Supporting Halton’s Nonprofits: Investing in People and the Community

Currented by Gala Vukmanovic

Why Nonprofits in Halton Matter

Community nonprofit organizations provide essential community and social services throughout the Halton Region. From child and youth services to housing support, food security and advocacy, these organizations play a vital role in strengthening the well-being of individuals, families and the wider community. However, the community nonprofit sector must navigate a complex set of challenges that are shaped by funding constraints, policy changes, shifting community needs, workforce challenges and the impact of uncertain global markets and policies threatening to increase service demands.

Key Findings from Research

Currently, research from Community Data Watch has found that Halton’s nonprofit sector faces persistent staffing and funding challenges, the growing significance of grassroots organizations, and the urgent need to strengthen the resilience and visibility of Halton’s community nonprofit sector.

Nonprofit Sectors Impact

Not only does the nonprofit sector lead a variety of community and social initiatives, but it also has a huge impact on the Canadian economy and workforce. Canadian nonprofits employ around 2.5 million people, exceeding the number of employees in each of the three largest for-profit industries. In addition, the charitable and nonprofit sector contributes an average of 8.1% of total Canadian GDP, positively impacting the Canadian economy. Overall, nonprofits contribute in a multitude of ways, whether that is through supporting the community directly or strengthening the Canadian economy.

Impact of COVID-19 and Sector Recovery

Nonprofit organizations in Halton have been fluctuating over the past six years, with the number of nonprofits declining from 1,021 in 2019 to 904 in 2021. This is likely due to the impact of the COVID-19 pandemic and the economic challenges it caused, leading to decreases in funding and job losses in the labour market. However, in subsequent years, Halton has surpassed pre-pandemic levels and reached 1,148 organizations in 2024. This growth highlights the increasing demand for community and social services. Still, while Halton saw a 12.4% increase in organization between 2019 and 2024, it was comparatively lower than the provincial increase of 19.3%, reinforcing the lingering effects of the COVID-19 pandemic. These patterns reflect the nonprofit sector's ability to recover during times of crisis and the community's growing need for essential services.

Access to Nonprofits Across the Region

While the number of nonprofits has grown since the COVID-19 pandemic, access to these services is not necessarily distributed evenly across Halton. There tends to be a higher concentration of nonprofits in urban areas, with Burlington and Oakville having the highest density. Northern and rural parts of Halton Region, such as Halton Hills, have fewer nonprofit organizations. Many tracts in these areas contain only 0–7 organizations. The uneven distribution can impact access for Halton residents across different communities, highlighting that simply increasing the overall number of nonprofits might not be enough. Also important to note is that there are many nonprofits that have head offices in the two southern municipalities but provide services in Milton and/or Halton Hills.

Shifting Service Priorities

Nonprofits in the Halton region provide the community with a wide range of services, with the most popular being child day-care services, grant-making and giving services, and other individual and family services. Child day-care services remain the largest category, even with the slight decline since 2019, reflecting possible shifts in funding, policy and service delivery. Meanwhile, other services such as social advocacy, services for the elderly and persons with disabilities, community food services, emergency and other relief services rose.

These changes suggest a growing prioritization of crisis relief, elder care, and social advocacy, while traditional services like child day care and vocational rehabilitation may be experiencing reduced nonprofit engagement due to funding, structural and policy changes. These shifts show Halton’s nonprofit sector's ability to adapt to new community needs, maintaining its vital role in our community.

The Nonprofit Workforce and Volunteers

It’s important to note that Halton’s nonprofit sector relies on a diverse blend of paid staff, volunteer and informal contributors to operate nonprofits. Quantifying this workforce remains a significant challenge due to the absence of comprehensive, publicly available data, especially concerning volunteer roles.  Only 37% reported having at least one employee, which suggests a high level of reliance on volunteers or informal labour. Better recognition and documentation of grassroots and volunteer-driven groups is necessary for understanding the full scope of community labour that sustains Halton’s nonprofit sector.

Funding Challenges

Nonprofit organizations also rely heavily on external funding to be able to meet their growing demands, ensure program affordability and advocate for sector sustainability. Local foundations, such as The Halton Region Community Investment Fund, Burlington Community Foundation, Oakville Community Foundation, North Halton Foundation and the United Way Halton & Hamilton, provide millions in grants to support nonprofit organizations addressing key issues such as mental health, food security, housing stability, and social inclusion. Despite the availability of funding, many nonprofits in Halton face challenges in securing long-term financial sustainability, such as short-term grants, funding restrictions, and intense competition for resources create uncertainty for many organizations that can lead to instability and difficulty retaining staff. For example, many small nonprofit organizations in Halton often receive one-year government grants. However, the short-term nature of many grants creates uncertainty in organizations. This causes worry about job security and service users losing access to programming if the grant cannot be renewed.

            To ensure longer-term sustainability, nonprofits must diversify their funding sources by combining government grants, foundation support, corporate sponsorships, and earned revenue. Additionally, employees must earn a living wage that can cover their basic expenses and allow them to participate in their community. Overall, nonprofits continue to meet increasing demands while grappling with reduced funding and slower administrative processes from government funders. Smaller nonprofits with limited financial resources are particularly vulnerable, which may lead to service reductions or closures. As the sector adapts to these pressures, organizations may need to rely more heavily on volunteers and intensify their advocacy efforts, while simultaneously developing new funding strategies to maintain essential community services.

The Role of Grassroots Groups

Grassroots groups are another important piece of the nonprofit sector. They are often volunteer-driven and emerge in direct response to local needs to fill gaps in service. While the number of grassroots groups is small, their impact is significant.  They provide a wide range of services, including environmental protection, cultural and heritage preservation, neighbourhood improvement, sports and recreation, child abuse prevention, breastfeeding support, diversity and inclusion advocacy, and even local political and lobbying efforts. Although grassroots groups are often overlooked, they provide vital community and social services to the Halton community

Workforce Well-being and Burnout

Lack of sustainable funding leads to nonprofit workers earning roughly 32% less than the average Canadian worker. Data shows that 39% of community nonprofit workers report low well-being, and 34% report experiencing food insecurity. The findings of the Changemaker Wellbeing Index underscore a pressing reality: those leading and sustaining community-based organizations are experiencing deep fatigue, burnout, and emotional distress, which is exacerbated by unstable funding, rising service demands, and administrative burdens.

To ensure Halton’s community nonprofit sector remains resilient, equitable, and effective, we must invest in the well-being of the people behind the work. This means more than just funding programs and requires rethinking how we support and sustain community leadership at all levels.

A Call to Action for

Funders, policymakers, and community stakeholders to:

• Provide multi-year, flexible funding that prioritizes stability over short-term outcomes.

• Uphold community nonprofits over privatized services for the best community outcomes.

• Re-think local philanthropy so that community holdings are meaningfully invested in community action that supports financing of Halton-made projects for Halton residents.

• Recognize that nonprofits are economic drivers in the Halton community and are essential for community well-being. 

• Support well-being initiatives for nonprofit staff and volunteers, including mental health support, rest, and renewal programs, and reduced administrative load.

Nonprofits to:

• Work collaboratively to advocate for the sector, for decent pay, sustainable wages, and a seat at the table as decision-makers plan for the community. They cannot do this without those most in touch with residents and community members.

• Develop capacity in the areas of data collection and data storytelling so that the impact of the local sector can be effectively articulated.

Community to:

• Learn about the impact of the nonprofit sector and speak up to local decision-makers about the sustainable support that nonprofits need to continue supporting our communities.

• Volunteer and share their time, gifts, and passions with nonprofits and grassroots groups to care for their community and neighbours.

The well-being of our communities depends on the well-being of the people who serve them. Let this be a turning point in how we invest, not just in programs, but in the people and relationships that drive meaningful change in Halton.

The full Community Data Watch about Nonprofits in Halton is available HERE.

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