The latest official data shows Australia’s charity sector generated $190 billion in revenue and employed 10.5% of the workforce, highlighting its significance to the Australian economy and community.

The Australian Charities and Not-for-profits Commission (ACNC) report shows charity revenue, assets and donations grew in the 2021 reporting period. Revenue growth was up by nearly $14 billion on the previous period. Donations increased by $676 million to $13.4 billion, and charities reported more than $422 billion in assets, an increase of nearly $31 billion.

Expenses, however, also increased by $7.1 billion to almost $175 billion. Liabilities rose by $4.1 billion to $141.7 billion, with a 40% increase over three years. Further, the report confirms the widely observed decline in volunteering, with numbers dropping to 3.2 million, down from 3.4 million previously.

“The picture is more sobering when we look at the decline over a longer time frame. There was a loss of around 596,000 volunteers between the 2018 and 2021 reporting periods. This decline is of concern as we know volunteers are vital across the sector, and overall, 50% of charities operate with no paid staff,” Commissioner Sue Woodward said.

The report includes Australian Taxation Office (ATO) data on the JobKeeper Payment Scheme, which commenced on 30 March 2020 and ended on 28 March 2021. Around 12,000 registered charities received JobKeeper payments totalling $7.6 billion. This included approximately $2.9 billion of payments in the 2019-2020 financial year, and around $4.7 billion in the 2020-2021 financial year.

Government grants and individual contributions remain crucial, however, the report shows an increasing reliance on other sources, such as business income and investment returns. This diversification of funding streams is vital to ensure the long-term financial sustainability and resilience of charities.

The report highlights the increasing adoption of digital platforms and tools by charities, enabling them to reach wider audiences, streamline operations, and enhance fundraising efforts.

The 5% rate of growth in charitable giving is not enough to deliver the Albanese government’s goal of doubling philanthropy by 2030.