social delta

Consulting and support for social enterprise in Canada

Tag: earned revenue

Charities are selling… more than ever!

As a follow up to an earlier post,  Social Delta is pleased to report that there has been an increase of $2 billion in annual revenue earned by charities in 2014. This represents a 12.4% increase from the 2012 returns. (which in turn was 3.8% higher than 2011)

Charities are expected to file T3010 forms at the end of each fiscal year. As part of this annual reporting, they submit financial statements in a specific format and these documents are then made public at the CRA Website.  Blumberg Segal LLP has painstakingly aggregated the data for the 2014 submissions to help define the scale and scope of the charitable sector in Canada.

Some key facts from the April 10th Blumbergs’ Snapshot of the Canadian Charity Sector 2014:

  • Total revenue from all sources in 2014: $246 billion
  • Total sales revenue (not including to government): $19.9 billion
  • Total  membership revenue: $1.6 billion
  • Total value of tax receipts issued: $15.7 billion

As was the case in the 2012 report, earned revenue by charities is greater that donated revenue for which tax receipts were issued.  Admittedly, not all of these revenue generating activities would be considered social enterprise, but the data underlines the growing importance of earned revenue in charitable activities in Canada.

For more details on the report, and the host of other resources available from Blumberg Segal LLP, visit their web page devoted to legal issues facing the charitable sector in Canada.

 

Earned revenue for charities is more than private donations

In 2012, Charities earned more revenue than they were given by individual donors.

According to the recently released Blumberg’s 2012 Summary of the Canadian Charity Sector, earned revenue by charities was $17.7 billion, (up 3.8% from 2011) while receipted donations summed to only $14.3 billion.

Fundraising is also a costly business (and this I know, as I was a fundraiser for more than 17 years). Of the only 975 charities who reported to have paid fundraisers, those fundraisers generated $471 million, while getting total compensation (primarily set salaries) of $110 million. In other words, the equivalent of 23% of donated funds was used to manage the donor programs.

This impressive data collection project underlines the fact that charities are generating more revenue than they are gifts, and this is a sign of how they are investing their time, resources and efforts to sell products and services in support of their mission.

2012:

  • 75,232 active charities
  • $17,562,376,314 in non-government earned revenue
  • $182,195,300 in government revenues (up 36.5% from 2011)
  • $14,283,486,806 in donations

2011:

  • 73, 793 active charities in 2011
  • $16,953,792,416 in earned revenue in 2011
  • $133,474,682 government revenues in 2011.
  • $13,867,060,684 in donations

NOTE: To create the summary, Blumberg’s Law compiled the data from all the T3010’s submitted to the government by charities for the 2012 year end.  The T3010 does not offer sufficient detail to describe the types of business activities in which charities are involved, and there is also the possibility that each of the T3010’s is not perfectly accurate as they are prepared without audit.

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