From Rising Demand to Funding Pressures: Insights from Halton’s Nonprofit Sector

Meeting community needs in uncertain times.

Nonprofit organizations are the backbone of Halton Region’s social and economic well-being, delivering essential services and fostering community connections. But how is the sector faring in 2025? Community Development Halton (CDH) analyzed a Halton subset of data, from the Ontario Nonprofit Network’s (ONN) 2025 State of Ontario's Nonprofit the Sector Survey, to uncover trends, challenges, and opportunities shaping Halton’s nonprofit landscape.

There were 46 Halton responses in 2025, down from the 90 that responded in 2024. The survey responses include a higher proportion from organizations with larger budgets (60% of responding organizations reported annual budgets of $1 million or more, up from about 40% the previous year). As a result, caution is taken in making comparisons over the previous two years. (A similar analysis of was done in 2024. ) Where appropriate comparisons across the two years are made.

Halton Insights from the 2025 Ontario NonProfit Network Survey

Organizational Sentiment: A Shift Toward Caution

Optimism among nonprofits has declined from 46% in 2024 to 33% in 2025, while feelings of uncertainty and anxiety have surged. Encouragingly, the proportion of organizations feeling “overwhelmed” dropped significantly, suggesting improved workload management. Still, nonprofits remain concerned about external pressures like funding stability and economic conditions.

External Pressures Are Mounting

Halton’s nonprofits were asked to identify which recent events have had an impact on their organization. The responses provide valuable insight into how broader societal and economic shifts are affecting the focus, priorities, and long-term planning of community-based organizations. Here is the summary of the largest factors reported impacting staffing, programming, revenue, and expenses.

• Economic downturn stands out as the single most impactful factor across nearly all areas – especially strong effects on revenue (76%), expenses (73%) and staffing (46%)

• Technological and digital advancements are the second most common external influence, affecting mission (20%), staffing (23%) and programming (22%)

• Deteriorating of the Canada-US relationship and changes to Canadian immigration laws each affect around 15 to 20% of the organizations in multiple areas.

• Backlash/decline in diversity, equity, and inclusion (DEI) commitments, and rise in polarization/hate crimes, each affects 15 to 20% of nonprofits in areas notably in programming and staffing

• Climate change events, rise in extremism, and changes to provincial safe consumption sites policies are less commonly reported, typically affecting under 10 to 15% of respondents.

Rising Demand for Services

Nearly 90% of nonprofits reported increased demand for programs. The majority (58.5%) experienced a moderate increase of 25% or less, while nearly 29.3% saw demand rise by 26% to 59%.. When asked how well the nonprofits are meeting this increased demand, responses were mixed. About 30.4% indicated they are unable to meet current demand, while 50% reported they can somewhat meet the demand. Only 19.6% stated that they can fully meet the demand.

Financial Strain Persists

While revenues grew modestly for many organizations, expenses rose faster, especially salaries and program costs.

Nearly 42% of nonprofits reported that their revenue increased modestly by 1 -24%, while another 13% saw small to moderate decline. Only a small share experienced significant growth (9%) reported increases between 25-49%, and just 4% saw increases of 50% or more. Meanwhile, 29% of nonprofits indicated that their revenues remained stable.

Expenses, however, tell a different story. A majority of nonprofit (63%) reported their expenses increased by 1 -24%, and another 17% saw larger increases between 25 -49%. Only 9% reported no change, and very few saw decline. While many nonprofits in Halton responding to the survey experienced moderate revenue growth, their expenses rose at a faster rate, indicating continued financial pressures across the sector.

These results highlight a growing financial strain on Halton’s nonprofit sector. The revenue and expense imbalance underscores the need for diversified funding, cost management strategies, and continued advocacy for stable and equitable funding from all levels of government.

Over 80% of nonprofits report plans to strengthen relationships with funders and adjust fundraising strategies to ensure sustainability.

Workforce and Volunteer Challenges

Nonprofits continue to face recruitment and retention difficulties, particularly in attracting qualified staff and maintaining volunteer participation. Competitive wages, burnout, and post-pandemic shifts in volunteer engagement have created ongoing human resource challenges.

The most significant ongoing issue with staffing is wage disparity across sectors with 60% of respondents identifying it as a challenge. Although still high, this represents a decline from 69% in 2024, suggesting that some nonprofits may be narrowing pay gaps or finding other ways to attract and retain staff despite compensation limits. Similarly, staff burnout and stress which was one of the most pressing concerns in 2024 (64%) has dropped to 48% in 2025, indicating a potential improvement in workload management, wellness supports, or work-life balance initiatives.

Recruitment and retention remain difficult, though wage disparity and burnout have eased compared to 2024. Volunteer engagement is recovering, but attracting youth volunteers continues to be a challenge.

Looking at the figure below, the overall picture shows some easing of the most severe pressures with volunteerism, however, many nonprofits continue to face significant barriers to maintain a strong volunteer base. The most cited issue in both years remains - difficulty recruiting new volunteers, though it declined from 80% in 2024 to 63% in 2025.

There is a persistant issue attracting youth volunteers, reported by 31% if survey respondents in 2025. The lack of dedicated volunteer engagement staff with in organizations also continues to be a challenge for 38% of those those responding.

What’s Next for Halton’s Nonprofits?

The data reveal a sector that is resilient yet vulnerable. To thrive, nonprofits must prioritize:

• Collaboration: Deepen partnerships across social services, housing, and health sectors.

• Visibility: Amplify the value of nonprofit work in poverty reduction, inclusion, and housing stability.

• Advocacy: Unite around regional issues like affordable housing and funding stability.

• Capacity Building: Invest in data literacy and organizational infrastructure to strengthen impact and sustainability.

Bottom Line: Halton’s nonprofits are adapting to a complex environment with determination and creativity. Continued investment, collaboration, and advocacy will be critical to ensuring these organizations can meet rising community needs and remain a vital force for social good.

What Action is Happening?

On November 28, 2025, lead by a leadership team of nonprofit Executive Directors and Senior Managers, Impact Halton Coalition, a network of nonprofit organizations in the Region of Halton, launches. The Coalition's mandate is to advocate for and build a strong nonprofit sector supporting the many diverse communities of Halton Region. The Coalitions objectives include:

• Build connections within Halton’s nonprofit sector and share opportunities to strengthen impact  

• Inform policy that impacts the sector through advocacy and education  

• Developing allies among community members, decision-makers and funders

You can learn more about the Impact Halton Coalition and how you can get involved HERE.