Perpetual names top three concerns for NFPs

NFPs say there are three key areas of concern facing the sector’s recovery from COVID-19.

Volunteering numbers, mental health support and crisis management are among the biggest concerns occupying the time, resources and capacity of Australian NFPs, according to Perpetual’s 2022 Philanthropy Insights Report.

The report analyses data provided by 1,000 organisations working in the community sector that have applied for funding from Perpetual’s IMPACT Philanthropy Application Program, which connects NFPs to philanthropists.

Perpetual’s national manager of philanthropy Jane Magor said COVID-19 has shifted many established patterns and assumptions about philanthropic giving, and now is the time for community organisations and philanthropists to work together.

“Never before has it been so important for philanthropists and community organisations to communicate effectively with each other and be clear about their needs, their goals and their capacity.

“For the community sector, 2023 will be about rebuilding post-Covid. The sector faces rapidly changing community needs and a tougher financial environment. The people who work in Australia’s NFPs are resilient and adaptable but it’s so important that philanthropists step up and invest strategically to support them.”

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According to the report, NFPs on the front line of disaster management and recovery are looking for greater philanthropic investment in disaster preparedness and cited a critical concern for ‘donor fatigue’ arising from funders moving from one crisis to another. 

Nearly nine million dollars was distributed to organisations focused on crisis-affected communities, including those impacted by COVID-19, natural disasters and the Russian invasion of Ukraine.

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Managing partner of Perpetual’s community and social investments Caitriona Fay said there are many ways for philanthropists to consider a strategic approach to support in their crisis-giving. 

“Building a philanthropic strategy isn’t about taking all the joy from the giving process. It’s actually about ensuring you can do with your giving all the things you want to do. A good strategy can also assist you in doing more giving and importantly, doing better with your giving.”

Meanwhile, funding for mental health increased by 33 per cent, with over a third of that money distributed to organisations in Victoria, which experienced longer lockdowns than elsewhere in the country. There was also a rise in mental health funding for women and girls and for regional locations, reflecting the distinct pressures on these disadvantaged groups during the pandemic.

Volunteering numbers were also a concern for NFPs, with nearly half of applicant organisations reporting a decrease in volunteer numbers since 2019 and 20 per cent stating attracting and retaining volunteers was “now a challenge”. The findings echo the latest Census data which revealed volunteering rates had sharply declined by 26 per cent between 2016 and 2021.

See more: Data behind national volunteering strategy revealed

Perpetual is one of the largest managers of charitable wealth in Australia. This is the fourth annual instalment of the Philanthropy Insights Report.