A wave of closures, burnout, and growing waitlists is pushing British Columbia’s nonprofit sector to the brink. This week, more than 200 nonprofit leaders signed an open letter warning governments, foundations, philanthropists, unions, and businesses: “The safety net is tearing — and we need your help.”
“We’re not just struggling—we’re at risk,” the letter reads. “The sector is burning out.”
From food banks and shelters to environmental organizations and arts festivals, BC’s nonprofit sector forms what leaders describe as the “social infrastructure that holds communities together.” But amid rising demand, skyrocketing costs, and inflexible funding models, many organizations are scaling back, laying off staff, or shutting their doors entirely.
“Funding has fallen from all directions—government, donors, corporations—while demand and costs have soared,” said Anastasia French, Managing Director of Living Wage BC. “We’ve already seen closures. More are coming if something doesn’t change.”
French says nonprofit workers are being asked to do society’s most difficult work—helping people in crisis—while facing crisis conditions themselves.
“One in three people working in nonprofits is food insecure. They’re going hungry while helping others. That’s not sustainable,” she said.
A Broken Funding Model
The open letter calls out the core problem: most nonprofit funding is short-term, project-specific, and highly restricted. It rarely covers essential operating costs like salaries, rent, or administration. This leaves nonprofit leaders spending hours navigating complex grant applications instead of delivering services.
“This is systemic,” the letter warns. “The result is high staff turnover, leadership fatigue, and declining service quality.”
The financial precarity has led to closures of frontline services—including two Vancouver-based support centres for sex workers—and growing fears that small, community-led groups will be the first to disappear.
French believes part of the problem lies in public misunderstanding.
“People often think of nonprofits as just food banks or shelters,” she said. “But they also run arts events, protect the environment, and advocate for people who can’t speak up for themselves. This sector is part of every aspect of our society.”
She also points out that many nonprofits aren’t registered charities and therefore don’t offer tax receipts—making them less attractive to traditional donors, despite their critical impact.
Sector Delivers, But at a Cost
According to Vantage Point, a nonprofit capacity-building organization, the sector contributes $4.2 billion to BC’s GDP and employs over 90,000 people—more than mining, oil and gas, and agriculture combined. Yet the average nonprofit salary is 31% lower than the national average, with a 17% pay gap between women and men in the sector.
“People enter this work because they’re passionate—not for big paycheques,” said French. “But passion doesn’t pay rent.”
In the letter, leaders make three urgent calls to action:
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Provide core, multi-year, unrestricted funding that keeps up with inflation.
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Simplify grant processes and reduce administrative burdens.
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Invest in the nonprofit workforce with living wages, benefits, and professional development.
“We need all funders—whether you’re a major foundation or someone giving $20 a month—to understand the stakes,” said French. “This is about protecting services and people that make our communities livable.”
“This Can Be Fixed”
Despite the dire warning, sector leaders remain hopeful—because they believe the crisis is solvable. “This is the result of decisions and structures, which means it can be fixed,” the letter states. “The nonprofit sector is essential. Help us protect it.”
French echoes that optimism but emphasizes time is short. “If we lose these organizations now, we lose decades of knowledge, trust, and connection in our communities,” she said. “We cannot afford to let the safety net unravel.”
