Understanding the impact of tariff changes on non-profits

Understanding the impact of tariff changes on non-profits

United Ways of Atlantic Canada

There is nothing more important than the vitality and strength of community. In Atlantic Canada, vibrant communities are built by local businesses, elected leaders, non-profits, public institutions, strong employers and generous, kind and resilient people.

 

As we all continue to lead and care about our communities, the threat of economic and social impacts is top of mind for everyone. We’re watching the news, considering different scenarios and wondering what this can mean for the Canadian economy.

 

For nearly everyone, even minor changes in these taxes could create financial worry and a need to adapt. That includes non-profit organizations. Non-profits have limited budgets, and higher costs, increased demand for services, or shifts in revenue can lead to making tough decisions about how to best support the communities they serve.

 

The connection between economic shifts and social consequences is something United Way Maritimes is watching closely. Although the outcomes are unpredictable and ever-changing, it’s important that the non-profit sector prepares for uncertainty. We encourage the broader community to discuss the fact the potential for economic strife leads directly to social strife. When all of us are mindful of potential impacts, we can all work together to intervene.

 

Economic impacts lead to social impacts, and more people needing community-based supports.

How tariff changes could affect non-profits…

If new tariffs and countermeasures come into effect, non-profits may experience:

 

Higher Operational Costs: Increased prices for essential materials like food and housing resources.

Program Reductions: Budget constraints may force organizations to scale back or eliminate critical services to those most in need.

Resource Diversion: Additional funding may be required to cover rising costs, redirecting resources away from other vital initiatives.

Increased need for services: If people’s financial situation changes or if the costs of basic goods and services increase, the needs will continue to outpace the non-profit sector’s ability to respond.

This comes at a time when demand for community programs is already at an all-time high. We must continue to find ways to adapt while continuing to serve those in need.

 

Navigating the challenges

To address these potential challenges, United Way is focusing on key strategies to support the non-profit sector:

We will continue promoting the importance of essential community services and non-profit organizations. The role non-profits play is life-changing and is more important than ever. We must be ready to act and be flexible in our funding and support of community partners.

 

We will champion local economic development. We will continue our mandate of leading local, including seeking and supporting local services. We will continue our work with economic development groups, chambers, and business commissions.

 

We will continue assessing and doing our best to mitigate risk. We will engage with our corporate, employer, government and labour partners to better understand their plans for responding to tariffs and how United Way Maritimes can partner.

 

We will connect with local donors, foundations and partners. We will continue open discussions with our partners to build relationships, share information, and collaborate in support of local communities that may be affected.

 

We will act in a ‘united way’ to look for opportunities. Buy local, give local. There will be opportunities to redirect volunteerism and philanthropy and create new partnerships to support the values and people of the Maritimes and across Canada.

 

Despite the potential challenges ahead, we remain hopeful that our community will rally together to support the most critical needs in our community.

 

We encourage everyone to check in on some of the non-profits you support and remember the importance of donating locally. Just like buying locally, donations made to community organizations add to the local economy in many ways. We also encourage everyone to have conversations with family, colleagues and friends about how economic strife can lead to more social needs.

 

Debbie McInnis

CEO/PDG