3. What is the nonprofit sector?
What does the nonprofit sector look like in
Toronto?
What trends are shaping the nonprofit
sector?
What do you need to know about nonprofits
to act as consultants?
Please ask questions throughout!
4. Founder and President of Common Good
Strategies
Help nonprofits and government do research
on the nonprofit sector
Do marketing research and business planning
Design technology development projects
Have managed or worked on some of the
largest research projects on the Canadian
nonprofit sector
5. Charities are endowed with a license by CRA if they do
one of four things under a definition that goes back to
early 1600s
Relieve poverty, promote education, promote religion or
“other purposes beneficial to the community”
Nonprofits are organizations incorporated as such and do
not distribute profits to shareholders
This side was borrowed from Alex Gill of the Mendicant Group’s presentation on
this topic from March 24, 2012
6. Currently work for a nonprofit organization…
Currently serve on the board for a nonprofit
organization…
Are a returning Endeavour volunteer…
7. SERVICE EXPRESSIVE
Health care Arts and Culture
Education Sports and Recreation
Social services Advocacy
Housing Interest Representation
International Development (e.g. unions)
8. A study released last week from John Hopkins
University comparing 16 countries with good
data on their nonprofit sector found that:
Canada had the highest percentage of GDP coming
from our nonprofit sector:
8.1%! (7.1% from paid staff, 1% from volunteers)
85% of our nonprofit sector was service-based
(average was 73%)
10% expressive
5% Other
Source: JHU Comparative
Nonprofit Sector Project
9. Money is essential to complete the work of most
nonprofits
Most money is spent on
compensation
▪ Volunteers are essential but often
insufficient
Many executive directors
were originally accomplished
fundraisers
Buyer and user are not the same!
When demand goes up, revenue often does not
10. Understanding Board Dynamics are Essential
Always remain objective when interviewing
clients
Be very careful to ascertain how many
resources are genuinely available
Be wary of promises of future staff time
Make sure your solution is implementable!
Do not over-complicate things
Engage many stakeholders in the
organization!
11.
12.
13. 10,978 Charities
8829 Operating Charities
2122 Foundations
$37.6 Billion in Total Revenue
270,473 Full-Time Employees
233,814 Part-Time Employees
As for nonprofits, no one knows…
14. City # of Charities
TORONTO 3462
NORTH YORK 1857
MISSISSAUGA 898
SCARBOROUGH 834
ETOBICOKE 669
BRAMPTON 452
Other 64 communities 2806
Total 10,978
15. Category # of Orgs % of Orgs
Religion 4,351 40%
Welfare 2,639 24%
Education 2,209 20%
Benefit to the 938 9%
Community
Health 691 6%
Other 150 1%
Total 10,978 100%
16.
17. Rank Name of Organization Total Revenue
1 TORONTO DISTRICT SCHOOL BOARD $2,869,172,355
2 THE GOVERNING COUNCIL OF THE UNIVERSITY
OF TORONTO $2,410,292,000
3 UNIVERSITY HEALTH NETWORK $1,589,061,000
4 YORK REGION DISTRICT SCHOOL BOARD $1,211,831,926
5 TORONTO CATHOLIC DISTRICT SCHOOL BOARD $1,043,472,000
6 YORK UNIVERSITY $923,373,854
DUFFERIN PEEL CATHOLIC DISTRICT SCHOOL
7 BOARD $904,816,000
8 SUNNYBROOK HEALTH SCIENCES CENTRE $847,310,000
9 CANCER CARE ONTARIO $836,437,306
10 THE HOSPITAL FOR SICK CHILDREN $704,417,000
18. Top 1% 77% of revenue
(it is about the money)
This data encompasses all Charities in Canada, not just Toronto
19. TOTAL REVENUE OF ORGS BY
# OF ORGS BY SIZE OF ORGS SIZE OF ORG
$10 mill +
$10 mill + 344 $31,955
$1 million - $10 $1 million -
662 $4,096
mill $10 mill
$250k - $1 mill 681 $250k - $1 mill $1,112
$100k - $250k 1701 $100k - $250k $277
< $100,000 4637 < $100,000 $151
0 2000 4000 6000 $- $40,000
Millions
20. Average total compensation, full-time employees, by
number of full-time employees, all charities, 2010
$78,766
$80,000 $70,757 $68,466
$60,515
$60,000 $52,142
$46,687
$41,882 $39,706 $41,323
$40,000
$20,000
$-
1 2 to 4 5 to 10 11 to 24 25 to 99 100 to 250 to 500 to 1000+
249 499 999
Number of employees
Source: A report I wrote on compensation for the HR Council yet to be released
21. Most nonprofits do not have staff
Most nonprofits have very little resources
Most nonprofit resources are spent on staff
Most nonprofits cannot afford a consultant
Most nonprofits RELY on volunteers
Most small nonprofits are started to solve a
particular on the ground problem that is not
being addressed by anyone else
22.
23. 70%
60% Fundraising Government 63%
59%
50%
40% 33%
30%
20% 31%
10% 11% 10%
0%
< $1 million $1 millon - $10 $10 million +
million
Charities Revenue Category
Note: Numbers do not add-up to 100% since other categories are missing
26. 1,000
$890
900 Average donations by highest income Fifth
800 quintile
700 Fourth
600
+153% Third
500 Second
400
$351 Top
300
200
100
0
2002
2007
1998
2004
2005
1999
2000
2001
2008
2003
2006
2009
27. The highest income quintile:
• +$32,000 / year in after-tax income
The second highest quartile:
• +$14,000 / year in after-tax income
The lowest income quartile:
• +$4000 / year in after-tax income
28. % of total charitable giving by tax filers coming from
those with more than $80,000 in income, 1997 to 2011
60%
50% 55%
40%
30%
28%
20%
10%
0% Source: Cansim Table 111-0003
29. What trends might affect the organization
you’re working with?
What might you do about it?
Discuss with the group!
Be prepared to share!
30.
31. Feel free to contact me later:
Common Good Strategies
steve@goodstrategy.ca