A Picture of Health: Australian Charities Financial Analysis 2003

July 2004

Givewell Research Centre’s latest analysis of the financial statements of charities for 2003 found that the charitable sector is a picture of financial health.

The survey covered a large range of organisations, supporting a variety of causes, and included major charities as well as those representatives of the middle and lower income earners. Data was collected from the financial statements of 350 charitable organisations for the last two years (2002 and 2003), with a combined total income of more than $5 billion. This methodology has been in place since the first survey in 1998.

For 2003, positive indications are found in a number of areas. These include:

increases in all forms of funding

moderate growth in investments

increasing surpluses

increasing fundraising efficiency

Following two years when increases in gross revenue moderated, 2003 saw an increase to match the highest percentage ever recorded by Givewell. As a result, surpluses for 2003 grew significantly and more charities were shown to be in a strong financial position than in the past.

Net assets and investments both showed steady growth. There was a significant move towards managed investments, indicative of more prudent investment policies and greater involvement from investment professionals. Increase in property values reflected the market.

The full survey is available to subscribers to the Givewell Research Centre.

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