Poll shows higher-than-normal inflation is forcing Canadians to cut back on their spending and charity donations
Because of their concerns about the effects of inflation on their finances, as many as seventeen percent (17%) of Canadians expect to give less to charities in 2022.
According to a recent Ipsos poll done on behalf of CanadaHelps.org., most Canadians (74%) are concerned about inflation, which has reached its highest level in 30 years.
The vast majority (82%) expect their financial situation to be negatively impacted in some way, with a significant portion (15%) stating that they will be unable to afford basic necessities (i.e., groceries, medicine, gas, etc.) and three in ten (29%) stating that they will be forced to cut back on basic necessities if high inflation continues.
If high inflation persists, the majority (52%) admit that they will have to cut back on non-essential spending (i.e., travel, entertainment, eating out), one-third (33%) will have to cut back on savings, 15% will have to rely on savings outright to cover basic expenses, and one-fifth will have to cut back on debt repayments (19%) or charitable donations (22%).
Many Canadians polled expect to tap or are currently using charitable services to cover their vital requirements (e.g. food, shelter, etc.) in 2022, with the majority of them saying they are or will need to do so in response to the pandemic and/or high inflation.
As of now, eight percent (8%) of respondents claim to use charitable services to satisfy their fundamental needs, while twelve percent (12%) expect to need charitable assistance at some time in 2022 to meet their basic needs, such as food and housing, due to high inflation.
While many Canadians may seek charitable assistance, the survey results indicate that fewer believe they will be able to donate to charities in 2022 because of rising inflation and/or the pandemic's aftermath. Indeed, one-quarter of people (25%) plan to donate less to charity in 2022 than they did in 2021, with seventeen percent (17%) citing the effects of inflation on their finances as the basis for their decision.
A little more than one in ten (12%) say they'll be donating less because they're worried about the pandemic's impact on their money. In comparison, only 15% of people plan to donate more to organizations in 2022 than they did in 2021. However, six percent (6%) of respondents said they will give more to charity in 2022 because of inflationary pressures.
Concerns about inflation are driving expectations in terms of planned charity behaviors and perceptions of how inflation will affect the economy in 2022, according to the survey.
As a result of high inflation in 2022, those who are very concerned about the rate of inflation are more likely to say they will have to reduce how much debt they pay off (27%, compared to 10% of those who are just somewhat or not concerned), start using their savings to cover other expenses (27% vs. 10%), reduce spending on basic necessities (43% vs. 23%), or be unable to afford basic necessities (28% vs. 9%).
The findings of the poll imply that higher-than-average inflation is forcing Canadians to cut back on their spending and, as a result, their charitable giving. Charities and households will likely face more hardship as fewer people provide money and more people may require assistance.