Click here to see the pdf version CSNPEI Pre-Budget Submission 2025-26

CSNPEI Pre-Budget Submission 2025-26 Operating Budget

Key Recommendations: 

1. Increase core operating funding for nonprofit organizations.
2. Implement multi-year funding agreements to provide financial stability and enable strategic planning.
3. Provide grants for staff development, leadership, and skills training to strengthen the workforce’s capabilities.
4. Provide grants for technology improvements to enhance nonprofit capacity.
5. Create a provincial volunteer recovery strategy in consultation with the nonprofit sector to address declining volunteerism.
6. Create a dedicated help desk or hotline to assist nonprofits in navigating regulatory and compliance requirements.
7. Create a “home in government” for the 1700 nonprofits in PEI. 

 The Community Sector Network of PEI (CSNPEI), which represents the 1700 nonprofit organizations in PEI, is pleased to provide our recommendations on how the provincial government can work with our resilient nonprofit sector to promote long-term social and economic prosperity in our province.  

The nonprofit sector in PEI plays a vital role in addressing social, economic, and environmental challenges.  The sector directly contributes $136 million to the province’s GDP, with a total economic impact of $214 million when indirect and induced effects are included (APEC, 20211). The sector employs 3,350 people and creates another 900 spinoff jobs, accounting for 4.3% of total provincial employment (APEC, 2021).  However, increased demand for services, funding challenges, and workforce constraints require immediate attention from the provincial government to ensure sustainable growth and impact for the nonprofit sector. 

Nonprofits in PEI have been facing significant challenges over the past year, exacerbated by rising costs, high inflation, and increased service demands. Key challenges include rising operational costs, workforce issues, and increased demand for services. Inflation has driven up costs for goods, services, and utilities, making it increasingly difficult for nonprofits to maintain operations and meet the growing needs of Islanders. Additionally, nonprofit organizations are struggling to attract and retain skilled staff due to limited financial resources, which affects the overall capacity to deliver essential services. The demand for services has risen dramatically, with nonprofits seeing an increase in requests for support across various community-based services, from housing assistance to food security programs.  

Despite these challenges, PEI’s nonprofit sector remains committed to addressing the pressing needs of our communities. To achieve this goal, we are advocating for strategic investments and collaborations that will strengthen the sector’s capacity to serve Islanders effectively. 

1. APEC. (2021). PEI Non-Profit Sector 2021. Atlantic Provinces Economic Council. https://csnpei.com/wp-content/uploads/2023/04/PEI-Non-Profit-final.pdf  

Detailed Recommendations 

Core Funding for Nonprofits 

Recommendation 1: Increase core operating funding for nonprofit organizations. 

Nonprofit organizations in PEI face significant challenges in securing core funding, which impedes their ability to serve the community effectively. Increasing core operating funding will address ongoing operational expenses beyond specific projects, allowing nonprofits to allocate resources efficiently and focus on delivering their core mission. Enhanced financial stability would enable these organizations to concentrate on service delivery rather than constant fundraising efforts. This investment would directly benefit communities by improving service quality and reach in critical areas such as healthcare, education, and social services. 

Recommendation 2: Implement multi-year funding agreements to provide financial stability and enable strategic planning.  

Implementing multi-year funding agreements is necessary to provide financial stability for nonprofits, allowing for long-term strategic planning and the sustainability of their operations. Long-term funding reduces administrative burdens associated with annual grant applications, enabling nonprofits to focus on developing programs with sustained impact. This approach would lead to better social outcomes and more efficient use of resources. 

Workforce and Capacity Building 

Recommendation 3: Provide grants for staff development, leadership, and skills training to strengthen the workforce’s capabilities. 

Investing in staff development is essential for maintaining high-quality service delivery, operational efficiency, and retaining skilled staff in the nonprofit sector. Providing grants dedicated to professional development will equip nonprofit staff with the necessary skills to deliver quality services and adapt to changing community needs. Enhanced skills contribute to a more competent workforce, driving innovation within the sector and contributing to economic growth. 

Recommendation 4: Provide grants for technology improvements to enhance nonprofit capacity. 

Technology improvements, including funding for IT infrastructure, are critical for modernizing nonprofit operations and enabling more efficient service delivery. Upgraded technology infrastructure would streamline operations, reduce costs, and improve data management. Modern technology allows nonprofits to expand their reach, particularly in remote or underserved areas, ultimately making them more effective in meeting community needs. 

Recommendation 5: Create a provincial volunteer recovery strategy in consultation with the nonprofit sector to address declining volunteerism. 

Volunteers dedicate their time and expertise to making PEI a better place to live, work and succeed. However, volunteerism rates and hours have been declining in PEI. Creating a provincial volunteer recovery strategy in consultation with the nonprofit sector is crucial to address this decline. Reinvigorating volunteerism strengthens community engagement and reduces the burden on paid staff, ensuring that essential services continue without interruption.  

Facilitate Collaboration and Partnerships 

Recommendation 6: Create a dedicated help desk or hotline to assist nonprofits in navigating regulatory and compliance requirements. 

Regulatory and administrative requirements often present challenges for nonprofit organizations, diverting resources away from frontline services. Establishing a dedicated help desk or hotline will assist nonprofits in navigating compliance requirements more efficiently. This support will allow nonprofit organizations to focus more effectively on their core mission of providing essential community services rather than being overburdened by regulatory processes. Simplifying compliance support will not only ensure adherence to government standards but also strengthen overall governance practices within nonprofits. 

 Recommendation 7: Create a “Home in Government” for the 1700 nonprofits in PEI 

Currently, there are no minister, department or advisory council responsible for the well-being of nonprofits as a sector in PEI. Establishing a dedicated governmental unit would enhance communication, policy alignment, and sector support. This unit would serve as a central point of contact, ensuring that the nonprofit sector’s needs are considered in policy development and that there is better coordination of services. 

 Conclusion 

Investing in the nonprofit sector is investing in the well-being of Prince Edward Island’s residents. The proposed recommendations are designed to create a robust, sustainable, and innovative nonprofit sector that can effectively respond to current challenges and future needs. 

We urge the provincial government to consider these recommendations seriously and work collaboratively with the Community Sector Network of PEI to implement them for the betterment of all Islanders.