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New data shows Australia's charity sector grows - consistent with greater demand for services

Australian Charities and Not-for-profits Commission

New official data shows a rise in charity sector revenue and staff, which the national regulator says is consistent with greater community demand for services.

The Australian Charities and Not-for-profits Commission (ACNC) has published the 11^th edition of the Australian Charities Report.

ACNC Commissioner Sue Woodward AM said the report demonstrates the significant contribution charities make. “The charity sector is a powerhouse of good, bringing benefits to people and communities who need support. It is also an active economic contributor, with growth year on year,” Ms Woodward said.

The 11th edition is based on data submitted by charities to the ACNC for the 2023 reporting period. This latest official analysis shows the sector employed over 70,000 more people compared to the previous period  ̶  1.54 million people or 10.7% of Australia’s workforce. “Based on ABS labour force data from June 2024, the charity sector employed more people than the construction industry and the manufacturing industry,” Ms Woodward said.

Staff costs were the largest cost type, accounting for more than half of total expenses (55%).

“The addition of more staff reflects sector growth, but it’s growth that is needed to try to match greater demand for services. Many parts of the sector, including foodbanks and crisis accommodation services as just a couple of examples, are consistently reporting that cost of living pressures are driving higher demand, sometimes stretching capacity to the point where, sadly, people seeking help have to be turned away,” Ms Woodward said.

Revenue is another indicator of growth.“Our latest data shows revenue has rebounded but the operating environment is still challenging. In the last edition of the report, we saw cost of living factors had impacted charities. Expenses had outstripped revenue by about twice as much, in percentage terms. However, in this 11th edition, we see a significant rebound, with sector revenue reaching a record high of $222 billion – a rise of 10.7%. And importantly, the rise in revenue was greater than the rise in expenses, which grew 8.4% to $212 billion.”

A deeper analysis by size shows the revenue rebound was not uniform. For example, extra small charities (with annual revenue of less than $50,000) made up over 30% of the sector but generated only 0.1% of total revenue. In contrast, extra large charities (with annual revenue of $100 million or more) comprised just 0.5% of the sector but accounted for 56% of total revenue. Further, extra large charities had a 14.2% revenue rise – accounting for $15 billion of the $21 billion increase in total revenue.

Significant differences are also evident in charities’ share of total donations and bequests. Approximately 40% of the total went to just 30 charities. Donations comprised around 40% of extra small charity revenue, compared to only slightly more than 6% for those deemed extra large.

While total donations and bequests jumped by $5 billion to $18.9 billion, this was almost entirely due to a $4.9 billion donation to the Minderoo Foundation group – the largest single gift ever reported to the ACNC. Aside from that, there was little increase. Donations rose by less than 0.4%, or $54 million. Just over half (56%) of extra small organisations received donations and bequests – down from 66% previously.

Volunteers are a critical force. There were 2.4 volunteers for every employee. Volunteer numbers jumped to around 3.77 million – up by almost 270,000. “This is really pleasing. It’s close to the highest number of volunteers recorded in the sixth edition of the report, which covered 2018,” Ms Woodward said. More than half (52%) of all charities had no paid staff; for extra small organisations that figure was nearly 90%.

About the data   

 

The 11th edition analysis uses data from 52,267 Annual Information Statements for the 2023 reporting period  ̶   an extra 1,100 statements compared to the 10th edition. Basic Religious Charities (BRCs) are not required to submit financial data, and more than 7,700 BRCs did not do so. BRCs are required to nominate whether they are small, medium or large. Ninety percent of BRCs reported as small, 8.1% as medium and 1.9% as large.

Read the full Australian Charities Report 11th edition. Interrogate the data on the Charity Data Explorer. For example, you can compare key statistics state by state, or by post code. See previous editions of the Australian Charities Report in the Charity Data Hub

Key Facts:

§  New official data shows rise in charity sector annual revenue to $222 billion 

§  Sector employs 10.7% of Australia’s workforce

§  Growth consistent with greater community demand for services from cost of living

§   Australian Charities Report 11^th edition launched

 

About us:

 The ACNC regulates 63,000 Australian registered charities – check the Charity Register.

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