About charities and not-for-profits in Australia

Australia's not-for-profit (NFP) sector is at the core of our civil society. More than 300,000 NFP organisations positively impact Australian life. The 2024 data suggests we have more than 60,000 registered charities. This equates to at least one charity for every 439 people living in Australia.

Examples of NFPs might include:

  • local sporting clubs
  • cultural and arts groups
  • service clubs
  • cooperatives
  • community organisations
  • social and health service providers.

Half of all registered charities are small community-level organisations. More than half of these are run by volunteers. These organisations have social and community benefit at their core.

Charities and NFP organisations play a vital role in delivering and supporting government policies and programs. It’s important that we recognise the value generated by charities and NFP organisations and make sure that guidance and support for the sector is made readily available to promote the best outcomes for the community.

Value of charities and not-for-profit organisations

This sector has a big role in the Australian economy.

As of 2023, the charitable sector’s revenue was over $200 billion or 7.8% of Australia’s Gross Domestic Product (GDP). The estimate of economic contribution was around $156 billion. This makes the charity sector responsible for about 4.8% of gross value add in the Australian economy. This is comparable to the retail trade sector.

One in 10 Australians (1.47 million people) are employed by a charity. The charity workforce is similar in size to the mining, manufacturing and agriculture, forestry and fisheries sectors combined. The sector is similar in size to construction (1.2 million) and retail trade (1.4 million) sectors. Unlike these sectors, however, the charitable sector also engages 3.2 million volunteers. Volunteers contribute upwards of 320 million unpaid hours valued at an additional $13.8 billion.

Added benefits for people, places, the environment, and the economy can’t be measured in just monetary terms. Attempts to give a value to these broader benefits suggest at least $12.7 billion, however the true value is potentially much higher.

The Not-for-profit Sector Development Blueprint

In the 2022-23 October Budget(Opens in a new tab/window), the Government announced the measure Development of the Not-for-profit (NFP) Sector Development Blueprint (the NFP Blueprint). 

Developed by the Blueprint Expert Reference Group (BERG) the NFP Blueprint was delivered to the Government in November 2024.

The NFP Blueprint has been developed ‘for the sector, by the sector’. It provides a 10-year roadmap to empower the sector to set direction and be ‘future-ready.’ 

The Blueprint focuses on 3 key themes:

  • create a supportive framework so NFPs can operate more efficiently and effectively
  • foster a culture where people are at the heart of the sector's mission, with a clear focus on values and social impact
  • ensure the sector is well-equipped to adapt to changing circumstances and challenges, using innovation and new technologies.

The NFP Blueprint is intended to be owned and led by the NFP sector. The sector is encouraged to provide ongoing expertise and advice to ensure its success over time. The aim is to create a framework that can support the sector in its many roles for years to come.

Not-for-profit regulation and guidance 

The Australian Charities and Not-for-profits Commission(Opens in a new tab/window) (ACNC) is the regulator of charities in Australia. The ACNC is responsible for registering charities and ensuring they comply with legal obligations. ACNC also supports them in their mission. This includes helping with:

  • governance
  • compliance
  • fundraising
  • other areas of charity operation.

For all other NFPs, the Australian Taxation Office(Opens in a new tab/window) (ATO) serves as the primary regulator, managing tax concessions and ensuring compliance with tax laws. The ATO also provides information on getting started, worker obligations, fundraising and the self-review reporting requirements(Opens in a new tab/window) that came into effect from 1 July 2024.

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