Philanthropic sector sees challenge and opportunity in the year ahead

The second annual Better Philanthropy Telescope report was designed to take the pulse of the sector and identify the trends, issues and opportunities expected to shape the giving agenda this year.

Its findings are based on a poll of more than 116 individuals from multiple organisations across the NFP, charity and philanthropic landscape.

Philanthropy Australia’s executive director of engagement, Adam Ognall, said the cost of living and collaboration were two themes that stood out among the survey responses.

“The first headline is how philanthropy responds to the cost-of-living crisis, from how it is shaping giving priorities through to its effect on giving levels,” he said.

The second key theme is the rise of collaboration.

“Funders are increasingly looking to partner with their peers as well as build stronger partnerships and long-term relations with not-for-profits, communities and government.”

The report identified the top ten ideas that will matter in 2024:

1. Funding collaboratively. A desire to better align funding with others via networking or formal co-funding arrangements.
2. Partnering for impact. A recognition by funders of the multiple benefits working more closely with NFPs and government can bring.
3. Telling philanthropy’s story. Ensuring philanthropy’s contribution to society is better recognised and understood by policy makers and others.
4. Focusing on impact. Aligning with a more sophisticated approach to giving by emphasising how philanthropy is responding to the big challenges in society rather than day-to-day funding activities.
5. Responding to growing need. Recognition that the cost-of-living crisis will shape how many funders approach 2024.
6. Investing with impact. A recognition by many philanthropic organisations that the impact investing market is a growth area that can allow access to greater levels of funding to help make a difference at scale.
7. Valuing relationships for the long term. An increased understanding of the value of multi-year funding and the importance that forging strong, long-term relationships plays in achieving this goal.
8. Building capacity in lean times. Consideration of how philanthropy can contribute to the long-term sustainability of NFPs by funding capacity-building work.
9. Applying AI. A growing recognition that philanthropy needs to get better at grappling with emerging technologies such as AI.
10. Powering impact with data and evidence. Better use of data and evidence to strengthen evaluation practices and data-informed decision making.

Respondents to the survey also offered a range of views on some of the big issued facing the world and why they matter, from the cost-of-living crisis and climate change to First Nations issues, government policy direction and global instability.

In the foreword to the report, Mr Ognall said as philanthropy’s prominence and profile in Australia grows, understanding the currents that shape the sector’s thinking is paramount.

“Thinking of course is not static, and we see, as we enter 2024, philanthropy responding to the ever-changing context and exploring newer opportunities whether from the rise of AI or from the growing impact investing market.”

More information

Community Directors Intelligence: the not-for-profit trends edition

Sector faces legal minefield in the year ahead

Not-for-profits getting smarter about artificial intelligence: ICDA survey