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Healthy Growth so far, but Stormy Times Ahead: Australian Charities Financial Analysis 2007
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12 November 2008 Analysis of the 2007 financial data of a representative sample of the charities listed by Givewell shows that the charitable sector continued to grow at a steady rate in 2007 and was in good shape financially. However, an initial survey of Fundraising Appeals in 2008 indicates that the impact of the global economic downturn is already being felt and stormy times lie ahead. Positive trends were found in most key areas of analysis, including: improved income growth (up 9%); continued increase in government funding (up 9%); strong increase in the dollar amount of surplus (up 17%); and more organisations in surplus (up 3%); continued growth in investments (up 10%); increase in fundraising revenue, excluding bequests, (up 10%); and continued increase in net assets (up 10%). Despite the dip in fundraising experienced in 2006 (due to the December 2004 tsunami and subsequent fundraising highs of 2005), it is apparent that in 2007 the charitable sector continued on a path of healthy growth and the overall impression is again one of a stable, healthy industry. All levels of support continued unabated in 2007, with charities provided with particularly strong levels of fundraising support, up 10 per cent from a decline of 7 per cent in 2006. It is also encouraging that the considerable increase in the number of organisations disclosing their fundraising costs experienced in 2006 (up from 44% to 54%) was extended into 2007, rising to 56%. It appears that the increased scrutiny of charities in 2006, driven by the tsunami-related surge in donations in 2005, has prompted an encouraging renewal in the sector’s response to requests for increased transparency and accountability from donors and the public. Hopefully the sector's willingness to show donors that they are efficient, effective and accountable will only help them in the tough times that lie ahead, when they will undoubtedly need to work harder to obtain the same amounts of money, as the impacts of the global downturn are felt by the Australian economy as a whole. Australian Charities Financial Analysis 2007 is the tenth annual study to be released by Givewell. The full report is available via email exclusively to paid subscribers to the Givewell Research Centre. Contact research@givewell.com.au to request your copy. |
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