Lyla Lindsey
The not-for-profit sector in Australia is large and diverse, encompassing a broad range of organisations that pursue charitable purposes through service delivery, grantmaking, and other activities. The sector includes entities of all sizes, from hospitals and universities to community groups and religious organisations. In 2023, the not-for-profit sector in Australia was estimated to be worth $176 billion, employing over 10% of the Australian workforce, or 1.38 million people. The sector's revenue is expected to continue growing, with projections of $225.9 billion in 2024-2025.
| Characteristics | Values |
|---|---|
| Number of organisations | 600,000 (Productivity Commission, Contribution of the Not-for-Profit Sector, 2010) |
| Number of registered charities | 60,000 (ACNC, 2023) |
| Employment | 1.38 million (11% of jobs in Australia) |
| Gross value added | $129 billion (4.8% of the country's GVA) |
| Revenue | $225.9 billion (expected in 2024-25) |
| Revenue from the government | $42 billion (2013-14) |
| Revenue from donations and bequests | $6.8 billion (2013-14) |
| Volunteers | 3.4 million (2020) |
| Most common charity activities | Religious and primary and secondary education |
| Largest NFPs | Health and education institutions |
| Examples of organisations with multiple registered charities | The Salvation Army, University of Melbourne, Surf Life Saving, Lifeline, Returned and Services Leagues (RSLs) |
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What You'll Learn
- The not-for-profit sector employs over 1 million people
- The sector's revenue is expected to reach $225.9 billion by 2024-25
- Religious organisations made up 29% of not-for-profits in 2014
- The sector is diverse, including hospitals, universities, and sports clubs
- The Australian government supports the sector, with revenue at $88.8 billion in 2020
The not-for-profit sector employs over 1 million people
The not-for-profit sector in Australia is vast and diverse, with a common goal of serving the public good. The sector includes charities, hospitals, universities, sporting groups, community groups, and religious organisations, to name a few. Notably, the sector employs over 1 million people, representing around 10% of the Australian workforce. This scale of employment is comparable to the number of people employed in the retail sector, which stood at around 1.27 million.
The not-for-profit sector's contribution to employment in Australia is significant, and it plays a crucial role in fostering social cohesion and meeting fundamental societal needs. The sector's focus on mission and values rather than financial gain sets it apart from for-profit entities. This dedication to their mission has been particularly evident during times of crisis, when the sector has collectively mobilised to address surges in the need for its services.
Education and research organisations make up a significant portion of the not-for-profit sector's employment, accounting for over 31% of jobs. Charities focused on advancing education employed the most staff, with over 330,000 people. Aged care and social services are also major employers within the sector, accounting for 15% and 8% of jobs, respectively.
The not-for-profit sector's impact extends beyond direct employment. It also contributes significantly to the Australian economy, with a total revenue of approximately $225.9 billion expected in 2024-25. This revenue growth is driven by increased government funding and a rise in donations from private philanthropic funds. The sector's economic contribution is further enhanced by the dedication of volunteers, with 3.4 million volunteers in total providing invaluable support.
In conclusion, the not-for-profit sector in Australia is a vital part of the country's social and economic fabric, employing over 1 million people and contributing to the nation's social cohesion and economic growth. The sector's dedication to its mission and values makes it a critical force in meeting the diverse needs of Australian society.
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The sector's revenue is expected to reach $225.9 billion by 2024-25
Australia's not-for-profit sector is a critical component of the economy and society, employing about 1.38 million people, or 11% of the country's workforce. This diverse sector encompasses a wide range of organisations, including hospitals, universities, community services, sports clubs, and religious groups, all driven by a mission to serve the public good rather than generate profits.
The sector's economic impact is significant, with a total revenue of $103 billion in 2013-14, contributing 3.8% to Australia's gross value added (GVA), outpacing sectors like agriculture and information technology. By 2020, the industry revenue had grown to $88.8 billion, a substantial increase fuelled largely by government initiatives such as JobSeeker and other COVID-19 stimulus measures.
Looking ahead, the not-for-profit sector is projected to continue its robust growth trajectory. According to forecasts, the sector's revenue is expected to reach $225.9 billion by 2024-25. This growth is attributed to increased government funding and a rise in donations from private philanthropic funds. The sector's diverse composition, including multi-category charities and not-for-profits, further contributes to its expanding revenue streams.
The anticipated revenue increase is expected to occur despite constrained household discretionary incomes limiting donations. The sector's ability to generate surpluses and its reliance on donations and volunteer contributions highlight the importance of strong organisational health and efficient financial management. With the sector's performance linked to societal needs and economic activity, the projected revenue growth signifies the sector's resilience and adaptability.
The not-for-profit sector's expected revenue of $225.9 billion by 2024-25 underscores its vital role in Australia's economy and society. As the sector continues to broaden its scope and impact, it will further solidify its position as a driving force for positive change and social cohesion in the country.
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Religious organisations made up 29% of not-for-profits in 2014
Australia's not-for-profit sector is a critical part of the country's economy and society, employing over a million people and contributing billions of dollars. The sector is diverse, encompassing a wide range of organisations, from large service providers to small advocacy groups, all driven by a mission to foster social cohesion and address societal needs.
The not-for-profit sector in Australia includes charities, sporting groups, political groups, community groups, ethical and lobbying groups, support groups, professional and trade associations, and educational and
The Australian not-for-profit sector is expansive, with around 600,000 organisations, the majority of which are small, local community groups operating "underneath the radar". These groups may not have a significant impact on the national economy, but they play crucial roles in society by giving voice to communities and contributing to a more engaged democracy. The sector's diversity extends to its funding sources, with revenue streams including government grants, donations, bequests, and other sources.
The 2014 report also sheds light on the expenses of Australian charities, which totalled $95 billion in 2013-14, with $52 billion attributed to employee expenses. The not-for-profit sector employed over a million people during that period, accounting for 9.7% of the Australian workforce. This employment impact is comparable to the retail sector, reinforcing the sector's significance in job creation.
While the 2014 report provides valuable insights, the sector has continued to evolve. As of 2023, the not-for-profit sector in Australia is estimated to be worth $176 billion, employing just over 10% of the Australian workforce. The sector's revenue is projected to continue growing, with an anticipated $225 billion in revenue for 2024-25.
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The sector is diverse, including hospitals, universities, and sports clubs
Australia's not-for-profit sector is vast and diverse, encompassing a wide range of organisations, including hospitals, universities, and sports clubs. This sector plays a critical role in meeting societal needs, fostering social cohesion, and contributing significantly to the country's economy.
One of the key strengths of the not-for-profit sector in Australia is its ability to communicate a shared vision and attract talent, with a strong focus on serving its beneficiaries. The sector includes large service organisations with tens of thousands of staff, as well as smaller entities with specific focuses, such as child welfare, climate transition, and residential care.
Hospitals and healthcare providers make up a significant portion of the not-for-profit sector in Australia. These organisations, such as Peoplecare Health Insurance, HCF, and Nurses & Midwives Health, focus on providing affordable and accessible healthcare services to the community. They often offer competitive prices and have higher member retention rates than their for-profit counterparts.
The not-for-profit sector also includes several universities and colleges in Australia. These educational institutions, ranked by uniRank, offer a range of bachelor's, master's, and doctoral degree programs. They are known for their strong focus on research, community engagement, and providing accessible education to students.
Sports clubs and community sports organisations are also part of Australia's not-for-profit sector. These entities promote physical activity, foster community engagement, and provide opportunities for people of all ages to participate in sports. They often rely on memberships, sponsorships, and community funding to operate.
The diversity and breadth of the not-for-profit sector in Australia contribute to its strength and impact on society. By addressing fundamental societal needs, this sector plays a crucial role in enhancing the lives of Australians and shaping a more cohesive and equitable nation.
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The Australian government supports the sector, with revenue at $88.8 billion in 2020
The not-for-profit sector in Australia is large and diverse, encompassing a broad range of organisations that pursue charitable purposes through service delivery, grant-making, and other activities that advance health, education, social welfare, and religion. This includes hospitals, community services, universities, sports clubs, religious groups, day care centres, environmental groups, and many more. The sector is critical to meeting fundamental societal needs and fostering social cohesion, employing around 1.38 million people, or 11% of jobs in Australia.
The Australian government strongly supports the not-for-profit sector, with revenue reaching $88.8 billion in 2020, a significant increase of $10.7 billion from the previous period. This rise was largely attributed to JobSeeker and other government stimulus initiatives related to COVID-19. Notably, government funding accounted for over half (50.4%) of the sector's total revenue.
The not-for-profit sector's revenue is expected to continue growing, with projections of $225.9 billion in 2024-2025. This growth is driven by increased government funding and a rise in donations from private philanthropic funds. The sector's unique characteristic of being purpose-driven, rather than profit-driven, is evident in the requirement that any profits made must be allocated towards their charitable purposes.
The health and education sectors are among the largest not-for-profit organisations in Australia, with religious organisations also constituting a significant portion. These organisations rely heavily on the support of Australians who donate money and volunteer their time, with 3.4 million volunteers contributing in 2020.
The not-for-profit sector in Australia is well-positioned to address societal needs and make a substantial impact, with its diverse range of organisations and strong backing from the government and the public.
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Frequently asked questions
The not-for-profit sector in Australia is expected to generate over $225 billion in revenue in 2024-25. The sector's revenue has grown at a CAGR of 0.9% over the past five years, with revenue in 2020 being $88.8 billion.
The sector employs almost 1.5 million paid workers, which is around 10% of the Australian workforce.
The not-for-profit sector in Australia is diverse and includes organisations such as charities, hospitals, universities, sports clubs, religious groups, day care centres, environmental groups, and many more. Some examples of large not-for-profit organisations in Australia include the University of Melbourne, Surf Life Saving, and Lifeline.
