Building Knowledge of the Not-For-Profit Sector
The Victorian Government’s Action Plan: Strengthening Community Organisations (PDF 178 kb) or (Word 243 kb) (the Action Plan) identifies that not-for-profit (NFP) organisations will need to continue adapting and evolving operations to meet the challenges presented by global developments.
In late 2008, we witnessed the first such global environmental challenge: the Global Financial Crisis (GFC). The GFC almost immediately impacted the NFP sector.
Research by the Office for the Community Sector demonstrates that in January 2009, the GFC was impacting the capacity of organisations, with income streams such as investments and philanthropic funding decreasing. Research also shows that the sector has responded by developing different approaches to service delivery and staffing.
Weathering the GFC
In January 2009, the Office for the Community Sector (OCS) undertook a ‘snapshot’ survey of eighteen Victorian not-for-profit (NFP) organisations to understand how the Global Financial Crisis (GFC) was beginning to impact NFP organisations. The January 2009 GFC ‘Snapshot’ Report (Word 484 kb) is available to be downloaded.
In April 2009, the OCS surveyed these organisations again, to build an understanding of the continuing impact of the GFC.
The second survey found that the situation had worsened for most organisations.
- More than half of the organisations reported that their financial situation had worsened, with one third directly attributing this to the GFC
- The most common impact was a decline in the value of investments. Donations, corporate sponsorships and philanthropic grants had also declined
- Nearly three quarters of the organisations had experienced an increased demand for services and anticipated that demand would continue to grow.
The full-text of the May 2009 GFC ‘Snapshot’ Report (Word 550 kb) is available to be downloaded.
Despite these challenges, most of the organisations were taking steps to minimise the impacts of the GFC. To showcase the ways that organisations are working to weather the GFC, the OCS has developed three case studies, available to download by clicking on the links below.
1.
Uniting Care – Cutting Edge‘Look at a variety of options to maintain efficiencies’ (PDF 98 kb) or (Word 86 kb)
2.
Travellers Aid Society of Victoria‘Focus on strengths and core business’ (PDF 95 kb) or (Word 82 kb)
3.
Queen Victoria Women’s Centre‘Nurture existing relationships but also be prepared to try something new’ (PDF 96 kb) or (Word 81 kb)
The OCS is conducting a third GFC ‘Snapshot’ survey in August, and the results of this survey and further sector case studies will be available here in October 2009.
Is your organisation conducting research on the impact of the GFC? We would like to hear from you!
The OCS has offered to compile research on the impact of the GFC on the NFP sector for broad dissemination and use by the sector. If you or your organisation has some research to contribute, or if you know of any research underway, please contact the Office for the Community Sector: communitysector@dpcd.vic.gov.au
Return to the OCS home page
Back to About the Office for the Community Sector
Read more about the Background to the Action Plan.
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