Take Survey
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  | 

Financial Crisis – A 5 Year battle for NFPs


Monday, 16th March 2009 at 2:51 pm
Staff Reporter
Australian Not for Profits face a five year battle with diminishing funds according to a dire warning delivered to participants at the Nonprofit Financial Forum in Melbourne last week.

Monday, 16th March 2009
at 2:51 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Financial Crisis – A 5 Year battle for NFPs
Monday, 16th March 2009 at 2:51 pm

Australian Not for Profits face a five year battle with diminishing funds according to a dire warning delivered to participants at the Nonprofit Financial Forum in Melbourne last week.

Hugh Hodges, the CEO of ANZ Trustees told the Forum that Not for Profits should expect and budget for as much as a 30% drop in revenue in the next year and to expect another 10% drop in the second year as part of the rolling impact of the financial crisis.

Hodges pulled no punches when he told the audience "you will suffer". Hodges said Not for Profits have been living beyond their means with some fund managers telling them what they can afford to spend and organisations going out and spending it without realising the longer term impact of not reserving some of the gains made in the bull market for a rainy day.

He said now is the time for NFPs to engage with their fund managers and get them involved in their strategic decisions and that they should focus on one or two trusted advisors.

During audience discussion, Hodges was asked if Not for Profits should go into deficit to fund their programs.
He responded by saying avoid running a deficit at all costs. Another panel member added a cautionary note saying that some Foundations don’t like giving to organisations with deficits.

And finally Hugh Hodges predicted that it would take another two or three years for the Not for Profit sector to fully recover after hitting the bottom of the economic downturn as it would take some time before donors and companies felt themselves to be back in a position where they could give again.




Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Tags : Fundraising,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Write a Reply or Comment

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

US Cuts Fundraising Red Tape

Luke Michael

Monday, 1st October 2018 at 4:46 pm

Changing Perceptions of Fundraising

Luke Michael

Monday, 24th September 2018 at 8:49 am

I’d Know That Cause Anywhere!

Dr Steve Francis

Thursday, 13th September 2018 at 7:30 am

Charity Sector Welcomes Release of ACNC Review

Luke Michael

Thursday, 23rd August 2018 at 8:33 am

POPULAR

Report Uncovers Shocking Abuse and Neglect of Adults With Disability

Luke Michael

Monday, 5th November 2018 at 5:29 pm

White Ribbon CEO Puts Hasty Departure Down to Culture Clash

Maggie Coggan

Monday, 12th November 2018 at 5:49 pm

Government Backtracks on Cuts to Food Relief Charity

Maggie Coggan

Monday, 12th November 2018 at 5:42 pm

Disability Groups Cautious Over NDIS Independent Assessment Pilot

Luke Michael

Monday, 12th November 2018 at 5:38 pm

Take Survey
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!