The Australian Institute of Company Directors has said to give charities the platform they need to thrive. And we couldn’t agree more, writes CEO Lisa Grinham. 

This week, the Australian Institute of Company Directors (AICD) released a comprehensive blueprint for the nation’s future. Drawing on a diverse membership of almost 40,000 people who are collectively responsible for millions of jobs and billions of dollars to the Australian economy, this report is a wakeup call to the Australian Government and how it currently works with charities.

Here are the top four areas that need to be prioritised to not only improve the productivity of not-for-profit organisations, but to streamline bureaucracy costs in the process.

1.  #FixFundraising

 The report makes it clear that as a society, and as tax payers, we’re wasting millions of dollars in fundraising bodies and in red tape that’s holding up charity efforts, and doing very little to preserve public trust.

Inquiries, sector reports and charity submissions have time and time again identified the complex and outdated web of regulatory requirements for fundraising as a hefty burden for charities to navigate.

With references to the horse and cart era, I don’t need to spell out that in many cases these regulations are not only poorly enforced but at the core, straight up unnecessary.  The government requirements not only tie up hours (and in some cases weeks) in charitable administration time – but it also ties up government budgets at both State and Federal levels.

And it’s not just the government and charities that are affected. Australian companies who are also increasingly seeking avenues to support charities are too being left mystified and nervous about their own fundraising efforts.

A streamlined fundraising framework is a no brainer and at the cusp of reform with the latest review of consumer law. #FixFundraising is not something to wait for, it’s something to realise and make happen. Yesterday.

2. Invest in infrastructure

 Another strong recommendation for the sector’s productivity is the need to fund charities in ways that cover their operational expenses – that invests in their future planning.

This is something that’s been debated and discussed at many forums and raised in the media time and time again. While the Australian Charities and Not-for-profits Commission (ACNC) has provided guidance on this matter, as recently as late last year, the Government and other leaders in charitable giving need to adopt this in their funding agreements.

As AICD General Manager of Advocacy, Louise Petschler said, “Funding agreements should allow for a reasonable and appropriate amounts of funding to be dedicated to that governance capacity building and expertise building internally.”

We also welcome AICD’s recommendation to fund board members, and invest in their involvement and expertise. This places a value on the time invested in charities’ leadership and says clearly that this is a serious responsibility, vital, important and worth money – because it’s worth money and strategic value to the charity. It means board roles can then be measured, managed and established with key performance indicators and succession plans.

3. Listen up

 AICD Chairman, Elizabeth Proust also emphasised that although Australia has many strengths to take advantage of them, leaders in all fields have to play a role in advocating for reform. And charities are no exception.

You can’t have a genuine partnership approach unless you respect the views of those on the ground, in the field and knocking at your door with experience and expertise. Creating opportunities for charities to contribute actively to their funding arrangements, regulatory environment and the policies that affect their work is critical in going forward. If charity is going to be perceived and utilized as a vital agency of both government and business to address the looming social, environmental and demographic issues this country faces in the not too distant future, then the voice of that sector needs to be heard.

This comes back to acknowledging and respecting the expertise that charities hold and shaking off what has in many cases been a subservient relationship with the government or with funders in the past. Charities attract great talent, innovative ideas and approaches to achieving results. They do it with scant resource – both human and financial – and it may be time to celebrate that, acknowledge it, and listen to it across sectors.

4. Funding sustainability?

Don’t even get me started on funding sustainability – and I suspect I may need to take a number anyway. I’m not alone here.

While the length of Government funding agreements is critical for sector confidence and strategic planning, investing in new ways to generate funds and support for the sector is also a high priority for future productivity. It’s something we’re working on at Good2Give day in day out.