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Program assistant Michael Chan helps Ken Wong play the "over the bridge" game during the St Stephens older-adult day program at the Kensington Manor in Toronto on Jan. 11, 2012.

Times are tough for anyone in the business of asking Canadians to dig deep.

Charities across the country are feeling a dual blow: Need remains high three years after the worst of the recession and resources are limited as jittery donors hold back and deficit-laden governments cut back.

On Wednesday, Toronto's United Way issued a last-minute appeal for funds, with the organization saying it is on track to fall $3-million short of its $116-million goal for this year.

"There is real pressure," said United Way CEO Susan McIsaac. "The need is significant, and we're going to do everything we can to get there."

Half of Canada's charities say they're seeing increased demand and having a harder time fulfilling their missions and a quarter are worried that their existence is at risk, according to a survey published last month by Imagine Canada, an umbrella organization for charities.

And almost 900,000 Canadians used food banks in one month last year – a 26-per-cent increase over 2008 figures.

"Numbers remain unacceptably high," said Katharine Schmidt, executive director of Food Banks Canada. "It's a challenge. … Last year, 45 per cent of food banks said there was just no way they could meet the need. So they did what they could."

The latest financial squeeze is part of a larger trend as donors age or fatigue sets in amid a plethora of potential recipients. In 1989, 30 per cent of Canadian taxpayers claimed donations; last year, that dropped to 23.4.

"That's really worrisome," said Marcel Lauziere, president of Imagine Canada. "As we see society aging, we also see governments in difficult situations in terms of their own funding. … There's no doubt there will be increased demand for the work of charities."

Even prosperous communities are seeing an unprecedented need for private charities to step in.

Saskatoon is projected to post the highest economic growth rate of any Canadian city this year, according to numbers published Wednesday by the Conference Board of Canada.

That city's United Way has had no trouble finding donors, but is facing challenges it never encountered before: A booming housing market is pricing many workers and students out of the rental market altogether, Saskatoon's food banks are seeing more working poor and students who can't pay the bills in the city's new, wealthier environment.

"Not only is the rental market expensive for people and taking up more of their monthly income, but … stock isn't keeping pace with that kind of growth," said Sheri Benson, United Way executive director. In many ways, she added, Saskatoon is where Calgary was years ago – in an economic bonanza, but risking leaving a large sector of the population behind.

"We might be able to learn from the issues they faced."

This uncertainty comes as the House of Commons standing committee on finance prepares to take a closer look at Canada's charity sector. Imagine Canada is pushing for added incentives to get donors to give more.

At the same time, there's some anxiety among charities as to whether the committee might impose more restrictions on fundraising, said Terrance Carter, managing partner of Carters, a firm that specializes in charity law.

"The sector needs all the help it can get," he said. "Hopefully the focus will be on enhancing the tax incentives that are there."

In the meantime, local community groups are bracing for cuts and tightened budgets. Maureen Fair, executive director of Toronto's St. Christopher House, said it is waiting to find out if city council will cut its grant.

"There has been shrinking in many funding pots," she said. "It's quite a difficult time right now to properly plan for the future, when both the city and the United Way are not seeming to be able to even come up with last year's amount of money."

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