This written submission to Ontario’s Standing Committee on Finance and Economic Affairs, shared in advance of the 2026 Provincial Budget, outlines how strengthening the government–nonprofit sector partnership is essential to protecting Ontario’s economy and community well-being.
Pillar’s Recommendations
1) Recognize that nonprofits are essential to protecting Ontario’s economy
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Recognize that nonprofits are essential to protecting Ontario’s economy and provide stable, long-term operational funding, alongside targeted funding supports to address economic hardship.
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Ensure nonprofits can access any provincial trade-related and economic hardship funding in a timely manner.
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Transition to stable, long-term and operational funding that reflects the true cost of service delivery and accounts for inflation.
2) Introduce a Capacity-Building Funding Initiative to Support Intermediary Nonprofits
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Introduce a Provincial Capacity-Building Funding Initiative, modeled on Government of Alberta’s Enhanced Capacity Advancement Program (ECAP), to provide multi-year funding to intermediary nonprofit organizations that strengthen the capacity, resilience, and sustainability of the Ontario nonprofit sector.
3) Create an Office for Nonprofits within the Ontario Government
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Appoint an Associate Minister within the Ministry of Economic Development, Job Creation and Trade, supported by a Deputy or Assistant Deputy Minister in an office representing nonprofits, charities, and social innovation.
4) Address Workforce and Volunteer Challenges
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Work with Ontario Nonprofit Network and Volunteer Centres to co-design a coordinated strategy to: Address wage parity, offer training and upskilling support, provide stability for nonprofit workers and rebuild the province’s volunteer base post-pandemic.
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Remove fees for vulnerable sector police record checks to reduce barriers for volunteers and vulnerable sector organizations.
5) Address Immigration Barriers that Undermine the Nonprofit Workforce
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Adjust points-based immigration systems to value the social contributions of nonprofit professionals in community well-being and service delivery.
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Adapt immigration wage thresholds to reflect nonprofit sector realities, enabling fair access for skilled workers in lower-paid yet essential roles.
6) Advance Housing Affordability Through Nonprofit Acquisition Fund
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Create a dedicated fund to enable nonprofits, co-ops, and Indigenous-led housing organizations to acquire at-risk affordable housing units.
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Expand the Infrastructure Ontario Loan Program to include all public benefit nonprofits, enabling more organizations to access affordable infrastructure financing.
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Develop a specific stream within the fund for Indigenous communities, ensuring culturally appropriate and self-determined housing solutions.
Nonprofits Are Key Economic Contributors in Times of Stability and Crisis
Ontario’s nonprofit sector is an economic powerhouse and a major contributor to strong, vibrant communities across the province. During times of economic uncertainty, the sector steps in to support communities by providing essential services such as food banks, mental health supports, housing, emergency shelters, jobs, youth education, and care for seniors, people experiencing homelessness, and persons with disabilities.
Ontario’s nonprofit sector contributes more than $65.4 billion in economic impact each year, which accounts for 7.9% of the province’s GDP. As a key economic driver, the sector supports diversity and job creation by employing approximately 844,000 people annually. The nonprofit sector has one of the most diverse workforces in the province.
Nonprofits are often stretched and under-resourced
Despite these impacts, nonprofits continue to face mounting pressures from the economic crisis, stretching their capacity, alongside ongoing funding and staffing challenges. The concerning trends seen in 2024 continued into 2025, affecting even more grassroots nonprofit organizations.
The 2025 State of the Ontario Nonprofit Sector found that 85% of nonprofits experienced increased demand for programs and services, up 2% from the previous year. Faced with the combined downward pressure of sustained economic challenges, about 17% discontinued programs and services, while two-thirds scaled back services as staffing shortages persisted. About half reported longer waitlists, a significant 15% increase from the previous year.
The communities these nonprofits serve are feeling the impact, losing access to vital community programs and services that help them stay afloat during times of economic and social distress.
Now is an opportunity to recognize the nonprofit sector as an important ally
While Pillar Nonprofit Network commends the government’s plans to protect Ontario through a series of key economic measures, it must recognize that nonprofits are allies in building a sustainable Ontario. This is an important opportunity to recognize the sector as a business model for the delivery of social goods. We deliver key programs and social services and reach deep into communities where governments may otherwise lack the capacity to do so.
Given that nonprofits already complement the government by delivering key social services, the sector stands ready for mutual recognition. There has never been a better time than now to put this understanding into action by strengthening the relationship between government and Ontario’s nonprofit sector. A stronger, more collaborative approach to government–nonprofit partnerships is urgently needed to secure sector stability, protect community services, and support social cohesion.
Exploring these recommendations in detail:
Recognize that nonprofits are essential to protecting Ontario’s economy
Ontario has recently announced several targeted funding opportunities and initiatives, some of which benefit the nonprofit sector. Over $40 Billion in investments have been made to mitigate the impact of tariffs and to protect the Ontario industries from economic fallouts. The government must have a clear plan for nonprofits in these investments.
Recommendations
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Ensure nonprofits can access any provincial trade-related or economic hardship funding in a timely manner.
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Transition to stable, long-term and operational funding that reflects the true cost of service delivery and accounts for inflation.
Introduce a Capacity-Building Funding Initiative to Support Intermediary Nonprofits
Ontario’s nonprofit sector is core social infrastructure delivering essential services to communities, and filling critical gaps where public systems cannot reach. Yet successive provincial budgets have treated the sector as discretionary rather than essential. This approach is no longer sustainable. Without targeted investment in nonprofit capacity, Ontario risks disruption of services and community supports that millions of residents rely on.
The Province must act decisively by establishing a dedicated Capacity-Building Funding Initiative to strengthen the nonprofit sector at a system level. This initiative should focus on intermediary nonprofit organizations whose primary mandate is to build the capacity of other nonprofits through training, shared services, leadership development, governance support, and strategic planning. Investing in intermediaries is a cost-effective way to strengthen the entire sector and maximize the impact of public dollars.
For example, intermediary organizations such as Pillar Nonprofit Network deliver province-wide capacity-building supports that strengthen hundreds of nonprofits through leadership development, governance training, shared services, and systems-level coordination. Sustaining this work requires approximately $250,000 annually in stable operational funding - a modest investment relative to the scale of organizations supported and the downstream cost savings generated for government and communities. This illustrates the type and level of investment that a provincial Capacity-Building Funding Initiative could support across Ontario.
Alberta’s Enhanced Capacity Advancement Program (ECAP) demonstrates what is possible when governments invest upstream. ECAP supports nonprofit intermediaries that improve sector-wide sustainability, workforce resilience, and service quality. Ontario can and should adopt a similar approach tailored to the scale and complexity of Ontario’s nonprofit ecosystem.
Recommendation
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Introduce a Provincial Capacity-Building Funding Initiative, modeled on Alberta’s Enhanced Capacity Advancement Program (ECAP), to provide multi-year funding to intermediary nonprofit organizations that strengthen the capacity, resilience, and sustainability of the Ontario nonprofit sector.
Create an Office for Nonprofits within the Ontario Government
Despite the significant economic and social impact of the nonprofit sector in Ontario, it currently lacks a voice in province’s decision-making. No single ministry is overseeing or aligning policies related to the sector in Ontario, which has resulted in fragmented engagement, inconsistent policies, and missed opportunities for collaboration. Frankly, it strains the capacity of an already overburdened sector, as organizations are forced to navigate multiple departments, individuals, and ministries to advocate for their needs and priorities.
British Columbia offers a strong precedent. In November 2020, the province created the Office of the Parliamentary Secretary for Community Development and Nonprofits, now held by Joan Phillip. Ontario can build on this model to strengthen government–nonprofit collaboration.
Recommendation
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Appoint an Associate Minister within the Ministry of Economic Development, Job Creation and Trade, supported by a Deputy or Assistant Deputy Minister in an office representing nonprofits, charities, and social innovation.
Address Workforce and Volunteer Challenges
Workforce and volunteer shortages remain major barriers preventing nonprofits from meeting service demands. Nearly two-thirds of nonprofits have reported challenges with recruitment and retention over the past three years.
Recommendations
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Work with Ontario Nonprofit Network and Volunteer Centres to co-design a coordinated strategy to: Address wage parity, offer training and upskilling support, provide benefits/stability for nonprofit workers and rebuild the province’s volunteer base post-pandemic.
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Remove fees for vulnerable sector police record checks to reduce barriers for potential volunteers.
Address Immigration Barriers that Undermine the Nonprofit Workforce
Despite playing a critical role in Ontario’s social infrastructure, nonprofit workers, especially immigrants, face significant barriers to securing permanent residency. Federal and provincial immigration programs, including the Federal Skilled Worker Program (FSWP), Canadian Experience Class (CEC), and Ontario Immigrant Nominee Program (OINP), prioritize sectors like healthcare, trades, and technology, but overlook nonprofit roles in social services and community development.
Recommendations
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Adjust points-based immigration systems to value the social contributions of nonprofit professionals in community well-being and service delivery.
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Adapt immigration wage thresholds to reflect nonprofit sector realities, enabling fair access for skilled workers in lower-paid yet essential roles.
Advance Housing Affordability Through Nonprofit Acquisition Fund
Ontario's housing crisis has worsened over the years, with the province losing 49,355 rental units priced under $750/month between 2016 and 2021. This decline is primarily due to demolitions and conversions into high-priced condominiums, exacerbating the shortage of affordable housing options for low- to moderate-income individuals and families. Nonprofit organizations, given their community-focused missions and reinvestment of profits into housing initiatives, are well-positioned to address this issue.
A Nonprofit Housing Acquisition Fund is proposed as a solution to empower nonprofits to purchase existing affordable housing units, thereby preventing their loss to market-rate conversions.
Recommendations
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Create a dedicated fund to enable nonprofits, co-ops, and Indigenous-led housing organizations to acquire at-risk affordable housing units.
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Expand the Infrastructure Ontario Loan Program to include all public benefit nonprofits, enabling more organizations to access affordable infrastructure financing.
-
Develop a specific stream within the fund for Indigenous communities, ensuring culturally appropriate and self-determined housing solutions.