Giving as an Economic Tool
Today, in more than 90 countries around the world, it is Giving Tuesday. This is the day when individuals, companies, foundations and governments are invited to give to the charities that matter most in their lives.
Giving Tuesday began in 2012 at New York’s 92nd Street Y in partnership with the United Nations Foundation. The idea was simple. After a weekend driven by Black Friday and Cyber Monday, there should be one day dedicated to generosity rather than consumption. What started as a small project has become a global movement spanning multiple national networks.
In 2024, the scale of giving was significant. In the United States, donors contributed an estimated 3.6 billion dollars in one day. In Canada, at least $16.2 million was donated through CanadaHelps alone, with estimates ranging from $25 to $40 million through other platforms to charities participating in Giving Tuesday. Many Canadians give directly to charities through workplace campaigns, online platforms, or in response to community and cultural appeals.
The money matters, but so do the issues of visibility. Giving Tuesday is one of the best moments each year when charities speak openly about what they face. Food banks across the country talk about record demand. Mental health organizations describe the volume of young people in crisis. Indigenous-led charities highlight gaps in education outcomes and access. On this day, the public sees the human side of the work. It is not only fundraising. It is storytelling about the realities Canadians live with.
At a charity board meeting last week, someone said Giving Tuesday feels too noisy. I understand the concern. The inbox fills quickly. But I also think of the retail world. During Black Friday, no television brand says it should avoid advertising because every other brand is also on sale. They join the moment. They lean in. If we believe charities are essential parts of our communities, then it makes sense for them to be part of the one day each year when attention is already focused on giving, community and impact.
Giving Tuesday should be a signal for us also to consider the economic impact of the charitable sector. In Canada, non-profit and philanthropic organizations generate more than $ 216 billion in economic activity. They represent more than 8 percent of our GDP. They employ more than 2.7 million people. That makes the sector larger than manufacturing. Larger than mining, oil, and gas. Larger than agriculture. Larger than finance and insurance. In other words, this is not a side story. This is part of the country's economic backbone.
In the face of economic headwinds, tariffs, and low productivity, is there not a lesson here for Canadian business and government? Is there a hidden opportunity that is easy for Canada to exploit that could contribute substantially to our need fr a national economic turnaround? The idea of such a game plan does not seem far-fetched when you examine international case studies.
Other countries have already recognized the importance of this sector. In the United Kingdom, government policy connects civil society directly to long-term economic planning. The Civil Society Strategy guides public procurement and service delivery. The Dormant Assets Scheme has released hundreds of millions of pounds into social and community projects. That capital helped build a social impact investment market that now exceeds 9 billion pounds. A Civil Society Covenant and a soon-to-be-launched Office for the Impact Economy make it clear that charities and social enterprises are partners in national renewal.
New Zealand offers a similar example. Programs such as The Impact Initiative help social enterprises build capacity, measure impact and access capital. The government’s Social Investment Fund directs money to innovative community-based programs run by non-government organizations and tracks long-term outcomes. New Zealand already relies on non-profits to deliver billions in social services. Now it is using dedicated funds to test new solutions and scale those that work.
Canada is building some of this infrastructure too. The MaRS Centre for Impact Investing helped create SVX, a regulated impact-investing platform that matches investors with charities and social-purpose enterprises seeking both financial and social returns. The federal government’s $755 million Social Finance Fund is designed to help charities and non-profits grow in areas such as affordable housing, skills development, climate solutions and community economic development. Social Capital Partners has shown that employee ownership models can build stability and community wealth, most recently by supporting the B.C.-based Taproot's transition to a worker-owned structure, with hundreds of employee owners.
Globally, many companies invest in social purpose not only because it is the right thing to do but because it supports business outcomes. Unilever works with WaterAid to improve sanitation, which strengthens public health and the markets where it operates. The Mastercard Foundation invests heavily in youth employment and financial inclusion across Africa, building future customer bases and stronger economies. Santander’s Prospera program in Brazil has delivered more than 28 billion reais in microloans to more than 2.8 million entrepreneurs. Most are women. The program combines credit with financial coaching and neighbourhood-based support. It strengthens households, creates economic mobility, and builds long-term banking relationships.
Economists have tried to measure the impact of charitable investments. In early childhood programs, every dollar invested can yield between four and sixteen dollars in long-term savings and productivity gains. In global vaccination programs, every dollar invested can generate up to 44 dollars in economic and social benefits. Microfinance programs in Latin America and Africa often lead to increases of 8 to 12 times in community income. These ranges vary, but the principle is clear. When charities and social purpose organizations are well supported, they create economic value that multiplies far beyond the original investment.
In the United States, overall charitable giving remains high, but many nonprofits report shrinking or stagnant government funding for social programs. Pressure is rising on charities to fill gaps in food, housing and health support. It is not a full retreat by the government but a shift in responsibility. For a country like Canada, which relies heavily on charities to deliver social services, this trend is worth watching closely.
Which brings me back to Giving Tuesday. If you are a business leader, a marketer, or anyone concerned with long-term stability, consider how the charitable sector fits into your strategy. A strong philanthropic sector supports stable communities. Stable communities support stronger workforces. Stronger workforces and healthier communities create better markets, more reliable customers and less strain on public systems. Supporting charities is not only an act of goodwill. It can be part of a long-term economic and social strategy.
Giving Tuesday is a reminder that generosity and prosperity are connected. When we invest in charities, we invest in the conditions that allow our communities, our companies and our country to flourish. It is a Tuesday worth paying attention to.
PS - If you need a charity to support, check out one I co-founded to remove barriers to education.