The voluntary sector is recognized, by citizens, industry and government, as an increasingly vital contributor to healthy communities within Canadian society, called upon to provide front-line service delivery in areas of community support that were in the past often served by government and or religious charity. (The voluntary sector is large, consisting of an estimated 180,000 non-profit organizations [of which 80,000 are registered as charities] and hundreds of thousands more volunteer groups that are not incorporated [Statistics Canada, 2002].) The dynamics of the sector have changed considerably over the past decade, as government has pulled back the level of core organizational funding support and the role of the church has diminished. As community health is directly related to the organizational health of service-providing non-profits and charities, these organizations are looking increasingly towards corporate and individual donors, along with new self-financing approaches that generate revenues. They are also facing challenges in attracting and retaining skilled and motivated volunteers. As the scope of the voluntary sector and its overall influence grows, so do the organizational and financial challenges it faces. This article will address in particular the issue of funding support for healthy communities and examine a number of potential and existing best practices for sustaining community health in Canada. We will also look at the issue of volunteerism and human resource capacity challenges for organizations. This is an area in which the Canadian government has decided to focus as a result of explicit policy decisions taken in the late 1990s.