingupslightlyin2003,18andaverageincomesgrew.Boththe federalandOntariogovernmentsbeganreinvestinginselectedareassuchashealth, followingsignificantcutbackstononprofitandvoluntaryorganizationsafterthe1995 federalbudgetandtheelectionoftheConservativegovernment. Duringthisperiodofrelativestability,39%ofnonprofitandvoluntaryorganizationsin Ontarioexperiencedanincreaseintheirrevenuescomparedto36%forCanadaasa whole;aslightlylargerproportionoforganizationsinOntario(40%)andCanada(42%)

17SeeOntario,MinistryofFinance,Budget2004,Annex1:OntarioEconomicOutlookandFiscal

Review,http://www.fin.gov.on.ca/english/budget/bud03/papera.html,OntarioMinistryof Finance,OntarioBudget2003,Annex2:OntarioEconomicOutlookandFiscalReview, http://www.fin.gov.on.ca/english/economy/ecoutlook/statement03/03fspaperb.html,and StatisticsCanada,YearendReview,CanadianEconomicObserver,April2004,Catalogue11010 XPB


18However,overthisperiod,therewasaslightincreaseintherateofparttimeandtemporary

employment. Ontarios Nonprofit and Voluntary Sector 25

remainedaboutthesamewhereas21%ofOntarioorganizationsand22%ofCanadian organizationsexperiencedadecreaseinrevenues(seeFigure17).19 Figure17:Reportedchangeinrevenuesoverthepastthreeyearsbyregion


100% 90% 80% 70% 60% 50% 37% 40% 30% 20% 10% 0% British Columbia Alberta Prairies & Territories Ontario Quebec Atlantic 29% 21% 23% 21% 19% 24% 41% 41% 40% 47% 43% 35% 38% 35% 39% 35% 33%

Revenues increased

Revenues stayed about the same

Revenues decreased

InOntario,sectorsmostlikelytoreportrevenueincreasesincludedEducationand Research;Health,UniversitiesandColleges,Internationalorganizations,SocialServices, Health,DevelopmentandHousing;andArtsandCulture.Thosemostlikelytoreport stablerevenueswereBusinessorProfessionalAssociationsandUnions,Environment, Religion,SportsandRecreation,Grantmaking,FundraisingandVoluntarism Promotion,andLaw,AdvocacyandPolitics.OnethirdofInternationalgroupsreported adecreaseinrevenues,whileroughlyonequarteroforganizationsinSportsand Recreation,Grantmaking,FundraisingandVoluntarismPromotion,ArtsandCulture, SocialServices,andLaw,AdvocacyandPoliticsdidso.20 Ontarioorganizationsthatreliedongovernmentsourcesformorethanhalfoftheir revenuesweremorelikelytoreportrevenueincreasesoverthe2000to2003period(48%, seeFigure18)comparedtoorganizationsthatweredependentonearnedincome(38%), giftsanddonations(36%),oradiversemixoffundingsources(43%).Comparable figuresforCanadaare43%,35%,35%and33%,respectively.InOntario,therelatively smallgroupoforganizationsdependentongovernmentfundingformorethan50%of

19Thesefiguresrefertothe77%oforganizationsthatwereincorporatedandwereinoperation

foratleastthreeyearsatthetimeofthesurvey.
20NotethathalfofInternationalgroupsreportedincreases.

Ontarios Nonprofit and Voluntary Sector

26

theirfunding(12%ofallsuchorganizations)werethemostlikelytoexperience revenuesgains.

Figure18:Reportedchangeinrevenuesoverthepastthreeyearsbyrevenuedependency
Canada 18% 39% 43% Government 23% 43% 35% Earned income 23% 42% 35% Gifts & Donations 22% 46% 33% Other income 100% 80% 60% 40% 20% Revenues increased 0% 0% Revenues stayed about the same 20% 40% 60% 80% 100% 43% 35% 21% 36% 43% 21% 38% 39% 23% Ontario 48% 38% 14%

Revenues decreased

Ontarios Nonprofit and Voluntary Sector

27

Human Resources
InOntario,organizationsthatrelyexclusivelyonvolunteerstopursuetheirgoalsexist alongsideverylargeorganizationswithstaffcomplementsnumberinginthethousands. Inthissectionofthereportweturnourattentiontothesignificantcontributionof volunteersandpaidstaffinOntariononprofitandvoluntaryorganizations. EventhoughOntariohasthesecondhighestproportionofvoluntaryandnonprofit organizationsinCanadaat28%,itenjoysthehighestproportionofbothpaidstaffand volunteerswhencomparedtootherregions(seeFigure19).OrganizationsinOntario employ47%EofallpaidstaffinCanada,morethantwiceasmanyasthenextlargest region,Quebec(23%).Similarly,40%ofallvolunteersareengagedinOntario organizations,comparedto23%EinQuebec.Itisapparentthattherearemanylarge organizationsinOntario,definedbothintermsofrevenueandpaidstaffand volunteers. Figure19:Percentageoforganizations,percentageofvolunteers,andpercentageofpaid staffbyregion
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% British Columbia Alberta Prairies & Territories Ontario Quebec Atlantic
13% 8% 7% 12% 13% 9% 11% 10% 9% 8% 5% 5% 28% 29% 23%E 23% 40% 47%E

% organizations

% total volunteers

% total paid staff

usewithcaution

Eusewithcaution

Ontarios Nonprofit and Voluntary Sector

28

Volunteers
How many volunteers work in Ontario organizations?
Boardandnonboardvolunteersplaykeyrolesingovernance,programsandservice delivery,communications,fundraisingandoutreach.InOntario,theoverallnumberof volunteersis7.8million,comprisingroughly400,000boardvolunteersand7.4million nonboardvolunteers.21Together,Ontariovolunteersrepresent40%ofallvolunteersin Canada,manylikelyvolunteeringformorethanoneorganizationatatime TheproportionofnonboardvolunteersinOntario(41%ofthenationaltotal)isin keepingwiththerelativesizeofOntariospopulation.Annually,nonboardvolunteers inOntariodevoteaconsiderableamountoftimetotheirwork.Intotal,nonboard volunteerscontributedover730millionhoursin2003,22representing34%ofallhours volunteeredinCanada.Onaverage,eachnonboardvolunteerinOntariocontributed99 hoursin2003tononprofitandvoluntaryorganizations,afigurethatissomewhatlower thantheCanadianaverageof119hours.BoardvolunteersinOntario,ontheotherhand, contributedanaverageof156hoursin2003,anumberslightlyhigherthanthenational averageof(155hours).

Where do volunteers contribute their time?


Asmallnumberoforganizationsaccountforthebulkofvolunteersandvolunteertime. ThisistrueacrossCanada,andcertainlyinOntario.Sevenpercentoforganizationsin Ontariohave200ormorenonboardvolunteers,onepercentagepointhigherthanthe overallCanadianproportion(6%),while9%ofOntarioorganizationshavecomplements ofbetween100and199(seeFigure20).ThesetwogroupsofOntarioorganizations accountfor89%ofallnonboardvolunteers.Thus,themajorityofnonprofitand voluntaryorganizationshaverelativelysmallvolunteercomplements.Infact,onefifth (20%)ofallnonprofitandvoluntaryorganizationsinOntariodonothaveanynon boardvolunteersatall.

21Itisimportanttonotethatvolunteerstendtovolunteerformorethanoneorganization,and thisisevidenthere.AccordingtotheNationalSurveyofGiving,VolunteeringandParticipating, 2,378,000ofOntariansvolunteeredforacharitableornonprofitorganizationin2000.


22Thisestimateisbasedonthetotalnumberofvolunteerhoursreportedbyorganizations.The

NSGVPestimatesthatOntariansvolunteeredatotalof393,500,000hours(theequivalentof 205,000fulltimejobs)in2000,anaverageof165hoursperyear. Ontarios Nonprofit and Voluntary Sector 29

Figure20:Percentageoforganizationsbynumberofvolunteers
40% 35% 30% 25% 20% 21% 20% 15% 9% 10% 5% 0% No volunteers 1-9 volunteers 10 - 24 volunteers 25 - 99 volunteers 100 - 199 200 volunteers or more volunteers 8% 7% 6% 15% 16% 20% 23% 29% 26%

% Ontario organizations

% all organizations

LargerorganizationsinOntario,asmeasuredbyannualrevenues,alsotendtohavethe largestvolunteercomplementsdespitethefactthatonemightwellarguethatsmaller organizationshaveagreaterneedfortheassistanceofvolunteers.Organizationswith revenuesof$10millionormoreaccountedfor37%ofallvolunteersinOntario comparedto20%ofallCanadianvolunteersinthesehighrevenueorganizations(see Figure21). Afurther17%ofvolunteersinOntariowereengagedinorganizationswithrevenues between$1millionand$9,999,999(versus14%ofCanadianvolunteers).Themarked concentrationofvolunteersinlargeorganizationsisanotablefeatureoftheOntario nonprofitandvoluntarysector.AcrosstherestofCanada,themajorityofvolunteers workinorganizationswithrevenuesunder$1million;thelargestsingleconcentrationis inorganizationswithrevenuesbetween$100,000and$249,999. VolunteersworkinginsmallerOntarioorganizationsmakeasizableimpactdespitetheir relativelysmallnumbers.Whiletherewereconsiderablyfewervolunteersworkingin Ontarioorganizationswithrevenuesunder$30,000(10%oftotalvolunteers),they contributed,onaverage,thehighestnumberofhoursperyear(179hours).

Ontarios Nonprofit and Voluntary Sector

30

Figure21:Percentageoforganizationsandpercentageofvolunteersbyrevenuesize

Canada 42% 12% 21% 10% 16% 26%


E

Ontario $29.9K or less $30K$99.9K $100K$249.9K $250K$499.9K $500K$999.9K $1M$9.9M 5% 16% 8% 11% 15% E 7% 7%E 9% 17% 1% 37% 0% 10% 20% 30% 40% 34% 10% 21%

8% 11% 5% 6% 6% 14% 1% 20% 50% 40% 30% 20% 10%

$10M + 0%

% organizations
E

% volunteers

usewithcaution

Which areas of the nonprofit and voluntary sector draw the greatest numbers of volunteers?
ThemakeupoftheOntariononprofitandvoluntarysectorisquitesimilartothe compositionoftheCanadiansectorasawhole(seeFigure22).Thesamecannotbesaid ofthedistributionofvolunteers.Theshareofvolunteersvarieswidelyamongdifferent areas.OrganizationsinArtsandCulture,SocialServices,DevelopmentandHousing, Grantmaking,FundraisingandVoluntarismPromotion,Religion,andEnvironmentall havevolunteercomplementsthatareproportionallysmallerthantheirorganizational share,insomeinstances,considerablysmaller.

Ontarios Nonprofit and Voluntary Sector

31

Figure22:Percentageoforganizationsandpercentageofvolunteersbyprimaryactivity area

Canada 19% 11% 21% 28% 10% 9% 12% 19% E 8% 2% 9% 5% 5% 8%


E

Ontario Religion Sports & Recreation Grantmaking, Fundraising & Voluntarism Promotion Social Services Development & Housing Arts & Culture Education & Research Business, Professional Associations, Unions Health Environment Law, Advocacy & Politics International Hospitals, Universities & Colleges Other 1% 8% 3% 5% 14%E 5% 10% 3% 4% 2% 1% 2% 2% 1% 1% 1% 3% 2% 0.3% 0% 10% 20% 30% 40% 23% 9% 16% 39% 12% 6% 11% 7% 9%

5% 5% 3% 4% 3% 4% 2% 2% 1% 1% 1% 2% 2% 2%E 40% 30% 20% 10%

0% % organizations

% volunteers

usewithcaution

ThesedifferencestendtobemorepronouncedinOntariothanforCanadaasawhole. Forexample,9%ofallnonprofitandvoluntaryorganizationsinOntarioworkinthe DevelopmentandHousingsector,yettheseorganizationsaccountforonly1%ofall volunteers.ThecomparablefiguresforCanadaare8%and2%respectively.Religion organizationsmakeupthelargestsingleactivityarea,yetthisareaaccountsforonly9% ofOntariovolunteers.Similarly,CanadianSocialServiceorganizations(12%ofthetotal)

Ontarios Nonprofit and Voluntary Sector

32

accountfor19%EofallvolunteerswhileinOntario,suchorganizations(11%ofthetotal) accountforonly7%ofvolunteers Bycontrast,SportandRecreation(16%ofallorganizations),EducationandResearch (5%ofallorganizations),BusinessandProfessionalAssociationsandUnions(5%ofall organizations)andHospitals,UniversitiesandColleges(1%ofallorganizations)have largerproportionalvolunteercomplementsthantheirorganizationalshare(seeFigure 22).Again,thedifferencesarelargerthanthoseevidentforCanadaasawhole.Sports andRecreationgroupsinOntario,forinstance,accountfor39%ofallvolunteers, comparedto28%ofallCanadianvolunteers. Anotherinterestingpointofvariationistheaveragecontributionofvolunteersineach area.InOntario,volunteerswithInternationalorganizationsjust1%ofallvolunteers donatedthemosttime:anaverageof713hoursperyear.Arelativelysmallcoreof volunteerswithHealthorganizations(4%oftotalvolunteers)contributed200hoursper year.VolunteersinvolvedwiththemanyReligionorganizationsinOntariomadethe thirdhighestaveragecontributionwith188hoursperyear.SportsandRecreation groupsaccountingforthelargestcomplementofvolunteers(39%ofthetotal)donated 76hoursonaverageperyear.23

How have volunteer numbers changed between 2000 and 2003?


AccordingtotheNSNVO,thevolunteercomplementsofOntarioorganizationshave beenrelativelystable:overhalfoforganizations(54%)reportedthattheirnumbersdid notchangeappreciablybetween2000and2003.24OnethirdallorganizationsinOntario (31%)enjoyedanincreaseinnumberswhile14%experiencedadecrease(seeFigure23). Relativestabilityinvolunteerlevelswasalsoevidentacrossmostactivitygroupsinthe sectorwiththeexceptionofInternationalorganizations,where(54%)reportedan increaseinvolunteersandSportsandRecreationgroupswith22%experiencing declininglevels. ComparedtootherregionsinCanada,nonprofitandvoluntaryorganizationsinOntario weremostlikelytohaveexperiencedanincreaseintheirnumberofvolunteersandthe leastlikelytohaveexperiencedadecrease.Moreover,organizationsinOntarioalready

Eusewithcaution 23DespitetherelativelylowaveragecontributionbyvolunteersinSportsandRecreation,this

sectorstillaccountedfor29%oftotalvolunteerhours.Religionaccountedfor17%andEducation andResearchfor10%.ThesmallcadreofvolunteersworkingforInternationalorganizations accountedfor6%oftotalhoursvolunteered.


24Thesefiguresapplytothe63%oforganizationsthatwereincorporated,thathadbeenin

operationforatleastthreeyears,andthathadvolunteers(excludingthoseinvolvedin governance). Ontarios Nonprofit and Voluntary Sector 33

havingalargenumberofvolunteersweremostlikelytoreportanincreaseinthe numberofvolunteers.Atthesametime,thesizeoftheexistingvolunteercomplement didnotseemaffectthelikelihoodofadecrease. Figure23:Reportedchangeinvolunteersoverthepastthreeyearsbyregion

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% British Columbia Alberta Volunteers increased Prairies & Territories Ontario Quebec Atlantic 19% 21% 21% 14% 18% 20% 52% 49% 54% 54% 58% 56% 29% 30% 25% 31% 24% 24%

Volunteers remained about the same

Volunteers decreased

Are changes in revenues linked to changes in volunteer levels?


Ontarioorganizationsexperiencinganincreaseinrevenuesbetween2000and2003were alsothemostlikelytohaveexperiencedanincreaseinvolunteers(seeFigure24).Those organizationsexperiencingdecliningrevenuesweremorelikelythanorganizationswith stableorincreasedrevenuestoreducetheirnumberofvolunteers(44%comparedto 12%and8%respectively).25Itisapparentthatwellresourcedorganizationsas measuredbyrevenuesareofteninthebestpositiontoattractandretainvolunteers.

25Itisimportanttonotethatthesefiguresreferonlyto63%ofOntarioorganizationsthatwere

incorporated,thathadbeeninoperationforatleastthreeyearsandthathadvolunteers. Ontarios Nonprofit and Voluntary Sector 34

Figure24:Reportedchangeinvolunteersoverthepastthreeyearsbyreportedchangein revenues
Canada 10% 46% 43% Revenues increased 16% 64% 20% Revenues remained about the same 35% 50% 15% Revenues decreased 100% 80% 60% 40% 20% Volunteers increased 0% 0% 20% 40% 60% Volunteers decreased 80% 100% 24% 32% 44% 23% 66% 12% Ontario 46% 46% 8%

Volunteers stayed about the same

Paid Staff
How many people are employed in the nonprofit and voluntary sector in Ontario?
ThenonprofitandvoluntarysectorisasignificantemployerinOntarioandacross Canada.InOntario,justunderonemillionpeople(958,678)wereemployedinnonprofit andvoluntaryorganizationsin2003,representingaboutonesixthofallemployed Ontarians.26Almosthalf(47%)ofallpaidemployeesinnonprofitandvoluntary organizationsareemployedinOntario.27 ThedistributionofEmployees,however,likethedistributionofrevenues,ishighly skewed.Manynonprofitandvoluntaryorganizationsoperateandfunctionwithnopaid staffatall.Infact,overhalfofallnonprofitandvoluntaryorganizationsinOntario (53%)andCanada(54%)havenopaidstaff.

26In2003,therewere6.7millionpeopleintheOntariolabourforce,6.2millionofwhomwere

employed.Leavingasidetheselfemployed,therewere5.3millionemployees.(StatisticsCanada, LabourForceSurveyHistoricalReview,2003.CDRomCatalogueNo.71F0004XCB)
27PaidemployeesaredefinedasthosewhoreceiveT4slipforincometaxpurposes.

Ontarios Nonprofit and Voluntary Sector

35

Moreover,thedistributionofpaidstaffamongthe47%ofOntarioorganizationsthat employstaffisalsouneven.Overhalfofthisgroup(57%)haslessthanfiveemployees, while15%hasbetweenfiveandnineemployees.Only6%ofOntarioorganizationswith paidstaffhaveastaffcomplimentof100ormoreandasizeableproportionofthese organizationsareHospitals,UniversitiesandColleges.Overhalf(55%)ofOntario Hospitals,UniversitiesandCollegesthatemploystaffhavestaffcomplementsof100or morecomparedtojust6%ofotherorganizationsinOntario.

Are paid staff more likely to work full-time or part-time, or on a permanent or temporary basis?
Anotherimportantdimensionofemploymentisfulltimeandparttimestatus.28In Ontario,55%ofemployeesinthenonprofitandvoluntarysectorwereemployedona fulltimebasis(seeTable4).Theprevalenceofparttimeemploymentwashighestinthe Hospitals,UniversitiesandCollegessector(57%)comparedtootherorganizationsin Ontario,andalsosixpercentabovethenationalaverageforthissubsector(38%). Overall,therateofparttimeemploymentamongnonprofitandvoluntaryorganizations ismuchhigherthantheaverageforOntario(18.3%)andCanada(18.8%)generally.29 Inthenonprofitandvoluntarysector,themajorityofpaidemployeeswerepermanent staffinbothOntario(69%)andCanada(65%).30TheOntariogroupwiththehighest proportionofpermanentpaidstaffwastheHospitalsandUniversitiesandColleges sector,where74%ofallstaffwerepermanent,comparedto66%ofemployeesinother nonprofitandvoluntaryorganizations.HospitalsandUniversitiesandColleges organizationsinOntarioweresomewhatlesslikelytoemploypaidstaffonatemporary basis(26%)comparedtoothernonprofitandvoluntaryorganizations(34%),although morelikelytoemploypeopleonaparttimebasis.Nonprofitandvoluntary organizationsinOntariofillagreaterproportionoftheirstaffpositionswithtemporary employees(31%),thanemployersinOntario(10.9%)orCanada(12.5%)ingeneral.31

28Parttimestaffworklessthan30hoursperweekwhilefulltimework30ormorehoursper

week.
29Theseestimatesareforallsectorsoftheeconomy:nonprofit,forprofitandpublicsector.

StatisticsCanada,LabourForceHistoricalReview,2003.CDRomCatalogueno.71F0004XCB
30Permanentemployeesaredefinedasthosewithnosetterminationdate.Conversely,

temporaryemployeesarethosewithasetterminationdate.
31StatisticsCanada,LabourForceHistoricalReview,2003.CDRomCatalogueno.71F0004XCB

Ontarios Nonprofit and Voluntary Sector

36

Table4:Numberofpaidstaff

Number of paid employees (T4) All organizations Ontario 361,812 Number of permanent employees (T4) 266,657 Number of nonpermanent employees 95,155 Number of full-time employees (T4) 157,552 Number of part-time employees

204,260

Canada All organizations excluding Hospitals, Universities, & Colleges Canada Hospitals, Universities & Colleges Canada
E

2,031,744

1,320,763

710,980

1,147,615

884,129

Ontario

361,812

266,657

95,155

157,552

204,260

1,335,988

827,171

508,817

806,953

529,035

Ontario

361,812

266,657

95,155

157,552

204,260

695,755

493,592

202,163

340,662

355,094

Usewithcaution

Which areas of the nonprofit and voluntary sector employ the greatest numbers of paid staff?
Hospitals,UniversitiesandCollegesarethelargestemployersinthenonprofitand voluntarysectorbyaconsiderablemargin(38%ofallpaidemployeesinOntarioand 34%inCanada,seeFigure25).ThenextlargestgroupofemployersinOntariois DevelopmentandHousingorganizationswith15%Eofallpaidemployeescomparedto 9%forCanadaasawhole.SocialServicesemploy13%ofallpaidstaffinOntario nonprofitorganizations,comparedto15%nationally.ElevenpercentEofemployees workinginthenonprofitandvoluntarysectorisemployedbyBusinessandProfessional AssociationsandUnionscomparedtoonly7%Enationally.Internationalorganizations andthoseinEnvironmentgroupsrepresentthesmallestshareofallpaidstaffin Ontario.

Eusewithcaution

Ontarios Nonprofit and Voluntary Sector

37

Figure25:Percentageoforganizationsandpaidstaffbyprimaryactivityarea
Canada 19% 5% E 21% 10% 12% 15% 8% 9%E 9% 4% 5% 5% 5% 7% E 9% 3% 3% 1% 2% 1% 1% 0.2% 34% 1% 2% 2% 40% 30% 20% 10% 0% % organizations 6% 1% Religion Sports & Recreation Grantmaking, Fundraising & Voluntarism Promotion Social Services Development & Housing Arts & Culture Education & Research Business, Professional Associations, Unions Health Environment Law, Advocacy & Politics International Hospitals, Universities & Colleges Other 3% E 5% 2% 5% 3% 5% 2% 0.3% 2% 1% 1% 0.3% 1% 2% 1% 0% 10% % paid staff 20% 30% 40% 38% 11%E Ontario 5% E 5% 1% 11% 13% 9% 15%E 8% 16% 12% 23%

usewithcaution

Where are paid staff concentrated?


Predictably,paidstaffareconcentratedinthelargestrevenuenonprofitandvoluntary organizations.LookingatthewholeOntariononprofitandvoluntarysector,weseethat theonepercentoforganizationswithrevenuesof$10millionormorein2003employed 53%Eofallsectoremployees(forCanada,theshareofemployeesemployedbythe largestorganizationswas46%E).Indeed,threequartersofallpaidstaffinOntario(76%E)

Eusewithcaution

Ontarios Nonprofit and Voluntary Sector

38

workedfornonprofitandvoluntaryorganizationswithrevenuesover$1million.By contrast,theonethirdoforganizationswithrevenuesunder$30,000employedjustone percentofemployees.Itisinterestingtonote,however,thatOntarioorganizationswith revenuesbetween$30,000and$99,99921%ofthetotalnumberemployedalarger proportionofpeople(14%E)thantheonethirdoforganizationswithrevenuesbetween $100,000and$999,999,agroupthatemployedonly9%ofallpaidemployees(seeFigure 26). Figure26:Percentageoforganizationsandpaidstaffbyrevenuesize


Canada 42% 1% 21% 9% E 16% 5% 8% 5% 5% 7% 6% 28% 1% 46%E 60% 50% 40% 30% 20% 10% 0% $29.9K or less $30K$99.9K $100K$249.9K $250K$499.9K $500K$999.9K $1M$9.9M $10M + 1% 0% 10% 20% 30% 40% 50% 3% 11% 2% 7% 4% 9% 23% 53%E 60% Ontario 34% 1% 21% 14%E 16%

% organizations
E

% total paid staff f

usewithcaution

EvenwhenHospitalsandUniversitiesandcollegesareexcluded,largerevenueOntario organizationsstilldominate(seeFigure27).Theshareofemploymentincreasesforboth largeorganizations($1millionto$9,999,999)andrelativelythesmallorganizations ($30,000to$99,999)whichtendtobeoverrepresentedbyDevelopmentandHousingand SocialServices.

Eusewithcaution

Ontarios Nonprofit and Voluntary Sector

39

Figure27:Percentageoforganizationsandpaidstaffbyrevenuesize,excluding Hospitals,UniversitiesandColleges

Canada 42% 2% 21% 13% E 16% 7% 8% 8% 5% 10% 6% 36% 1% 25% 50% 40% 30% 20% 10% 0% $29.9K or less $30K$99.9K $100K$249.9K $250K$499.9K $500K$999.9K $1M$9.9M $10M + 1% 30%E 0% 10% 20% 30% 40% 50% 60% 3% 11% 4% 7% 6% 9% 33% Ontario 34% 1% 21% 23% E 16%

% organizations
E

% total paid staff f

usewithcaution

How have employment levels changed between 2000 and 2003?


MostOntarioorganizationsexperiencedstablestafflevelsbetween2000and2003(see Figure28).32SixtypercentofnonprofitorvoluntaryorganizationsinOntarioand Canadahadapproximatelythesamenumberofpaidstaffoverthepreviousthree years.33Amongthosereportingchange,threequarters(30%ofallOntarioorganizations) increasedthenumberofstaffintheiremploywhileonequarterexperiencedadecrease

32Thesefiguresapplytothe47%oforganizationsinOntarioand39%oforganizationsacross

Canadathatwereincorporated,thathadbeeninoperationforatleastthreeyears,andthathad employees.
33Itisimportanttonotethatstablestaffinglevelscanmaskagooddealofchange.TheNSNVO

doesnotprovideinformationonstaffturnover. Ontarios Nonprofit and Voluntary Sector 40

Figure28:Reportedchangeinpaidstaffoverthepastthreeyearsbyregion

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% British Columbia Alberta Paid staff increased Prairies & Territories Ontario Quebec Atlantic Paid staff decreased 7% 11% 18% 10% 10% 10% 63% 65% 55% 60% 63% 55% 30% 24% 28% 30% 26% 35%

Paid staff remained about the same

Nonprofitorvoluntaryorganizationsthatalreadyhadlargenumbersofpaidstaffwere muchmorelikelytohaveincreasedtheirstaffcomplementinbothOntarioandCanada (seeFigure29).SixtyonepercentoforganizationsinOntariowith100ormorepaidstaff (56%inCanada)increasedtheirpaidstaffnumbersbetween2000and2003.Incontrast, only17%oforganizationswithfourorfewerpaidstaffinOntario(19%inCanada) increasedtheirnumberofpaidstaffoverthesameperiod.

Ontarios Nonprofit and Voluntary Sector

41

Figure29:Reportedchangeinpaidstaffoverthepastthreeyearsbynumberofpaid staff
7% 11% 11% 11% 7% 11% 50% 44% 48% 33% 92% 70% 39% 45% 45% 56% 100 or more paid staff 100% 80% 60% 40% 20% Paid staff increased 0% 0% 20% 40% 60% 80% 100% Canada 2% 19% No paid staff 1-4 paid staff 5-9 paid staff 10 - 24 paid staff 25 - 99 paid staff 17% 39% 40% 45% 61% 71% 52% 47% 53% 36% Ontario 2% 92% 5% 11% 9% 13% 2% 3%

Paid staff remained about the same

Paid staff decreased

Whilethemajority(60%)oforganizationsmaintainedtheirstaffinglevelsthosein EducationandResearch,andinHealthwerethemostlikelytoreportincreases(33%and 26%,respectively).OnethirdofLaw,AdvocacyandPoliticsorganizations(34%)cut paidstaff,thehighestpercentageofanysubsector.

Are changes in revenues linked to changes in employment levels?


Ofthe39%ofOntarioorganizationsthatexperiencedanincreaseinrevenues,justunder half(47%)increasedtheirpaidstaffnumbers(seeFigure30).Themajority(77%)of organizationsexperiencingnochangeinrevenuesoverthethreeyearsexperiencedlittle changeintheirnumbersofpaidstaff.OrganizationsinOntarioshowingadecreasein theirrevenuesbetween2000and2003weremuchmorelikelythanorganizationsin betterfinancialcircumstancestohavedecreasedtheiremploymentlevels(30%).

Ontarios Nonprofit and Voluntary Sector

42

Figure30:Reportedchangeinpaidstaffoverthepastthreeyearsbyreportedchangein revenues

Canada 5% 48% 47% % Revenues increased 9% 73% 18% Revenues stayed about the same 25% 62% 13% Revenues decreased
100% 80% 60% 40% 20% 0%
0% 20% 40% 60% 80% 100%

Ontario 47% 49% 4%

15%

77%

9%

8%

62%

30%

Paid staff increased

Paid staff remained about the same

Paid staff decreased

What is the connection between staff and volunteer numbers?


Ontarioorganizationswherethenumberofpaidstaffincreasedbetween2000and2003 werethemostlikelytohaveexperiencedanincreaseinvolunteersaswell(53%ofall whoexperiencedstaffingincreases,seeFigure31).Bycomparison,organizationsthat experiencedadeclineinpaidstaffwerenotassuccessfulinattractingmorevolunteers (17%).Indeed,organizationsinthisgroupweremorelikelytohavesustainedtheir existingcomplementofvolunteersorexperiencedadecline(61%and22%, respectively).34Thissuggeststhatwellresourcedorganizationshaveagreaterabilityto mobilizeandengagevolunteers,irrespectiveofwhichorganizationsmightbenefitmost frommorevolunteersupport.

34Thesefiguresapplytothe47%oforganizationsinOntariothatwereincorporated,thathad

beeninoperationforatleastthreeyears,andthathademployees. Ontarios Nonprofit and Voluntary Sector 43

Figure31:Reportedchangeinvolunteersoverthepastthreeyearsbyreportedchangein paidstaff
Canada 14% 38% 48% Paid staff increased 18% 56% 26% Paid staff remained about the same 25% 54% 21% Paid staff decreased 100% 80% 60% 40% 20% 0% 0% 20% 40% 60% 80% 100% 17% 61% 22% 33% 56% 12% Ontario 53% 34% 13%

Volunteers increased

Volunteers remained about the same

Volunteers decreased

Ontarios Nonprofit and Voluntary Sector

44

Organizational Capacity
Thecapacityoforganizationstogenerateandsustaintheresourcesnecessarytopursue theirmandatesvariesconsiderablyacrossthenonprofitandvoluntarysector.Despite thesizeandimportanceofnonprofitandvoluntaryactivityinOntario,manygroupsare strugglingwitharangeofproblemsrelatedtohumanresources,financing,planning anddevelopment,outreach,andinfrastructure.TheNSNVOprovidesanopportunityto explorethesechallengesandtoascertainwhichproblemsorganizationsconsidertobe mostserious.35 InOntario,themostcommonlyreportedcapacityproblemsaredifficultyplanningfor thefuture,difficultyrecruitingtypeofvolunteersanddifficultyobtainingboard members.Thethreeproblemsmostcommonlyreportedasseriousbyorganizationsin Ontarioaredifficultyobtainingfundingfromotherorganizations,difficultyplanning forthefutureandincreasingdemandforservicesorproducts.Amongorganizations thatreceiveexternalfunding36thethreeproblemsmostcommonlyreportedasserious arereductionsingovernmentfunding,unwillingnesstofundcoreoperationsand overrelianceonprojectfunding(seeTable5). Difficultyplanningforthefuturewasidentifiedbysixinten(60%)organizationsin Ontario.Inabilitytoplanisparticularlytroublinggiventhestressesthatorganizations facetoday.Concernaboutdecliningratesofvolunteeringisevidentinthehighnumber ofOntarioorganizationsidentifyingproblemswithvolunteerrecruitmentandretention: Organizationsreportedparticulardifficultiesinrecruitingtherighttypeofvolunteers, obtainingboardmembers,andretainingvolunteers(57%,49%and48%respectively). FinancialcapacityproblemsarealsocommonlyreportedbyorganizationsinOntario. Almosthalf(47%)oforganizationsreporteddifficultyobtainingfundingfrom individuals,44%reporteddifficultycompetingwithotherorganizationsand42% reporteddifficultyobtainingfundingfromotherorganizations. TwothirdsofOntarioorganizationsinreceiptofexternalfundingreportedthat reductionsingovernmentfundingwasaproblem(68%);fourinten(40%)claimedthat itwasaseriousproblem.BritishColumbiawastheonlyregionwheremore

35Eachorganizationwasaskedwhetheraparticularcapacityissuewasnotaproblem,asmall

problem,amoderateproblemoraseriousproblem.Organizationsreportingnoproblemwith agivenissuemayincludethoseforwhichtheissueisnotapplicable.Unlessotherwisestated,the presenceofaproblemreferstothenumberreportingalllevelsofdifficultycombined(i.e.,the sumofresponsesofasmallproblem,amoderateproblem,andaseriousproblem.Thenota problemcategoryincludesorganizationsforwhomtheparticularissuemaybenotapplicable.


36Theseproblemswereidentifiedbythe31%oforganizationsthatwereincorporated,thathad

beenactiveforatleastthreeyearsandthathadreceivedfundingfromgovernments,foundations orcorporationsoverthatperiod. Ontarios Nonprofit and Voluntary Sector 45

organizationsthaninOntarioclaimedthatreductionsingovernmentfundingwasa seriousproblem.Unwillingnesstofundcoreoperationswasidentifiedasanother significantcapacitychallengeby65%ofOntarioorganizationsreceivingexternal funding,thehighestproportioninthecountry;53%identifiedoverrelianceonproject fundingasaproblemaswell. Table5:TopthreeseriousproblemsforOntarioorganizations


Most Serious Problems All Organizations Most Serious Problems Organizations in Receipt of External Funding Reductions in government funding Unwillingness to fund core operations Over-reliance on project funding

Difficulty obtaining funding from other organizations including government Difficulty in planning for the future Increasing demand for services or products

Do all organizations share the same capacity problems?


Doesthelevelofrevenuesmakeadifferencetothetypeofchallengesthatnonprofitand voluntaryorganizationsexperience?TheNSNVOsuggeststhatOntarioorganizationsin receiptofexternalfunding,regardlessofsize,strugglewithexternalfundingissues. Reductionsingovernmentfundingwasidentifiedasthetopproblembyorganizations receivingexternalfundingwithrevenuesunder$30,000,thosewithrevenuesbetween $100,000and$249,999,andthosewithrevenuesover$1million(seeTable7).Infact, 85%oforganizationsreceivingexternalfundingwithrevenuesover$10millionclaimed thatreductionsingovernmentfundingwasaproblem.

Ontarios Nonprofit and Voluntary Sector

46

Table6:Financialissuesbyrevenuesize
Difficulty earning revenues $29.9K or less Ontario Canada $30K$99.9K Ontario Canada $100K$249.9K Ontario Canada $250K$499.9K Ontario Canada $500K$999.9K Ontario Canada $1M$9.9M Ontario Canada $10M + Ontario Canada All organizations Ontario Canada 36% 42% 40% 40% 32% 44% 39% 43% 47% 43% 41% 40% 25% 22% 38% 42% Difficulty obtaining funding from other organizations 35% 41% 38% 46% 39% 53% 45% 56% 57% 60% 66% 60% 67% 61% 42% 48% Difficulty obtaining funding from individuals 43% 43% 50% 51% 54% 54% 45% 51% 46% 48% 52% 47% 45% 40% 47% 48% Difficulty competing with other organizations 38% 38% 39% 41% 46% 47% 44% 51% 53% 49% 63% 55% 57% 53% 44% 43%

Ontarioorganizationsreceivingexternalfundingwithrevenuesbetween$30,000and $99,999andthosewithrevenuesbetween$500,000and$9,999,999,identified unwillingnesstofundcoreoperationsastheirtopissue(seeTable7).Thetopproblem fororganizationsinthe$250,000to$499,999bracketwasdifficultyinplanningforthe future.

Ontarios Nonprofit and Voluntary Sector

47

Table7:Externalfundingissuesbyrevenuesize37

Overreliance on project funding $29.9K or less Ontario Canada $30K$99.9K Ontario Canada $100K$249.9K Ontario Canada $250K$499.9K Ontario Canada $500K$999.9K Ontario Canada $1M$9.9M Ontario Canada $10M + Ontario Canada All organizations Ontario Canada 45% 54% 55% 61% 57% 69% 55% 64% 47% 61% 59% 60% 45% 52% 53% 61% Unwillingness to fund core operations 55% 50% 68% 61% 63% 66% 54% 65% 73% 67% 77% 68% 63% 60% 65% 61% Need to modify programs 34% 38% 54% 46% 48% 52% 39% 50% 48% 48% 61% 55% 53% 51% 47% 47% Reporting requirements of funders 30% 29% 55% 44% 50% 50% 45% 52% 37% 44% 61% 51% 43% 45% 46% 43% Reductions in government funding 57% 54% 66% 61% 72% 72% 65% 73% 68% 67% 77% 74% 85% 81% 68% 65%

WhileallOntarioorganizationsidentifiedexternalfundingasacapacitychallenge,it wasaparticularproblemforgroupsinthe$30,000to$99,999revenuebracket(seeTable 7).Morethanhalfofthese(inreceiptofexternalfunding)reportedthatallfiveexternal fundingissueswerechallengesforthem,includingoverrelianceonprojectfunding, reportingrequirementsandpressurestomodifyprogramming. Humanresourcechallengesareveryimportantfororganizationswithrevenuesunder $500,000peryear(seeTables8and9).Whileproblemsrelatedtoexternalfundingwere thedominantpreoccupationforthesubsetofgroupswithineachrevenuebracketthat hadreceivedexternalfundingbetween2000and2003,overall,difficultyrecruitingand retainingvolunteersandobtainingboardmemberswasanimportantongoingchallenge.

37Thesefiguresapplyonlytothe31%oforganizationsthatwereincorporated,thathadbeen

activeforatleastthreeyears,andthathadreceivedfundingfromgovernments,foundations,or corporationsoverthatperiod. Ontarios Nonprofit and Voluntary Sector 48

Table8:Paidstaffissuesbyrevenuesize
Difficulty obtaining type of paid staff $29.9K or less Ontario Canada $30K$99.9K Ontario Canada $100K$249.9K Ontario Canada $250K$499.9K Ontario Canada $500K$999.9K Ontario Canada $1M$9.9M Ontario Canada $10M + Ontario Canada All organizations Ontario Canada 12% 13% 22% 28% 38% 40% 32% 45% 39% 49% 58% 55% 61% 66% 27% 28% Difficulty providing staff training and development 14% 14% 17% 26% 41% 38% 36% 42% 45% 46% 53% 49% 55% 50% 28% 27%

Difficulty retaining paid staff

25% 23% 13% 16% 16% 17% 17% 17% 22% 23% 20% 20% 23% 24% 18% 19%

Ontarios Nonprofit and Voluntary Sector

49

Table9:Volunteerissuesbyrevenuesize38
Lack of paid Difficulty retaining volunteers staff to recruit or manage volunteers

Difficulty obtaining board members

Difficulty training board members

Difficulty recruiting type of volunteers

Difficulty providing training for volunteers

$29.9K or less

Ontario Canada

45% 53% 49% 61% 57% 60% 57% 59% 49% 51% 45% 50% 38% 42% 49% 56%

25% 26% 32% 36% 48% 43% 39% 42% 41% 44% 43% 43% 37% 33% 34% 34%

48% 51% 54% 61% 72% 68% 65% 65% 59% 55% 55% 53% 65% 54% 57% 57%

42% 45% 44% 52% 63% 57% 57% 57% 44% 42% 47% 46% 62% 51% 48% 49%

20% 22% 30% 36% 42% 45% 50% 52% 44% 51% 53% 49% 45% 45% 34% 35%

29% 28% 35% 37% 54% 46% 57% 54% 44% 47% 50% 47% 45% 48% 41% 38%

$30K$99.9K

Ontario Canada

$100K$249.9K

Ontario Canada

$250K$499.9K

Ontario Canada

$500K$999.9K

Ontario Canada

$1M$9.9M

Ontario Canada

$10M +

Ontario Canada

All organizations

Ontario Canada

Organizationswithrevenuesover$500,000wereconcernedwithamixofissues.In additiontosignificantproblemswithexternalfunding,organizationsnotedconcerns withissueslikestrategicplanning,adaptingtochangeandincreasingdemandfor productsandservices(seeTable10).Overall,alargerproportionofgroupsinthesetop revenuebracketsreportedproblemsthangroupsinlowerrevenuebrackets.For instance,60%oforganizationswithrevenuesover$1millionreportedthattheyhad difficultyparticipatinginpublicpolicydevelopment,comparedto29%of organizationswithrevenuesbetween$30,000and$99,999.Evenonanissuelike retainingvolunteers,62%oforganizationsinthetoprevenuecategoryindicatedthat thiswasachallengecomparedto44%oforganizationsinthe$30,000to$99,999bracket.

38Onlyorganizationswithnonboardvolunteers(80%)wereaskedaboutdifficultyinproviding

trainingforvolunteersandlackofpaidstafftorecruitormanagevolunteers.Only organizationswithdirectors(96%)wereaskedaboutdifficultytrainingboardmembers. Ontarios Nonprofit and Voluntary Sector 50

Table10:Structuralissuesbyrevenuesize

Difficulty collaborating with other organizations $29.9K or less Ontario Canada $30K$99.9K Ontario Canada $100K $249.9K Ontario Canada $250K $499.9K Ontario Canada $500K $999.9K Ontario Canada $1M$9.9M Ontario Canada $10M + Ontario Canada All organizations Ontario Canada 20% 21% 25% 24% 25% 25% 31% 30% 25% 26% 28% 27% 31% 27% 24% 24% Difficulty planning for the future Difficulty participating in policy development 26% 31% 29% 37% 46% 47% 42% 47% 41% 50% 60% 58% 60% 55% 36% 39% Lack of internal capacity Increasing demands for services or products 29% 33% 36% 42% 51% 52% 54% 57% 46% 52% 62% 61% 67% 64% 41% 43% Difficulty adapting to change

50% 53% 62% 61% 62% 62% 72% 68% 61% 59% 68% 64% 72% 64% 60% 58%

24% 28% 37% 41% 57% 50% 51% 50% 50% 54% 61% 54% 53% 57% 41% 39%

31% 33% 33% 42% 54% 49% 47% 47% 43% 45% 52% 52% 78% 69% 40% 41%

Does the source of funding affect organizational capacity?


Thereisclearlyalinkbetweenthetypesofcapacitychallengesorganizationsexperience andtheirfundingmix(seeTables11to14).Withregardtoexternalfunding, organizationsthatweredependentongovernmentsourcesformorethanhalfoftheir revenuesandthosewithadiversifiedfundingbaseweremorelikelythanearned incomedependentordonationdependentgroupstoreportproblems. ThemostpressingproblemsidentifiedbyOntarioorganizationsinreceiptofexternal funding,regardlessoftheirprimarysourceoffunding,arereductionsingovernment fundingandunwillingnessbyfunderstofundcoreoperations.Thesetwoissueswere amongthetopfiveproblemsfacinggovernmentdependentorganizations,earned incomedependentorganizations,donationsdependentorganizations,anddiversified fundingorganizations.

Ontarios Nonprofit and Voluntary Sector

51

Table11:Financialcapacityissuesbyrevenuedependency

Difficulty Difficulty earning revenues obtaining funding from other organizations Government dependent Difficulty obtaining funding from individuals Difficulty competing with other organizations

Ontario Canada

44% 48% 43% 45%

75% 74% 40% 46%

61% 58% 40% 42%

67% 57% 42% 41%

Earned revenues dependent

Ontario Canada

Grants and donations dependent Canada Diverse Ontario Canada All organizations Ontario Canada 28% 50% 49% 38% 42% 32% 56% 53% 42% 48% 48% 58% 52% 47% 48% 34% 57% 49% 44% 43% Ontario 24% 27% 50% 34%

Table12:Paidstaffissuesbyrevenuedependency

Difficulty obtaining type of paid staff

Difficulty retaining paid staff

Difficulty providing staff training and development

Government dependent

Ontario Canada

52% 52% 22% 22%

74% 23% 85% 18%

55% 50% 24% 21%

Earned revenues dependent

Ontario Canada

Grants and donations dependent Canada Diverse Ontario Canada All organizations Ontario Canada 24% 30% 27% 27% 28% 14% 79% 18% 82% 19% 22% 26% 25% 28% 27% Ontario 24% 84% 23%

Ontarios Nonprofit and Voluntary Sector

52

Table13:Volunteerissuesbyrevenuedependency
Difficulty obtaining board members Government dependent Difficulty training board members Difficulty recruiting type of volunteers Lack of paid Difficulty retaining volunteers staff to recruit or manage volunteers 58% 55% 48% 49% 59% 59% 30% 29% Difficulty providing training for volunteers

Ontario Canada

63% 67% 53% 58%

55% 52% 31% 31%

67% 65% 56% 57%

54% 54% 40% 34%

Earned revenues dependent

Ontario Canada

Grants and donations dependent Canada Diverse Ontario Canada All organizations Ontario Canada 44% 52% 56% 49% 56% 29% 34% 34% 34% 34% 54% 56% 57% 57% 57% 47% 45% 47% 48% 49% 29% 40% 38% 34% 35% 35% 35% 36% 41% 38% Ontario 37% 31% 53% 45% 28% 38%

Table14:Structuralissuesbyrevenuedependency

Difficulty collaborating with other organizations Government dependent Ontario Canada Earned revenues dependent Canada Grants and donations dependent Canada Diverse Ontario Canada All organizations Ontario Canada 20% 36% 27% 24% 24% 55% 63% 58% 60% 58% 31% 37% 39% 36% 39% 35% 43% 39% 41% 39% 38% 40% 41% 41% 43% 41% 32% 37% 40% 41% Ontario 19% 55% 29% 40% 37% 40% 22% 56% 36% 34% 38% 39% Ontario 23% 58% 36% 34% 38% 39% 31% 31% Difficulty planning for the future Difficulty participating in policy development 58% 61% Lack of internal capacity Increasing demands for services or products 66% 63% Difficulty adapting to change

75% 70%

65% 60%

49% 50%

Overall,organizationsreliantongovernmentsourcesformorethan50%oftheirfunding weremuchmorelikelythanotherorganizationstoreportproblemswitharangeof

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issues(seeTable15).Predictably,theirmostpronouncedproblemswerewithexternal funding:39Reductionsingovernmentfundingwasdescribedby81%oforganizations asaproblem,whileunwillingnesstofundcoreoperationswasnotedasaproblem78% ofthetime. Table15:Externalfundingissuesbyrevenuedependency

Over-reliance on project funding

Unwillingness to fund core operations

Need to modify programs

Reporting requirements of funders

Reductions in government funding

Government dependent

Ontario Canada

59% 71% 47% 54%

78% 72% 54% 52%

60% 58% 35% 40%

58% 55% 37% 36%

81% 78% 63% 59%

Earned revenues dependent

Ontario Canada

Grants and donations dependent Canada Diverse Ontario Canada All organizations Ontario Canada 53% 62% 60% 53% 61% 53% 82% 64% 65% 61% 39% 61% 47% 47% 47% 29% 59% 45% 46% 43% 48% 79% 68% 68% 65% Ontario 47% 51% 42% 34% 45%

Itisinterestingtonotethatthisgroupoforganizationswasalsomostlikelytohave experiencedincreasedrevenuesbetween2000and2003.Increaseddemandforservices andproductsisclearlyanimportantfactor;withtwothirdsofgovernmentdependent organizationsreportedaproblem,and30%reportingaseriousproblem. Eventhoseorganizationswithadiversifiedrevenuebasereportedconsiderable problemswithexternalfunding.Difficultyobtainingfundingfromindividuals(58%), difficultycompetingwithotherorganizations(57%),anddifficultyobtainingfunding fromotherorganizations(56%)wereamongthetopissuesforthisgroup.Diversified organizationswerealsothemostlikelytoreportproblemswithgeneratingearned income(50%)comparedtotheorganizationswithotherfundingmixes. Amongallorganizationsdependentonearnedincome,difficultyplanningforthefuture wasthemostpressingissue(58%).Earnedincomedependentgroupswerealsomuch morelikelytoidentifyhumanresourceschallenges,includingdifficultyrecruitingthe typesofvolunteersneeded,difficultyobtainingboardmembers,anddifficulty retainingvolunteers.

39Bydefinition,thewholeofthisgroupreceivesexternalfunding.

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Planningforthefuture(55%),difficultyrecruitingthetypesofvolunteersneeded (53%)anddifficultyobtainingfundingfromindividuals(50%)werethetopthree concernsofallorganizationsdependentupongiftsanddonations.

How does primary area of activity affect capacity?


Problemsrelatingtofundingwereofconcernacrosseveryareaofthenonprofitand voluntarysector.Table16showsthetopcapacityconcernsoforganizationsbyactivity area. Externalfundingisthegreatestchallengeforoverthreequartersoforganizations receivingsuchfundingandoperatingintheareasofHospitals,Universitiesand Colleges,International,Health,SocialServices,ArtsandCulture,Environment,and DevelopmentandHousing(seeTable17). Amongallorganizationssurveyed,financingisakeyconcernfororganizationsinArts andCulture,EducationandResearch;SocialServices;InternationalandHospitals, UniversitiesandColleges.Amajorityoforganizationsintheseareasexpressedproblems withobtainingfundingfromindividualsandotherorganizations(seeTable18).

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Table16:Externalfundingissuesbyprimaryactivityarea
Overreliance on Project Funding Arts and Culture Ontario Canada Sports and Recreation Ontario Canada Education and Research Ontario Canada Health Ontario Canada Social Services Ontario Canada Environment Ontario Canada Development and Housing Ontario Canada Law, Advocacy and Politics Ontario Canada Grantmaking, Fundraising and Promoting Volunteerism Canada International Ontario Canada Religion Ontario Canada Business or Professional Associations or Unions Canada Hospitals, Universities and Colleges 42% 44% 43% 30% 57% Ontario 29% 37% 41% 27% 60% 48% 68% 60% 46% 40% 46% 59% 65% 24% 36% 36% 66% 53% 13% 25% 30% 63% 63% 7% 11% 49% 89% 70% 13% 26% Ontario 30% 34% 27% 33% 46% 70% 71% 39% 55% 49% 64% 79% 78% 67% 70% 28% 64% 47% 55% 50% 62% Unwillingness to Fund Core Operations Need to Modify Programs Reporting Requirements of Funders Reductions in Government Funding

80% 70% 54% 54% 68% 64% 88% 85% 78% 71% 76% 71% 60% 49% 86% 72%

57% 57% 37% 39% 50% 52% 65% 55% 55% 56% 62% 57% 31% 38% 66% 52%

56% 45% 35% 37% 47% 48% 65% 61% 54% 53% 65% 49% 46% 39% 49% 49%

77% 74% 63% 61% 52% 69% 85% 79% 81% 73% 76% 75% 72% 67% 72% 63%

Ontario

77%

83%

77%

73%

90%

Canada Other Ontario Canada All Organizations Ontario Canada

68% 3% 52% 53% 61%

66% 3% 38% 65% 61%

59% 44% 44% 47% 47%

55% 1% 39% 46% 43%

82% 45% 51% 68% 65%

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Table17:Financialissuesbyprimaryactivityarea
Difficulty earning revenues Arts and Culture Ontario Canada Sports and Recreation Ontario Canada Education and Research Ontario Canada Health Ontario Canada Social Services Ontario Canada Environment Ontario Canada Development and Housing Ontario Canada Law, Advocacy and Politics Ontario Canada Grantmaking, Fundraising and Promoting Volunteerism 54% 60% 56% 51% 49% 52% 38% 52% 49% 43% 45% 50% 18% 27% 69% 53% Difficulty obtaining funding from other organizations 63% 70% 51% 53% 54% 59% 68% 73% 65% 67% 56% 60% 30% 38% 73% 66% Difficulty obtaining funding from individuals 60% 63% 53% 47% 60% 55% 55% 63% 69% 60% 58% 53% 17% 22% 66% 57% Difficulty competing with other organizations 65% 59% 52% 49% 59% 55% 58% 61% 68% 57% 55% 44% 21% 26% 81% 55%

Ontario

27%

31%

45%

44%

Canada International Ontario Canada Religion Ontario Canada Business or Professional Associations or Unions

32% 23% 38% 21% 26%

38% 66% 64% 17% 20%

47% 60% 60% 42% 44%

47% 62% 58% 21% 20%

Ontario

45%

38%

20%

31%

Canada Hospitals, Universities and Colleges Ontario Canada Other Ontario Canada All Organizations Ontario Canada

43% 25% 26% 37% 49% 38% 42%

36% 67% 63% 39% 51% 42% 48%

24% 85% 63% 19% 34% 47% 48%

30% 74% 58% 29% 39% 44% 43%

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Table18:Paidstaffissuesbyprimaryactivityarea
Difficulty Obtaining Type of Paid Staff Arts And Culture Sports and Recreation Education and Research Health Social Services Environment Development and Housing Law, Advocacy and Politics Grant-making, Fundraising and Promoting Volunteerism Canada International Religion Business or Professional Associations or Unions Canada Hospitals, Universities and Colleges 25% 13% 27% Ontario 23% 11% 30% Ontario Canada Ontario Canada 14% 36% 32% 24% 25% 2% 13% 12% 17% 13% 55% 37% 22% 22% Ontario 12% 20% 11% Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada 40% 38% 19% 19% 26% 39% 66% 54% 48% 49% 25% 24% 18% 21% 47% 32% Difficulty Retaining Paid Staff 23% 23% 25% 25% 28% 27% 39% 35% 21% 24% 11% 25% 8% 7% 6% 7% Difficulty Providing Staff Training and Development 39% 35% 22% 19% 33% 33% 56% 46% 51% 47% 24% 23% 21% 23% 48% 37%

Ontario

53%

55%

45%

Canada Other All Organizations Ontario Canada Ontario Canada

50% 31% 32% 27% 28%

39% 5% 3% 18% 19%

41% 9% 27% 28% 27%

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Table19:Volunteerissuesbyprimaryactivityarea
Difficulty obtaining board members Arts And Culture Sports and Recreation Education and Research Health Social Services Environment Development and Housing Law, Advocacy and Politics Grant-making, Fundraising and Promoting Volunteerism Canada International Religion Business or Professional Associations or Unions Canada Hospitals, Universities and Colleges Ontario Canada Other All Organizations Ontario Canada Ontario Canada 56% 66% 60% 37% 49% 49% 56% 34% 43% 40% 28% 31% 34% 34% 54% 59% 52% 44% 43% 57% 57% 44% 52% 45% 39% 37% 48% 49% 43% 42% 42% 12% 38% 34% 35% 41% 45% 39% 14% 44% 41% 38% Ontario 44% 29% 54% 45% 55% 52% Ontario Canada Ontario Canada 44% 39% 46% 33% 42% 25% 44% 44% 29% 27% 45% 49% 53% 53% 55% 37% 51% 46% 45% 48% 24% 53% 54% 25% 26% 30% 59% 51% 37% 33% Ontario 37% 25% 42% 33% 21% 35% Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada Ontario Canada 50% 59% 60% 64% 52% 58% 64% 67% 62% 64% 55% 59% 56% 58% 82% 70% Difficulty training board members 44% 42% 36% 32% 41% 37% 39% 52% 47% 47% 44% 35% 24% 27% 49% 51% Difficulty recruiting type of volunteers 65% 64% 66% 65% 60% 59% 76% 71% 62% 62% 51% 52% 46% 42% 87% 74% Lack of Paid Difficulty retaining volunteers Staff to Recruit or Manage Volunteers 55% 54% 60% 58% 54% 53% 55% 53% 51% 52% 56% 48% 35% 36% 73% 61% 47% 46% 26% 26% 29% 38% 66% 56% 54% 50% 29% 34% 26% 31% 67% 55% Difficulty Providing Training for Volunteers 44% 43% 40% 33% 35% 36% 43% 54% 51% 47% 51% 42% 33% 32% 60% 52%

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Table20:Structuralissuesbyprimaryactivityarea

Difficulty collaborating with other organizations Arts and Culture Ontario Canada Sports and Recreation Ontario Canada Education and Research Ontario Canada Health Ontario Canada Social Services Ontario Canada Environment Ontario Canada Development and Housing Ontario Canada Law, Advocacy and Politics Ontario Canada Grantmaking, Fundraising and Promoting Volunteerism Canada International Ontario Canada Religion Ontario Canada Business or Professional Associations or Unions Canada Hospitals, Universities and Colleges Canada Other Ontario Canada All Organizations Ontario Canada 30% 12% 19% 24% 24% 72% 45% 53% 60% 58% 55% 33% 42% 36% 39% 59% 16% 37% 41% 39% 58% 28% 38% 41% 43% 63% 37% 34% 40% 41% Ontario 33% 87% 65% 72% 63% 67% 23% 54% 47% 45% 38% 42% Ontario 22% 55% 44% 42% 33% 42% 23% 51% 40% 13% 14% 54% 77% 72% 52% 54% 29% 39% 38% 29% 27% 28% 62% 60% 36% 31% 42% 53% 52% 32% 32% 33% 54% 48% 42% 45% Ontario 26% 54% 23% 26% 36% 30% 27% 28% 28% 27% 23% 29% 37% 32% 42% 30% 37% 27% 8% 14% 50% 35% Difficulty planning for the future 68% 67% 63% 58% 52% 57% 82% 68% 73% 67% 66% 65% 48% 47% 87% 68% Difficulty participating in policy development 36% 41% 35% 36% 40% 46% 72% 62% 53% 54% 56% 56% 26% 33% 57% 57% Lack of internal capacity Increasing demands for services or products Difficulty adapting to change

49% 51% 35% 32% 41% 47% 68% 63% 65% 54% 57% 49% 27% 28% 68% 59%

41% 41% 43% 40% 51% 51% 61% 70% 67% 65% 28% 40% 26% 31% 69% 57%

47% 45% 42% 40% 27% 36% 56% 51% 47% 45% 53% 47% 26% 28% 40% 41%

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HumanresourcesconcernswereamongthetopfiveforallorganizationsinSportsand Recreation,BusinessandProfessionalAssociationsandUnions,andDevelopmentand Housing.Difficultyrecruitingthetypeofvolunteersneededwasthetophuman resourcesproblem,notedbynineofthefourteengroupsintheirtopfive(seeTables19 and20). Theseverityofproblemsreportedvariedacrossactivityareasaswell.Insomeinstances, thepercentageofgroupsreportingaproblemwithaparticularissuewasconsistently higherthantheOntarioaverage.Below,arethedifferentareasbytheintensityof problemsacrossthedifferentcapacityareas.Subsectorswhereanaboveaverage proportionoforganizationsreportedproblemson17to24capacityissueswere identifiedassectorswithhighlevelsofcapacityproblems.Thosesubsectorswith aboveaverageproportionsoforganizationsreportingproblemsonbetween9and16 issueswerelabeledashavingmoderatecapacityproblemsandthosereporting significantproblemson1to8issueswereidentifiedashavinglowlevelsofcapacity problems. Table21:Severityofcapacityproblemsbyactivityarea
Areas Experiencing Low Capacity Problems: Above-average proportion of organizations reporting problems on 1 to 8 issues Areas Experiencing Moderate Capacity Problems: Above-average proportion of organizations reporting problems on 9 to 16 issues Areas Experiencing High Capacity Problems: Above-average proportion of organizations reporting problems on 17 to 24 issues - Health - Social Services - Hospitals, Universities and Colleges - Law, Advocacy and Politics - Arts and Culture - Environment - International

- Business, Professional Associations and Unions - Grant-making, Fundraising and Voluntarism Promotion - Religion

- Sports and Recreation - Education and Research - Development and Housing

Overall,theareaswithhighcapacityproblemswere:Health;SocialServices;Hospitals, UniversitiesandColleges;Law,AdvocacyandPolitics;ArtsandCulture;Environment; andInternational.40Sectorsreportingmoderatecapacityproblemswere:Sportsand Recreation;EducationandResearch;andDevelopmentandHousing.Thosewith

40Organizationsweregroupedashavinghigh,moderateorlowcapacityconcernsby

determiningthenumberofissueswherethepercentageoforganizationsexpressingaproblem washigherthantheOntarioaverage. Ontarios Nonprofit and Voluntary Sector 61

relativelylowlevelsofcapacityproblemswere:Businessandprofessionalassociation andunions;Grantmaking,fundraisingandvoluntarismpromotion;andReligion. Ontarioorganizationssurveyedexpressedconsiderableconcernabouttheircapacityto pursueandsustaintheirgoalsandactivitieswithinthecontextofachangingsocial, politicalandeconomicenvironment.Boththelevelandstructureoffundingand supportavailabletothenonprofitandvoluntarysectorhavebeenhighlightedaskey issues.Aswell,therearesignificanthumanresourcesconcernsnotablywiththeability toretainpaidstaffandtorecruitthetypeofvolunteersneeded.Largeorganizations dependantongovernmentfunding,thoseintheHospital,UniversityandColleges, Health,orSocialServicesactivityareasaremorelikelytoreportproblemsacrossarange ofcapacityareas.Whilethesegroupswerealsomorelikelytoexperiencedpositive revenuegrowthandincreasesinbothvolunteersandpaidstaff,theyclearlycontinueto struggletomeetthedemandfortheirservices.

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Conclusions
TheNSNVOprovidesarichportraitofthevoluntaryandnonprofitsectorinOntario. Thisreporthasprovidedsomeofthefirstkeyfeaturesofthispicture. Ontariohasacomparativelysmallnonprofitandvoluntarysectorasmeasuredby organizationspercapitathanelsewhereinCanada.Whilethemajorityofgroupsserve theirlocalcommunities,thereisanotablepresenceofnationalandinternational organizationsinOntario. TotalsectorrevenuesinOntarioarehighlyskewed.Hospitals,UniversitiesandColleges accountforlessthan1%ofallorganizationsbutreceive38%oftotalsectorrevenues. Ontariohasacomparativelylargenumberoforganizationsinthetoprevenuebrackets includingmanyintheHospitals,UniversitiesandCollegessectorcomparedtoother regions. Withthenotableexceptionof,Hospitals,UniversitiesandColleges,Health organizationsandSocialServices,thelargestsinglesourceoffundsfornonprofitand voluntaryorganizationsisearnedincome(46%).Anotherthirdaredependentongifts anddonationswhileonly12%aredependentongovernmentsources.Oneintenrely onadiversemixoffundingsources. AlthoughhavingcomparativelyfewerorganizationsthanelsewhereinCanada,Ontario engagesthelargestnumberandshareofvolunteersandpaidstaffinCanada.Aswith revenues,thedistributionofvolunteersandstaffishighlyskewed.Largerorganizations asmeasuredbyrevenuestendtohavelargerstaffandvolunteercomplementsthan smallerones.Forinstance,overhalfofthevoluntaryandnonprofitorganizations(53%) havenopaidstaffandarewhollyvoluntary. MostemploymentinthenonprofitandvoluntarysectorinOntarioispermanentand fulltime,buttheratesoftemporaryemploymentandparttimeworkaremuchhigher thanthenationalaverageforOntarioandCanada. Overall,therewasrelativestabilityinrevenues,volunteerandstaffinglevelsbetween 2000and2003.However,largeorganizationsappeartohavebenefitedmostfromthe positiveeconomicclimatebetween2000and2003.Theyweremostlikelytohave experiencedincreasingvolunteerandstaffnumberscomparedtosmallergroups.This wasparticularlytrueintheOntariononprofitandvoluntarysectorwithits comparativelylargershareoflargeorganizations(asmeasuredbyrevenues,staffand volunteers)thannonprofitsectorsinotherprovinces.Despitetheseresourceadvantages, largeorganizationsdependentongovernmentfunding,andespeciallythoseworkingin Health,Universities,andCollegesandHealtharemostlikelytoreportproblemsacross arangeofareas.
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Thereappearstobetwodistinctrealitiesinthenonprofitandvoluntarysectorin Ontario,aselsewhereinCanada.Atonepole,areorganizationsoperatingexclusively withtheassistanceofvolunteersandwithverylowrevenuesinareassuchasSportand RecreationandReligion;attheotherend,therearearelativelysmallnumberofvery largeorganizationswithsignificantrevenues,staffandvolunteers.Althoughthe particularcapacitychallengesfacingeachgrouparedistincttosomeextent,themajority clearlyreportproblemswiththepursuitofresourcesbothhumanandfinancial. Thenonprofitandvoluntarysectorisavitalpieceofoursocialandeconomiclifein Ontario.Theseorganizationsdelivermanycriticalservicesincommunitiesacrossthe provinceandplayakeyroleinbringingpeopletogethertoenhancethequalityoflife forallcommunitymembers.Thisreporthasprovidedafirstglimpseofthecomposition, financialandhumanstrengths,demandsandchallengesfacedbythisimportantsetof institutions.Thisisatimelyopportunitytoaddresscapacitychallengesthatimpede theirabilitytoserveOntariansandtobuildonthestrengthsofthesector.

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Imagine Canada 425 University Avenue, Suite 900 Toronto, Ontario Canada M5G 1T6 Tel: 416.597.2293 / 1.800.263.1178 Fax: 416.597.2294 research@imaginecanada.ca

Canadian Council on Social Development 190 OConnor Street, Suite 100 Ottawa, Ontario Canada, K2P 2R3 Tel: 613.236.8977 Fax: 613.236.2750 www.ccsd.ca

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