A new report from the not-for-profit body Community Council of Australia says charities now have less money for discretionary spending, and aren't being given enough money by governments. It's a problem facing dozens of not-for-profit groups around the country.

An extensive new report - "Owning Our Future:  Better Using Our Assets" - released by Community Council for Australia says Australia's not-for-profit sector and charities have never felt poorer.

Many of Australia's top leaders in the world of not-for-profit and charities gathered on Wednesday 8th April in Canberra to find new ways of charities and not-for-profits creating a better future for the massive sector.

Community Council for Australia emphasises:

• Australia's massive not-for-profit sector is critical to the nation's future.
• The sector has very real concerns about the kind of Australia we are building.
• Strengthening the role of not-for-profits will build flourishing communities.
• Governments have a role to play but are not the only solution.

David Crosbie - CEO of Community Council for Australia - said, "Late last year in one major survey, over half the respondents expected sector performance to deteriorate in the next 12 months, pointing to negative impacts from Federal Government funding, Federal Government regulations and State Government policy/regulation.  The Pro Bono "State Of The Not For Profit Sector Survey" (released September 2014) found more than half of the 1,200 respondents expected sector performance to deteriorate over the next 12 months."

"The last PwC - CSI Community Index released late last year clearly said confidence across the sector is negative with charities concerned about being able to deliver services to meet the increasing level of need."

Campaigner and Chair of the Community Council for Australia (CCA) Reverend Tim Costello (CEO of World Vision) warns there is virtually no collective forward planning in the sector.  He says "It is critical we start to decide on what kind of communities we actually want to live in and be part of. What people forget is that not-for-profits have become a massive employer in Australia, employing over 1 million Australian employees.  This is about finding ways of making the best contributions for Australia in 2020.  Many of the biggest leaders in charities and not-for-profits will be part of our meeting."

A large list of top not-for-profits are involved with the high powered forum.  This includes World Vision, RSPCA, Lifeline, SANE, The Smith Family, beyondblue, Mission Australia, Save the Children, Relationships Australia, St. John Ambulance Australia, Foundation for Alcohol Research and Education, Pro Bono Australia, Community Sector Banking, Volunteering Australia and many more.

The report found that charities have been enjoying major growth with 175-billion dollars in assets, and turnover of more than 107-billion dollars. But the Chief Executive of World Vision, Tim Costello says most of the growth in the sector came before the Global Financial Crisis, when Australians were optimistic and charitable. He says it's been an uphill battle since, added to by the increasing demands on not-for-profit groups.

"Not for profits are dealing with the epidemics of depression, dealing with ice, dealing with mental health and other issues which are of absolute importance as to whether Australia not just has a safety net but flourishes in the future. And the cuts in government funding, the uncertainty about having funding for only 3 months or 12 months sees them unable to really deliver the services."

One of the report's recommendations is that not-for-profits should look for different revenue sources besides governments. Lifeline Chief Executive Jane Hayden says it's about making operations far more efficient and will will require a new way of thinking and doing business. "Many things we are doing now are services that were provided previously by a government and if we are going to the community... well what are the things that we can do to collaborate, to share our assets and to work out funding models that are going to allow the sector to plan for the long term."

Tim Costello from World Vision agrees, but adds that the not-for-profit sector needs remain engaged with governments, to be involved in policy formulation. "Where it is appropriate, and there is reduplication, we can look at mergers and acquisitions between smaller not-for-profits. But we also know we need to be at the policy table. Business and unions are always invited but the charitable sector, which employs a million people and five million volunteers is always overlooked and yet when it is at the coalface and it has policy ideas about a richer, better Australia, we need to be there invited and at the table."

Lifeline's Chief Executive Jane Hayden is also hopeful about the possible outcomes of talks with the government. "We are talking about how we can work collaboratively together and with government to try and map out a future plan for the not-for-profit sector for Australia."

More on CCA's Owning Our Future - Better Using Our Assets Report is available here.