By Matthew Schulz, journalist, Our Community
Monday, September 16, 2019
Australia’s not-for-profits are almost evenly split between thriving organisations and battlers when it comes to their finances, a study into not-for-profit governance shows.
The ICDA Spotlight Report: Not-for-profit Finances reveals 54% of organisations are in good financial shape, whereas of the “battlers”, 31% are “just breaking even” and 15% are struggling.
The Institute of Community Directors Australia’s latest Spotlight Report – based on a national survey of 1878 senior community leaders – examines the state of the finances of not-for-profits and reveals distinct trends about which groups are faring well.
Key findings include:
The report also found that many groups are involved in IT overhauls. About 20% had conducted a major IT project in the past year, while the same proportion planned one in the coming year.
The study shows significant variation between sub-sectors of the not-for-profit sector too.
For instance, community development organisations are more likely to have collaborated to cut costs, while bigger organisations are much more likely to launch IT revamps or lay off staff – including the CEO.
And our analysis found that groups struggling financially are more likely to have replaced the CEO and other staff.
The Spotlight Report series analyses the views of not-for-profit leaders who responded to ICDA’s national Not-for-profit Governance Survey 2019. The resulting studies are produced by Our Community’s Innovation Lab. Past Spotlight Reports have addressed fraud and cybercrime, board and CEO performance, the role of the chair, and not-for-profit impact and data.
ICDA is releasing insights in stages, with the full release of all data late this year.
If you’d like to be notified about Spotlight reports as they’re released, become a member of the Institute of Community Directors Australia – visit www.icda.com.au to find out more.
Latest survey reports and news: www.icda.com.au/survey
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