Australian Charities Lack Transparency – Report

Charity News Online

Australian charities need to be more transparent in their operations and less reliant on government assistance if they want to continue their financial growth, the 2006 Givewell not-for-profit financing and investing study said. The report revealed that Australia's non-profit organizations received $A1.22 billion ($US914.33 million) in fundraising revenue in 2005, an increase of 44 per cent on the previous year.

This was more than double any increase previously recorded by the research company's study, which examines the annual reports of over 500 non-profit organizations, since it began in 1997.The increase was a result of appeals following the Boxing Day tsunami in 2004, with overseas aid organizations the main beneficiaries. The Australian Red Cross registered a 323 per cent increase in gross fundraising revenue in 2005 to $145 million, while Oxfam Community Aid Abroad had a 58 per cent rise to $35 million, AAP reports.

"Although the effect (of the tsunami appeals) is most obvious in the increase in fundraising income ... the surge in donations has also impacted on surpluses, net assets and investments," the report said. Overall, Australia's non-profit organizations continued to experience healthy growth, with an 11 per cent increase in total income to $9.2 billion.

The report, released this week at Ethical Investor's Non-Profit Finance Forum in Sydney, also warned non-profit organizations against relying too much on government assistance, after government funding growth slowed to seven per cent in 2005, down from 11 per cent in 2004.

charity, donation, fundraising