Russell Kennedy Lawyers and Pitcher Partners present an inaugural benchmark report for the not-for-profit sector. The report draws together insights from over 100 survey respondents on topics such as governance, strategy, fundraising, risk management and the use of volunteer and professional resources.

The Survey highlights that many not-for-profit (NFP) organisations rely strongly on Government assistance. There is a need for these organisations to develop alternate means of financing and social enterprise. Organisations need to ensure that they can maintain solvency in the event of a change in policy or funding by setting aside monies for existing commitments, and a fund for short term operations, together with managing their cost base to be flexible enough to respond appropriately to changes in funding streams.

It is also necessary for NFPs to consider the management of various tax status benefits to ensure no compliance issues arise. Recent ACNC and ATO activity evidences a willingness to revoke tax benefits of NFP entities when non-compliance occurs, which is a risk that most NFPs cannot afford to expose themselves to.

It has also been identified that there is an opportunity for NFP organisations to move toward more sustainable funding models by adopting commercial funding streams, rather than relying on fundraising as an ancillary source of monies.

Most respondents indicated that there is value to be derived from external regulatory requirements. This supports findings last year that almost 80% of submissions to the Senate Economics Legislation committee inquiry into the possible repeal of the Australian Charities and Not-for-profits Commission (ACNC) do not support the government’s plans to repeal the ACNC Act and disband the ACNC. 

To download the full report please click here.

The complete data results can be accessed here.