Charities under strain as expenses outpace growth
Cost of living pressures are placing a huge strain on Australian charities and the communities they support; expenses exceed all revenue growth in the struggling industry.
Charities generated $239 billion in revenue in the latest 2024 reporting period; This is a strong increase of 7.5 percent, outpacing growth in the broader economy.
But according to the new release data According to a report by the Australian Charities and Not-for-Profits Commission, spending rose even faster, by 8.6 per cent, to $231 billion.
Commissioner Sue Woodward AM said the increased gap reflected the fact charities faced larger total expense bills and higher costs for staff wages, insurance and utilities.
“Demand for support is increasing as more people feel the pressure,” Ms Woodward said.
“Demand for support is increasing as more people feel the pressure,” Ms Woodward said.
“Charities are responding by hiring more staff where they can – but they also face higher costs for wages, insurance and utilities.”
Charities employ 1.6 million staff, 11 per cent of Australia’s workforce.
This number is also increasing as the demand for services increases.
So is the number of volunteers called in to keep operations going.
In the 2024 reporting period, registered charities recruited 3.9 million volunteers, the highest number of volunteers ever reported, at 2.5 volunteers for every employee.
Smaller charities, which have annual revenues of less than $500,000 and make up the majority of charitable giving across Australia, are particularly under pressure.
Many operate without paid staff, relying entirely on the dedication of their volunteers.
Together, they generated just 1.4 percent of total industry revenue, received less than nine percent of all donations and bequests, and held less than five percent of industry assets.
“This shows just how little financial capacity these charities have,” Ms Woodward said.
Extra-large charities with annual revenues of $100 million or more make up just 0.6 percent of the industry.
But they generated 57 percent of total industry revenue, received about 21 percent of donations and bequests, and held about half of all industry assets.
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