The financial viability of many WA charities is precarious at best, with a need to rely on government funding and corporate support.
In the past, many not-for-profits (NFPs) positioned themselves as extensions of government agencies due to funding needs. This has led to a reliance on government funding, limiting the scope of services to what government can fund and approve.
“This is by no means the fault of the government, who are generous supporters of the sector, but it meant a reduction in innovation and adoption of new impact programs,” Activ Foundation CEO Michael Heath said.
“NFPs are there to serve people in need and simply relying on funding doesn’t always provide the most innovative or best service, or adapt programs to changing needs,” he said.
“WA charities face a significant challenge with the compounded demand for services, stretching their already limited resources to the brink. Self-imposed restrictions to only focus on funded services means that they may struggle to address gaps in social justice and opportunities for the underprivileged.
“Yet it is the specialised expertise of NFPs and their people that work alongside government and commercial partners that make the biggest difference in the lives of those they serve.”
Activ Foundation has been driven by its customer needs which, over its 70-year history, has changed dramatically around how this is delivered, shaped and targeted.
“We have seen a wider scope of people using Activ’s services and a positive impact that extends to include our customers’ family and carers. As such, we continue to research, develop and codesign services that work hand-in-hand with funded programs to achieve the best outcomes for our customers,” Mr Heath said.
“We have also welcomed more businesses into the Activ community as commercial companies that recognise the benefits of working with NFPs through such activities as philanthropy, awarding contracts through our social enterprises like Property Care and Timber, and employing people living with disability directly into their teams.”
Profit-for-purpose
The financial viability of many WA charities is precarious at best, with a need for revenue that goes beyond funding highlighting the importance for NFPs to shift towards a profit-for-purpose model.
“There is a greater need for income-generating activities to be embedded into the offerings that allow NFPs to be able to offer the required services, which often extend beyond available funding.
"This is why so many NFPs have moved towards a more commercial mindset, not to generate profit but to be able to do more, with all funds raised going directly back into the delivery of much-needed services,” Mr Heath said.
“At Activ, our commercial partnerships drive our ability to innovate, create and deliver programs that improve the lives of people living with disability, their family, and carers."
Leading the way
With more business leaders wanting to make a positive change, there is a unique opportunity for the business sector to lead the way in philanthropy, demonstrating clear impact through giving by partnering with charities that achieve outcomes aligned to their strategic objectives.
“Despite widespread sympathy for NFP causes, there’s a noticeable reluctance in the community to financially contribute to these causes. Many Australians perceive philanthropy as the responsibility of the wealthiest, undervaluing the impact of smaller, individual donations.
"While larger corporate donations can make a great impact on services or initiatives, it is both the large and the small donations that keep NFPs ticking along and serving those in the community,” Mr Heath said.
“The charitable sector’s future in Australia will likely be shaped by organisations’ ability to diversify income streams. Those reliant on a single funding source may face ongoing financial challenges, while those who innovate in funding are poised to thrive and drive meaningful change, both locally and globally.
“Social enterprise, non-traditional fundraising and product-based fundraising will be vital to ensuring the continuation of the good work conducted by charities.”
A world without the charity sector would be bleak. “Everyone wants social justice, inclusion, and accessibility for all, yet without the charity sector, commercial companies simply wouldn’t have the time, resources, or expertise to foster true change and development. It is through partnerships with government, corporates, and within the NFP sector itself that things really have lasting change for all,” Mr Heath explained.
“I would encourage all corporates, big or small, to consider working alongside charities so that they and their people make a real difference in the community.”
Established in 1951, Activ was formed by a group of families who wanted more for their children who lived with disability and had become marginalised by society. Over time the group grew to encompass community, social enterprises, employment, accommodation, training, and more.
Today, Activ has grown into one of Western Australia’s largest not-for-profit disability service providers, supporting more than 1,000 people across the state.
“Activ Foundation has a strong and proud history of supporting people living with disability to achieve their goals, break through barriers and increase their independence,” Mr Heath added.
