What IONS’ 2025 State of the Sector Report Reveals About Nova Scotia’s Nonprofit Sector
Nova Scotia’s nonprofit and charitable sector continues to prove its strength and value. The 2025 State of the Sector Report paints a picture of steady progress and ongoing strain. It shows organizations that drive local economies, care for communities, and innovate through challenge. Yet it also reveals a sector still searching for stability, fair wages, and sustainable funding.
A Vital Part of the Economy
According to Statistics Canada data cited in the report, Nova Scotia’s nonprofit sector contributed $1.426 billion to the province’s GDP in 2023, up from $1.096 billion in 2020. It now supports more than 21,600 jobs, marking a small but meaningful increase from the early pandemic years. These numbers make clear that charities and nonprofits are not only helping people—they are also powering Nova Scotia’s economy.
Even so, many of those workers continue to earn less than their counterparts in other sectors. Wages are roughly 20 percent below national averages. Women make up two-thirds of the workforce and still earn about 8.5 percent less than men, although that gap has narrowed in recent years.
Funding Remains the Top Concern
For most organizations, the biggest worry is still money. About 63 percent rely on government funding as their main source of income, while fewer than one in five depend primarily on corporate or private donations. More than half of respondents reported an increase in revenue over the past three years, suggesting gradual recovery after the pandemic.
However, growth in revenue does not necessarily mean greater stability. Other studies show that the public is relying on community programs more than ever. Demand for food banks, shelters, mental health services, and employment programs continues to rise, stretching organizations already working with limited resources.
Interestingly, Ontario’s 2025 nonprofit survey echoes a similar pattern—organizations there are also facing higher demand but with flat or declining revenues. Where Ontario nonprofits are increasingly drawing from reserve funds to stay afloat, Nova Scotia’s report suggests that smaller organizations here are at higher risk of financial vulnerability due to limited diversification of funding.
Workforce and Volunteer Challenges
People remain at the heart of the sector’s success—and its struggles. Thirteen percent of surveyed organizations have no paid employees at all. Among those that do, most want to pay a living wage but fewer than half are able to. Many lose staff to better-paid jobs or unstable funding cycles.
At the same time, volunteer shortages are becoming a major issue. Nearly three-quarters of organizations depend on volunteers, but only half have enough to meet their needs. Board recruitment is also difficult, with just 44 percent able to maintain a full complement of members.
Ontario’s findings again mirror this trend. Although some improvement was noted in staff and volunteer recruitment, nearly half of Ontario organizations still report ongoing challenges—suggesting that the labour strain is a Canada-wide concern rather than a regional one.
Despite these pressures, Nova Scotia nonprofits continue to find creative ways to support staff and volunteers. Many have embraced flexible schedules, remote work, and stronger benefit packages to help offset low wages and heavy workloads.
Progress on Inclusion and Equity
The report highlights encouraging signs of progress in justice and equity. Over half of surveyed organizations have introduced new initiatives, and most of those have turned good intentions into concrete policies and strategic goals. This shift from learning to action shows that inclusion is becoming a core part of nonprofit identity in Nova Scotia.
Momentum for Innovation
Beyond immediate challenges, many organizations are looking toward collaboration and transformation. Nearly 60 percent are exploring shared services to reduce costs or strengthen partnerships, and one in five has experimented with social financing. These approaches suggest a readiness to innovate, even without major new funding sources.
Room for a Broader View
The State of the Sector Report offers valuable insight into the realities of nonprofit life, but future editions could go even deeper. Including diversity data—such as representation of racialized and Indigenous leaders—would help show whether inclusion efforts are working. A closer look at restricted versus unrestricted funding could clarify how financial flexibility affects innovation. More detail about funding sources beyond government, such as corporate partnerships or individual donors, would also help identify where new opportunities lie.
Where CharityAxess Fits In
This is where platforms like CharityAxess can make a difference. By increasing public visibility for charitable organizations, CharityAxess helps nonprofits connect with a broader audience of potential supporters. The platform highlights the real costs behind community impact—staff time, programming, and outreach—while encouraging individuals and businesses to step forward as donors.
By showcasing stories of innovation and resilience, CharityAxess helps diversify the funding pipeline across the province. It allows smaller and rural organizations to be seen and supported, bridging the gap between awareness and action.
Looking Ahead
The 2025 findings show a sector that refuses to stand still. Nonprofits in Nova Scotia continue to deliver essential services, drive local economies, and shape a more just society. What they need now is sustainable investment, fair compensation, and recognition of the vital role they play.
With platforms like CharityAxess helping to connect causes with communities, the sector has an opportunity not just to recover, but to grow stronger—ensuring that those who serve others have the support they need to keep making a difference.
About the Writer: Thea King is a volunteer writer with the CharityAxess Writers Program. She studied Communication at the University of The Bahamas and is passionate about storytelling that uplifts communities and highlights social impact. As an emerging writer, Thea is gaining hands-on experience in nonprofit journalism while exploring how media can inspire positive change.
Image of Lighthouse in Nova Scotia by Marina Hobbs from Pixabay
