As the year draws to an end, it’s fitting to reflect on the achievements of the charity sector, the challenges it faces, and to remember the role we all play in supporting the sector’s valuable work.
Earlier this year, the 10th edition of the Australian Charities Report revealed that while charity revenues have risen, expenses have surged at an even faster rate – in fact, about double.
This has placed a strain on resources across the sector and underscores the need for continued support to ensure charities can sustain their essential services.
Recent reports have also highlighted growing food and housing insecurity, leading to heightened demand for charitable services. Foodbank’s 2024 Hunger Report found that 3.4 million Australian households are experiencing food insecurity, with 2 million experiencing severe food insecurities.
During Anti-Poverty Week in October, I travelled to Adelaide and saw firsthand the dedication of charities that address the needs of those most affected by these issues.
And in the Northern Territory, I met with charities who – even with limited resources and the added challenges of working with remote communities – make a significant difference for those they serve by providing training and employment along with a range of wraparound services.
Just last week in Tasmania I met with charities supporting refugees and multicultural communities, and presented at a forum hosted by the local social service and volunteering peaks. I also met the state fundraising regulator who is just a few weeks into her role.
The resilience and commitment of these charities, and the hundreds of others I hear from, ensures I remain aware of the importance of supporting charities to be healthy and sustainable.
Core to sustainability is funding. This week includes GivingTuesday – a global campaign to promote the spirit of giving, and to emphasise how charities depend on our generosity, both throughout the year and especially during the festive season.
Unfortunately, scammers often try to take advantage of people’s generosity at this time of year –and so this week we have begun a campaign to warn Australians to watch out for fake charity appeals.
Financial losses from these types of scams are significant. Scamwatch calculates there has been more than a million dollars lost to over 4,500 reported fake charity scams over the past five years.
And that is only what is officially reported; we know many people don’t report scams as they feel embarrassed after being taken in by them. And these bad actors can dent public trust at a time when charities are most in need of support.
There are some simple steps you can take to ensure your donations reach legitimate charities.
The first is to search the ACNC Charity Register to find charities and confirm their contact details. You can be confident that charities listed on the Charity Register submit required core information about their work to us as the regulator, so they are transparent and accountable.
We recommend people donate directly, using a charity’s website link or through other contact information listed on the Register.
It is important to avoid clicking on donation links in unsolicited texts, social media posts, or emails. And it is really best not to share bank details, name, or other personal information with unknown callers.
Please share these steps with your families, friends and work colleagues so together we can protect more people from scammers, as well as help them know what to do if they are caught out.
As well as thinking about charitable giving, this is a time where I reflect on the year just gone as I come up to finishing my second year as Commissioner.
The ACNC has had a busy year doing its core work of registering charities and supporting them to comply with their reporting and governance obligations.
In collaboration with other government agencies we have refreshed our cyber security and privacy guidance, and developed new artificial intelligence (AI) guidance for charities.
As a team, we have also navigated a significant growth in registration applications and more complex compliance investigations. Our Advice Services staff continue to support charities with their expert and patient approach to the full range of enquiries (more than 30,000 of them) they receive.
Our work is aimed at maintaining and strengthening public trust and confidence in the sector – factors which the Governance Institute of Australia’s 2024 Ethics Index recently identified as significant ethical considerations for Australians.
So I leave this last column for 2024 with my continued passion for the work of Australia’s nearly 61,000 charities, passion for my job as Commissioner and pride in the work of the ACNC staff.
Thank you for reading my missives, and thank you for the role you play in making sure the charities you are involved in are delivering on their mission for the better of Australian communities and many communities abroad.
Warm regards,
Sue Woodward AM