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Over time, governments have shifted away from the direct provision of certain community services, instead commissioning them through a competitive market largely serviced by not-for-profit (NFP) organisations.

Against a backdrop of rising cost-of-living pressures and economic uncertainty, Not for Profits (NFPs) are facing increasingly complex challenges to maintain financial sustainability. With public expectations rising, funding pathways under strain, and operational costs climbing, many organisations are being forced to reassess how they operate. While the pressures are real, this also creates an opportunity to rethink collaboration, strengthen governance and build long-term resilience.

Australian charities are feeling the pinch of rising costs and increased demand as over 3.3m people live in poverty. From streamlining operations to diversifying funding streams and using technology like AI, leaders are finding ways to meet rising demand and stay resilient in today’s cost-of-living crisis.

To help shape the future of giving in Australia, the Productivity Commission recently released a draft report that dives into the current state, challenges, and opportunities in the philanthropy space. The report underscores the significance of philanthropy and volunteering in fostering social capital, trust, and innovation in the community sector, while addressing challenges with a view to unlock its full potential.

To support the Australian Government’s objective of doubling philanthropy by 2030, a Productivity Commission inquiry has been set up to analyse motivations for philanthropic giving in Australia and identify opportunities for future growth. Grant Thornton Australia will be making a submission centred around our observations on this matter. Our submission will include considerations on the Deductible Gift Recipient and broader tax framework, the operation of Ancillary Funds, fundraising laws and other related matters.