Australian organisations report funding stress
A new Centre for Social Impact survey of 219 Australian organisations found rising pressure from funding gaps, workforce shortages and cyber threats across the social economy.
The study covered charities, other not-for-profits, social enterprises, co-operatives, mutuals and philanthropic organisations with social or environmental missions. Participation rose 56% from the inaugural survey in 2023.
Across Australia, charities employ 1.6 million people, which is more than manufacturing, construction and retail trade. Co-operatives and mutuals contribute about $90 billion to national income, while social enterprises employ about one in 60 Australians.
According to the survey, maintaining funding and diversifying income sources remained the sector’s two biggest priorities. However, most respondents still relied on government funding, fundraising, contracts, and sales of goods and services.
Workforce pressures also intensified in the 2024 results. Recruiting and retaining staff or volunteers ranked among the top three priorities, while building staff capability rose from 10th to sixth.
Meanwhile, cyber security moved higher up the risk list. Widespread cybercrime entered the top five external risks, alongside growing societal polarisation.
Almost half of organisations also reported they lacked dedicated funding to measure impact properly. That shortfall comes as funders and stakeholders ask for more proof of results.
Rosemary Conn on sector pressure
Centre for Social Impact acting chief executive Rosemary Conn said the findings showed both the scale of the sector’s contribution and the strain it faces.
Conn said, “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 urged consistent investment in organisations and in the staff and volunteers who support communities during economic uncertainty and rising demand.
The Centre for Social Impact released the findings as part of its landmark social economy study on 30 June 2024. The report describes the results as a detailed national snapshot of challenges, opportunities and priorities across mission-driven organisations.
