Survey: COVID-19 ‘crippling’ the not-for-profit sector and societal implications may be long-term

A group of social purpose industry experts say charities, their services and their economic contribution are being crippled by COVID-19 and the societal implications may be long lasting.

RESET 2020 Research Report Graphics. Supplied

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THERE are fears Australian society may suffer significant long-term consequences from the impact COVID-19 is having on the $155bn social purpose sector.

National survey results released on Monday found the services and economic contribution of charities and not-for-profit organisations were ”being crippled”.

The Xfactor Collective’s RESET 2020 National Impact and Need Research Study claimed to validate modelling developed at the start of the pandemic and provide insights into the extent of the impact on the social purpose sector from large charities to grassroots organisations.

Of 380 survey participants, two thirds had seen a drop in revenue since March without being off-set by a decline operating costs.

Volunteers had been stood down or had their hours cut at 70 per cent of organisations, which impacted the services able to be provided and reduced support to communities.

Nine per cent needed immediate financial support to continue, while 45 per cent carried operating reserves of six months or less.

RESET 2020 Research Report Graphics.

Hobart City Mission (HCM) CEO John Stubley said the organisation had a plan as to how it would increase its emergency relief offering “tenfold” when “the need arises”.

He said typical clients of some programs had declined with the introduction of the federal government’s stimulus and support packages, but they would return as “stimulus winds back”.

“There will be more on top of them who have lost their jobs,” Mr Stubley said.

Visa holder’s such as stranded students and those on worker programs have also been seeking help.

HCM temporarily stood down 300 permanent part-time volunteers when it closed its op shops in March, but never stopped it’s “essential” face-to-face emergency relief program.

Mr Stubley said organisations that relied on events based fundraising were suffering.

“I ask that the public don’t forget that this is going to be a situation that goes on for a long time and that they continue to think of charities and the help they are going to need,” he said.

HCM has received government support including rent reductions, a significant increase in emergency relief funding and additional disability support funding through the NDIS.

RESET 2020 Research Report Graphics. Supplied

The Xfactor Collective is a community of experienced independent specialists and consultants who have held leadership roles in the sector.

Xfactor Collective founder and chief executive Julia Keady said the study confirmed many of the issues predicted and matches up with the experience and insights shared by those participating in the RESET 2020 support and advice program.

“The research and registration data paints a strong story about the sector’s backbone – the tens of thousands of small organisations who are normally juggling budgets, boards and beneficiaries in tight environments, let alone a financial downturn, let alone a pandemic,” she said.

“We will continue to monitor the evolving impacts through further research, and in the meantime will continue to actively support the sector, especially the wellbeing and mental health of the organisation leaders who are navigating such extraordinary change and challenge.

“With the COVID virus clearly being here for some time, we believe it’s critical to stay on top of the evolving needs of the sector.”

The RESET 2020 survey will be run again in September, and a full data set will be made available and free to the sector on the SEER Data Platform.