Charities under strain as expenses outpace growth

But according to newly released data from the Australian Charities and Not-for-profits Commission, expenses climbed even faster - rising 8.6 per cent - to $231 billion.

Commissioner Sue Woodward AM said the growing gap reflects the reality charities are facing with larger total expenses bills and higher costs for staff wages, insurance and utilities. 

''Demand for support is rising as more people feel the squeeze," Ms Woodward said.

''Demand for support is rising as more people feel the squeeze," Ms Woodward said.

"Charities are responding by hiring more staff where they can - but at the same time, they're being hit with higher costs for wages, insurance and utilities."

Charities employ 1.6 million staff, or 11 per cent of Australia's workforce.

And with demand for services increasing, this number is growing.

As is the number of volunteers being called upon to keep operations running. 

In the 2024 reporting period, registered charities engaged 3.9 million volunteers, the highest volunteer count ever reported, with 2.5 volunteers for every employee.

Smaller charities - which generate less than $500,000 in annual revenue and comprise the majority of all charity services across Australia - are under particular strain. 

Most operate with no paid staff, relying entirely on the dedication of their volunteers.

Together, they generated just 1.4 per cent of total sector revenue, received less than nine per cent of all donations and bequests, and held less than five per cent of sector assets.

''This highlights how much less financial capacity these charities have,'' Ms Woodward said.

Extra-large charities, with annual revenue of $100 million or more, made up just 0.6 per cent of the sector. 

Yet they generated 57 per cent of total sector revenue, received around 21 per cent of donations and bequests, and held roughly half of all sector assets.

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