November 05th, 2020
The Australian Institute of Company Directors (AICD) has released its annual Not-for-Profit (NFP) governance and performance study - the world’s largest study in NFP governance - which reveals that the future of many organisations was under threat even before the challenges of COVID-19.
COVID-19 unsurprisingly dealt a huge financial blow to the NFP sector, however, the study reveals that many organisations were facing considerable financial challenges even before the crisis.
While a majority of NFP organisations expect to make a loss this financial year, notably, almost 40 per cent of organisations had made a loss in the previous three years.
AICD Managing Director and CEO, Angus Armour, said, “Many organisations entered the pandemic already facing serious financial challenges and COVID-19 intensified that pressure, pushing boards and organisations to their limits.
“Just when demand for NFP services increased, their revenue took a huge hit. The Government’s JobKeeper program has been nothing short of a lifeline for many, but significant concerns remain about how organisations will manage when the current scheme ends.
“Given the vital role these organisations play in our society, targeted assistance is required to ensure these organisations survive over the long-term.”
Key findings of the 2020 NFP Governance and Performance Study:
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