Australian charities play a crucial role in addressing social issues, and are now facing a new challenge: a fall in donations revenue in a tough economic climate.

Beyond Blue has been in the news recently as it faces a wicked challenge: rising demand for mental health services and a sharp decline in donations revenue. The drivers of this include the financial strain on individuals and businesses, donor fatigue and a shift in priorities toward urgent causes, such as food and shelter.

ACNC data shows Beyond Blue’s donations dropped from $36m to $24m in the 2022 return (as costs rose 9% from $85m to $93m). In the same period food charity OzHarvest’s donations grew from $14m to $19m.

Earlier this year the Asylum Seekers Resource Centre (ASRC) fought for survival as it faced similar challenges.In the face of rising costs, charity leaders need to make tough choices. Beyond Blue is planning a restructure, while maintaining its frontline resources. A crisis is an opportunity to double down on the basics and streamline costs – cutting discretionary expenses and driving efficiencies:

• communicate their impact clearly and effectively focusing on urgency and recency. Demonstrate how donations translate into tangible change
• amplify the impact of charitable efforts and tap into new donor bases through collaborations with civil society and busines
• explore diverse financing avenues, such as grants, corporate partnerships, markets, social enterprise and events.
• embrace digital platforms for fundraising to broaden the reach of charities and make it more convenient for people to donate.

Importantly, charity leaders can always use a crisis to make changes the charity’s Board and stakeholders would otherwise baulk at, such as cutting long-running and much-loved programs where the money could be better invested.