1 in 3 charities face financial crunch: New Poll Services may be cut amid cost of living crisis
Up to 37% of Australian charities are confronting an uncertain future and some may even have to wind back services as inflation and the cost of living crisis hit the sector hard, according to the findings of a new poll.
The survey of charity leaders has revealed a perfect storm of rising costs, increased competition and more demand facing charities as they plan for 2025.
The findings indicate that while 55% of charity leaders are somewhat or highly confident about their organisation's future, 37% are uncertain. This divide highlights ongoing challenges in meeting growing demand while maintaining sustainability.
The new report, by Piazza Research, was commissioned by the Community Council of Australia and was based on the views of 56 charity leaders (an Expert Panel made up mostly of charity CEOs) who all rated their level of confidence and identified key concerns for their organisations as they looked forward to 2025.
Chair of the CCA, Tim Costello, said he was not surprised by the findings of the report but he was concerned that so many charities felt apprehensive about their capacity to continue in 2025.
"When more than a third of charities are talking about having an uncertain future, you're highlighting a high level of unmet need, and that can only mean frustration for charities and the communities they serve," Rev. Costello said.
The CEO of CCA, David Crosbie, said given charities employ over 1.4 million Australians and turn over more than $200 billion, this is not good news for our communities or our economy. He suggested that charities might consider withdrawing some of their services in order to survive.
"For years charities have been saying the real costs of providing services to our communities is much higher than the funding being provided. This new research reinforces previous findings that the biggest issue confronting charities is the lack of support to meet rising costs and increasing demand," Mr Crosbie said.
"When governments and funders short-change charities and expect miracle outcomes, it forces some charities into a starvation cycle, a cycle where charities begin cannibalising their own organisation to survive."
"Funders should 'pay what it takes' to deliver required services or we will see more charities having to refuse underfunded contracts and grants."
The findings clearly signal a need for more support to address rising costs, increased pressures and demands, workforce challenges, and funding shortfalls. The poll's results include the following findings:
- The Cost of Operations tops concerns, with 93% expecting worsening conditions.
- Competition for Resources such as funding, skilled staff, and volunteers (73%) and Economic Downturns (71%) also rank highly as major challenges.
- Environmental factors including climate change and natural disasters (56%) and Social Trends (52%) add to pressures on charities to invest more in the way they provide services.
- Some optimism exists around relevant Technological Advancements (27%) and Funders' Positive Attitude Shifts (16%), however these relatively limited areas of improvement are heavily outweighed by broader concerns.
NB. The full report produced by Piazza Research is available here: 1 in 3 charities face financial crunch: New Poll - Community Council For Australia
