City Council Approves Financial Relief Packages for Calgary Nonprofits
By Marokh Yousifshahi, CCVO Policy Analyst
On May 11, City Council approved two financial relief packages for Calgary nonprofits. Community associations and social recreation groups who are struggling to meet fixed daily expenses will be allocated $6 million to support their immediate financial needs. Additionally, $15 million will be directed to nonprofit partners of the City of Calgary who deliver effective programs and services, such as the Vecova Centre for Disability Services and Research, and Silvera for Seniors.
Community associations and social recreation groups provide social, recreation, and community building opportunities for Calgarians. However, due to public health orders, social distancing restrictions and closures have resulted in the cancellation of programs and services, events, and have severely impacted organizations in meeting their fixed daily expenses. These include utilities, insurance, and other non-negotiable obligations.
Due to the current circumstances, as many as 10% of community associations and recreational groups are at risk of closing operations before the end of August, with an additional 10% at risk of closing by the end of the year. Although some of the restrictions are in the process of being lifted, many facilities will not be able to operate at full capacity as they continue to face significant financial challenges. Revenue will likely take some time to stabilize.
Nonprofit partners of the City of Calgary have also experienced severe social and economic shocks during the pandemic. The ability to fundraise and engage with volunteers has been limited, as well as the ability to generate revenue through other activities. As a result of the pandemic, some organizations have also seen an increase in demand and the need to adapt and innovate in order to deliver programs and services. The City has estimated a gap of $50 million between funds that have been requested and what is available for current social service funding.
The City provides three investment strategies equalling a total investment of $15 million, in which $8 million will target support for social programs and services, $2 million will target partnerships to support the arts, and $5 million will be focused on support for civic and community partners.
There are programs in place that defer expenses and provide relief for the short-term. However, these deferral programs can create challenges in the long-run. The financial relief packages provide immediate support to nonprofits experiencing challenges. CCVO is supportive of this initiative and hopeful that this will quickly provide support to essential organizations in order to help keep them functioning. However, some organizations may not qualify for the relief packages and are in dire need of financial relief during this difficult time. We are counting on the provincial and federal governments to help fill the funding gap projected by the City. CCVO will continue to advocate on behalf of the sector for critically important funding for charities, nonprofits, and social enterprises during the COVID-19 pandemic.