The National Disability Insurance Scheme (NDIS) has made a positive impact on the lives of some of the most marginalised people in our society. It has also been dogged by fraud, complaints, bureaucracy, funding cuts and blamed for a rise in autism diagnoses.
The financial viability of disability charities delivering NDIS services has been identified as a key issue. of the largest NDIS providers booked losses in the 2022 reporting period, including Life Without Barriers ($8m), Aruma ($6m), The Northcott Society ($11m), and Cerebral Palsy Alliance ($5m).
The latest 2022/23 annual report from the Endeavour Foundation, submitted to the ACNC in recent weeks, suggests the funding challenges continue. The Foundation does terrific work in disability services, including independent living, employment and education programs. Many will be familiar with its fundraising lotteries for lavish beachside dream homes.
Endeavour’s revenue from NDIS services grew to $238m in 2022/23 ($221m in 2022). However, a number of “headwinds” contributed to a $6.6m deficit ($7.3m in 2022). Adjusted for one-off charges, the 2022/23 loss increased by $3.7m on the previous year. This was attributed by the charity to:
- competition for client numbers impacting on case load
- reduced government subsidies (by $4.5m)
- increased operating costs, such as rising employment and lottery (property acquisition) costs
- reduced fundraising income
Endeavour says a review of its financial performance has identified opportunities for increased income, while ensuring its services are delivered within the National Disability Insurance Agency (NDIA) funding envelope.
It’s worth watching the progress of disability charities in balancing care and financial sustainability as the so-called headwinds are blowing strong. A Royal Commission has recommended sweeping reforms to improve the quality of care and the Australian Government has flagged sweeping funding cuts in response to projected cost increases of almost 14% a year if no action is taken.
NDIS is a terrific step forward to improve many thousands of lives. But disability charities should not be driven to cross subsidise the delivery of government contracts at the cost of its own mission-led programs?