The Australian Communities Foundation’s NFP Resilience Report 2025 offers a comprehensive analysis of Australia's NFP sector.
Based on insights from 240 organisations nationwide, the report underscores the pressing need for greater financial stability and strategic planning within the sector.
Key Insights:
- Financial Insecurity: Only one in four NFPs report financial sustainability, with unstable or short-term funding being the top concern.
- Philanthropy's Role: While philanthropic funding is crucial, many organisations lack a diversified income mix, making them vulnerable to shifts in donor behaviour.
- Rising Demand: Many NFPs are overstretched due to growing community demand, compounded by the cost-of-living crisis and rising operational costs.
- Income Fluctuations: Over 40% of organisations experience significant income fluctuations throughout the year, hindering long-term planning.
- Idle Financial Reserves: Many organisations hold surplus funds in low-yield vehicles, which may not support long-term financial growth.
- Strategic Planning: There is a growing need for NFPs to adopt strategic approaches to secure their financial future through innovation and diversification.
