The federal government will provide $48.2 million over the next four years to fund 97 community organizations that help low- and moderate-income Canadians access financial empowerment programs through the Resilient Futures initiative, charity Prosper Canada announced Thursday.
Prosper Canada made a submission for the funding for the 2024 federal budget, Elizabeth Mulholland, CEO of Prosper Canada, said in an interview.
Community organizations provide tax filing, benefit assistance and financial education. Service recipients include Indigenous people, newcomers, people living with disabilities, racialized communities, youth, seniors, women and others disproportionately affected by financial insecurity.
The need for financial empowerment services has increased as inflation has risen, Mulholland said. “So much so that [organizations] are having to turn people away. They don’t have the capacity to serve them all.”
Financial problems have also increased in complexity. Two to three years ago, most issues could be resolved in one visit, but that’s no longer the case, further straining community organizations’ capacity, Mulholland added. Common complex issues include debt, impaired credit scores and reapplying for benefits lost due to inadequate documentation.
Organizations involved in the initiative offer guidance on budgeting, debt, savings, filing taxes and accessing benefits or credits people might otherwise miss, Prosper Canada said in a release.
Resilient Futures is expected to reach one million people in Canada and help them find an additional $2 billion in benefits and tax breaks, the release noted.
Staff at participating community organizations have special training on helping low- and moderate-income families, Mulholland said. While financial professionals may be knowledgeable on tax and investment advice, they may not understand the realities of low-income people or the intricacies of applying for income support programs.
However, the organizations don’t offer investment advice. If clients need investment advice, they’re referred to platforms on how to choose a suitable and reputable financial advisor, Mulholland said, though many rely on pro-bono services as most advisors don’t take on clients with few investable assets.