One in five Canadian nonprofits at risk of closing, Liberal MP claims

Due to the recession, one in five Canadian nonprofits are in danger of closing their doors, according to Liberal MP Lise Zarac.

“Canada’s not-for-profit organizations have 12 million volunteers who provide services equivalent to 7% of the gross domestic product, to help the poorest members of our society,” Zarac, who represents the Quebec riding of LaSalle-í‰mard, said in the House of Commons on June 12. “These organizations are most vulnerable during a recession like this one, yet it is now when they are needed the most.

“Experts believe that 20% of these organizations are at risk of closing,” Zarac added. “What is the government going to do to protect them?”

The Conservative government sidestepped the question.

Ted Menzies, the parliamentary secretary to the minister of finance, replied that “this government is focused on helping Canadians, whether it is non-governmental organizations, whether it is the poor. We have taken 750,000 low-income Canadians off the tax rolls in the last five years. We care very much. We are dealing with the pension issues that impact seniors in this country. We have put forward an economic action plan that helps all Canadians equally.”

In January, Imagine Canada—which represents the sector to policy makers—asked for some pro-nonprofit measures to be included in the budget. First, that no government cuts be made to nonprofits, which represent 161,000 organizations in Canada. Imagine’s president and CEO, Marcel Lauzií¨re, said at the time in a press release responding to the budget, “We are extremely disappointed that the government was silent on the issue.”

Second, that a three-year increase in charitable tax credits for individuals be offered to stimulate new giving, up to $15,000 a year. This didn’t happen.

Third, that a portion of the federal infrastructure stimulus package go to projects that “contribute to community and social infrastructure”. Lauzií¨re said he was pleased that some money was designated for nonprofits. However, he was concerned that projects could require matching funds to go forward.

Imagine Canada’s research shows:

”¢ Canada’s nonprofit and voluntary sector is the world’s second largest; the Netherlands is the largest; the United States is the fifth;

”¢ Two million people are employed by these organizations, representing 11.1 percent of the “economically active” population

Ӣ The nonprofit sector represents $79.1 billion or 7.8 percent of the GDP, which is a larger share than the automotive or manufacturing industries