The Canadian Charity Law Podcast

This episode outlines the costs associated with registering and maintaining a charity in Canada.

Initial costs include legal and consulting fees (ranging from $5,000 to $15,000), and incorporation fees (around $200 federally).

Ongoing expenses encompass annual financial statements, annual reporting to the CRA (both starting around $1,000), fundraising costs (10-15% of funds raised), governance and operational costs ($500-$5,000), insurance ($700-$2,000), and additional potential costs for technology, training, and office space.

The episode emphasizes the importance of expert Charity Lawyers to navigate the registration process successfully.

This episode is sponsored by B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm serving charity and not-for-profit clients across Canada with registration and governance, and B.I.G. Charity Accounts Group, a bookkeeping firm serving Canadian charities with all their financial and tax filing needs.

https://www.charitylawgroup.ca/
P: 416-488-5888

https://www.charityaccountingfirm.ca/
P: 289-301-8883

Creators & Guests

DJ
Producer
Dov Goldberg, J.D.
Dov Goldberg is a manager partner at B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm Providing Services Exclusively to Charities Across Canada

What is The Canadian Charity Law Podcast ?

Exploring the ins-and-outs of Canadian Charity Law in a way that can be understood by the layperson, including Charity Registration, Not-for-Profit Incorporation, Charity Governance, Charity Fundraising, Tax Receipting, and much more!

Sara:

Alright. Get ready. Because today, we're diving deep into something I know you're really interested in.

David:

Oh, yeah.

Sara:

The actual cost of getting a charity up and running here in Canada.

David:

It's a big one.

Sara:

You've mentioned wanting to start your own, so this is for

David:

you. Awesome.

Sara:

We're breaking down this article called, what is the cost to register a charity in Canada?

David:

Hey. It's

Sara:

gonna give us, hopefully, the full picture Yeah. And maybe some surprises along the way.

David:

I'm sure.

Sara:

Let's see what we

David:

find. Sounds good.

Sara:

So first things first. When we talk about a charity being registered in Canada

David:

Right.

Sara:

It's more than just a name. Right?

David:

It definitely is. Yeah.

Sara:

What does that actually mean?

David:

The big thing is being recognized by the Canada Revenue Agency. Oh. And more specifically, their charities directorate.

Sara:

So there's a whole branch of the CRA that deals with this.

David:

Exactly. Alright. And that registration, it's kinda like your golden ticket.

Sara:

Oh, I like that.

David:

It lets you issue those tax receipts for donations.

Sara:

Very important.

David:

And you get some sweet tax punks yourself. But and there's always a but.

Sara:

There's always a catch.

David:

You have to operate only for charitable purposes as defined by Canadian law.

Sara:

So you can't be doing other things on the side?

David:

Nope. The CRA is very strict about that.

Sara:

So the CRA kind of acts as the gatekeeper to make sure everything's legit?

David:

Exactly. It's why the application process is thorough.

Sara:

Okay.

David:

And this article really dives into the costs, which can surprise people.

Sara:

Speaking of costs, is there a fee to even apply?

David:

You would think. Right.

Sara:

Yeah.

David:

But, actually, no. No direct government fee.

Sara:

Oh, that's good.

David:

Yeah. But

Sara:

Oh, there's a but.

David:

Always a but. Great. Here's the catch. Uh-oh. Over half of the applications

Sara:

Really?

David:

Get rejected by the CRA.

Sara:

Wow. Yeah.

David:

They have very strict rules, and even a small misstep can lead to rejection.

Sara:

Okay. So over 50%, that's a pretty high rejection rate.

David:

It is.

Sara:

So I'm starting to see why this deep dive is so important.

David:

It highlights a point the article really stresses

Sara:

Okay.

David:

Which is getting legal help.

Sara:

Right from the start.

David:

Yes. It can make or break your application.

Sara:

So finding a lawyer

David:

Yes. But

Sara:

Not just any lawyer.

David:

They recommend finding someone who specializes in charity law.

Sara:

Makes sense.

David:

Someone with a proven track record of successful registrations.

Sara:

So the right lawyer?

David:

Yeah. Expertise like that, it comes with a price tag.

Sara:

I bet it does. What are we looking at?

David:

Legal fees for that whole registration process, they can range anywhere from 5,000 to $15,000.

Sara:

Wow. That's a big range.

David:

It is.

Sara:

I imagine a small local charity would have different needs compared to a big national one.

David:

Absolutely. A smaller, simpler charity might need less legal heavy lifting.

Sara:

Okay. So size and complexity play a role.

David:

Definitely. And there's another cost to think about on top of those legal fees.

Sara:

Okay. Lay it on me.

David:

Consulting fees.

Sara:

Oh, yeah.

David:

Of this as expert advice Okay. On things like governance structures, writing bylaws, and making sure you're checking all the CRA boxes.

Sara:

So kinda like charity setup guides.

David:

Exactly. Making sure everything is good to go from the start.

Sara:

What kind of costs are we talking for consultants?

David:

Consulting fees, they can vary too, but you're looking at somewhere between $150,8,000.

Sara:

Okay. Another investment to consider alongside those legal costs. It all adds up. So we've got legal fees. We've got consulting fees, and the article also mentions incorporation fees.

David:

Right.

Sara:

What does that even mean?

David:

So incorporating Yeah. It's not mandatory, but it's highly recommended

Sara:

Okay.

David:

For most charities.

Sara:

Okay.

David:

Basically, think of it as giving your charity its own legal identity

Sara:

Okay.

David:

Separate from the individuals involved.

Sara:

Makes sense.

David:

It provides legal protection for the directors and creates a more formal structure for everything.

Sara:

So it's like building a house with proper permits and inspections. You want that peace of mind.

David:

Exactly. Yeah.

Sara:

Okay. So it sounds like incorporating, even though it adds to those upfront costs

David:

Right.

Sara:

Might save you from bigger problems later on.

David:

Headaches down the line.

Sara:

Exactly. What are those corporation costs?

David:

So you have 2 options. K. Going federal or provincial. Federal incorporation is $200 if you file online. Okay.

David:

And that's under the Canada Not for Profit Corporations Act.

Sara:

Okay. So that's relatively affordable.

David:

It is.

Sara:

What about provincial incorporation?

David:

Provincial fees vary, but you're looking at anywhere from a $100 to several $100.

Sara:

Okay.

David:

Depends where you're setting up. Right. The article suggests checking the specific provincial website for the most up to date numbers.

Sara:

Makes sense.

David:

But and it's important to remember

Sara:

Here we go again.

David:

Yeah. This cost, while necessary Okay. It's not the end of the financial story.

Sara:

Right. Because we've gotta keep the lights on.

David:

Exactly.

Sara:

So what about the costs of actually running the charity?

David:

That's where things get really interesting.

Sara:

Uh-oh. This is what I'm nervous about.

David:

A lot of people underestimate this part, the financial commitment of actually running things.

Sara:

Yeah.

David:

There's a whole bunch of ongoing costs to keep in mind.

Sara:

Okay.

David:

And it's not just about paperwork.

Sara:

Right.

David:

It's about keeping your charity compliant, transparent, and running smoothly.

Sara:

Okay. So what are those ongoing costs? Let's break them down.

David:

Alright. First up, annual financial statement.

Sara:

Oh, okay.

David:

Every registered charity, no matter how big or small Yep. Has to provide these to the CRA every year.

Sara:

Makes sense. They need to know how those tax benefits are being used.

David:

Exactly. Showing where the money is going.

Sara:

So does that mean every charity needs a full time accountant on staff?

David:

Not necessarily. If your finances are very straightforward

Sara:

Okay.

David:

You might be able to handle it internally.

Sara:

Okay.

David:

But most charities, especially if they grow

Sara:

Yeah.

David:

Will need to hire a professional accountant

Sara:

Right.

David:

Or bookkeeper Okay. To prepare these statements.

Sara:

Okay. So that's an extra cost.

David:

Yes. The article says it starts around $1,000 for smaller organizations.

Sara:

Okay.

David:

And it can go up from there depending on the complexity and revenue.

Sara:

Makes sense. So budgeting for some accounting help is crucial.

David:

It is.

Sara:

Okay. What's next on the list of ongoing costs?

David:

Next is annual reporting to the CRA.

Sara:

Okay. More paperwork.

David:

This is where the infamous t 3010 form comes in.

Sara:

Oh, yeah. I've heard of that.

David:

It's officially called the registered charity information return.

Sara:

Catchy.

David:

It's a detailed breakdown of all your activities, making sure everything's good with the CRA.

Sara:

Sounds complicated.

David:

It can be. So, again, a lot of charities opt for professional help.

Sara:

Right. So more accountants?

David:

Potentially. Yes.

Sara:

Okay. What's the cost for that usually?

David:

Typically starts around $1,000 as well.

Sara:

So we're at about $2,000 a year just for accounting and reporting.

David:

Give or take. Yeah.

Sara:

What else should we be factoring in?

David:

This one is a big one.

Sara:

Hit me.

David:

Fundraising costs.

Sara:

Oh, right.

David:

It's the lifeblood of any charity.

Sara:

Gotta bring the money in.

David:

You do, but it doesn't come free. Crew. Events Yeah. Online campaigns, direct mail.

Sara:

Yeah.

David:

All of that requires spending money to bring money in.

Sara:

It does.

David:

The article points out that these costs

Sara:

Yeah.

David:

Can eat up 10% to 15% of your total funds raised.

Sara:

10 to 15%. That's not insignificant.

David:

Especially for a newer charity trying to find its footing.

Sara:

Right. If your fundraising costs are too high Yeah. It defeats the purpose. So you've really got a plan carefully.

David:

You do. You need to maximize the amount you're bringing in

Sara:

Right.

David:

But also make sure you're not spending more than you're gaining.

Sara:

Okay. So after accounting, reporting, and fundraising costs Yeah. What else is there?

David:

There are also what are called governance and operational costs.

Sara:

Okay.

David:

You gotta keep those in mind.

Sara:

I've never even heard of those.

David:

Good governance is essential for any charity to function well. Right. It includes having an active board of directors, holding meetings, keeping documents updated.

Sara:

Oh, okay.

David:

Basically, all the behind the scenes stuff to ensure everything is transparent and runs smoothly.

Sara:

So these are costs just for the organization itself

David:

Right.

Sara:

Not even for the charitable work it's doing.

David:

Exactly. And these costs, they can fluctuate Right. Depending on the charity scale.

Sara:

Makes sense.

David:

But the article suggests budgeting between $505,000 a year.

Sara:

That's a big range.

David:

It is.

Sara:

What would those cover?

David:

Things like meeting room rentals

Sara:

Okay.

David:

Travel expenses for board members

Sara:

Mhmm.

David:

Or filing fees for updating those incorporation documents we talked about.

Sara:

Okay. So lots of moving parts. There are. What's next on the list of these ongoing expenses?

David:

Next up, insurance.

Sara:

Okay.

David:

Liability insurance. It's crucial for a lot of charities.

Sara:

Yeah. Especially those with public programs or events.

David:

Exactly. You need protection in case something goes wrong.

Sara:

Of course.

David:

The cost depends on what your charity actually does.

Sara:

Right.

David:

But the article recommends setting aside between $702,000 each year for basic coverage.

Sara:

Okay. So that's another one to add to the list.

David:

It is.

Sara:

So we've got financial statements, CRA reporting, fundraising, governance, insurance.

David:

Wow. That's a lot.

Sara:

It is a lot.

David:

It's clear that keeping a charity running requires constant attention

Sara:

To the finances.

David:

To the money.

Sara:

It's like a whole other job.

David:

It can be for sure.

Sara:

Are there any other costs we should be aware of even if they're not strictly annual expenses?

David:

There are a few more. Things that depend on your charity's specific needs and activities.

Sara:

Okay. Let's hear them. The more we know, the better.

David:

Alright. One area where cost can pop up is technology and software.

Sara:

Oh, right. In this day and age.

David:

Exactly. A lot of charities rely on software now Yeah. To manage their donors, track finances, streamline communication

Sara:

Right.

David:

Things like donor management systems, accounting programs, customer relationship management tools.

Sara:

Yeah. All those online tools.

David:

Yeah. Often called CRMs.

Sara:

Okay. So tech can be a big help in making things more efficient. Huge help. But rarely free.

David:

Rarely.

Sara:

What kind of costs are we looking at there?

David:

Again, it varies based on the software's features and how big your organization is.

Sara:

Makes sense.

David:

But the article suggests budgeting between $503,000 a year. Okay.

Sara:

So it depends on how tech savvy your cherry needs to be.

David:

It does.

Sara:

What other additional costs

David:

are there? Another one to consider is investing in staff training and development.

Sara:

Oh, right.

David:

Charities need to stay current.

Sara:

Yeah. Up to date on regulations and all that.

David:

Exactly. And that often means training your team.

Sara:

Makes sense.

David:

Conferences, workshops, online courses, all of that makes for a more knowledgeable and effective staff.

Sara:

You want your team at the top of their game?

David:

Absolutely.

Sara:

What kind of costs are we talking about for training?

David:

The article suggests budgeting between $101,000 per staff member each year.

Sara:

Okay. So the bigger your team

David:

The bigger the cost.

Sara:

Got it. Anything else we're missing?

David:

Last but not least.

Sara:

Okay.

David:

Office space and overhead. Yes. Need a physical location

Sara:

Yeah.

David:

You've got rent and utilities to think about.

Sara:

That can be a big expense.

David:

Major consideration. While some smaller charities might operate from home offices Okay. Or shared spaces

Sara:

To save money.

David:

Right. Others need dedicated offices.

Sara:

Yeah. And office space isn't cheap.

David:

It's not. The article suggests budgeting between $500 $10,000 per year for this. Wow. Again, a big range. Huge variation depending on location and how much space you need.

Sara:

Location, location, location.

David:

Exactly.

Sara:

I'm seeing why this deep dive is so valuable.

David:

I hope so.

Sara:

We're uncovering costs people might not even think about.

David:

It's all about awareness.

Sara:

When they first consider starting a charity.

David:

Exactly. Going in with eyes wide open.

Sara:

So to sum it all up Yes. Setting up and running a registered charity in Canada

David:

Right.

Sara:

It requires a serious financial commitment.

David:

It does.

Sara:

But those benefits

David:

You have car benefits.

Sara:

Like tax exemptions

David:

Yeah.

Sara:

The ability to issue those donation receipts

David:

Important for fundraising.

Sara:

It can make it worthwhile.

David:

It can.

Sara:

It's definitely a balancing act

David:

It is.

Sara:

Weighing those costs.

David:

Yeah. Against the impact you wanna make.

Sara:

Right.

David:

And that's where thoughtful planning

Sara:

And budgeting and budgeting.

David:

Become absolutely essential.

Sara:

Okay. Before we move on to part 2

David:

Right.

Sara:

I wanna hear from you, the listener.

David:

Yes.

Sara:

What stood out to you so far about these costs?

David:

Any surprises.

Sara:

Anything that maybe made you rethink things?

David:

Take a moment to consider that.

Sara:

We'll be back soon to delve deeper into some strategies and solutions.

David:

For managing all these costs.

Sara:

Stay tuned. Welcome back to our deep dive into the financial side of running a charity

David:

We're back.

Sara:

Here in Canada

David:

In part 2.

Sara:

In part 1. We really dug into those fundamental costs.

David:

Yeah. We did.

Sara:

Everything from legal fees to fundraising expenses.

David:

Mhmm.

Sara:

It's a lot to process.

David:

It is. It's pretty eye opening, isn't it?

Sara:

It really is.

David:

I think what's important is understanding how these costs impact a charity's overall mission.

Sara:

Right. Because it's not just about knowing the numbers.

David:

You know?

Sara:

It's about what those numbers mean for actually achieving your goals.

David:

Exactly. Right. If we zoom out a bit and look at the big picture

Sara:

Okay.

David:

It's all about making sure that every dollar donated is used as effectively as possible.

Sara:

Right. To create real change.

David:

Actually make a difference.

Sara:

Exactly. And speaking of effectiveness

David:

Yeah.

Sara:

We talked about those high rejection rates for charity applications. It seems like investing in expert legal advice early on is key to avoiding those pitfalls.

David:

Totally. It's about laying a strong foundation.

Sara:

Okay.

David:

Those legal fees, they might seem like a lot upfront. Yeah. But they can save you from costly mistakes or delays later, which could even derail your whole project.

Sara:

It's like building a house. Yeah. You wouldn't skip on a solid foundation No. Knowing it could cause problems later.

David:

Exactly. And it's not just the legal stuff either.

Sara:

Right.

David:

We also talked about those ongoing costs, like accounting and reporting.

Sara:

Yeah. Those are often overlooked,

David:

I think. I think so too.

Sara:

People get excited about the initial setup.

David:

Mhmm.

Sara:

They forget about the year after year commitment to keep things running.

David:

It's like that saying, it's not about getting to the top of the mountain.

Sara:

Oh, yeah.

David:

It's about what you do once you're there.

Sara:

I like that.

David:

And those ongoing costs are about more than just compliance.

Sara:

Okay.

David:

They're about transparency and accountability.

Sara:

Right. Building trust.

David:

With your donors and the public. Oh. Essential.

Sara:

Yeah. Transparency is key. Absolutely. Donors wanna know their money's being used wisely

David:

Of course.

Sara:

And making a real difference.

David:

That's where clear financial reporting comes in. It shows you're responsible.

Sara:

Okay.

David:

Reinforces that trust with your supporters.

Sara:

Now we can't forget about fundraising.

David:

Of course not.

Sara:

We mentioned it can cost a big chunk of money you raise.

David:

Yeah. Sometimes 10 to 15%.

Sara:

It's a catch 22.

David:

It is, but it's a necessary expense.

Sara:

Right.

David:

It just requires a strategic approach.

Sara:

Okay.

David:

You've gotta find that balance Yeah. Where you're investing enough to have effective campaigns

Sara:

Mhmm.

David:

But you're also maximizing what goes directly to your charitable work.

Sara:

So it's not just about raising as much money as possible. It's about raising it smartly.

David:

Raising it efficiently.

Sara:

And it all comes back to transparency. Right?

David:

It does.

Sara:

Donors appreciate knowing how their contributions are used Absolutely. Including the costs of raising those funds.

David:

And it builds trust.

Sara:

Okay. So we've got legal fees, accounting, fundraising, the importance of planning. Mhmm. But there's another layer to this.

David:

What's that?

Sara:

How do these costs actually impact the types of work charities can do?

David:

That's a really good point.

Sara:

It's not just about keeping the lights on.

David:

Right.

Sara:

It's about having the resources to fulfill your mission exactly to really make a difference.

David:

Right. If a big part of your budget is just gonna admin costs

Sara:

Mhmm.

David:

It limits what you can do for programs and services.

Sara:

And this is where it can get tricky Yeah. Especially for smaller organizations or those in niche areas.

David:

Right.

Sara:

Imagine a grassroots group, limited resources. Yeah. Those upfront costs, those ongoing admin fees.

David:

Mhmm.

Sara:

It can be a real struggle to get off the ground Right. Reach their potential.

David:

It's like a financial barrier to entry.

Sara:

It

David:

is. Potentially limiting innovation and diversity in the sector.

Sara:

It really begs the question.

David:

Yeah.

Sara:

How can we make sure these financial realities don't stifle new ideas?

David:

Or prevent worthy causes from getting support.

Sara:

That's a big question.

David:

It is. And while there might not be easy answers True. I think a crucial first step is awareness

Sara:

I agree.

David:

Both for the charities themselves Yes. And the public. Totally. People need to understand these true costs.

Sara:

It's like appreciating a beautiful painting.

David:

Oh, I like this. Without recognizing the canvas, the brushes, the paint Right. That made it possible.

Sara:

We need to see the whole picture.

David:

The whole thing.

Sara:

Okay. So we've identified some challenges.

David:

We have.

Sara:

But let's shift gears.

David:

Okay.

Sara:

Talk about solutions.

David:

Right.

Sara:

What can charities actually do Yeah. To manage these costs Mhmm. And still achieve their goals?

David:

Well, I think the foundation of it all Okay.

Sara:

Is careful budgeting. It always comes back to the numbers.

David:

It does. You need a realistic budget

Sara:

Yeah.

David:

That considers every potential expense

Sara:

Upfront and ongoing.

David:

All of them. And it's not just about crunching those numbers. Right. It's about making strategic decisions

Sara:

Oh, okay.

David:

About where to use those resources.

Sara:

It might mean tough choices

David:

It might.

Sara:

About what programs to prioritize

David:

Yeah.

Sara:

Or finding creative ways to cut costs.

David:

Without sacrificing quality.

Sara:

Exactly. Resourcefulness is key.

David:

It is. How can you get the most bang for your buck?

Sara:

I like that.

David:

And another powerful strategy is collaboration.

Sara:

We touched on this before.

David:

We

Sara:

But it deserves more attention.

David:

I think so.

Sara:

What does that look like?

David:

By partnering with other organizations

Sara:

Okay.

David:

Charities can share resources Mhmm. Expertise, even those overhead costs

Sara:

It's a win win.

David:

For everyone involved.

Sara:

Plus, collaboration often leads to more innovative programs.

David:

Totally. When like minded organizations pool their strengths

Sara:

Yeah.

David:

They can achieve so much more.

Sara:

And we can't forget about technology.

David:

Oh, right.

Sara:

We talked about the costs of software. Yeah. But tech can also streamline operations

David:

Definitely.

Sara:

Reduce admin burden, even boost fundraising.

David:

It can.

Sara:

So while there's a cost to investing, it can ultimately save you money in the long run.

David:

Working smarter, not harder.

Sara:

I like the okay. We've got budgeting

David:

Right.

Sara:

Collaboration, technology, anything else.

David:

This one might seem obvious.

Sara:

Okay.

David:

But it's essential effective fundraising.

Sara:

We already talked about fundraising costs.

David:

I know. But what's different here? It's not just about raising the money. Oh. It's about diversifying your funding sources.

Sara:

Don't put all your eggs in one basket.

David:

Exactly. You need a mix of grants

Sara:

Okay.

David:

Individual donations Mhmm. Corporate sponsorships

Sara:

Create a stable base.

David:

A sustainable base.

Sara:

Right. For your organization.

David:

It gives you flexibility

Sara:

Mhmm.

David:

To adapt to changes. Yeah. Seize new opportunity.

Sara:

So it's about building resilience.

David:

It is. Fundraising costs are real.

Sara:

They are.

David:

But a solid strategy for bringing in diverse funds. Yeah. It's crucial for long term success.

Sara:

Okay. So we've got a lot of practical strategies for managing the money side of things. Uh-huh. But there's one element I wanna emphasize. Oh.

Sara:

It fuels so much of the sector. What's that? Passion.

David:

Yes. The heart and soul of it all.

Sara:

We can talk about budgets and spreadsheets.

David:

We can.

Sara:

But Yeah. Ultimately Yeah. Charities are driven by the people behind them.

David:

By their passion? Absolutely.

Sara:

It's what drives them to make a difference, to persevere through challenges Yeah. To create change in the world.

David:

It's contagious too.

Sara:

It is.

David:

And inspires volunteers

Sara:

Mhmm.

David:

Attracts donors

Sara:

Right.

David:

Ultimately makes the real impact. It's the spark that ignites everything else.

Sara:

And that's what I really wanna drive home for you, the listener. Yes. Starting and running a charity, it's not easy.

David:

It's not.

Sara:

There will be financial obstacles Challenity. Tough decisions.

David:

Mhmm.

Sara:

But don't let those things overshadow your passion.

David:

Let your passion be your guide Okay. Through all the complexities

Sara:

Yeah.

David:

Keep you focused on your goal.

Sara:

Making a difference.

David:

Exactly.

Sara:

Now as we wrap up part 2 Alright. I wanna leave you with a question.

David:

Okay.

Sara:

Considering all we've discussed Mhmm. About these financial realities Yeah. How can we, as a society

David:

As a whole.

Sara:

Better support and empower these organizations

David:

Even small.

Sara:

To thrive and create lasting change.

David:

That's something to think about.

Sara:

We'll explore that further in part 3.

David:

We will.

Sara:

We'll dive into the broader implications of these costs Yeah. And some potential solutions.

David:

Sounds good.

Sara:

Stay tuned. Welcome back to the deep dive. It's our final part.

David:

The grand finale.

Sara:

Yeah. Our exploration of the costs of running a charity.

David:

Here in Canada.

Sara:

In Canada. Exactly.

David:

Wrapping it all up.

Sara:

In parts 1 and 2, we really broke down those specific expenses.

David:

They did.

Sara:

And we brainstormed some strategies for managing all that. Right. But now Uh-huh. I wanna kinda zoom out

David:

Okay. I like it.

Sara:

And look at the bigger picture.

David:

New wide lens.

Sara:

Exactly. Because all this stuff we've been talking about

David:

Yeah.

Sara:

It doesn't just impact landscape.

David:

Ripple effect. Right. The financial health of those individual organizations Mhmm. It influences the whole sector.

Sara:

Yeah. It's an ecosystem

David:

It really is.

Sara:

Where everything's connected.

David:

All intertwined.

Sara:

So let's zoom out.

David:

Okay.

Sara:

What are some of the big takeaways you see?

David:

Well, one that always stands out to me Yeah. Is that these costs, they can really create barriers to entry.

Sara:

Oh, yeah. Especially for smaller or newer organizations.

David:

Especially for them, we talked about that financial hurdle. Yeah. Those upfront legal fees, those ongoing admin costs, daunting for groups with limited resources.

Sara:

It can be really discouraging.

David:

You can. Might stop them from even starting.

Sara:

And that's a big loss.

David:

It is a loss of potential.

Sara:

Right. If starting a charity is too expensive

David:

Yeah.

Sara:

We might miss out on fresh perspectives

David:

New ideas.

Sara:

Innovative approaches to solving problems.

David:

Absolutely. A diverse and vibrant charitable sector

Sara:

Yeah.

David:

Is so crucial.

Sara:

For tackling these big complex challenges

David:

that we face as a society and diversity. Yeah. It's not just about the causes. Right. It's about the people.

Sara:

Mhmm.

David:

The approach is driving those causes.

Sara:

It's about the people doing the work.

David:

Financial barriers can unintentionally limit that.

Sara:

Another takeaway for me k. Is the potential for a risk averse culture

David:

Interesting.

Sara:

Within charities Mhmm. Stemming from a good place, of course.

David:

Where's that coming from?

Sara:

The need for financial compliance.

David:

Right. Gotta follow the rules.

Sara:

Yeah. But when charities are so preoccupied with that Yeah. Meeting those regulations, avoiding any financial missteps.

David:

Right. Dotting every I, crossing every t.

Sara:

It can make them hesitant to take risks.

David:

Or experiment.

Sara:

Right. Try something new.

David:

A tough balance.

Sara:

It is between accountability

David:

Yeah.

Sara:

And innovation.

David:

You need both.

Sara:

We need charities that are financially responsible

David:

Absolutely.

Sara:

But also bold.

David:

In their vision, in their approach.

Sara:

Exactly.

David:

It's finding that sweet spot.

Sara:

Where good governance Yeah. Doesn't stifle that creativity.

David:

That drive to make a real impact.

Sara:

Okay. So we've highlighted some challenges.

David:

We have.

Sara:

What can we do about it?

David:

The $1,000,000 question.

Sara:

It is.

David:

Complex issues, complex solutions.

Sara:

Right. What are some ideas?

David:

Well, one piece is definitely government policies. Right. Funding models.

Sara:

Governments have a huge influence on the landscape.

David:

They do. They can provide financial support.

Sara:

Specifically, to help smaller charities

David:

Alright.

Sara:

Offset some of those start up costs Mhmm. Admin costs.

David:

So kinda like seed funding.

Sara:

Seed funding, Yeah. To help promising ideas bloom.

David:

I like that. And on the flip side

Sara:

Yeah.

David:

They can also streamline the regulations.

Sara:

Oh, that paperwork.

David:

Lessen the burden.

Sara:

Free up resources.

David:

So charities can focus on their mission.

Sara:

Exactly. Imagine if navigating all that was simpler

David:

Yeah.

Sara:

Less time consuming.

David:

More time for actual impact.

Sara:

Less paperwork, more change making.

David:

Okay. So government support is key.

Sara:

It is. What else? I think we need a shift in our understanding of philanthropy.

David:

How so?

Sara:

Right now, the focus is often just on the donation

David:

Okay.

Sara:

Not the infrastructure, the resources to make it happen.

David:

It's like admiring a building Yeah. Without thinking about the architects and engineers.

Sara:

Construction workers.

David:

Right. The behind the scenes.

Sara:

Of the work that makes it possible.

David:

So how do we change that perspective?

Sara:

Education. I think being more open about those financial realities. Transparency again.

David:

Yes. When donors understand the whole picture

Sara:

Yeah.

David:

They're more likely to invest long term, not just in the programs.

Sara:

In the sustainability of the whole organization.

David:

Exactly. And it's not just individual donors. Right. It's corporations, foundations, everyone.

Sara:

Everyone needs to be part of the conversation.

David:

A collective effort.

Sara:

Create a more informed funding environment.

David:

Informed and generous.

Sara:

The knowledge and understanding are key.

David:

They are big time.

Sara:

What else can we explore?

David:

We touched on it before. Yeah. Collaboration. Oh, well Sharing resources.

Sara:

Those partnerships.

David:

It can make a huge difference.

Sara:

Two heads are better than 1.

David:

Exactly. But it's more than just brainpower here.

Sara:

It's about maximizing resources.

David:

Efficiency. Yeah. Charities working together.

Sara:

Mhmm.

David:

Pooling resources, sharing expertise.

Sara:

Cutting down those overhead costs

David:

Especially for the smaller ones.

Sara:

A sense of community

David:

A support system

Sara:

Collaboration as the norm.

David:

And it's not just about efficiency either. Right. Collaboration can lead to more innovative programs.

Sara:

Yeah. When different organizations with different strengths To come together. They create something bigger.

David:

More impactful.

Sara:

And finally, amidst all the talk of numbers

David:

Right. All the spreadsheets.

Sara:

Let's not forget the people

David:

The heart of it all. The passion, the dedication

Sara:

Of people working

David:

in this sector. It's easy to get caught up in

Sara:

the mechanics. The budgets, the regulations Fundraising targets. All of it. But we

David:

can't forget the human element.

Sara:

Those individuals.

David:

They're the ones making it

Sara:

happen.

David:

Driven by a commitment to make the world better

Sara:

Often with limited resources.

David:

Facing immense challenges.

Sara:

So let's celebrate them.

David:

Oh, value their expertise

Sara:

create an environment where they can thrive.

David:

Because their passion

Sara:

Yeah.

David:

That's the fuel that drives this whole sector.

Sara:

Beautifully said. So as we wrap up this deep dive

David:

Okay.

Sara:

Listener Yes. I have one final thought for you. Alright. Considering everything we've talked about, what role can you play?

David:

In creating a more sustainable and vibrant charitable sector.

Sara:

Maybe volunteer your time.

David:

Donate to a cause you care about.

Sara:

Advocate for policies that support charities.

David:

Start conversations with your friends and family.

Sara:

About giving back.

David:

Every action, big or small.

Sara:

It all contributes.

David:

To a more just and compassionate world.

Sara:

It's about finding your way to make a difference.

David:

Your own unique way.

Sara:

Thank you for joining us on this journey.

David:

Exploring those charity costs in Canada.

Sara:

We hope you've gained some valuable insights.

David:

Feel empowered to get involved.

Sara:

Until next time.

David:

Keep

Sara:

learning. Keep questioning.

David:

And keep diving deep.