Burnout costing billions in the NFP sector

“As the founder of a social enterprise – hosted by a not-for-profit – I spent years running on purpose, passion and determination. I loved the work, really cared about it and deeply believed in it. But a decade in, I hit a point where I realised I had run myself completely ragged.”

Staley says now wellbeing is something he takes seriously, both personally and professionally. And the good news? “Solutions already exist in the sector, and in Community Directors’ new report”.

Staley will be formally launching the new Australian Community Boards Wellbeing Report this month and he says he’ll remind leaders that they must care for themselves as well as their organisations.

Attend the free webinar, December 17: Launch of the Wellbeing Report

“Accept the responsibilities of your role and really honour them, but let go of the things you can’t control. You can’t do it all. And you need support and teams.”

His story reflects a rising concern across Australian charities and not-for-profits (NFPs): burnout is no longer a personal issue. It’s a governance problem, a talent problem, and a sustainability problem.

It’s estimated that the annual direct costs of mental ill health include about $17 billion in lost productivity and that the total annual costs to the country are as high as $220 billion, the Productivity Commission found in a 2020 study.

And with Australia’s not-for-profits now comprising nearly 11 per cent of the workforce and fielding 1.54 million workers, those organisations are certain to account for a big slice of those lost billions, especially with workers’ high exposure to stressors.

Pro Bono’s 2025 salary survey found that of the people who quit their NFP roles that year, 29 per cent said burnout was the key reason for quitting, up from 21 per cent the year before.

It’s a similar story for the sector’s 3.5 million volunteers, which includes most board members, and with two-thirds of not-for-profit board members thinking of resigning under the strain, it’s something that community organisations are being forced to take seriously.

This year’s Third Sector Leaders Forum took a close look at burnout, while in 2023, Community Directors reported that 58 per cent of Australian not-for-profits and charities had prioritised their clients and the community over the mental wellbeing of their own staff and volunteers.

That was the same year that a McKinsey study on not-for-profit resilience found that burnout in NFPs increased turnover by 2.5 times, even as replacing a not-for-profit worker cost 20–200 per cent of their salary.

McKinsey also noted that workers in human services, community development, disability support and crisis intervention roles suffered a high emotional toll from vicarious trauma, complex client needs, and unpredictable crises.

Part of the reason for the high price of burnout is that psychological injuries cost significantly more, on average, than physical ones, according to Safe Work Australia.

Several overseas studies confirm that burnout in the not-for-profit sector is a critical issue globally, with 95 per cent of leaders nominating burnout as a concern in a 2023 survey by the Centre for Effective Philanthropy.

More information

Australian Community Boards Wellbeing Report

Attend the free webinar: Launch of the Wellbeing Report (December 17)

You can’t do it all: Leadership, wellbeing and the cost of caring