productivityNot only in Australia, but all around the world, governments have long been asking themselves which is more important – building an economy or building communities? According to the latest ABS data and CCA’s CEO David Crosbie, however, economy and communities building intersect at a certain point – the NFP one.

The Data

The data released by ABS includes an analysis of 58,000 Non-for-Profit organisations currently active in the Australian economy.

The results suggest the following:

  • Their employees are about 1.1 million people.
  • Their turnover amounts to more than $107 billion.
  • Their assets exceed $175 billion.
  • Their contribution to Australian economy is about 1/25 from GDP.
  • The NFP sector records a growth of 8% per year for the last 10+ years.

Having all this in mind, it is not hard to see the impact NFPs have on Australian economy. Of great interest is the growth of the sector, which has kept its developmental progress even during the years of the Global Financial Crisis and with 8% growth per year beats almost any other sector in Australia. In short, next year there will be more positions for employees, more turnover, more assets and, of course, more contribution to the GDP.

The NFPs

To some it seems that the government believes that economy building interferes with community building, but let’s take into account the facts above. It is undisputable that the NFPs contribute strongly to our economy, and these same NFPs are those working hand in hand with our schools, hospitals, churches and welfare organisations. They work towards protecting our environment and promoting international development. They try to provide a home to everyone, as well as access to sports and recreation. These organisations provide employment to more than 1 million people, and having work, no matter what it is, helps people improve their life and motivates them.

The Governmental Policies

If you have been following the governmental policies on NFPs, you have probably noticed that the government’s position is not quite clear. This data from Pro Bono will show why:

  • They claim to be working for strengthening the civil society, cutting red tape and giving more opportunities to NFPs.
  • They plan to re-establish a Community Business Partnership group
  • They discuss the establishing of a National Centre of Excellence
  • Experts, charities, the Productivity Commission and many others have been dismissed with the idea to dismantle the Australian Charities and Not-for-Profit Commission and later find out what to replace it with (probably the Australian Taxation Office – you judge the appropriateness of that decision).
  • The Liberal Party Federal Council and Tasmanian MP Andrew Nikolic, are determined to prevent the environmental charities like the Australian Conservation Foundation from receiving tax deductible community donations (because “they are not real charities like the Salvos and the Red Cross”)
  • The government plans to get out of the NFPs’ way instead of engaging with them and to introduce a ‘profit or perish’ environment, although they can’t prove this is actually good for the Not-for-Profit organisations.

The Summary

To sum it up, the data from ABS shows that we should be thanking the NFPs for their contribution to both our community and our economy, providing jobs, improving the social cohesion and adding sense of value to the community.  Perhaps the difficulties put In front of NFPs by the government and a tough economy will teach them to promote themselves as well as they do their cause.  We would be a much poorer country without them.