Funding and staffing pressures are increasing performance stresses on non-profit organisations, a new study released today (July 21) says.
The Centre for Social Impact’s new social economy study draws on a survey of 219 organisations (56% up on last year).
The survey took in non-profit charities, social enterprises, co-operatives, mutuals and philanthropic organisations.
Key findings:
- Cyber security is a major concern. Widespread cybercrime surged into the top five external risks to the sector along with growing social polarisation.
- Workforce challenges are intensifying. Recruiting/retaining staff or volunteers has become one of the sector’s top three priorities while building staff capability rose from tenth on a list of priorities to sixth.
- Funding remains the biggest challenge. Faced with economic uncertainty and growing demand, maintaining funding and diversifying income sources are the sector’s two biggest priorities. The study reveals most organisations still rely on traditional income sources such as government funding, fundraising, contracts and retail/service sales.
- Lack of adequate resources. Despite growing expectations to demonstrate their social impact, almost half of non-profits lack the dedicated funding to measure their impact properly.
Acting centre CEO Rosemary Conn says the findings highlight the scale of the sector’s contribution and the cost of taking it for granted.
“Australia’s social economy continues to deliver significant social benefit at a time of heightened geopolitical instability, threats to social cohesion and climate-related disasters,” she says.
“This report shows a sector that keeps showing up for its communities, often under
considerable pressure.”
CONTRIBUTION: Charities employ 1.6 million people, more than the manufacturing, construction and retail trade sectors. Co-operatives and mutuals spend about $90 billion in incomes and social enterprises employ around one-in-60 Australians. Source: Centre for Social Impact
FUNDING-STAFFING WORRIES
“If we want that to continue, we need consistent investment in the sector and the people who make it possible – the staff and volunteers who go above and beyond because they care about the people they serve,” Conn says.
Lead author Associate Professor Melissa Edwards, from CSI UNSW, says the results point to a sector focused on stabilisation, not growth, under difficult circumstances.
“This research reveals a sector facing a huge range of challenges and under increasing strain,” she says.
“While maintaining funding and revenue and diversifying income sources remain the top priorities for social economy organisations, we’re seeing a marked rise in workforce concerns particularly recruiting and retaining staff and volunteers, and building staff capabilities.
“As one organisation told us, they are lean, efficient, agile and outcomes-driven, but they struggle to remain sustainable. This tension between innovation and survival is a common thread through this year’s results.”
Associate prof Edwards says this year’s survey is part of a three-year plan to build a more complete picture of the non-profit sector.
“We’re beginning to see not only where the sector is under pressure but how its priorities, capabilities and challenges are evolving over time,” she says.
The final survey for the centre will open in late August.
Read the full insights report here.
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