Tariffs are wreaking havoc on our traditional markets, throwing our economic outlook as a province into uncertainty. As the trade war with the USA continues, many Albertans might be forced to rely on the nonprofits and charities that feed our hungry, house our homeless, and support our most vulnerable. But these organizations have been stretched thin for years already, in many cases struggling to keep the lights on.
But circumstances don’t have to seem so dire - Private and public foundations are sitting on stores of untapped capital, and it’s time that they step up to the plate and disburse those funds for immediate relief counter to the economic, housing, and affordability crises we are facing.
The roles foundations have played in charitable work and the nonprofit sector are hard to overstate - both public and private foundations have been instrumental in tackling the pernicious evils of our society, as well as making life better for the human race through arts, sports, research, and many other fields.
These foundations have typically prioritized project-based funding, leaving nonprofits to cover operating costs like rent, utilities, and staff salaries. While new programs and initiatives grab headlines, they won’t be successful without a strong organizational foundation. Without sustainable operating support, even the most innovative projects collapse under financial instability.
Dr. Mardon, chair of the board of the Antarctic Institute of Canada, has dedicated his life, health, and financial stability to advancing human understanding, alleviating student poverty, and defeating the stigma around mental health. While facilitating research projects through Canada Summer Jobs, Venture for Canada, and Riipen, he fronted the financial risk in order to secure funding for these programs. Over the course of the COVID-19 pandemic, he disbursed four million dollars to students across Canada as they worked remotely to investigate mental health, space exploration, and many other important subjects.
This does not have to be the norm for nonprofits as they innovate successful solutions to things like poverty, homelessness, and food insecurity. Public and private foundations have the power and responsibility to reshape the nonprofit landscape. By providing unrestricted, multi-year funding for organizational costs, they can ensure organizations have the flexibility to meet emerging needs, invest in long-term sustainability, and attract and retain skilled staff. Nonprofits should not have to justify every expense; instead, we should invoke the principles of trust-based philanthropy and let agencies allocate funds where they are needed most. Other jurisdictions have recognized this need, leading foundations across North America to move toward trust-based philanthropy.
There is also a compelling economic argument for this shift. The nonprofit sector contributes billions to Alberta’s economy and employs thousands. Investing in their stability is not charity; it is an investment in the health and resilience of our communities. When social service organizations are well-funded, we see fewer emergency room visits, reduced crime, and less strain on our justice system. In other words, funding nonprofits in the current economic context properly saves money in the long run. In the face of economic uncertainty, unleashing the millions of dollars held by foundations can provide an economic buffer surrounding all Albertans.
The solution is clear: foundations must increase their commitment to unrestricted funding and ensure operating costs are covered. The time has come to rethink philanthropy—not as a series of short-term interventions, but as a strategic investment in the long-term success of our communities.
Jonathan Harline is a graduate student of Philanthropy and Nonprofit Leadership at Carleton University, a published author, and poli-sci nerd. He writes about fulfilling our civic duties and compassionate philanthropy.
Austin Mardon has the Order of Canada and the Medal of Honour from the Canadian Medical Association. He has lived experience with schizophrenia and homelessness and uses his story to help others living with mental illness. He is an associate adjunct professor at the University of Alberta’s John Dossetor Health Ethics Centre.
