Published on May 9, 2025.
Dear Mayor Morgan and Members of Council,
We are writing on behalf of Pillar Nonprofit Network and our community partners regarding the City’s recently announced $58.8 million Property Tax Budget surplus. While we acknowledge the intent to provide tax relief, we strongly urge Council to consider reinvesting a portion of these funds into London’s nonprofit sector and essential community services.
London’s nonprofits are at a critical juncture. Our sector delivers vital services in housing, health, food security, mental health, education, and social inclusion—often reaching individuals and communities underserved by other systems. As noted in the City’s own 2023–2027 Strategic Plan, nonprofits are recognized as key partners in creating “a strong and vibrant community.” Yet, repeated funding cuts—such as the reduction to the Community Grants Program from $500,000 to $250,000 annually—have strained operational capacity, limited programming, and intensified competition for shrinking resources.
The sector is further challenged by external economic pressures. Recent survey data collected by Pillar in March 2025 reveals growing concern among London nonprofits over U.S. tariffs, rising costs, and declining donations. Over 65% of respondents anticipate increased operating costs, while more than 57% expect reductions in charitable giving. Many organizations are already experiencing workforce instability and are unprepared for the potential disruptions in service delivery.
This is not the time to provide one-time tax cuts. While politically appealing, such measures offer limited long-term value and may lead to future tax increases to maintain service levels. In contrast, investing surplus funds in nonprofit-delivered community services produces lasting social and economic returns—through job creation, preventative care, community safety, and reduced reliance on crisis-based systems.
We would welcome the opportunity to speak further to the City Council at a future meeting of the Strategic Priorities and Policy or other Committee.
Thank you for your leadership and commitment to a stronger London.