1. Predictions for the charity sector and where the ACNC fits
Gary Johns ACNC Commissioner
CLAANZ
1 August 2019, Melbourne

2. The ‘charity sector is the source of great value to society’ - discuss
Charities are a source of great value to society because they identify needs, and gather resources to apply to the needs
But, good intentions do not ensure good outcomes

3. Predictions about outcomes …
Outcomes = efficiency, effectiveness, better allocation
Increasingly, charities will be asked about outcomes
Philanthropy will become a larger part of the giving market, and
will ask about outcomes
Government has become a large part of the giving market, and is asking about outcomes
AASB reporting standards may include outcome reporting, similar to New Zealand standards

4. Outcomes: in a market where charity density grows
By 2022 there will be 415 people per charity
Dimensions of Australia’s Third Sector, Mark Lyons and Susan Hocking, A Report from the Australian Nonprofit Data Project Centre for Australian Community Organisations and Management (CACOM), University of Technology, Sydney, 2000
ABS projections Population Projections, Australia, 2017 (base) and ACNC projections

5. Outcomes: in a market where revenue grows, and changes
*ACNC, Annual Information Statements

6. Outcomes: in a market where volunteers and employment growth flat, and where …
Australian Charities
Reports
2013
2014
2015
2016
2017
Volunteers
2,000,000+
N/A 3M
2.9 M
3.3 M
Employees
919,000
1,058,227
1.2M+
1.3M
1.26 M
‘overall donations and bequests to rise at a faster rate over the next 20 years …, but the mix changing with structured giving, bequests and corporate support rising much faster than the mass market giving and volunteering.’* *

7. Reflections on market trends
Donations and volunteering, are flat
But, important for credibility
Philanthropy strong, but more demanding??
Government funding, is strong and rising
Returns to advocacy are strong
Revenue, is strong and rising
Much of which is government subsidised service charges
Assets, are strong and rising
Utilised for ‘charitable purposes’, or for charity ‘sustainability’?

8. Wealthier and more dense market (more causes, more charities) and pressure to perform
There is as much money to be made from efficiency, effectiveness and better allocation (outcomes) as there is in fundraising
(Not that the two are not mutually exclusive!)
New regulations/standards are not necessary, just good information

9. Where does the ACNC fit?
Commissioner is to ‘provide the public with information on the sector commensurate to the level of support provided to the sector by the public.’*
Public support is strong, but its nature is changing …
How to keep government and regulator out of your affairs?
Focus on informing the public what charities do
The market will decide whether charities are any good -
AASB reporting may help, as may government and philanthropy
* ACNC Bill 2012 Explanatory Memorandum, page 4. #

10. Charity marketplace
The charity marketplace will commence on 1 July 2020
Will provide more accurate account of what charities do
The marketplace – ACNC is the postman sorting the mail – the charity addresses the envelope and writes the letters
Charities categorise their programs and retain the titles and descriptions
The ACNC sorts the mail and delivers to donors, programs of comparable charitable purpose, people and place