5 August 2024
By Kristen Lark
The report highlights a significant imbalance: while extra small charities make up nearly a third of the sector, they account for a mere 0.1% of its income. In stark contrast, extra large charities, which represent only 0.5% of the sector, command over 54% of the total revenue. This disparity in financial resources and operational capacity poses profound challenges for smaller charities, particularly in sustaining their programs and meeting rising operational costs .
At TFN, we see firsthand the immense potential and impact of grassroots organisations. These small charities, often operating with few if any paid staff and relying heavily on volunteers, are at the forefront of addressing local issues and fostering community resilience. However, their limited financial resources restrict their ability to scale and sustain their impact .
One of the most striking revelations from the report is the increasing financial pressure on charities due to rising costs of living and operational expenses. While the sector's total revenue reached a record $200 billion, expenses surged by $21 billion, highlighting the tightrope many charities walk in balancing their books. For smaller charities, this financial strain is even more pronounced, often leading to difficult decisions about program cuts or scaling back services .
The report also underscores the critical role of donations and bequests, which increased by 4.4% in 2022 to total $13.9 billion. However, this growth is unevenly distributed, with larger charities receiving a disproportionate share of these funds. This underscores the need for a more equitable distribution of philanthropic support to ensure that small, impactful charities are not left behind.
At TFN, we are committed to addressing these disparities through our innovative crowdfunding model and capacity building program. By connecting small charities with engaged, informed donors, we aim to democratise philanthropy and ensure that grassroots organisations receive the support they need to thrive. Our model emphasises that you don't have to be wealthy to give – everyone can contribute to building a better world.
As we reflect on the findings of the 10th Charities Report, it is clear that more needs to be done to support our smallest charities. They play a vital role in our communities, and their success is our success. At TFN, we will continue to advocate for these organisations, ensuring they have the resources and support to create lasting, positive change.
We encourage you to explore Roots of Change, our comprehensive directory of non-profit organisations who have pitched at our events over the past decade. This valuable resource highlights exemplary social change programs that are making a significant impact in their local communities and are deserving of your support. By connecting with these outstanding organisations, we can collectively strengthen their sustainability and ensure lasting positive change. Join our network today and together we can bridge the gap between the smallest and largest charities, fostering a more equitable and resilient sector for all.
Photo: Equity & Inclusion - Sydney 2024 | Subzero Photography