Prior to the Covid-19 pandemic many NFP’s were already operating with thin or no margins and limited reserves, a situation that has only escalated in the current economic climate. The pressure to underreport indirect costs (HR, IT, finance), and widespread underfunding of direct program expenditure, leaves NFP’s vulnerable and in a ‘starvation cycle’ limiting their ability to deliver impact.
In a halleluiah moment for charities, there has now been formal acknowledgement that low overhead costs are not a true indicator of effective service delivery.
The Centre for Social Impact and Social Ventures Australia, supported by Philanthropy Australia, The Paul Ramsay Foundation and Origin Energy Foundation, have explored the financial health of over 16,000 Australian Charities, to determine if there was evidence to support changes to funding models.
Through their ‘Partners in Recovery’ series, the group released the ‘Paying what its takes’ report. The key findings of which were:
- Indirect costs do not indicate the efficiency or effectiveness of a not-for-profit
- Not-for-profits ‘true’ indirect costs often far exceed the amount they are funded
- Caps on indirect costs lead to lower capability and effectiveness
- The drivers of indirect cost underfunding are complex and interrelated
These findings reflect the ongoing financial challenges facing many NFPs and numerous aspects to creating meaningful changes to existing funding models. However, there are things NFP’s can start to implement immediately that can make a difference. In this session we will explore:
- How to shift the focus to impact and investing in impact measurement
- Initiating open and productive conversations about the true costs of programs and initiatives
- Transparency in reporting actual indirect costs
Helping to inform our sector leaders about this research; the philanthropic initiatives being undertaken; and how they can help ensure that momentum continues, we will be joined by:
- Doug Taylor. CEO. The Smith Family.
- Genevieve Timmons – Senior Associate and Partnerships Manager, Alliances Paul Ramsay Foundation.
- Dr Jeremiah Thomas Brown – (Prev) Research Fellow Centre for Social Impact / UNSW Canberra.
- Rachel Kerry – CEO. Cages Foundation.
- Sam Thorp – Manager, Consulting. Social Ventures Australia.
Doug Taylor. CEO. The Smith Family
Genevieve Timmons.Senior Associate and Partnerships Manager, Alliances. Paul Ramsay Foundation.
Dr Jeremiah Thomas Brown.(Prev.) Research Fellow. Centre for Social Impact | UNSW Canberra
Rachel Kerry.CEO. The Cages Foundation
Sam Thorp. Manager – Consulting. Social Ventures Australia.
HOST: Carmel Molloy. CEO The NonProfit Alliance
- Date: Thursday 5th May 2022
- Time: 2:00pm – 3:00pm
- Location: Zoom | or onsite: Christies Spaces – 100 Walker St. North Sydney
- FREE for NPA members (NPA HUB; Coaching; Associate Members only)
- $39 for Guests/ Non-members
- REGISTER/ purchase your tickets below. We look forward to you joining us.
FIND OUT MORE about The NonProfit Alliance leadership programs. Book a chat with Carmel or visit our website for further information.
NONPROFIT ALLIANCE LEADERSHIP PROGRAMS