Blueprint reveals ten-year vision for a thriving NFP sector

Posted on 27 Nov 2024

By Greg Thom, journalist, Institute of Community Directors Australia

The introduction of a system to quantify and better manage the actual cost of delivering frontline services is a key recommendation contained in a ten-year roadmap for the not-for-profit sector released today.

The long-awaited Not-for-Profit Sector Development Blueprint recommends the introduction of a Producer Price Index (PPI) to strengthen the financial viability of the sector.

It is expected the initiative would address challenges faced by organisations in calculating the cost of delivering services, securing reliable funding and managing contracts.

The tailored index, which would be created by the Australian Bureau of Statistics, would provide a standardised way to track and project cost changes over time, providing more certainty over funding and contracts.

The idea is one of a long list of diverse initiatives recommended in the report, ranging from prioritising cross-jurisdictional harmonisation of standards and regulations in the sector to tackling climate change and broadening and simplifying the deductible gift recipient (DGR) tax regime.

The report was compiled by the Blueprint Expert Reference Group (BERG), established by the federal government to help “guide government reform and sector-led initiatives to better support and connect with communities.”

The report’s 18 recommendations are listed under three broad pillars:

An enabling operational and regulatory environment for the not-for-profit sector to thrive

A people-led and purpose-driven not-for-profit sector

An adaptive and dynamic forward-focused not-for-profit sector

“Australia’s NFP sector enriches social cohesion, contributes substantially to our economy, and protects our democratic system.”

Prioritise and advocate for cross-jurisdictional harmonisation of standards and regulations that affect the NFP sector

Broaden and simplify the deductible gift recipient (DGR) system

Support NFP sector Advocacy

Improve the financial sustainability of the NFP sector

Embed co-governance, co-design and shared decision-making practices in policy development, and in government-led program design and performance evaluation

Support public knowledge of the NFP sector and its contributions

Advance co-governance, co-design and shared decision-making practices in NFP sector activities

Actively support Aboriginal and Torres Strait Islander self-determination and community control

Strengthen cultural diversity and representation across the NFP sector

Improve representation and participation of people with disability

Advocate for practices across sectors that support workforce development and secure and decent work in the NFP sector

Support the priorities of the co-designed National Strategy for Volunteering (NSV) and government and NFP involvement in the development of its action plans

Enable the NFP sector to contribute to and benefit from digital transformation

Strengthen NFP sector practice and public knowledge of sector effectiveness and outcomes measurement

Support greater and better targeted philanthropy

Secure a commitment from government to consider the NFP sector’s contributions across the whole innovation process and specifically to identify ways to embed innovation opportunities in applicable grant agreements and procurement

Establish a social innovation diffusion program using existing networks to enhance knowledge sharing, coordination and resources to all Not-for-profit organisations

Undertake a sector-wide climate risk and opportunity review to identify strategies and operational standards that will inform climate change mitigation and adaption at the organisational and sector levels.

The BERG process was kick-started with the release of an issues paper in November 2023 and included consultative roundtables involving 240 people and multiple departmental and government briefings.

The inquiry received 163 submissions, many of which were summarised in a synthesis report released in September which articulated the most pressing issues.

In the forward to the report, the authors described the Australian civil society as the nation’s connective tissue, and the Not-for-profit and charity sectors its beating heart.

“A thriving NFP sector is an agent for positive change that enhances national wellbeing. It brings people and communities closer together to support each other and devise responses to local and collective problems.

“Australia’s NFP sector enriches social cohesion, contributes substantially to our economy, and protects our democratic system.”

The report’s authors said the Blueprint would enable the already vibrant NFP sector to further build on its strengths, setting out a ten-year roadmap of “essential and overdue reform.”

BERG members said despite reforms designed to enable a thriving NFP sector have been a matter of concern for organisations and governments for more than 30 years, multiple inquiries have resulted in limited action.

They said the current Blueprint includes pragmatic reform options designed to improve how the NFP sector functions, as well as transformative action to change the systems within which NFP organisations operate.

“Both are required so NFPs are better able to fulfil their purposes and are ready for changing conditions.

“It puts forward a path for implementation including foundational initiatives that, taken up early, will set the Sector up for future success, short-term initiatives that will alleviate key pressures, and longer-term initiatives that will continue to support the NFP sector’s contributions into the future.”

The BERG said it prioritised initiatives it believes will have the greatest potential immediate and systemic impact for the NFP sector, including:

the amendment of legislation on NFP rights to advocate

re-establishing routine data collection and dissemination about Australia’s NFP sector by the Australian Bureau of Statistics

establishing mechanisms to enable the shift to First Nations’ community control of NFP services for Aboriginal and Torres Strait Islander people and communities

progressing and monitoring government actions to deliver full cost funding as sought by the NFP sector, including the application of appropriate indexation, and minimum term contract and renewal periods in all areas of service provision

developing agreed sector standards for shared decision-making and services co-design

investing in disability representative organisations to support effective co-design of services for and affecting people with disability

investing in volunteer leadership and management

exploring the potential for developing agreed sector standards for outcomes measurement

measuring the NFP sector’s digital capability and reviewing sector resourcing needs in relation to changing digital and data capability demands over the life of the Blueprint.

ACOSS CEO Cassandra Goldie

“The community NFP sector is one of the most trusted and respected voices in national debates. Our sector connects people together, helps them in the hardest of times, and offers leadership for improving the lives of people across Australia. I call on the Prime Minister, Treasurer and key members of the Cabinet to back our sector on the investments we clearly need. We deliver every day, on the frontline delivering care in our communities. We now need the Government to deliver and play its part.”

St Vincent de Paul Society CEO Toby O’Connor

“The Blueprint shows just how large and important the NFP Sector is to Australia’s social cohesion, prosperity and wellbeing. Millions of people around the country are directly involved with the NFP Sector each day. The question now is not if the Federal Government will act on the Blueprint, but when it will start implementing it.”

Matt Gardiner, CEO, 54 Reasons

“Members of the BERG have poured their time, energy and expertise into the Blueprint, and we will not be satisfied with it sitting on shelves. We call for a detailed action plan for implementation from the Federal Government, and support for it from across the Federal Parliament.”

Anglicare executive director Kasy Chambers

“This Blueprint shows clearly the role the sector plays in making Australia what it is and helping us hold a vision for the country we want to be. This Blueprint shows what we need from governments of all colours to support the sector that supports society, and we now look forward to engaging with this government and the next to ensure that this blueprint is enacted.”

SNAICC (National Voice for our Children) CEO Catherine Liddle

“The charity sector plays an important role in the Aboriginal and Torres Strait Islander sector so it’s imperative any actions and commitments coming out of the BERG align with the Priority Reforms under Closing the Gap. Partnerships and shared decision making with Aboriginal community-controlled organisations are vital for effective spend of funding dollars.”

BERG members including ACOSS CEO Cassandra Goldie, Volunteering Australia CEO Mark Pearce, Rob Sturrock (ACOSS), Anglicare executive director Kasy Chambers and St Vincent de Paul Society CEO Toby O’Connor.

The Blueprint was welcomed by the Stronger Charities Alliance which called on the federal government to implement its recommendations, particularly in relation to protecting charitable advocacy.

"The Alliance and its members support better legislative protections for charitable advocacy," said Nasir Mirbahar, coordinator of the Stronger Charities Alliance.

"The wider not-for-profit (NFP) sector seeks better protections. Now, the Blueprint Expert Reference Group has called for better protections.

"The evidence is in, and the consensus is clear - now is the time for the government to deliver, not delay."

Those sentiments were echoed by Volunteering Australia CEO and BERG member Mark Pearce.

“The Blueprint offers a clear, evidence-based pathway to strengthen the NFP sector and address the challenges we face"," he said.

"We urge the government to accept the recommendations outlined in the Blueprint and commit to the solutions needed to ensure the sector can continue its critical work of enabling resilient, inclusive, and vibrant communities."`

Charities Minister Andrew Leigh thanked the members of the Blueprint Expert Reference Group for their hard work over the past 18 months and said their report would help the sector set its own direction and inform the government's ongoing work to boost the capacity and capability of not-for-profits.

He said the government would consider the proposals in the Blueprint, alongside those of the Productivity Commission’s philanthropy inquiry, to guide short, medium, and long‑term reform paths for the sector.

"A smarter and stronger charity sector will support vulnerable Australians and build better connected communities."

BERG members called on the federal government to issue a detailed, written response to the Blueprint and each of its initiatives, by 31 March 2025, including a proposed timeframe for implementation, including funding for ongoing activities.