2. History of charitable sector in Canada (up to 1950)

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Origins of charity in Canada

Before we get into the meat of this blog, these next two chapters will look back at the history of charitable giving in Canada up to 1950, then from 1950 to present. We’ll start the timeline at the early colonial era, since our modern concept of charitable giving, as described in Chapter 1, can really be seen to originate with the arrival of European settlers.

During the early colonial era, charitable activities were primarily led by religious organizations. Catholic missionaries began arriving in New France in the early 17th century, while Protestant denominations became more prominent in the late 18th century following the British conquest. Churches played a central role in providing aid, establishing orphanages, schools, and hospitals to support their communities.

Sponsored by these churches, the first charitable organizations began to take shape. One notable example is the Order of Sisters of Charity, or the “Grey Nuns”, founded in 1737 in Montreal by Marguerite d’Youville and three other women. They started modestly, renting a small house where they could care for only four patients at a time. Despite their limited resources, their mission was clear: to provide refuge for society’s most vulnerable, including orphans, the elderly, people with disabilities, and those deemed “incurable.” Unlike other Catholic hospitals of the time, which treated only men, the Grey Nuns took an inclusive approach, caring for both men and women. In this way, they were ahead of their time, embodying what is now known as the humanitarian principle of impartiality—providing aid based on need, without discrimination.

The Grey Nuns were just one example of the many religious orders active in charitable work in Canada in the 17^th and 18^th centuries. Other examples include the Ursulines of Quebec, who were founded in 1639 and focused on educating girls. There was also the Hospitalières de Saint-Joseph, who established in Canada in 1659 to run some of Canada’s earliest hospitals. These and other religious communities filled critical gaps in social welfare, laying the groundwork for future charitable institutions.

While these religious organizations were central to charitable activities, their efforts were often driven by a desire to convert those they served to Christianity, particularly Indigenous peoples. Churches saw their mission as one of ‘saving’ souls, but their methods were deeply problematic. Rooted in beliefs of cultural superiority and assimilation, their practices demeaned Indigenous traditional spiritual and cultural practices. These efforts later became institutionalized with the residential school system, established in the 1870s to forcibly assimilate Indigenous children—a system that persisted in Canada until the 1990s.

In the early to mid-19th century, charitable organizations expanded rapidly in urban areas. Known at the time as benevolent societies, these groups remained closely tied to religious denominations and their values. One early example is The Benevolent Irish Society, founded in 1806 in St. John’s, Newfoundland, to support impoverished Irish immigrants. While membership was restricted to men, it was notable for welcoming both Protestants and Catholics – a rare show of inclusivity at the time.

Other societies took innovative approaches to aid. The Halifax Poor Man’s Friend Society, founded in 1820, divided the city into districts, assigning visitors to assess needs and distribute essentials like firewood and potatoes. In 1837, The House of Industry was established in Toronto, providing shelter and employment for the poor and unemployed, modeled after similar institutions in Britain.

The mid to late-19^th century also saw the Grey Nuns expand to new locations in Quebec City, Ottawa, Manitoba, and Alberta. As their influence grew, they played a crucial role in providing healthcare to the sick and the poor, responding to numerous epidemics including cholera and smallpox. They also provided education through the operation of schools and orphanages as well as social services to the elderly and those with disabilities.

Another notable organization formed at the time was The Salvation Army, a British Christian charity, which opened its first Canadian branch in London, Ontario in 1882. This quickly led to the expansion of the organization throughout Canada, focusing on poverty alleviation and various social services.

Also during this period, Canada began sending its own missionaries across North America and overseas to places like China, India, and later to Africa and Latin America. By the end of the century, most Protestant churches supported missions abroad[1]. Like the religious missions at home, these international efforts were primarily focused on converting people to Christianity and establishing churches. However, they also engaged in other charitable activities, particularly in education and healthcare.

All these early charitable initiatives were rooted in religious duty, with many organizations aiming to spread their faith alongside the provision of this aid. The funding for these activities were largely provided through the churches, from personal donations of the congregation, as well as through community fundraising efforts or from private donations of philanthropists. The government provided little funding for charitable work at this time, except for some specific institutions in urban areas.

The influence of the world wars

As the 20^th century began, charitable efforts started to shift towards more secular, organized, and professional initiatives. This transformation was accelerated by global events such as the World Wars, which reshaped both the role of the government in charitable work and the scope of humanitarian efforts. The Canadian Red Cross (CRC) had just been founded in 1896 as the 16^th red cross national society globally, following many European countries and the American Red Cross in 1881. The CRC’s first operation was the Boer Way from 1899 – 1902, but it was the arrival of World War I that solidified the organization as Canada’s wartime humanitarian aid organization. The CRC provided medical and humanitarian support both from Canada and from hospitals and rest homes in England and France[2].

WWI, and the post-war period saw the government taking a large role in supporting the welfare of soldiers and veterans, leading to state-sponsored charities and Canada’s first welfare programs. The war also saw the rise of large-scale national fundraising campaigns, moving away from more localized, religious-based efforts toward more organized, government-supported efforts. Examples include the Victory Loans Canadian government war loan program and the Canadian Patriotic Fund (CPF), a private initiative, which collected donations from individuals and businesses[3][4]. Note: while the CPF was successful, it was not set up again during World War II, since Canadians started believing that it should be the government, not private citizens, providing this support for the soldiers.

WWII further accelerated the changes to the charitable sector, leading to greater professionalization of organizations. Groups like The Salvation Army and CRC expanded their operations greatly. While the CRC had focused on supporting soldiers during WWI, it broadened its scope during WWII to include civilian victims of war. Organizations developed more structured approaches to fundraising, expanded their volunteer networks, and introduced specialized training for volunteers in areas like medical care, logistics, and trauma support. Charities also began to adopt more formal administrative systems, including dedicated staff, accounting practices, and strategic planning.

WWII also expanded collaboration between the government and charitable organizations. The war demonstrated that charities were more flexible and responsive than government-led initiatives, particularly in areas like volunteer mobilization and localized relief. This enabled them to complement government efforts by filling critical gaps. This partnership laid the groundwork for today’s charitable sector, where governments typically provide funding, while charities offer specialized services.

The post-war period brought numerous long-term challenges that paved the way for the continued expansion of Canada’s charitable landscape. These included veterans’ support, post-war reconstruction, and the resettlement of displaced persons and refugees. The impact of both wars led to the expansion of the welfare state, including the introduction of unemployment insurance, child benefits, universal healthcare, and other social safety nets. As a result, charitable efforts shifted focus, moving away from core services to fill gaps where the government did not provide support, such as in advocacy, social justice, international aid, and other specialized services (with more examples to follow in the next chapter).

Internationally, significant changes were undergoing as well, as the US sought to shape the post-war global order. This was brought about mainly through the Bretton Woods Conference and The Marshall Plan. The Bretton Woods Conference, held in 1944, brought together delegates from 44 allied nations to address the economic challenges of the post-war period. This conference, which Canada was a key participant of, saw the establishment of key institutions such as the International Monetary Fund (IMF) and World Bank, which were intended to aid in post-war reconstruction. The Marshall Plan, which complemented the Bretton Woods initiatives, was introduced in 1947 as a program of economic aid, channelling funding from the US to war-torn Western Europe.

Through Bretton Woods, the US succeeded in establishing a new international economic system, centered on the US dollar. The Marshall Plan then helped to ensure that the European economic recovery was aligned with these US interests. Together, these initiatives reinforced American economic leadership, promoted stability, and countered the spread of communism. Canada supported both initiatives and followed closely with the US on these matters.

The successes of these efforts provide the US with a new model for international influence and soft power. Quickly, the Bretton Woods institutions began financing many other countries, especially newly independent countries in Asia and Africa, where there was also worry about the spread of communism. These events formalized the role of international actors in development, greatly shaping modern practices.

While Bretton Woods led to consolidated power for the US and its allies, its financial assistance to developing nations often came at a steep price. The aid provided was highly conditional, pushing countries into austerity measures, structural reforms, and privatization efforts that undermined sovereignty and exacerbated social inequality. These loans, often with high interest rates, left many nations deeply indebted. Some countries, like Nigeria, Kenya, Argentina, Ecuador, and Pakistan, are still grappling with the long-term effects of these original loans, a burden that has persisted for decades.

Another significant outcome of the post-war period was the establishment of the United Nations in 1945, of which Canada was a founding member. Initially focused on maintaining international peace and security, the UN’s mandate quickly expanded to include post-war reconstruction, international cooperation, development, and human rights. The Universal Declaration of Human Rights (UDHR) was adopted in 1948, laying the foundation for today’s rights-based approaches in international humanitarian and development work. Canadian diplomat and legal scholar John Peters Humphrey drafted the UDHR’s initial version, strengthening Canada’s image as a champion of human rights.

The birth of the modern philanthropist

Another significant development during this era was the rise of the wealthy philanthropist. In the late 19^th and early 20^th centuries, American figures like J.D. Rockefeller and Andrew Carnegie donated hundreds of millions of dollars (equivalent to billions today) to establish universities, research centers, foundations, and, in Carnegie’s case, more than 2,500 libraries, including 125 in Canada.

The role of these philanthropists was significant, both in the outcomes of their donations and in shaping the perceived responsibilities of the wealthy, including in Canada. Carnegie’s 1889 essay “The Gospel of Wealth” argued that the rich have a moral obligation to distribute their wealth for the public good – a principle which continues to resonate with modern philanthropists such as Bill Gates, Warren Buffet, and other billionaires. In the essay, Carnegie famously wrote, “The man who dies thus rich dies disgraced.”

While Carnegie and Rockefeller remain highly controversial figures due to their exploitative business practices, their approach to philanthropy continues to influence current charitable practices. Their vast resources enabled them to tackle the root causes of social issues, rather than merely addressing the symptoms. This marked a shift from earlier forms of charity, which focused primarily on immediate relief. At the time, their approach which aimed at creating long-term, systemic change, was known as scientific philanthropy. Today, this approach is still widely practiced, often under the term strategic philanthropy.

Canada also had its share of prominent philanthropists during this period. Notably, John Molson, founder of Molson Brewing, played a key role in financing the creation of Montreal General Hospital[5]. Hart Massey, of Massey-Harris Company, supported the University of Toronto, gifted Massey Hall theatre, and through the Massey Foundation, contributed to various other causes[6]. Timothy Eaton, founder of Eaton’s department store, was another notable philanthropist who supported numerous charities and helped finance a new general hospital in Toronto[7].

These industrialists’ philanthropic contributions helped shape the future of some of Canada’s key institutions. As Gordon Lightfoot put it in Canadian Railroad Trilogy, “the song of your future has been sung”. The Industrial Age was a defining period for Canada’s charitable sector, shaping institutions that would become future of Canada’s social welfare landscape. In the next chapter, we will examine how this evolved from 1950 until present day.

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[1] https://www.thecanadianencyclopedia.ca/en/article/missions-and-missionaries

[2] https://www.redcross.ca/about-us/about-the-canadian-red-cross/historical-highlights/getting-started-1896-1913

[3] https://www.thecanadianencyclopedia.ca/en/article/victory-loans

[4] https://www.warmuseum.ca/firstworldwar/history/life-at-home-during-the-war/the-home-front/the-canadian-patriotic-fund/

[5] https://parks.canada.ca/culture/designation/personnage-person/john-molson

[6] https://www.thecanadianencyclopedia.ca/en/article/hart-almerrin-massey

[7] https://www.biographi.ca/en/bio/eaton_timothy_13E.html