fundingPro Bono Australia released a news report today analysing the results of a social sector survey across NFPs.  It paints a picture of funding insecurity and financial fear.

Here are some of the findings of the survey:

Key survey results:

  • 248 respondents were from organisations that receive Federal funding;
  • 87 per cent stated that their organisation was yet to agree all their funding for July 2014;
  • 13 per cent stated all their funding had been agreed;
  • 57 per cent stated that less than 10 per cent of their Federal funding for July 2014 had been agreed;
  • 15 per cent stated that less than half of their funding had been agreed – which means that almost three-quarters of respondents (72 per cent) have less than half of their funding agreed. 

Implications of funding uncertainty

  • 62 per cent of respondents have not extended staff contracts;
  • 34 per cent stated that they had delayed filling staff vacancies;
  • 35 per cent have delayed recruiting staff;
  • 38 per cent have developed a contingency budget;
  • 13 per cent had increased the frequency of board meetings;
  • 12 per cent have revised their reserves policy.

What it means for NFPs is that they are expected to operate in an environment where they cannot be certain of having any income at all beyond a 3 month timeline.

Head of the Australian Council of Social Services (ACOSS), Dr Cassandra Goldie, is concerned by the fact that over 60% of NFPs are not renewing staff contracts, meaning that they will struggle to survive and will most certainly be limited in the amount of service they able to provide to the community.

Has your organisation been funded beyond June of this year?  If not, how are you coping and what are your plans for the future?