Not-for-profit organisations are struggling to meet rising demand for their services due to increasing overhead costs. The Australian Charities and Not-for-Profit Commission's annual report has found expenses are outpacing revenue growth, as the impact of interest rate hikes, inflation and international conflict make an impact.
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TRANSCRIPT
In Sydney's Kings Cross - the Wayside Chapel has been helping those 'doing it tough' for more than 60 years.
The current cost-of living crisis has been forcing an influx of people through the door.
Wayside Chapel Community Services Manager Emma Healy says a wide range of people are seeking their support.
"We have people who are sleeping rough for the first time. And they've only been sleeping rough very briefly. We have people coming here who um do not have visas. So, that means that they're not eligible for the sorts of services others are. We're seeing that in quite an increased amount. We're seeing women, especially perhaps older women who are sleeping in their cars coming here. We see people who are longer term rough sleepers."
Wayside Chapel Head of Fundraising, Carly Du Toit, says the organisation is feeling the pressure.
"The rising cost of things like food, the rising cost of things like crisis accommodation. We've actually seen a 75% increase in the cost of the emergency accommodation since March last year. So, that's a direct impact that uh that we are seeing. But then also, we're seeing an influx in visitors."
The Australian Charities and Not-for-Profit Commission says the combined toll of rising demand and increasing costs is being felt across the sector.
Commissioner Sue Woodward says the ACNC's annual report has found that in the 2024 reporting period, expenses exceeded revenue growth.
"11% of Australia's workforce work for registered charities. So a lot of that their expenses will be to do with wages. But like any business, charities are also filling the pinch when it comes to things like insurance costs, utilities, all the general expenses that it takes to run an organisation.
The fuel crisis driven by war in the Middle East is not captured in the report - but it's impacting food aid charities, particularly.
Jennifer Birks is the Fundraising Officer at Foodbank, the largest hunger relief charity in Australia.
"We are seeing an increase in the cost of our operations, and that comes down to two things. It's an increase in the cost of transport, as well as a record low in terms of food donations that we're actually receiving as an organisation, which basically means that we're needing to purchase more food than ever."
She says the organisation relies on refrigerated transport to get food donations out to regional and remote communities, and an increase in fuel levies is directly impacting Foodbank's ability to keep these vehicles on the road.
Grassroots community organisations like COS We Care in South Australia are also experiencing record demand for their services.
The charity's founder Ann Cooper says the fuel crisis has added extra pressure.
"We're having people queuing up at 1:00 in the morning to be at the front of the line. Which is just, that's desperation, for fear of missing out that that's got to be first. We've had cost of fuel be one of our big things. We're very lucky that we get all of our food donated to us. and um but the fuel was a big thing because volunteers wouldn't come."
Charities that help people struggling with the cost of living, also warn demand for their services usually increases during colder winter months.
Ms Du Toit says for those sleeping rough, or for whom electricity bills have become too expensive, the change in weather presents significant challenges.
"Those that do present, especially at winter time, present with much more complex problems. So, it's not just that they're on the street, they might have long-term health challenges that are flaring up, and they need access to health services as well as our crisis care. So it's really quite a complex challenge that we're facing at the moment."
Economic uncertainty is also impacting donation levels, with the ACNC report showing an overall decline in donations and bequests in 2024.
But across the sector there are record volunteer numbers rising to meet demand and help others weather the cost-of-living storm.
