The Australian Institute of Company Directors (AICD)'s 2020 Not-for-Profit Governance & Performance Study reveals – unsurprisingly – that COVID-19 dealt a huge financial blow to the Not-for-Profit sector. However, many organisations were facing considerable financial challenges even before the crisis.
It shows that while a majority of NFP organisations expect to make a loss this financial year, almost 40 per cent of organisations had made a loss in the previous three years.
The study also highlights the disparity between the different sub sectors’ abilities to navigate the crisis, with organisations in the arts, sports, health and aged care sectors seeing greater impacts than those in other sectors.
Sources of funding played a significant role in this, with those reliant on government funding faring better than those reliant on philanthropy and face-to-face fundraising.