Ethics & Governance

Lead the conversation to lead change

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This paper comprises an extract from McCrindle Research's Australian Communities Report: Understanding Australian givers to maximise the impact of NFPs.

The report summarises the key trends affecting the charity/not-for-profit sector, to equip organisational leaders for strategic decision-making. It was based on the collation of quantitative data collected in an online survey conducted between 6-15 January 2021 sent to a nationally representative sample of 1,467 Australians who have given to a charitable organisation in the past 12 months.

Generational insights were based on the following age brackets:

  • Generation Z: aged 18 to 26
  • Generation Y: aged 27 to 41
  • Generation X: aged 42 to 56
  • Baby Boomers: aged 57 to 75
  • Builders: aged 76+.

While donor engagement is essential to the future of the charities/not-for-profits sector, it comes with challenges. Organisation leaders often feel the burden of donor expectations to keep administrative costs below 20% while at the same time providing transparent reporting. This whitepaper explores these tensions to help leaders understand givers, and highlights areas where charity/not-for-profit leaders have an opportunity to reframe the conversation to bring about greater impacts.

Keeping admin costs below 20% vs maximising impact

The conversation around administration costs being kept low (below 20%) has been part of the charity/not-for-profit landscape for many years now. What started with the best of intentions from givers of desiring maximum funds to reach those in need has potentially reduced the ability of not-for-profit leaders to make the best long-term choices for their organisation to maximise their impact.