Weathering the Storm: Navigating and adapting for uncertain times

As Australians brace for a summer of extreme weather, with warnings of soaring temperatures and unpredictable conditions[1], nonprofits are navigating their own storm of challenges. Much like the climate’s volatility, the non-profit sector is facing - what many of our students, clients and fundraising consultants suggest - one of the toughest fundraising landscapes in over a decade.

A Challenging Climate for Changemakers

Recent reports (I have found five from 2023 and 2024, see bottom of blog) indicate a troubling trend: donations are declining, less Australians are giving, and non-profits are struggling to maintain financial stability. As we cap off another year, giving appears to be at an all-time low, driven by inflation and economic uncertainty. This mirrors global trends, where non-profits are grappling with reduced government funding and cautious donors.

Adding to the pressure, non-profits are also seeing a greater demand on their services as well as a staffing crisis. Food insecurity, increasing rent & property prices, mental health issues, mean Australians are flocking to charities like never before.[2]  In our daily interactions with non profits we’re hearing constantly that staff are stretched, stressed and in advance stages of burnout.

How on earth do you Do More with less money and staff absent or exhausted? How are non profits expected to meet the growing demand and continue their important work in 2025?

Diversification – a path to stability

As traditional and once reliable revenue streams become increasingly unpredictable, non-profits must explore alternative income sources to weather this financial storm. Corporate partnerships are emerging as a beacon of hope. These partnerships can provide flexible, untied funding (if you present the right proposition to the right person at the right time) but also offer access to invaluable corporate expertise. This can help streamline processes, adopt best practices, and extend your reach to attract new donors. As well, corporates bring essential skills in financial management, social impact measurement, strategic planning, all valuable skills to help empower non-profits to grow and be more sustainable. Whether it's operational guidance, technological support, volunteers, staff donations or mass market reach - corporates bring MUCH more than just cash to the table.

Diversification strategies are also gaining traction, with organisations exploring events, membership programs, and even innovative approaches like cryptocurrency donations. The ability to adapt is becoming the hallmark of successful nonprofits.

Lessons from Nature

Australia’s climatic unpredictability serves as a fitting metaphor for the non profit sector’s current predicament. Both require foresight, adaptability, and preparation. Just as communities band together during bushfires or floods, non profits must forge stronger networks and collaborations - with donors, corporates, and each other - to build resilience.

Moreover, as extreme weather events are a stark prompt for urgent action, non profits must seize this moment to innovate and advocate for change. Whether addressing environmental challenges, social inequities, or the mental health crisis, your work and the achievement of your mission is more critical than ever.

Preparing for the Season Ahead

Just as meteorologists urge Australians to prepare for a sizzling & volatile summer, you must prepare for the challenges of 2025. Corporate partnerships, diversification, and strategic innovation will be the tools to navigate this unpredictable season. With the right approach, you can transform these headwinds into opportunities for growth and impact.

For organisations looking to enhance their corporate partnerships approach, or embed a robust strategy from scratch, we provide a proven roadmap. Think of it as your weather radar - a reliable guide that helps you navigate uncertain times without being caught in the rain. We also provide tools – the umbrellas, air con and sunscreen needed!

Adversity often pushes communities – non profits included - to rethink their strategies and transform.

Hailey Cavill-Jaspers

Stats that show decline in giving (donations) in Australia

① AIHW (Australian Institute of Health & Welfare) Sept 2023

• In 2023, the total amount of tax-deductible donations claimed by individual taxpayers decreased by 3.4% from the previous year

Read more: Philanthropy and charitable donations - Australian Institute of Health and Welfare

7 Sept 2023.

② Commonwealth Bank Australian Charity Trends Report (CommBank iQ, Quantium) AICD article, Nov 2023

• Charitable giving fell by 3% over the past year, but that one in five Australians still donated to charity. The report also found that medical research charities bucked the trend, increasing 5.1%

Read more: Institute of Community Directors Australia | Aussies remain generous…

28 November 2023

③ McNair yellowSquares F&P article, May 2024

• The number of individuals engaging in charitable giving has steadily declined, reaching an unprecedented low in recent times. The data reveals a worrisome stat: the proportion of Australians who do not donate at all has surged from 35% to 42% in 2024

Read more: There has been a noteworthy shift in charitable giving

May 2024

④ JBWere Charitable Giving Index Report, August 2023

• Giving has slowly recovered to pre COVID levels, the last 3 years represents approx. $3b in lost donations compared to long-term giving trends

Read more: Giving Index Report

August 2023

⑤ JBWere Support Report, August 2023

• Giving in Australia increased during the early stages of COVID-19 due to emergency relief efforts, it has since declined. Total giving dropped by $1.3 billion (6%) from its 2021 peak, reflecting ongoing economic uncertainty and reduced capacity for discretionary donations.

Read more: Support Report

August 2023

[1] SBS News 1 September 2024 And The Guardian 26 November 2024 

[2] AICD Not for Profit Governance & Performance Study 2023-24