The State of Halton’s Nonprofit Sector 2026
Introduction
Nonprofit organizations are important community assets, they connect people, deliver services, mobilize volunteers and strengthen community. In October 2026 the Ontario Nonprofit Organization (ONN) released its annual State of the Sector survey report[1] which details comprehensive data to understand how Ontario’s nonprofits are faring and use those insights to advocate for policy changes.
This report examines what 80 Halton survey respondents reported compared with respondents across Ontario (741 responses). Halton’s nonprofit participation increased by 74% between 2025 and 2026 (from 46 to 80 organizations). Its share of Ontario respondents also increased from 9.8% to 10.8%.
Key findings
66% of Halton respondents reported some or significant organizational changes
85% reported increased demand for programs and services, but only 28% said they could fully meet demand
90% reported increased expenses, compared with approximately 45% reporting increased revenues
Community connections, belonging and well-being were among the most frequently observed benefits of their work.
Reporting organizations
Social services were the largest subsector represented in Halton (33%), followed by arts, culture, heritage and tourism (18%) and health (14%). Half had operating budget below $1 million; 20% operated on less than $100,000. Four in five had paid staff, while one in five were entirely volunteer run.
Overall Organizational Situation
The 2026 survey reveals that many organizations in Halton are operating under considerable pressure. About two-thirds (66.2%) reported experiencing organizational challenges, including 50% facing some challenges and 16.2% facing significant challenges.
Halton’s overall situation is like Ontario’s. However, slightly higher proportion of Halton’s organizations reported thriving (6.2% versus 4.3%).
When nonprofits face ongoing challenges, their ability to maintain services, retain staff and volunteers, and support community participation may be affected. Understanding the nature and severity of these pressures is an important first step toward identifying where collective support, partnerships, and resources may be needed.
Growing demand, limited capacity
About 86% of Halton organizations reported increased demand for their programs and services during 2025-2026, compared with about 77% across Ontario. In Halton, 30% reported demand growth 25%-49%, compared with 23.7% provincially. This points to substantial pressure on organizations that often have limited flexibility to expand.
Just 27.5% of Halton respondents said they could fully meet demand. Another 51.2% could only somewhat meet it, while 21.2% could not meet demand. Although Halton had a somewhat higher proportion able to meet demand than Ontario (20.7%), the combined share unable to fully meet demand was still 72.4%.
Demand growth is not necessarily evidence of organizational growth of success: it can signal more people needing help or more complex needs. Service planning should be considered unmet demand, waitlist, referral patterns and barriers to access alongside the number of clients served. Sharing space, referrals, training and volunteer networks may help, but cannot substitute for adequate service funding.
Financial pressures
The survey reveals a significant difference between change in revenue and expenses.
While 90% of Halton respondents reported increased expenses, only 45% reported increased revenues. Across Ontario, the corresponding figures were 81.8% and 42.3%.
The contrast between revenues and expenses is considerable. Approximately 45% of Halton respondents reported higher overall revenue in 2025-26, while 90% reported higher expenses. A further 26.2% said revenue stayed the same, which may still mean reduced purchasing power when costs rise.
Among Halton respondents:
75% reported higher costs for programs, services and activities;
69% reported increased salary and benefit costs; and
66% reported higher professional fees.
Organizations are responding in different ways. Nearly 24% reported scaling back programs and services, 28% did not fill vacant positions, and 30% underspent budget lines.
Only 15% expected their financial situation to improve in the next 6-12 months, while 20% expected it to worsen and 53.8% anticipated little change. Nearly 31% reported no reserved fund. For community funders and policymakers, multi-year flexible support and investments in core operating capacity may be as important as funding new projects.
Staff and Volunteers
Halton nonprofits depend on both paid workers and volunteers. Eighty percent of survey respondents had paid staff; among those organizations, 45.3% experienced challenges recruiting or retaining paid workers during 2025-26, compared with 52.7% across Ontario. Among organizations responding to the volunteer question, 43% experienced volunteer recruitment or retention challenges.
Volunteers are more than an unpaid workforce: they bring local knowledge, relationships, leadership and trust. An asset- based approach would strengthen volunteer pathways, shared recruitment supports, board development and succession planning. Paid workforce strategies should also address working conditions and organizational capacity rather than relying solely on volunteer substitution.
Community Assets
Despite organizational pressures, respondents described positive changes resulting from their work. In Halton, 72.5% observed stronger community connections or support networks, 68.8% reported increased community identity and belonging, and 67.5% observed improved well-being. These are self-reported observations of community benefit, not independently measured outcomes.
What does this mean for Halton?
The 2026 ONN survey presents a nonprofit sector that is both resilient while under pressure. Halton’s findings largely reflect the broader provincial picture: organizations are responding to growing demand while managing financial uncertainty, workforce challenges, and limited capacity. At the same time, they continue to strengthen community connections, belonging and well-being.
ONN’s provincial policy report, Ontario’s Nonprofits: Focus on Preparedness During Uncertainty[2], emphasizes that nonprofits are adapting to prolonged uncertainty, but adaptation should not be mistaken for organizational stability. Its recommendations focus on reducing administrative burdens, strengthening financial resilience, and mobilizing collective advocacy.
For Halton, these findings point to three interconnected opportunities for collective action.
Strengthen the sustainability and resilience of nonprofits
For Halton, the opportunity is to bring together nonprofit organizations, funders, and governments to explore more predictable and flexible funding, shared administrative resources, and support for workforce development. Understanding which organizations are most vulnerable and why would help direct resources where they are most needed.
Better understand unmet needs and their consequences for communities
Although nearly 86% of Halton respondents reported increased demand, only 27.5% could fully meet it. This raises important questions about residents who may be waiting for services, receiving less support than needed, or unable to access services altogether.
For Halton, there is an opportunity to connect survey findings with local evidence on waiting lists, service gaps, referral patterns, and neighbourhood needs. Census data, community service information, and the lived experiences of residents and service providers could provide a more complete picture of where needs are growing and where resources may be insufficient.
Build on community assets, partnerships, and collective action
ONN’s report calls for stronger collective advocacy, encouraging nonprofits to build diverse networks, use survey evidence to communicate sector needs, and work together on shared priorities.
For Halton, this provides an opportunity to strengthen existing partnerships among nonprofit organizations, residents, funders, and community institutions. Collaboration could include shared learning, volunteer development, coordinated responses to community needs, and collective efforts to communicate the sector’s contributions and challenges.
Rather than expecting individual organizations to address systemic pressures on their own, a more connected nonprofit sector could strengthen both organizational resilience and the community’s capacity to respond to change.
[1] Ontario Nonprofit Network, 2026 state of the sector survey, https://theonn.ca/topics/advocacy/nonprofit-sector-surveys/2026-survey-results/
[2] ONN, Ontario Nonprofits: Focused on Preparedness During Uncertainty, 2026 State of the Ontario Nonprofit Sector, https://theonn.ca/publication/2026-survey-policy-report-english/
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