Perpetual said that 1,135 not-for-profits (NFPs) applied for funding from its charitable trusts this year, up from 917 in 2010; and the total amount requested rose to $84.5 million, up from $68.9 million last year.

Health organisations accounted for the biggest increase, with the number applying rising by 42 per cent to 272 and the amount requested increasing by 50 per cent to $23 million.

The social welfare sector made up the largest proportion of applicants, with 427 organisations requesting $30.5 million in funding.

Philanthropy Australia Chief Executive Officer Deborah Seifert said that there are several factors driving the increase.

“Not-for-profits are becoming savvier about how they secure funding, ensuring they explore every possible avenue to support their charitable causes.

“But it also points to a genuine level of need: there are so many fantastic people and organisations helping others in the community, but their number one challenge is finding the money to do it effectively,” Seifert said.

Perpetual Philanthropy General Manager Andrew Thomas said that while Perpetual’s annual funding round provides much needed support for many NFPs, the enormity of the amount requested indicates that giving in Australia is still far from adequate.

The recipients of grants from Perpetual’s annual funding round will be announced in June 2011, and are selected on the basis of their ability to meet four criteria: strategy, outcomes, capability and leadership.

In 2010, more than 200 organisations received a total of $9 million in funding, and Perpetual expects a comparable distribution this year.