This TMC is not to address the pros and cons of sponsorships versus philanthropy. That is, in my opinion, a silly discussion. Both philanthropy and sponsorship are great revenue channels for charities and non-profits. But each have a lane and when you drive in the wrong lane you don’t fare so well.
What I wanted to look at is more the state of philanthropy today in Canada and what that tells us about sponsorship. This research is from The 2025 Giving Report researched and published by Environics and Canada Helps. The report showed that the giving that year was a record high. It was 12.8 billion and it was a dramatic increase over previous years. In addition, though, as we’ve seen over the years the large bulk of that donation money is coming from fewer and fewer people. In fact, Statistics Canada shows that for the first time ever less than 17% of Canadians donated to charities and claim those donations on their tax returns. So, what we’re seeing is this dramatic shift in less people giving, but those giving – or more accurately looking at the 80/20 rule, a small portion of givers are giving in a huge way. Reality Check. That’s going to run out when that generation has given all they can give and / or pass away.
Companies though 20+ years ago and accelerated in the last decade and especially since post Covid have switched from “philanthropy” (as CRA – Canada Revenue Agency – defines it – giving with no expectation of anything in return) to “sponsorship” and CRA / Statistics Canada clearly shows this. Companies have increased their budgets dramatically over the years from when they gave non-profits and charities donations. Today 85% of the $1.8B in sponsorship revenue in Canada comes not from Community Investment departments but from Marketing and Communications departments (Community investment accounts for less than 5% of that $1.8B.) Companies shifted from saying “here is $10,000 (or $100,000 or whatever) – go do your mission and send us a charitable tax receipt to “I still have those dollars but now you need to help me sell burgers or drive traffic to my website or whatever”. The companies are looking for a ROI on that investment now. And it has to be quantifiable… not “people will feel good about you if you partner with us”
We need to understand that philanthropy, no matter how it morphs going forward, will be a critical component to any non-profit or charity revenue pie. But understand this charitable giving will come from individuals and Foundations, not from companies.
On the other side, if you want money from companies, get in the right lane. They are not philanthropic much anymore. They need an ROI on their contribution / investment. One that quantifiably achieves results. The money is there… just ask for it in the right way.
The simple outcome… know which lane you are driving in. And if it is the philanthropy lane, then individuals and foundations ride with you in that lane. If it is companies, you are after and can help them gain ROI… switch lanes and get in the sponsorship lane. And as noted, when you are in the wrong lane with the wrong vehicle there will be a crash.
For a great podcast on this 2025 Giving Report you can click through here.
If you want to learn more about the differences and also how sponsorship and philanthropy can work together, register for Canada’s #1 sponsorship marketing conference, the Western Sponsorship Congress® – Alberta Forum. Register today for awesome savings!
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