The State of Ontario’s Nonprofit Sector in 2025

Ontario’s nonprofit sector continues to operate under intensifying pressure driven by rising community need, stagnant funding structures, and persistent workforce challenges.  Drawing on findings from the Ontario Nonprofit Network (ONN) Primary Public Survey Data, 2020–2025, this post examines current sector conditions and identifies emerging system-level trends shaping organizational capacity and service delivery.  The analysis suggests a sector demonstrating resilience and innovation, but increasingly strained in its ability to meet demand without structural policy and funding modernization.

Nonprofit organizations in Ontario play a foundational role in advancing community well-being, delivering essential supports across health and social services, food and housing security, arts and culture, newcomer support, and community development.  As Ontario enters 2026, findings from Pro Bono Advisory Group's analysis of the ONN Primary-Public Survey Data reveal a sector marked by ongoing post-pandemic recovery challenges, systemic funding limitations, and evolving workforce realities.

Survey data indicate that service demand continues to rise across most program areas, with the greatest pressure reported by organizations working in mental health, homelessness and housing, food insecurity, and crisis support.  Despite this increased need, funding levels have not proportionately increased.  Many organizations report reliance on short-term, project-based funding and limited access to inflation-indexed core operating dollars.  This misalignment between demand and financial capacity limits long-term planning, creating a cycle where organizations must respond to urgent needs while lacking the stability to build sustainable service systems.

The data continue to highlight a sustained workforce crisis characterized by:

·       Recruitment and retention difficulties

·       Wage disparity compared to public systems

·       Increased burnout and stress among front-line providers

·       Higher turnover and ongoing vacancies, particularly outside major urban centers

These conditions are not temporary fluctuations but represent systemic labour market inequities within the nonprofit sector. Workforce shortages reduce service capacity and threaten the continuity of essential programs, particularly in high-needs communities.

Although volunteer engagement has improved since the height of the pandemic, levels have not returned to pre-2020 norms.  Organizations supporting vulnerable populations continue to face lower volunteer availability, requiring paid staff to absorb additional responsibilities.  This dynamic further compound workload pressures and operational strain.

A consistent theme across survey years (2020-2025 ) is the growing administrative burden associated with grant compliance and reporting.  Smaller organizations and those led by equity-deserving communities report disproportionate impacts, often lacking staff capacity to navigate complex funding systems.  To compensate, board members are increasingly stepping into operational roles, blurring governance boundaries and highlighting the need for capacity-building investment.

Digital adoption continues to expand, supported by lessons learned during the pandemic.  However, the data show uneven access to technology and digital skill development, with rural, Northern, and small organizations reporting the most significant gaps.  Cybersecurity preparedness remains a developing competency, reinforcing the importance of sustained digital infrastructure support.

The ONN data illustrate a sector that remains mission-driven and community-centered, yet burdened by structural challenges that limit its ability to scale solutions and innovate sustainably.  Resilience continues to be a defining strength; however, resilience without structural reform risks entrenching fragility.

System change will require coordinated effort among government funders, philanthropic partners, and nonprofit leadership.  Priorities include:

·       Stabilizing core and multi-year funding

·       Strengthening nonprofit workforce compensation and training pathways

·       Reducing administrative burden and streamlining funding processes

·       Investing in organizational governance and digital capacity

Ontario’s nonprofit sector remains critical to social stability and community resilience.  Yet findings from the 2025 ONN survey affirm that current funding and labour frameworks are insufficient to support long-term sector health.  Meaningful policy reform and targeted investment will be essential to ensure that nonprofits can continue to deliver equitable, effective, and sustainable services across the province.

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