Charity Sector grows amid financial pressures
Key Findings
- Employment within the sector increased by 70,000 to 1.54 million people (10.7% of Australia's workforce)
- Revenue grew by 10.7% to a record $222 billion, outpacing expense growth of 8.4%
- Volunteer numbers rose by 270,000 to 3.77 million nationwide
- Donations and bequests increased by $5 billion to $18.9 billion (though $4.9 billion came from a single donation to Minderoo Foundation)
Sector Challenges
ACNC Commissioner Sue Woodward noted that while growth is positive, it reflects the increasing demand for services. "Many parts of the sector, including foodbanks and crisis accommodation services, are reporting that cost-of-living pressures are driving higher demand, sometimes stretching capacity to the point where people seeking help must be turned away."
Funding Disparities
The report highlighted significant disparities in funding, with 40% of all charitable contributions going to just 30 charities. Small charities (earning under $50,000) rely heavily on donations for 40% of their revenue, compared to just 6% for organisations earning over $100 million.
Volunteer Contribution
Volunteers remain essential to the sector with 2.4 volunteers for every employee. More than half of all charities operate without any paid staff, rising to nearly 90% for the smallest organisations. Woodward welcomed this result. “This is really pleasing. It’s close to the highest number of volunteers [which was] recorded in the sixth edition of the report, which covered 2018,” she said.
About ACNC
The Australian Charities and Not-for-profits Commission (ACNC) is the national regulator of charities. They register and regulate Australia’s charities, help charities understand and meet their obligations through resources, guidance and advise and they help the public understand the work of the not-for-profit sector while providing a free database of charities across Australia.
