Wednesday, 29 June 2022
    05
    May
    Charity, 050520

    NFPs risk going under

    A “substantial number” of the nation’s 600,000 not-for-profits and charities risk going under unless the federal government develops a significant rescue package, the Australian Institute of Company Directors has warned, the Canberra Times reports.

    After Reserve Bank of Australia governor Philip Lowe predicted the economy would shrink by 10 per cent in the first half of the year, AICD chief executive officer Angus Armour said many not-for-profits and charities would struggle to survive without government help.

    Mr Armour said the assistance provided by the government so far, though welcome, was not enough for many organisations to stay afloat.

    The sector includes aged care providers, disability services, legal assistance, environmental groups, homelessness services, Indigenous organisations, sporting groups and religious bodies. It employs more than a million people and accounts for around 4 per cent of national output.

    The AICD boss said many organisations were experiencing “unprecedented” demand for their services at the same time as donations, fund raising and other sources of revenue were falling and volunteer numbers were declining.

    “We need to adapt to a surge in demand for many not-for-profit community services at a time when it will be difficult – if not impossible – for many NFPs to financially withstand the impact of COVID-19 without substantial additional support,” Mr Armour said.

    “Increased demand, decreased donations, loss of access to volunteers, inability to hold fundraising events and, in some cases, significant loss of operating revenues are examples of the difficulties this sector is facing.”

    Assistant Minister for Finance, Charities and Electoral Matters, Zed Seselja, said the measures already taken constituted significant support to the sector, but Mr Armour said that because not-for-profits and charities were usually structured differently to business, much of this assistance was inaccessible.

    FULL STORY

    Charity holds hand out for help as support demand soars (Canberra Times)

    As thousands lose their jobs due to coronavirus, demand for Foodbank doubles (ABC News)

    How charities are coping with COVID-19 (2GB)

    PHOTO

    Christ Church Mission provides free pantry items and hot meals.(Supplied: JD Lakhiani)