Social Ventures Australia and Centre for Social Impact research have released a sobering report: “Will Australian charities be COVID-19 casualties or partners in recovery? A financial health check.”
Modelling of 20% revenue cuts to the charity sector found that 88% of charities would immediately be making an operating loss, 17% would be at high risk of becoming unviable and closing their doors within six months, even when taking their reserves into account, and cost-cutting and organisational closures would result in more than 200,000 jobs lost as a result of the COVID-19 crisis
To address these losses, the report’s recommendations include planning for a gradual transition of JobKeeper and other temporary supports for charities to create a ‘ramp’ not a ‘cliff’ in October, retaining JobSeeker at a higher level (not reverting to previous Newstart amounts), and making fundraising and philanthropy simpler by creating nationally consistent fundraising laws and offering incentives to encourage increased philanthropic giving
They are urging the the National Federation Reform Council to prioritise fundraising reforms to support online donations from the public to charities and not-for-profits. They said: “This red tape barrier can be removed at no cost. We will keep fighting to #fixfundraising.”