ibisworld industry report x0021 charities & not-for-profit...

34
2 About this Industry 2 Industry Definition 2 Main Activities 2 Similar Industries 2 Additional Resources 4 Industry at a Glance 5 Industry Performance 5 Executive Summary 5 Key External Drivers 6 Current Performance 9 Industry Outlook 12 Industry Life Cycle 14 Products & Markets 14 Supply Chain 14 Products & Services 15 Demand Determinants 16 Major Markets 17 International Trade 18 Business Locations 20 Competitive Landscape 20 Market Share Concentration 20 Key Success Factors 20 Cost Structure Benchmarks 22 Basis of Competition 22 Barriers to Entry 23 Industry Globalisation 24 Major Companies 27 Operating Conditions 27 Capital Intensity 28 Technology & Systems 28 Revenue Volatility 29 Regulation & Policy 31 Industry Assistance 32 Key Statistics 32 Industry Data 32 Annual Change 32 Key Ratios 33 Jargon & Glossary IBISWorld Industry Report X0021 Charities & Not-for-Profit Organisations in Australia March 2012 Craig Shulman Bigger and better: Organisations in the industry are expanding their service offerings www.ibisworld.com.au | (03) 9655 3881 | [email protected]

Upload: others

Post on 27-Mar-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

2 About this Industry2 Industry Definition

2 Main Activities

2 Similar Industries

2 Additional Resources

4 Industry at a Glance

5 Industry Performance5 Executive Summary

5 Key External Drivers

6 Current Performance

9 Industry Outlook

12 Industry Life Cycle

14 Products & Markets14 Supply Chain

14 Products & Services

15 Demand Determinants

16 Major Markets

17 International Trade

18 Business Locations

20 Competitive Landscape20 Market Share Concentration

20 Key Success Factors

20 Cost Structure Benchmarks

22 Basis of Competition

22 Barriers to Entry

23 Industry Globalisation

24 Major Companies

27 Operating Conditions27 Capital Intensity

28 Technology & Systems

28 Revenue Volatility

29 Regulation & Policy

31 Industry Assistance

32 Key Statistics32 Industry Data

32 Annual Change

32 Key Ratios

33 Jargon & Glossary

IBISWorld Industry Report X0021Charities & Not-for-Profit Organisations in AustraliaMarch 2012 Craig Shulman

Bigger and better: Organisations in the

industry are expanding their service offerings

www.ibisworld.com.au | (03) 9655 3881 | [email protected]

Page 2: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 2

This industry consists of organisations

that exist for reasons other than

¿QDQFLDO�JDLQ��7KLV�EURDG�LQGXVWU\�FODVVL¿FDWLRQ�LQFOXGHV�FKDULWLHV�DQG�

QRW�IRU�SUR¿W�RUJDQLVDWLRQV�HQJDJHG�LQ�DFWLYLWLHV�VXFK�DV�KHDOWKFDUH��RSHUDWLQJ�KRVSLWDOV��HGXFDWLRQ��VSRUWV��FXOWXUDO�DQG�UHOLJLRXV�RUJDQLVDWLRQV�

The primary activities of this industry are

Fundraising

Advocacy

Operating health, educational and cultural programs

Industry Definition

Main Activities

Similar Industries

The major products and services in this industry are

Business and professional associations and unions

Culture and recreation

Education and research

Environment, development, housing, employment, law, philanthropic

Hospitals and health

Religion

Social services

About this Industry

N EducationEstablishments in this division provide education services from preschool through to postgraduate courses, with private and public options.

O8729 Welfare Services and Fundraising in AustraliaOrganisations in this industry provide welfare services to the disadvantaged and fundraising activities aimed at supplementing government funding for these activities.

P9319 Sport Organisations and Other Sports Services in AustraliaEstablishments in this industry include sporting clubs facilitating or participating in sporting activities, or provide services to sporting activities. Sports coaching services are also included.

Q9610 Religious Organisations and Services in AustraliaOrganisations in this industry are operated for religious worship or for the promotion of religious activities, including churches, temples and monasteries.

Q9621 Industry Associations in AustraliaCompanies in this industry promote the business and professional interests of their members by conducting research and providing education services.

O8600 Health Services in AustraliaEstablishments in this subdivision supply health services to the public either directly or via proxies.

For additional information on this industry

www.ausaid.gov.au AusAID

Additional Resources

Page 3: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 3

About this Industry

,%,6:RUOG�ZULWHV�RYHU�����$XVWUDOLDQ� LQGXVWU\�UHSRUWV��ZKLFK�DUH�XSGDWHG�XS�WR�IRXU�WLPHV�D�\HDU��7R�VHH�DOO�UHSRUWV��JR�WR�ZZZ�LELVZRUOG�FRP�DX

www.fia.org.au Fundraising Institute Australia

www.nfpn.com.au Not-For-Profit Network

www.philanthropy.org.au Philanthropy Australia

www.probonoaustralia.com.au Pro Bono Australia

www.thirdsectormagazine.com.au Third Sector

Additional Resourcescontinued

Page 4: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 4

Market ShareThere are no

PDMRU�SOD\HUV�LQ�this industry

Key External DriversNational unemployment ratePopulation aged 55 or olderState funding for primary and secondary educationFederal funding for the arts and related activitiesState funding for health servicesNatural disasters

Key Statistics Snapshot

Industry at a GlanceCharities & Not-for-Profit Organisations in 2011-12

Revenue

$105.0bnEnterprises

44,800Exports

$6.1bnBusinesses

44,800

Annual Growth 12-17

4.0%Annual Growth 07-12

3.5%

Industry Structure Life Cycle Stage Growth

Revenue Volatility Medium

Capital Intensity Low

Industry Assistance High

Concentration Level Low

Regulation Level Medium

Technology Change Medium

Barriers to Entry High

Industry Globalisation Low

Competition Level Medium

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32

p. 24

p. 5

SOURCE: WWW.IBISWORLD.COM.AU

Page 5: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 5

Key External Drivers National unemployment rate+RXVHKROGV�ZKHUH�DGXOWV�DUH�XQHPSOR\HG�DUH�PRUH�OLNHO\�WR�XVH�ZHOIDUH�DQG�FKDULW\�VHUYLFHV��SDUWLFXODUO\�ZKHUH�XQHPSOR\PHQW�KDV�EHHQ�RYHU�WKH�ORQJ�WHUP��/RQJ�WHUP�XQHPSOR\PHQW�LV�WKH�PRVW�FORVHO\�FRUUHODWHG�VRFLDO�YDULDEOH�WR�GHPDQG�IRU�ZHOIDUH��DV�LW�DOVR�FRUUHODWHV�FORVHO\�WR�OHYHOV�RI�KRPHOHVVQHVV�DQG�PHQWDO�LOOQHVV�

Population aged 55 or older)UDLO�ROGHU�SHRSOH�DUH�PRUH�OLNHO\�WR�UHTXLUH�DVVLVWDQFH�LQ�WKH�KRPH��GHOLYHUHG�PHDOV�DQG�KHDOWK�FDUH�

State funding for primary and secondary education1RW�IRU�SUR¿W�HQWLWLHV�SURYLGLQJ�HGXFDWLRQ�VHUYLFHV�DUH�SDUWLDOO\�UHOLDQW�RQ�SXEOLF�IXQGLQJ�LQ�RUGHU�WR�¿OO�WKHLU�FODVVURRPV��$Q�LQFUHDVH�LQ�JRYHUQPHQW�IXQGLQJ�ZRXOG�DOORZ�H[SDQVLRQ�RI�VHUYLFHV�

Federal funding for the arts and related activities)HGHUDO�IXQGLQJ�LV�D�PDMRU�VRXUFH�RI�UHVRXUFHV�IRU�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�HQJDJHG�LQ�WKH�DUWV��Increased government expenditure in

Executive Summary

&KDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�PD\�QRW�VRXQG�OLNH�ELJ�EXVLQHVV�LQ�$XVWUDOLD��KRZHYHU�WKH�LQGXVWU\�HPSOR\V�RYHU�RQH�PLOOLRQ�ZRUNHUV�RQ�D�SDLG�EDVLV��and revenue is expected to increase by

�����LQ���������WR�UHDFK������ELOOLRQ��2YHU�WKH�SDVW�¿YH�\HDUV��LQGXVWU\�UHYHQXH�KDV�LQFUHDVHG�E\�DQ�DYHUDJH�RI������SHU�\HDU��DQG�RQO\�IHOO�EULHÀ\�GXULQJ���������ZKHQ�SULYDWH�DQG�EXVLQHVV�GRQRUV�FXW�EDFN�DPLG�XQFHUWDLQ�HFRQRPLF�FRQGLWLRQV�7KH�VL]H�RI�WKH�LQGXVWU\�LV�ODUJHO\�GXH�

to the huge array of products and

VHUYLFHV�WKDW�$XVWUDOLDQ�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�GHOLYHU��7KHVH�UDQJH�IURP�RSHUDWLQJ�KRVSLWDOV��DUWV�RUJDQLVDWLRQV��VFKRROV�DQG�FKXUFKHV��DOO�WKH�ZD\�GRZQ�WR�

grassroots fundraising and community

FDXVHV��*RYHUQPHQW�JUDQWV�DQG�IXQGLQJ�DUH�D�FUXFLDO�IRUP�RI�LQFRPH�IRU�WKH�LQGXVWU\��ZLWK�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�URXWLQHO\�SDUWQHULQJ�ZLWK�government departments to provide

VHUYLFHV�WR�WKH�FRPPXQLW\�The future for the industry remains

EULJKW��ZLWK�ORQJ�WHUP�JRYHUQPHQW�JUDQWV�DQG�VHUYLFH�SURYLVLRQ�FRQWUDFWV�NHHSLQJ�UHYHQXH�YRODWLOLW\�GRZQ��,QGXVWU\�UHYHQXH�is expected to increase by an average of

�����SHU�\HDU�LQ�WKH�QH[W�¿YH�\HDUV��WR�UHDFK������ELOOLRQ�LQ����������7KH�HVVHQWLDO�VHUYLFHV�SURYLGHG�E\�WKH�LQGXVWU\�ZLOO�FRQWLQXH�WR�EH�GHOLYHUHG�E\�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��PDQ\�RI�ZKLFK�DUH�KLJKO\�H[SHULHQFHG�DQG�HI¿FLHQW�

Industry PerformanceExecutive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage

Page 6: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 6

Industry Performance

Effect of the financial crisis

,Q�ODWH�������SUREOHPV�LQ�WKH�8QLWHG�6WDWHV¶�¿QDQFLDO�VHFWRU�FUHDWHG�D�ULSSOH�HIIHFW�WKDW�VDQN�PRVW�RI�WKH�ZRUOG¶V�ZHDOWK\�QDWLRQV�LQWR�UHFHVVLRQ�E\�������:KLOH�$XVWUDOLD�PDQDJHG�WR�QDUURZO\�DYRLG�WKH�VDPH�IDWH�WKDQNV�WR�HDUO\�JRYHUQPHQW�VWLPXOXV�VSHQGLQJ�DQG�WKH�VWUHQJWK�RI�WKH�UHVRXUFHV�LQGXVWULHV��WKH�XQHPSOR\PHQW�UDWH�URVH��DQG�FRQVXPHU�DQG�EXVLQHVV�FRQ¿GHQFH�IHOO��7KLV�FUHDWHG�D�YHU\�FKDOOHQJLQJ�IXQGUDLVLQJ�environment for charities and non-

JRYHUQPHQW�RUJDQLVDWLRQV��1*2V���ZLWK�some private donors and businesses

VHHLQJ�SKLODQWKURSLF�DFWLYLWLHV�DV�D�OX[XU\�VSHQG�GXULQJ�WKH�JRRG�WLPHV��,Q�DGGLWLRQ�to greater strain on charities

GRPHVWLFDOO\��PDMRU�QDWXUDO�GLVDVWHUV�LQ�+DLWL��3DNLVWDQ�DQG�&KLQD�RFFXUUHG�GXULQJ�WKLV�WLPH��ZKLFK�1*2V�UHVSRQGHG�WR�ZLWK�IXQGLQJ�DQG�UHVRXUFHV��

:KLOH�PDQ\�KXPDQLWDULDQ�FKDULWLHV�VDZ�UHYHQXH�OHYHOV�ULVH�VLJQL¿FDQWO\�GXH�WR�WKHVH�GLVDVWHUV��RWKHUV�ZHUH�VWLOO�DIIHFWHG��7KH�$72�UHSRUWHG�WKDW�WKHUH�ZDV�D�������GURS�LQ�LQGLYLGXDO�FODLPV�IRU�GHGXFWLEOH�JLIWV�LQ���������WR������ELOOLRQ��7KLV�ZDV�PRVWO\�GXH�WR�GRQDWLRQV�PDGH�E\�ZHDOWKLHU�SHRSOH�EHLQJ�VLJQL¿FDQWO\�UHGXFHG��'XULQJ�WKLV�WLPH�GURSV�LQ�investment income and corporate

IXQGLQJ�DOVR�IXUWKHUHG�D�GHFOLQH�LQ�UHYHQXH�OHYHOV�DFFRUGLQJ�WR�7KH�&HQWUH�IRU�&RUSRUDWH�3XEOLF�$IIDLUV��+RZHYHU��WKH�WLPHV�RI�GLI¿FXOW\�DOVR�GUHZ�JUHDWHU�HPSDWK\�IURP�PRUH�SHRSOH��ZLWK�WKH�QXPEHU�RI�FODLPV�PDGH�LQFUHDVLQJ�E\������WR�������RI�$XVWUDOLDQ�WD[SD\HUV��SDUWLFXODUO\�GXH�WR�WKH�9LFWRULDQ�%XVK¿UHV�GXULQJ���������7KH�SURYLVLRQ�RI�FRPPXQLW\�OHYHO�

HVVHQWLDO�VHUYLFHV�VXFK�DV�HGXFDWLRQ��

Current Performance

7KH�&KDULWLHV�DQG�1RW�IRU�3UR¿W�Organisations industry can be seen as the

JOXH�WKDW�KROGV�$XVWUDOLDQ�FRPPXQLWLHV�WRJHWKHU��5RXWLQHO\�SHUIRUPLQJ�YDOXDEOH�ZRUN�LQ�DUHDV�RI�OLWWOH�DSSHDO�WR�SUR¿W�PDNLQJ�HQWHUSULVHV��FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WHQG�WR�FRPSOHPHQW�WKH�ZRUN�RI�WKH�SXEOLF�VHFWRU�WRZDUGV�FUHDWLQJ�D�GLJQL¿HG�DQG�FRPSDVVLRQDWH�VRFLHW\��7KH�VL]H�RI�WKH�LQGXVWU\�LV�WUXO\�ODUJH��ZLWK�UHYHQXH�H[SHFWHG�WR�EH�LQ�WKH�RUGHU�RI������ELOOLRQ�LQ����������DQ�LQFUHDVH�RI������RYHU�WKH�SUHYLRXV�\HDU��'HVSLWH�HQGXULQJ�D�FKDOOHQJLQJ�IHZ�\HDUV�GXH�WR�WKH�JOREDO�¿QDQFLDO�FULVLV��industry revenue has increased by an

DYHUDJH�RI������SHU�DQQXP�GXULQJ�WKH�¿YH�\HDUV�WKURXJK���������

:KLOH�WKH�LQGXVWU\�GRHV�QRW�PDNH�SUR¿W�E\�GH¿QLWLRQ��LW�LV�TXLWH�FRPPRQ�IRU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�organisations to have more funds in their

accounts at the end of a year than at the

EHJLQQLQJ��5HFHQW�HFRQRPLF�WXUEXOHQFH�KDV�XQGHUOLQHG�WKH�QHHG�IRU�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�WR�SRVVHVV�VXI¿FLHQW�IXQGLQJ�UHVHUYHV�WR�EH�DEOH�WR�DGHTXDWHO\�respond to needs during times of

KDUGVKLS�LQ�WKH�FRPPXQLW\��RIWHQ�LQ�DQ�HQYLURQPHQW�RI�IDOOLQJ�OHYHOV�RI�LQFRPLQJ�IXQGV��:KDW�FRQVWLWXWHV�DQ�DGHTXDWH�OHYHO�RI�UHVHUYHV�YDULHV�JUHDWO\��GHSHQGLQJ�RQ�WKH�OLQH�RI�ZRUN�WKDW�D�FKDULW\�RU�QRW�IRU�SUR¿W�RUJDQLVDWLRQ�LV�HQJDJHG�LQ��LWV�FRVW�VWUXFWXUH��VL]H��DQG�KRZ�YDULDEOH�LWV�LQFRPH�VWUHDPV�DUH�

Key External Driverscontinued

WKLV�DUHD�HQDEOHV�WKHVH�RUJDQLVDWLRQV�WR�SURYLGH�PRUH�H[WHQVLYH�VHUYLFHV�

State funding for health services6WDWH�JRYHUQPHQWV�DUH�D�VLJQL¿FDQW�VRXUFH�RI�IXQGLQJ�IRU�FRPPXQLW\�OHYHO�KHDOWK�VHUYLFHV��ZKLFK�DUH�RIWHQ�SURYLGHG�E\�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�

Natural disasters1DWXUDO�GLVDVWHUV�FDQ�KDYH�D�PDMRU�VKRUW�term effect on the demand for charity and

QRW�IRU�SUR¿W�VHUYLFHV��'HSHQGLQJ�RQ�WKH�W\SH�DQG�ORFDWLRQ�RI�D�QDWXUDO�GLVDVWHU��SXEOLF�DSSHDOV�FDQ�EH�ODXQFKHG�E\�ZHOIDUH�RU�DLG�RUJDQLVDWLRQV�WR�REWDLQ�DGGLWLRQDO�IXQGV�ZLWK�ZKLFK�WR�UHVSRQG�

Page 7: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 7

Industry Performance

Effect of the financial crisiscontinued

KHDOWKFDUH�DQG�KRVSLWDOV�ZDV�UHODWLYHO\�XQDIIHFWHG�E\�WKH�JOREDO�¿QDQFLDO�FULVLV��ZLWK�GHPDQG�QRW�IDOWHULQJ��:KLOH�¿QDQFLDO�hardship reduced the capacity of some

SHRSOH�WR�SXUFKDVH�WKHVH�VHUYLFHV��H[WHQVLYH�JRYHUQPHQW�IXQGLQJ�RI�HVVHQWLDO�segments such as these ensured that these

VHUYLFHV�UHPDLQHG�DFFHVVLEOH�WR�WKH�YDVW�PDMRULW\�RI�$XVWUDOLDQV��1RW�IRU�SUR¿W�RUJDQLVDWLRQV�RIIHULQJ�VHUYLFHV�LQ�UHODWLYHO\�PRUH�GLVFUHWLRQDU\�¿HOGV��VXFK�DV�DUWV�DQG�VSRUW��ZHUH�PRUH�YXOQHUDEOH�WR�D�IDOO�LQ�SDWURQDJH��EXW�VHUYLFHV�VXFK�DV�NLG¶V�VSRUW�remained in strong demand even as

$XVWUDOLD¶V�HFRQRP\�ZREEOHG�GXULQJ����������'HPRQVWUDWLQJ�WKLV��WKH�$XVWUDOLD�%XVLQHVV�$UWV�)RXQGDWLRQ�IRXQG�that a decrease in corporate support for

WKHLU�DFWLYLWLHV�RFFXUUHG�LQ������7KLV�¿QDQFLDO�VWUDLQ�KDV�IRUFHG�JUHDWHU�

VWUXFWXUDO�DQG�VWUDWHJLF�FKDQJH�ERGLQJ�ZHOO�IRU�WKH�ORQJ�WHUP��EXW�KDV�VWLOO�OHIW�WKH�LQGXVWU\�ZRUVH�RII�¿QDQFLDOO\��,Q�SDUWLFXODU��PLG�VL]H�¿UPV�KDYH�EHHQ�VWUXJJOLQJ�LQ�D�QHZ�HQYLURQPHQW�ZKHUH�JUHDWHU�IUXJDOLW\�DIWHU�WKH�¿QDQFLDO�FULVLV�FRPELQHG�ZLWK�FKDQJLQJ�UHJXODWLRQV�DQG�

JUHDWHU�GHPDQGV�IRU�DFFRXQWDELOLW\�DQG�WUDQVSDUHQF\�DUH�SODFLQJ�JUHDWHU�VWUDLQ�RQ�WKHLU�UHVRXUFHV��(QWHUSULVH�JURZWK�VWDJQDWHG�WHPSRUDULO\��DQG�KDV�RQO\�GXULQJ���������VWDUWHG�WR�PRYH�LQ�D�SRVLWLYH�GLUHFWLRQ��,Q�D�FRPPHUFLDO�HQYLURQPHQW��WKLV�ZRXOG�QRUPDOO\�OHDG�WR�D�JUHDWHU�RFFXUUHQFH�RI�PHUJHUV�DQG�DFTXLVLWLRQV��KRZHYHU�GXH�WR�WKH�QLFKH��LGHRORJLFDO�QDWXUH�RI�¿UPV�LQ�WKH�LQGXVWU\��WKHVH�FLUFXPVWDQFHV�KDYH�VHHQ�VRPH�¿UPV�EHLQJ�IRUFHG�WR�VKXW�GRZQ�HQWLUHO\�

The resumption of stronger economic

FRQGLWLRQV�LQ�$XVWUDOLD�GXULQJ���������KDV�VHUYHG�WR�EULQJ�JUHDWHU�VWDELOLW\�DQG�FRQ¿GHQFH�WR�GRQRUV��JRYHUQPHQW�budgets and the Charities and Not-for-

3UR¿W�2UJDQLVDWLRQV�LQGXVWU\�

New avenues to attracting donor dollars

7HFKQRORJ\�FKDQJHV�DQG�LQGXVWU\�FRPSHWLWLRQ�KDV�KDG�VLJQL¿FDQW�HIIHFWV�on the industry through changing

SHUFHSWLRQV�RI�KRZ�FKDULWLHV�DQG�1RW�)RU�3UR¿WV�VKRXOG�ZRUN��)RU�LQVWDQFH��ZKLOH�LW�VWDUWHG�DV�D�35�DQG�PDUNHWLQJ�H[HUFLVH��WKH�FRPSHWLWLRQ�DPRQJVW�¿UPV�in the industry has forced them to

GLVSOD\�JUHDWHU�DFFRXQWDELOLW\�DQG�transparency in order to attract

SRWHQWLDO�GRQDWLRQV�IURP�LQGLYLGXDOV��EXVLQHVV�DQG�WKH�JRYHUQPHQW��)DLOLQJ�WR�GLVSOD\�WKHVH�FKDUDFWHULVWLFV�LV�QRZ�OLNHO\�WR�VKHG�WKH�¿UP�LQ�D�QHJDWLYH�OLJKW�DQG�DURXVH�VXVSLFLRQ��7KXV��DQQXDO�UHSRUWV�IRU�WKHVH�RUJDQLVDWLRQV�DUH�QRZ�FRPPRQSODFH��$W�WKLV�VWDJH�FKDULWLHV�DUH�VWLOO�VWUXJJOLQJ�WR�FRPPXQLFDWH�WKLV�PHVVDJH��ZLWK�WKH�&KDULWLHV�$LG�)RXQGDWLRQ�$XVWUDOLD�¿QGLQJ�WKDW�����RI�GRQRUV�GR�QRW�EHOLHYH�WKDW�FKDULWLHV�

FRPPXQLFDWH�ZHOO�DERXW�KRZ�WKHLU�GRQDWLRQV�DUH�XVHG��+RZHYHU��WKLV�WUHQG�has the danger of removing the

HPRWLRQDO�DSSHDO�RI�WKHVH�RUJDQLVDWLRQV�ZKLFK�WKH\�DOO�XOWLPDWHO\�GHSHQG�RQ�WR�DWWUDFW�PRQH\�LQ�WKH�¿UVW�SODFH�7HFKQRORJLFDO�FKDQJHV�KDYH�DOVR�

fostered revision of fundraising methods

E\�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\��)LQDQFLDOO\��WKH�LQGXVWU\�IXUWKHU�H[SHFWV�QHZ�¿QDQFLDO�LQVWUXPHQWV�VXFK�DV�GHEW�DQG�HTXLW\�WR�EH�XWLOLVHG�WRZDUGV�UHYHQXH�UDLVLQJ��0RELOH�DSSOLFDWLRQV�DUH�QRZ�HDVLO\�DFFHVVLEOH�DQG�DUH�DEOH�WR�SURYLGH�DZDUHQHVV�WRZDUGV�YDULRXV�causes and further the aims of various

LQGXVWU\�RUJDQLVDWLRQV��SDUWLFXODUO\�KHDOWK�IRFXVHG�1)3V��'RQDWLRQV�YLD�DSSOLFDWLRQV�DQG�WH[WLQJ��DOUHDG\�RFFXUULQJ�LQ�WKH�8QLWHG�6WDWHV��LV�EHLQJ�ORRNHG�LQWR�LQ�$XVWUDOLD�FXUUHQWO\�

'HPDQG�IRU�VHUYLFHV�LQFUHDVHG�GXULQJ�WKH�JOREDO�¿QDQFLDO�FULVLV��HYHQ�DV�UHYHQXH�IURP�GRQDWLRQV�IHOO

Page 8: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 8

Industry Performance

International context 5HJXODUO\��FRPSDULVRQV�LQ�WKH�PHGLD�DUH�PDGH�EHWZHHQ�$XVWUDOLD�DQG�RWKHU�GHYHORSHG�FRXQWULHV�LQ�WHUPV�RI�JRYHUQPHQW�DLG�EXGJHWV��JRYHUQPHQW�FRPPXQLW\�IXQGLQJ�RU�WKH�OHYHO�RI�SULYDWH�FKDULWDEOH�JLYLQJ��6XFK�FRPSDULVRQV�FDQ�EH�PLVOHDGLQJ��EHFDXVH�WKH\�W\SLFDOO\�ORRN�RQO\�DW�RQH�SDUW�RI�WKH�SLFWXUH��0DQ\�RI�(XURSH¶V�QDWLRQV�DUH�KLJKHU�WD[HG�WKDQ�$XVWUDOLD��DQG�DV�D�UHVXOW�KDYH�ODUJHU�JRYHUQPHQW�EXGJHWV�WR�GHGLFDWH�WR�GRPHVWLF�ZHOIDUH�SURYLVLRQ�DQG�IRUHLJQ�DLG��$V�D�UHVXOW��1*2V�RIWHQ�SOD\�VPDOOHU�UROHV��2WKHU�ZHDOWK\�QDWLRQV�VXFK�DV�-DSDQ�DQG�WKH�8QLWHG�6WDWHV�DUH�ORZHU�WD[HG��DQG�PRUH�RI�WKH�DLG�DQG�ZHOIDUH�IXQFWLRQV�IDOO�WR�FRPPXQLWLHV�DQG�1*2V�WR�XQGHUWDNH��$XVWUDOLD�IDOOV�EHWZHHQ�WKHVH�WZR�VW\OHV��ZLWK�D�UREXVW�1*2�segment accompanying a government

WKDW�LV�PRGHUDWHO\�DFWLYH�LQ�GRPHVWLF�VRFLDO�ZHOIDUH�DQG�LV�UDPSLQJ�XS�LWV�foreign aid spend to reach a target of

�����RI�QDWLRQDO�LQFRPH��$V�RI�������2UJDQLVDWLRQ�IRU�(FRQRPLF�&RRSHUDWLRQ�

DQG�'HYHORSPHQW��2(&'��GDWD�IRU�LQWHUQDWLRQDO�DLG�GRQDWHG�E\�JRYHUQPHQWV�UHYHDOHG�WKDW�6ZHGHQ�DQG�1RUZD\�VSHQW�RYHU������RI�WKHLU�QDWLRQDO�LQFRPH��ZKLOH�$XVWUDOLD¶V�FRUUHVSRQGLQJ�¿JXUH�ZDV�������-DSDQ�DQG�WKH�8QLWHG�6WDWHV�ZHUH�DW������HDFK�7R�SODFH�WKLV�LQ�FRQWH[W��D������

UHSRUW�E\�WKH�&KDULWLHV�$LG�)RXQGDWLRQ��&$)��IRXQG�WKDW�$XVWUDOLD�DQG�1HZ�=HDODQG�ZHUH�WKH�PRVW�JLYLQJ�QDWLRQV�LQ�WKH�ZRUOG��PHDVXUHG�E\�WKH�DYHUDJH�SUHYDOHQFH�RI�JLYLQJ�PRQH\��JLYLQJ�WLPH�DQG�KHOSLQJ�D�VWUDQJHU��7KH�&$)�UHSRUW�IRXQG�WKDW�����RI�$XVWUDOLDQV�YROXQWHHU�WKHLU�WLPH��DOPRVW�GRXEOH�WKH�¿JXUH�IRU�'HQPDUN��ZKRVH�JRYHUQPHQW�DLG�SURJUDP�LV�WKUHH�WLPHV�ODUJHU�WKDQ�$XVWUDOLD¶V�DV�D�VKDUH�RI�QDWLRQDO�LQFRPH��$V�WKLV�VXJJHVWV��SULYDWH�JLYLQJ�WR�FDXVHV�LV�UHODWLYHO\�FRPPRQ�DQG�ZHOO�GHYHORSHG�LQ�$XVWUDOLD��7KLV�FXOWXUDO�QRUP�RI�SHUVRQDO�JLYLQJ�QHHGV�WR�EH�NHSW�LQ�PLQG�ZKHQ�DVVHVVLQJ�WKH�H[WHQW�WR�ZKLFK�WKH�$XVWUDOLDQ�*RYHUQPHQW�LV�LQYROYHG�LQ�WKH�VDPH�VSKHUH�

Staffed by all walks of life

$������VWXG\�E\�WKH�$XVWUDOLDQ�,QVWLWXWH�RI�&RPSDQ\�'LUHFWRUV��'LUHFWRUV�6RFLDO�,PSDFW�6WXG\��IRXQG�WKDW�RYHU�����RI�WKH�������GLUHFWRUV�VXUYH\HG�VHUYH�RQ�D�QRW�IRU�SUR¿W�ERDUG��ZKLFK�VXJJHVWV�D�GHHSO\�HQWUHQFKHG�FRUSRUDWH�FXOWXUH�RI�GRQDWLQJ�KLJK�OHYHO�EXVLQHVV�DQG�strategic expertise to the Charities and

1RW�IRU�3UR¿W�2UJDQLVDWLRQV�LQGXVWU\��7KH�DYDLODELOLW\�RI�VNLOOHG�DQG�experienced oversight to the industry is

important for setting out and achieving

the mission statements of charities and

QRW�IRU�SUR¿W�RUJDQLVDWLRQV��'DWD�IURP�WKH�$%6�VXSSRUWV�WKLV�SRLQW��ZLWK�YROXQWHHU�UDWHV�RFFXUULQJ�DW�KLJKHU�OHYHOV�amongst those of higher socio-economic

VWDWXV��DV�ZHOO�DV�WKRVH�ZKR�KROG�

PDQDJHULDO�RU�SURIHVVLRQDO�SRVLWLRQV�$W�WKH�RWKHU�HQG�RI�WKH�VFDOH��SHRSOH�

IURP�OHVV�ORIW\�EDFNJURXQGV�FDUU\�RXW�WKH�YDVW�PDMRULW\�RI�WKH�ZRUN�RI�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��,Q�DGGLWLRQ�WR�WKH�ZRUNIRUFH�IRUPDOO\�HPSOR\HG�E\�WKH�LQGXVWU\������PLOOLRQ�SHRSOH�YROXQWHHUHG�D�WRWDO�RI�����PLOOLRQ�KRXUV�RI�ODERXU�IRU�QRQ�SUR¿W�RUJDQLVDWLRQV�RI�DOO�W\SHV�LQ�������7KLV�QXPEHU�LQFUHDVHG�E\�������WR�����PLOOLRQ�LQ�������7KH�SUHVHQFH�RI�WKLV�KXJH�SRRO�RI�IUHH�ODERXU�YDVWO\�LQFUHDVHV�WKH�DPRXQW�RI�RXWSXW�WKDW�DQ�RUJDQLVDWLRQ�FDQ�SURGXFH�ZLWK�D�JLYHQ�DPRXQW�RI�IXQGLQJ��7KH�LQGXVWU\�HPSOR\V�DQ�HVWLPDWHG������PLOOLRQ�SDLG�ZRUNHUV��ZLWK�ZDJHV�DYHUDJLQJ�MXVW�XQGHU���������SHU�HPSOR\HH�

Page 9: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 9

Industry Performance

Industry Outlook

'XH�LQ�SDUW�WR�PDQ\�RI�WKH�LQGXVWU\¶V�ODUJHVW�SOD\HUV�KDYLQJ�ORQJ�WHUP�VHUYLFH�SURYLVLRQ�FRQWUDFWV�ZLWK�YDULRXV�OHYHOV�RI�JRYHUQPHQW��WKH�IXWXUH�LV�ORRNLQJ�EULJKW�IRU�WKH�LQGXVWU\��,W�LV�XQFRPPRQ�IRU�JRYHUQPHQWV�WR�UH�FHQWUDOLVH�RXWVRXUFHG�IXQFWLRQV�EDFN�XQGHU�WKHLU�GLUHFW�FRQWURO��VR�SXEOLF�EHQH¿W�VHUYLFHV�WKDW�DUH�FXUUHQWO\�being provided by organisations in the

LQGXVWU\�DUH�OLNHO\�WR�UHPDLQ�QRQ�JRYHUQPHQW��2YHU�WKH�¿YH�\HDUV�WKURXJK����������LQGXVWU\�UHYHQXH�LV�IRUHFDVW�WR�LQFUHDVH�E\������SHU�\HDU�WR�UHDFK������ELOOLRQ�E\�WKH�HQG�RI�WKH�SHULRG�*URZWK�LQ�WKH�LQGXVWU\�ZLOO�EH�

underpinned by demographic and

HFRQRPLF�IXQGDPHQWDOV�VXFK�DV�WKH�DJHLQJ�RI�WKH�SRSXODWLRQ�DQG�WKH�UHFRYHU\�RI�WKH�HFRQRP\��$XVWUDOLD¶V�HFRQRP\�KDV�QHJRWLDWHG�WKH�JOREDO�¿QDQFLDO�FULVLV�ZLWKRXW�IDOOLQJ�LQWR�WHFKQLFDO�UHFHVVLRQ��7KH�IRUHFDVW�VPRRWKHU�JURZWK�FRQGLWLRQV�RYHU�WKH�QH[W�¿YH�\HDUV�DUH�H[SHFWHG�WR�PDNH�LW�HDVLHU�IRU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WR�EXGJHW�WKHLU�¿QDQFLDO�DQG�KXPDQ�UHVRXUFHV�LQ�RUGHU�WR�RSHUDWH�HI¿FLHQWO\�DQG�HIIHFWLYHO\�

$V�WKH�RUJDQLVDWLRQV�FDYH�WR�SUHVVXUH�WR�EHFRPH�PRUH�HI¿FLHQW��XWLOLVH�PRUH�EXVLQHVV�SUDFWLVHV�DQG�XOWLPDWHO\�EHFRPH�PRUH�EXVLQHVV�VDYY\��PRUH�RUJDQLVDWLRQV�ZLOO�HQG�HDFK�\HDU�ZLWK�JUHDWHU�DPRXQWV�RI�UHVHUYH�IXQGV��DQG�WKXV�EHFRPH�PRUH�µSUR¿WDEOH¶��+RZHYHU��VLQFH�WKH�LQGXVWU\�VWLOO�UHOLHV�KHDYLO\�RQ�JRYHUQPHQW�JUDQWV��RUJDQLVDWLRQV�ZLOO�EH�XQDEOH�WR�PRYH�outside of the industry and become

VHOI�UHOLDQW�RYHU�WKH�QH[W�¿YH�\HDUV�

The role of government

With government funding representing

over a third of the industry’s source of

LQFRPH��WKH�SROLF\�EHKDYLRXU�RI�JRYHUQPHQWV�LV�RI�GLVWLQFW�UHOHYDQFH�WR�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��:KLOH�VKLIWV�LQ�WKH�VWDWH�SROLWLFDO�ODQGVFDSH�DURXQG�$XVWUDOLD�DOUHDG\�VWDUWHG�WR�RFFXU�LQ����������WKH�UHFHQW�QDUURZ�YLFWRU\�E\�WKH�)HGHUDO�*LOODUG�*RYHUQPHQW�LV�OLNHO\�WR�EULQJ�D�GHJUHH�RI�VWDELOLW\�WR�IHGHUDO�IXQGLQJ�DUUDQJHPHQWV��7KRXJK�WKH�PLQRULW\�)HGHUDO�*RYHUQPHQW�PD\�QRW�HDVLO\�SDVV�FRQWHQWLRXV�OHJLVODWLRQ��WKH�W\SHV�RI�VHUYLFHV�W\SLFDOO\�SURYLGHG�E\�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�DUH�QRW�LQ�WKH�IRUHJURXQG�RI�WKLV��$�QRWDEOH�H[FHSWLRQ�LV�WKH�SURSRVHG�KRVSLWDO�UHIRUPV��ZKLFK�LQYROYH�FHQWUDOLVLQJ�UHVSRQVLELOLW\�IRU�KRVSLWDOV�IURP�VWDWH�JRYHUQPHQWV�WR�&DQEHUUD��7KH�HIIHFW�RQ�QRW�IRU�SUR¿W�RSHUDWRUV�RI�KRVSLWDOV��VRPH�RI�ZKLFK�DUH�WKH�LQGXVWU\¶V�ODUJHVW�

FRPSDQLHV��ZLOO�GHSHQG�RQ�ZKHWKHU�WKH�FHQWUDOLVDWLRQ�RI�UHVSRQVLELOLW\�IRU�KRVSLWDOV�LV�DFFRPSDQLHG�E\�DOWHUDWLRQV�WR�IXQGLQJ�OHYHOV�7KH���������%XGJHW�KDV�QRQHWKHOHVV�

EURXJKW�VLJQL¿FDQW�UHIRUPV�WR�WKH�LQGXVWU\��ZLWK�DQ�LQWHQWLRQ�WR�VWUHDPOLQH��VLPSOLI\�DQG�HQKDQFH�WKH�UHJXODWLRQ�VXUURXQGLQJ�WKH�LQGXVWU\��6SHFL¿FDOO\��WKHVH�UHIRUPV�LQFOXGH�D�WD[�RQ�XQUHODWHG�FRPPHUFLDO�DFWLYLW\��DOUHDG\�LQ�SODFH�VLQFH�-XO\��������WKH�HVWDEOLVKPHQW�RI�D�QDWLRQDO�QRW�IRU�SUR¿W�UHJXODWRU�IRU�-XO\�������DQG�WKH�HVWDEOLVKPHQW�RI�D�IRUPDO�GH¿QLWLRQ�RI�WKH�ZRUG�µFKDULW\¶�LQ�$XVWUDOLDQ�ODZ�E\�-XO\������,Q�1RYHPEHU�������)RUHLJQ�0LQLVWHU�

.HYLQ�5XGG�DQQRXQFHG�WKH�¿UVW�IXOO�UHYLHZ�RI�$XVWUDOLD¶V�DLG�SURJUDP�LQ�¿YH�\HDUV��WR�EH�XQGHUWDNHQ�E\�DQ�LQGHSHQGHQW�SDQHO�LQ�������7KH�IRFXV�RI�WKH�UHYLHZ�ZDV�DLG�HIIHFWLYHQHVV��VSHFL¿FDOO\�LQ�WKH�DUHD�RI�SRYHUW\�

Page 10: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 10

Industry Performance

The role of governmentcontinued

DOOHYLDWLRQ��7KH�¿QGLQJV�RI�WKH�UHYLHZ�are expected to inform the

JRYHUQPHQW¶V�SROLFLHV�LQ�WKH�DUHD��7KH�UHYLHZ�FDQ�EH�VHHQ�DV�WLPHO\��LQ�WKH�VHQVH�WKDW�$XVWUDOLD¶V�DLG�EXGJHW�LV�H[SHFWHG�WR�GRXEOH�EHWZHHQ������DQG�������UHDFKLQJ������ELOOLRQ��7UHDVXU\�has advised the government that

VFDOLQJ�XS�H[LVWLQJ�DFWLYLWLHV�LV�XQOLNHO\�

WR�GHOLYHU�YDOXH�IRU�PRQH\��$V�RI�������DERXW������RI�WKH�JRYHUQPHQW¶V�DLG�SURJUDP�ZDV�GHOLYHUHG�YLD�1*2V�RQ�WKH�JURXQG��,I�WKLV�SHUFHQWDJH�LQFUHDVHV�GXULQJ�WKH�QH[W�¿YH�\HDUV��$XVWUDOLDQ�1*2V�ZLOO�KDYH�LQFHQWLYH�WR�H[SDQG�WKHLU�FDSDFLW\��LQ�WHUPV�RI�ERWK�NQRZOHGJH�DQG�UHVRXUFHV��WR�LPSOHPHQW�WKHVH�SURMHFWV�

Looking for bigger fish

7KH�UHFRJQLWLRQ�WKDW�EXVLQHVVHV�DUH�DEOH�WR�GRQDWH�ODUJHU�DPRXQWV�WKDQ�LQGLYLGXDOV�LV�EHLQJ�SLFNHG�XS�WKURXJKRXW�WKH�LQGXVWU\��ZLWK�VWURQJHU�competition emerging in the industry for

EXVLQHVV�VRXUFHG�GROODUV��3UHYLRXV�WR�WKH�JOREDO�¿QDQFLDO�FULVLV�FUDVK�LQ������DQG�������SULYDWH�GRQDWLRQV�WR�WKH�LQGXVWU\�ZHUH�SDUWLFXODUO\�KLJK��QHDUO\�GRXEOLQJ�IURP�SUHYLRXV�DPRXQWV�LQ������WKDQNV�SDUWO\�WR�EXVLQHVV�GRQDWLRQV��:KLOH�GRQDWLRQV�IURP�

EXVLQHVV�OHDGHUV�DQG�EXVLQHVVHV�WKHPVHOYHV�GURSSHG�VLJQL¿FDQWO\�GXULQJ�WKH�FULVLV��WKHVH�OHYHOV�KDYH�VWDUWHG�WR�UHFRYHU�LQ�OLQH�ZLWK�EXVLQHVV�FRQ¿GHQFH�1RWDEO\��WKH�PRVW�VXFFHVVIXO�OREE\LVWV�

IRU�EXVLQHVV�GRQDWLRQV�ZLOO�EH�ODUJHU�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\��7KHLU�HFRQRPLHV�RI�VFDOH�DQG�DELOLW\�WR�SUHVHQW�WKHLU�RUJDQLVDWLRQ�DV�DFFRXQWDEOH�DQG�WUDQVSDUHQW�ZLOO�DSSHDO�WR�D�EXVLQHVV�DXGLHQFH��ZKLOH�VPDOOHU�RUJDQLVDWLRQV�ZLOO�VWUXJJOH�WR�SUHVHQW�VXFK�DQ�LPDJH�

Expanding lines of work

%HLQJ�WKH�HQRUPRXVO\�GLYHUVH�LQGXVWU\�WKDW�LW�LV��WKH�&KDULWLHV�DQG�1RW�IRU�3UR¿W�Organisations industry contains areas that

DUH�XQGHUJRLQJ�VLJQL¿FDQW�JURZWK��7KLV�JURZWK�FDQ�EH�JHQHUDWHG�E\�DQ�RUJDQLF�expansion of demand for a product or

VHUYLFH��RU�E\�WKH�LQFUHDVLQJ�LQYROYHPHQW�RI�WKH�LQGXVWU\�LQ�D�VHUYLFH�WKDW�ZDV�SUHYLRXVO\�WKH�GRPDLQ�RI�JRYHUQPHQW��$Q�H[DPSOH�RI�WKH�ODWWHU�FDQ�EH�IRXQG�LQ�SXEOLF�KRXVLQJ��ZLWK�WKH�$XVWUDOLDQ�%XUHDX�RI�6WDWLVWLFV��$%6��IRUHFDVWLQJ�WKDW�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�ZLOO�RZQ�RU�PDQDJH�DERXW�����RI�$XVWUDOLD¶V�SXEOLF�KRXVLQJ�VWRFN�E\������$QRWKHU�DUHD�RI�QHHG�WKDW�LV�H[SHFWHG�WR�

FRQWLQXH�LWV�JURZWK�WUDMHFWRU\�LV�WKH�SURYLVLRQ�RI�VHUYLFHV�UHODWLQJ�WR�KHDOWK��7KH�DJHLQJ�RI�WKH�$XVWUDOLDQ�SRSXODWLRQ�LV�creating organic demand for services such

DV�SDOOLDWLYH�FDUH��QXUVLQJ�KRPHV��PHDOV�RQ�ZKHHOV�DQG�WUDQVSRUW��:LWK�WKH�)HGHUDO�*RYHUQPHQW�KDYLQJ�WR�VSHQG�D�FRQVLGHUDEOH�SRUWLRQ�RI�WKH�QH[W�¿YH�\HDUV�JHWWLQJ�LWV�EXGJHW�EDFN�LQWR�VXUSOXV��LW�LV�H[SHFWHG�WKDW�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�ZLOO�EH�JLYHQ�WKH�opportunity to tender for a range of

VHUYLFH�SURYLVLRQ�FRQWUDFWV��LQ�DGGLWLRQ�WR�SURYLGLQJ�YROXQWHHU�VXSSRUW�WR�WKH�HOGHUO\�(GXFDWLRQ�LV�DQRWKHU�¿HOG�IRU�SRWHQWLDO�

JURZWK��ZLWK�JUHDWHU�QXPEHUV�RI�$XVWUDOLDQ�IDPLOLHV�VHHNLQJ�WR�VHQG�WKHLU�FKLOGUHQ�WR�NLQGHUJDUWHQV�DQG�VFKRROV�RXWVLGH�RI�WKH�SXEOLF�HGXFDWLRQ�V\VWHP��1R�ORQJHU�WKH�GRPDLQ�RI�LQQHU�FLW\�HOLWHV��GHPDQG�IRU�LQGHSHQGHQW�VFKRROLQJ�LV�GHYHORSLQJ�RQ�XUEDQ�IULQJHV��FUHDWLQJ�RSSRUWXQLWLHV�IRU�QRW�IRU�SUR¿W�HGXFDWLRQ�VHUYLFHV�WR�EH�GHOLYHUHG�LQ�QHZ�DUHDV�

A culture of giving 7KH�QRWLRQ�RI�YROXQWHHULVP�LQ�$XVWUDOLD�LV�VWURQJ�E\�LQWHUQDWLRQDO�VWDQGDUGV�DQG�this is expected to remain the case for

WKH�IRUHVHHDEOH�IXWXUH��$%6�GDWD�IURP������VXJJHVWHG�WKDW�WKHUH�ZHUH�����PLOOLRQ�YROXQWHHUV�LQ�$XVWUDOLD��SURYLGLQJ�

Page 11: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 11

Industry Performance

A culture of givingcontinued

IUHH�ODERXU�WR�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��7KLV�QXPEHU�LV�H[SHFWHG�WR�JURZ�LQ�WKH�QH[W�IHZ�\HDUV��DOUHDG\�JURZLQJ�������IURP�������:KLOH�WKHVH�organisations may not be run in a

SUR¿W�PD[LPLVLQJ�PDQQHU��WKH�FDSDFLW\�WR�FDOO�XSRQ�YROXQWHHU�ODERXU�UHSUHVHQWV�D�PHDQLQJIXO�FRPSHWLWLYH�DGYDQWDJH�ZKHQ�SLWWHG�DJDLQVW�SURVSHFWLYH�corporate competitors for government

FRQWUDFWV�RU�VHUYLFH�SURYLVLRQ�7KH�QDWXUH�RI�$XVWUDOLDQ�FXOWXUH�

UHSUHVHQWV�D�FKDOOHQJH�IRU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�LQ�WHUPV�RI�IXWXUH�IXQGUDLVLQJ�FDSDFLW\��$������VWXG\�XQGHUWDNHQ�E\�WKH�$XVWUDOLDQ�&HQWUH�IRU�3KLODQWKURS\�DQG�1RQSUR¿W�6WXGLHV�VXJJHVWV�WKDW�WKH�WDOO�SRSS\�V\QGURPH�WKDW�KDV�SUHYDLOHG�LQ�$XVWUDOLD�IRU�PDQ\�GHFDGHV�PHDQV�WKDW�FKDULWDEOH�JLYLQJ�LV�RIWHQ�XQGHUWDNHQ�SULYDWHO\�E\�GRQRUV�DQG�

LV�QRW�D�WRSLF�RI�FRQYHUVDWLRQ�RU�RXWZDUG�SULGH��2QH�HIIHFW�RI�WKLV�LV�WKDW�SHHU�JURXS�EHKDYLRXU��RQH�RI�WKH�PDLQ�PRWLYDWRUV�IRU�DQ�LQGLYLGXDO¶V�DFWLRQ��PD\�QRW�LQGXFH�FKDULWDEOH�JLYLQJ�WR�WKH�H[WHQW�WKDW�LW�GRHV�LQ�RWKHU�QDWLRQV��2UJDQLVDWLRQV�LQ�WKH�LQGXVWU\�DUH�WKXV�IDFHG�ZLWK�WKH�WDVN�RI�increasing the prominence of

SKLODQWKURS\�DQG�FKDULWDEOH�JLYLQJ�LQ�$XVWUDOLDQ�FXOWXUH��%\�HQFRXUDJLQJ�GRQRUV�WR�GLVSOD\�HYLGHQFH�RI�WKHLU�JLYLQJ��DQG�GLVFXVV�LW�ZLWK�RWKHUV��LW�LV�H[SHFWHG�WKDW�QHZ�GRQRUV�ZLOO�FRPPHQFH�JLYLQJ��XQORFNLQJ�DGGLWLRQDO�IXQGV�IRU�WKH�LQGXVWU\��$�UHFHQWO\�SRSXODU�H[DPSOH�RI�WKLV�LV�WKH�FKDULW\�LQLWLDWLYH�0RYHPEHU��ZKLFK�DV�D�WRQJXH�LQ�FKHHN�DFWLRQ�HQFRXUDJHV�PHQ�WR�JURZ�PRXVWDFKHV�DQG�FRQVHTXHQWO\�DOORZV�SHRSOH�WR�GHPRQVWUDWH�WKHLU�ZHOIDUH�FRQFHUQV�WKURXJK�WKHLU�LQYROYHPHQW�

Page 12: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 12

Industry Performance,QGXVWU\�UHYHQXH�DQG�YDOXH�DGGHG�KDYH�RXWSDFHG�QDWLRQDO�*'3�JURZWK

)LVFDO�UHVWUDLQW�E\�JRYHUQPHQWV�LQ�WKH�ZDNH�RI�WKH�¿QDQFLDO�FULVLV�KDV�FUHDWHG�QHZ�RSSRUWXQLWLHV

(PSKDVLV�RQ�JRYHUQPHQW�SROLF\�FRQFHUQLQJ�QRQ�LQVWLWXWLRQDOLVHG�FDUH�ZLOO�GLUHFW�SXEOLF�IXQGLQJ�WR�WKH�LQGXVWU\

Life Cycle Stage

SOURCE: WWW.IBISWORLD.COM.AU

30

25

20

15

10

5

0

–5

–10–10 100 20–5 155 25 30

% G

row

th o

f pro

fi t/G

DP

% Growth of establishments

DeclineCrash or Grow?

Potential Hidden GemsFuture Industries

Quality GrowthHigh growth in economic importance; weaker companies close down; developed technology and markets

Time WastersHobby Industries

MaturityCompany consolidation;level of economic importance stable

Shake-out

Shake-out

Quantity GrowthMany new companies; minor growth in economic importance; substantial technology change

Key Features of a Growth Industry

Revenue grows faster than the economyMany new companies enter the marketRapid technology & process changeGrowing customer acceptance of productRapid introduction of products & brands

Education

Health Services

Welfare Services and Fundraising

Sport Organisations and Other Sports Services

Religious Organisations and Services

Charities & Not-for-Profi t Organisations

Page 13: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 13

Industry Performance

Industry Life Cycle With government budgets tight in the

ZDNH�RI�WKH�JOREDO�¿QDQFLDO�FULVLV��FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�DUH�SHUIRUPLQJ�LPSRUWDQW�UROHV�LQ�$XVWUDOLDQ�VRFLHW\��3RSXODWLRQ�JURZWK�DQG�DJHLQJ�DUH�SURYLQJ�WR�EH�VWURQJ�RUJDQLF�JURZWK�GULYHUV��7KH�)HGHUDO�*RYHUQPHQW¶V�GHFLVLRQ�WR�QRW�KHDYLO\�FXW�IXQGLQJ�LQ�PRVW�RI�WKH�LQGXVWU\¶V�VHJPHQWV�KDV�DOORZHG�RUJDQLVDWLRQV�WR�NHHS�PHHWLQJ�FRPPXQLW\�QHHGV��:LWK�WKH�QDWLRQDO�HFRQRP\�UHWXUQLQJ�WR�D�JURZWK�SDWWHUQ�LQ����������private donors are increasing their

FRQWULEXWLRQ�WR�LQGXVWU\�UHYHQXH�7KH�EURDGHU�$XVWUDOLDQ�WUHQG��ZKLFK�

KDV�SUHYDLOHG�RYHU�WKH�SDVW����\HDUV��LV�WRZDUGV�WKH�LQYROYHPHQW�RI�SULYDWH�VHFWRU�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�LQ�WKH�SURYLVLRQ�RI�VHUYLFHV�WKDW�ZHUH�WUDGLWLRQDOO\�WKH�GRPDLQ�RI�JRYHUQPHQW��7KLV�LQFOXGHV�IXQFWLRQV�DV�YDULHG�DV�URDG�EXLOGLQJ�DQG�XWLOLWLHV��EXW�LQ�DFWLYLWLHV�UHODWLQJ�WR�WKLV�LQGXVWU\��DQ�LQFUHDVLQJ�SHUFHQWDJH�RI�$XVWUDOLD¶V�VFKRRO�VWXGHQWV�DUH�RXWVLGH�RI�WKH�SXEOLF�VFKRRO�V\VWHP��PRUH�$XVWUDOLDQV�DUH�XVLQJ�SULYDWH�KHDOWK�insurance to be treated at private

KRVSLWDOV��DQG�WKH�)HGHUDO�*RYHUQPHQW�LV�in the process of increasing its foreign aid

EXGJHW�WR������RI�QDWLRQDO�LQFRPH�

This industry is Growing

Page 14: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 14

Products & Services ,Q�D�WHFKQLFDO�VHQVH��FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�LQ�$XVWUDOLD�DUJXDEO\�FRQVWLWXWH�DQ�RSHUDWLRQDO�PHWKRG�PRUH�WKDQ�DQ�LQGXVWU\��7KH�W\SHV�RI�SURGXFWV�and services offered by organisations in

WKH�LQGXVWU\�YDU\�LPPHQVHO\��UDQJLQJ�IURP�D�VDXVDJH�VL]]OH�WR�D�3K'��$XVWUDOLDQ�%XUHDX�RI�6WDWLVWLFV��$%6��GDWD�KDV�EHHQ�XVHG�WR�FODVVLI\�WKH�W\SHV�RI�SURGXFWV�DQG�VHUYLFHV�RIIHUHG�E\�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�LQWR�GLIIHUHQW�VHJPHQWV�1RW�IRU�SUR¿W�FXOWXUH�DQG�UHFUHDWLRQ�

RUJDQLVDWLRQV�LQFOXGH�KRVSLWDOLW\�FOXEV��VSRUWLQJ�RUJDQLVDWLRQV��SHUIRUPLQJ�DUWV�RUJDQLVDWLRQV��OLEUDULHV�DQG�PXVHXPV��7KLV�VHJPHQW�HPSOR\V�RYHU�����RI�WKH�LQGXVWU\¶V�ZRUNIRUFH�DQG�HDUQV�DERXW�KDOI�RI�LWV�UHYHQXH�IURP�WKH�SURYLVLRQ�RI�VHUYLFHV��)RU�HYHU\�HPSOR\HH�ZRUNLQJ�LQ�WKH�LQGXVWU\��WKHUH�DUH�DSSUR[LPDWHO\�¿YH�DGGLWLRQDO�YROXQWHHUV��ZLWK�ODERXU�costs constituting about one-third of the

VHJPHQW¶V�FRVW�VWUXFWXUH�(GXFDWLRQ�DQG�UHVHDUFK�LV�D�

SDUWLFXODUO\�ODERXU�LQWHQVLYH�VHJPHQW�RI�WKH�LQGXVWU\��HPSOR\LQJ�DOPRVW�����RI�WKH�LQGXVWU\¶V�ZRUNIRUFH�ZLWK�D�UDWLR�RI�DSSUR[LPDWHO\�RQH�YROXQWHHU�SHU�SDLG�ZRUNHU��2YHU�KDOI�RI�WKLV�VHJPHQW¶V�LQFRPH�LV�GHULYHG�IURP�ORFDO��VWDWH�DQG�IHGHUDO�IXQGLQJ��ZLWK�LQFRPH�IURP�VHUYLFHV�DFFRXQWLQJ�IRU�DQ�DGGLWLRQDO�WKLUG��,QFUHDVLQJ�DPRXQWV�RI�\RXQJ�$XVWUDOLDQV�LQ�QRQ�JRYHUQPHQW�VFKRROV�

KDYH�IXHOOHG�JURZWK��$ERXW�WZR�WKLUGV�RI�WKH�VHJPHQW¶V�H[SHQVHV�UHODWH�WR�ZDJHV�,Q�������WKHUH�ZHUH�DERXW�����QRW�IRU�

SUR¿W�KRVSLWDOV�LQ�$XVWUDOLD��HPSOR\LQJ������RI�WKH�LQGXVWU\¶V�ZRUNHUV��,Q�DGGLWLRQ��WKHUH�ZHUH�DERXW�����QRW�IRU�SUR¿W�KHDOWK�RUJDQLVDWLRQV��HPSOR\LQJ�����RI�WKH�LQGXVWU\¶V�ZRUNHUV��7KLV�VHJPHQW¶V�IXQGLQJ�LV�KHDYLO\�UHOLDQW�RQ�JRYHUQPHQW��ZKLFK�SURYLGHV�DERXW�WZR�WKLUGV�RI�UHYHQXH��'XH�WR�WKH�PRUH�GHPDQGLQJ�VNLOO�VHWV�RIWHQ�UHTXLUHG�WR�ZRUN�LQ�WKLV�VHJPHQW��WKHUH�DUH�UHODWLYHO\�IHZ�YROXQWHHUV�SHU�SDLG�ZRUNHU�7KH�VRFLDO�VHUYLFHV�VHJPHQW�RI�WKH�

LQGXVWU\�LQFOXGHV�\RXWK�DQG�IDPLO\�ZHOIDUH�VHUYLFHV��FKLOG�FDUH��VHUYLFHV�IRU�WKH�GLVDEOHG�DQG�HOGHUO\��H[FOXGLQJ�KLJK�FDUH�UHVLGHQWLDO�VHUYLFHV���UHIXJHH�DQG�KRPHOHVV�DVVLVWDQFH��HPHUJHQF\�DFFRPPRGDWLRQ�DQG�VKHOWHUV��7KH�VHJPHQW�HPSOR\V�DERXW�RQH�TXDUWHU�RI�WKH�LQGXVWU\¶V�ZRUNHUV��SUHGRPLQDQWO\�LQ�FDVXDO�RU�SDUW�WLPH�UROHV��,Q�DGGLWLRQ��WKHUH�LV�D�UDWLR�RI�DSSUR[LPDWHO\�RQH�YROXQWHHU�SHU�SDLG�ZRUNHU��7KLV�VHJPHQW�UHFHLYHV�DERXW�KDOI�RI�LWV�LQFRPH�IURP�JRYHUQPHQW��DQG�ODERXU�FRVWV�DFFRXQW�IRU�����RI�H[SHQVHV�2WKHU�NH\�LQGXVWU\�VHJPHQWV�LQFOXGH�

UHOLJLRQ��EXVLQHVV�DQG�SURIHVVLRQDO�DVVRFLDWLRQV�DQG�XQLRQV��DQG�organisations that provide

HQYLURQPHQW��GHYHORSPHQW��KRXVLQJ��HPSOR\PHQW��ODZ�DQG�SKLODQWKURSLF�

KEY BUYING INDUSTRIESM Government Administration and Defence

Charities and not-for-profit organisations may supply products and services to various levels of government, depending on their line of work.

Z9901 Consumers in Australia Private consumers purchase services provided by not-for-profit and charitable organisations, such as education, healthcare and cultural activities. In many instances, these services are provided to needy individuals free of charge.

KEY SELLING INDUSTRIESM Government Administration and Defence

Government grants and funding are a significant source of resources for charities and not-for-profit organisations.

Z Consumers Private donors give their money or volunteer time to charities and not-for-profit organisations.

Products & MarketsSupply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations

Supply Chain

Page 15: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 15

Products & Markets

DemandDeterminants

The industry provides services that are

RIWHQ�FRPSOHPHQWDU\�WR�ORFDO��VWDWH�DQG�IHGHUDO�JRYHUQPHQW��$V�D�UHVXOW��SUHYDLOLQJ�JRYHUQPHQW�SROLF\�DQG�IXQGLQJ�OHYHOV�LQ�any given year represent a big factor in

GHWHUPLQLQJ�LQGXVWU\�GHPDQG�,Q�DGGLWLRQ�WR�WKH�VFDOH�RI�WKH�

JRYHUQPHQW¶V�GLUHFW�LQYROYHPHQW�LQ�WKH�LQGXVWU\��LQGXVWU\�SDUWLFLSDQWV�LQ�KHDOWK�FDUH�DQG�KRVSLWDOV�FRXQW�SRSXODWLRQ�VL]H��DJHLQJ��QDWXUDO�GLVDVWHUV�DQG�HSLGHPLFV�DV�LPSRUWDQW�GHWHUPLQDQWV�RI�GHPDQG��(GXFDWLRQ�RUJDQLVDWLRQV��RQ�WKH�RWKHU�KDQG��DUH�PRUH�GLUHFWO\�LQÀXHQFHG�E\�WKH�ELUWK�UDWH��\HDU����UHWHQWLRQ�UDWHV�DQG�XQHPSOR\PHQW��&KDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�XQGHUWDNLQJ�ZHOIDUH�ZRUN�DUH�OLNHO\�WR�KDYH�WKHLU�GHPDQG�OHYHOV�LQÀXHQFHG�E\�WKH�XQHPSOR\PHQW�UDWH��GLYRUFH�UDWHV�DQG�EURDGHU�HFRQRPLF�JURZWK��$V�VHUYLFHV�SURYLGHG�E\�FKDULWLHV�DQG�QRW�IRU�SUR¿W�organisations are sometimes basic

versions of more-expensive services

SURYLGHG�E\�WKH�SULYDWH�VHFWRU��EURDGHU�VRFLHWDO�WUHQGV�KDYH�D�EHDULQJ�RQ�WKH�OHYHO�RI�GHPDQG�IRU�WKH�EDVLFV�

Unemployment crucial7KH�OHYHO�RI�GLUHFW�JRYHUQPHQW�LQFRPH�DQG�RWKHU�DVVLVWDQFH�SURYLGHG�WR�ORZ�LQFRPH�RU�GLVDGYDQWDJHG�KRXVHKROGV��H�J��XQHPSOR\PHQW��DJHG�SHQVLRQ��IDPLO\��SDUHQWDO��FKLOG�FDUH��GLVDELOLW\�DQG�GLVDELOLW\�FDUHU�EHQH¿W�SD\PHQWV�DQG�WD[�H[SHQGLWXUHV��FDQ�UHGXFH�WKH�QHHG�DPRQJ�VRPH�SHRSOH�IRU�WKLV�LQGXVWU\¶V�VHUYLFHV�+RXVHKROGV�ZLWK�ORZ�LQFRPHV�DUH�

PRUH�OLNHO\�WR�XVH�PRVW�ZHOIDUH�DQG�FRPPXQLW\�KHDOWK�VHUYLFHV��ZKLOH�KRXVHKROGV�ZLWK�KLJKHU�OHYHOV�RI�LQFRPH�DUH�PRUH�OLNHO\�WR�GRQDWH�FDVK��JRRGV�DQG�ODERXU�WR�ZHOIDUH�RUJDQLVDWLRQV��+RZHYHU��GRQDWLRQV�IURP�ZHDOWKLHU�KRXVHKROGV�WHQG�WR�EH�GLVWULEXWHG�DPRQJ�D�YDULHW\�RI�FDXVHV��LQFOXGLQJ�LQWHUQDWLRQDO�RQHV��PHDQLQJ�WKDW�DQ\�LQFUHDVH�LQ�LQFRPH�DQG�ZHDOWK�GLVSDULW\�LQ�$XVWUDOLD�LV�OLNHO\�WR�increase demand for industry services

DQG�SODFH�JUHDWHU�VWUDLQ�RQ�WKH�DELOLW\�WR�GHOLYHU�WKRVH�VHUYLFHV�7KH�LQFLGHQFH�RI�VLQJOH�SDUHQWV��

IDPLO\�EUHDNGRZQ��GRPHVWLF�YLROHQFH�DQG�UHVLGHQWLDO�SURSHUW\�HYLFWLRQ�DIIHFWV�

Products & Servicescontinued

VHUYLFHV��'XH�WR�WKH�XQXVXDOO\�EURDG�DUUD\�RI�LQGXVWU\�DFWLYLWLHV��WKH�remaining components of the industry’s

SURGXFWV�DQG�VHUYLFHV�GR�QRW�OHQG�WKHPVHOYHV�ZHOO�WR�IXUWKHU�

VHJPHQWDWLRQ��([DPSOHV�RI�RWKHU�DFWLYLWLHV�DQG�VHUYLFHV�XQGHUWDNHQ�E\�WKH�LQGXVWU\�LQFOXGH�FRRSHUDWLYH�VFKHPHV��PDQXIDFWXULQJ��ZKROHVDOLQJ��UHWDLOLQJ�DQG�RSHUDWLQJ�FHPHWHULHV�

Page 16: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 16

Products & Markets

Major Markets 7KH�PDUNHWV�IRU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�DUH�DOO�GH¿QHG�E\�LQWHUHVWV�WKDW�DUH�VHHQ�DV�FRPPHUFLDOO\�XQYLDEOH�DQG�ODFN�LQWHUHVW�IURP�JRYHUQPHQW�ERGLHV�EXW�QRQHWKHOHVV�LV�VHHQ�E\�D�VLJQL¿FDQW�DPRXQW�RI�SHRSOH�DV�DQ�LPSRUWDQW�SURGXFW�RU�VHUYLFH��$V�D�UHVXOW��WKH�LQGXVWU\�LV�GH¿QHG�PRUH�E\�LWV�EXVLQHVV�PRGHO�UDWKHU�WKDQ�LWV�WDUJHW�PDUNHW��DQG�WKXV�WKH�PDUNHW�LV�ZLGH�UDQJLQJ�LQ�QDWXUH�7KH�LQGXVWU\��KRZHYHU��LV�PRVW�RIWHQ�

DVVRFLDWHG�ZLWK�DVVLVWLQJ�WKRVH�GRZQWURGGHQ�LQ�WKH�FRPPXQLW\��,QLWLDWLYHV�WRZDUGV�WKHVH�LQWHUHVWV�PDNH�XS�������RI�DOO�LQGXVWU\�UHYHQXH�VSHQW��%UHDNLQJ�GRZQ�WKLV�VHFWRU�IXUWKHU��SHRSOH�VXIIHULQJ�IURP�SK\VLFDO�GLVDGYDQWDJHV�GUDZV�������RI�WRWDO�LQGXVWU\�UHYHQXH��7KHVH�SHRSOH�LQFOXGH�WKRVH�ZKR�UHTXLUH�DVVLVWDQFH�ZLWK�D�GLVDELOLW\�RU�PHQWDO�KHDOWK��DQG�VHUYLFHV�IRU�DJHG�DQG�HOGHUO\��3HRSOH�XQVDWLV¿HG�ZLWK�OLYLQJ�VWDQGDUG�VLWXDWLRQV�GUDZ�������RI�LQGXVWU\�UHYHQXH��DOORFDWLQJ�PRQH\�WRZDUGV�KRPHOHVVQHVV��HFRQRPLF�GHYHORSPHQW�LQLWLDWLYHV�RXWVLGH�RI�$XVWUDOLD��IRUHLJQ�DLG���DQG�MRE�WUDLQLQJ�SURJUDPV��3URJUDPV�IRFXVHG�WRZDUGV�LQGLYLGXDOV�GHDOLQJ�

ZLWK�WUDXPD�PDNH�XS�������RI�LQGXVWU\�UHYHQXH��7KHPHV�LQ�WKLV�DUHD�LQFOXGH�GRPHVWLF�YLROHQFH�DQG�VH[XDO�DVVDXOW�DVVLVWDQFH��DQG�DGGLFWLRQ��)LQDQFLDOO\�GLVDGYDQWDJHG�LQGLYLGXDOV�GUDZ�������RI�LQGXVWU\�UHYHQXH��SURYLGLQJ�PDQ\�VHUYLFHV�LQFOXGLQJ�VFKRODUVKLSV��VXEVLGLVHG�OHJDO�VHUYLFHV��DQG�¿QDQFLDO�VXSSRUW�VHUYLFHV�2XWVLGH�RI�WKHVH�FDXVHV��PRVW�RWKHU�

programs and organisations in the

industry target niche interests that are

QRW�DFKLHYDEOH�LQ�D�FRPPHUFLDO�

DemandDeterminantscontinued

GHPDQG�IRU�FRXQVHOOLQJ�VHUYLFHV��SXEOLF�housing and other crisis assistance

VHUYLFHV��,Q�DGGLWLRQ��WKH�H[WHQW�WR�ZKLFK�FDUHUV�RI�GLVDEOHG�SHRSOH�XVH�IRUPDO�UHVSLWH�DFFRPPRGDWLRQ�VHUYLFHV��ZKLFK�is affected by the cost of these services

�DIIHFWHG�E\�WKH�OHYHO�RI�JRYHUQPHQW�IXQGLQJ��LV�RI�FULWLFDO�LPSRUWDQFH��DQG�SHRSOH�DJHG�RYHU����\HDUV�DUH�PRUH�OLNHO\�WR�EH�GLVDEOHG�UHODWLYH�WR�\RXQJHU�SHRSOH��,Q�KRXVH�FDUHUV�RIWHQ�ZRUN�RQ�D�SDUW�WLPH�RU�YROXQWDU\�EDVLV�DQG�UHO\�RQ�RWKHU�LQGXVWU\�VHUYLFHV��VXFK�DV�PHDOV�RQ�ZKHHOV�

Voluntary work and government aid7KH�DYDLODELOLW\�DQG�ZLOOLQJQHVV�RI�IULHQGV�DQG�IDPLO\�WR�DVVLVW�WKRVH�ZKR�VXIIHU�PLVIRUWXQH�LV�RI�FULWLFDO�LPSRUWDQFH�WR�WKH�LQGXVWU\��0DQ\�GLVDEOHG�RU�PHQWDOO\�LOO�SDWLHQWV¶�SULPDU\�FDUHUV�DUH�VSRXVHV��

SDUHQWV�RU�FKLOGUHQ��DQG�WKH�OHYHO�RI�JRYHUQPHQW�VXSSRUW�IRU�LQIRUPDO�FDUHUV�KDV�D�PDUNHG�LPSDFW�RQ�WKH�DELOLW\�RI�WKHVH�SHRSOH�WR�IHDVLEO\�SHUIRUP�VXFK�D�IXQFWLRQ��DQG�FRQVHTXHQWO\�RQ�WKH�OHYHO�RI�GHPDQG�IRU�H[WHUQDO�KHDOWK��ZHOIDUH��KRXVLQJ�DQG�VRFLDO�DVVLVWDQFH��7KH�FRVW�RI�DWWDLQLQJ�FDUH�IRU�IULHQGV�RU�IDPLO\�LV�FULWLFDO�LQ�HVWDEOLVKLQJ�WKH�OHYHO�RI�GHPDQG�IRU�LQGXVWU\�VHUYLFHV��+RZHYHU��FRVW�LV�FORVHO\�OLQNHG�WR�WKH�OHYHO�RI�JRYHUQPHQW�DVVLVWDQFH��ZKLFK�RIWHQ�LQFUHDVHV�LI�WKH�GHPDQG�IRU�VHUYLFHV�JRHV�XS�

+RXVHKROGV�ZLWK�ORZ�LQFRPHV�DUH�PRUH�OLNHO\�WR�XVH�PRVW�ZHOIDUH�DQG�FRPPXQLW\�KHDOWK�VHUYLFHV

Social trends in Australia relating to Charities & NPOs, 2010-11Activity Percentage of Population

Used health services 80Religion affi liation 65Cultural venue use 41Welfare service use 29Sports club member 26School attendance 15.5TAFE attendance 8trade union member 8Attending university 4

SOURCE: IBISWORLD

Page 17: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 17

Products & Markets

International Trade With the majority of organisations in the

LQGXVWU\�IRFXVHG�RQ�FRPPXQLW\�OHYHO�ZRUN��LQWHUQDWLRQDO�LQWHUDFWLRQ�LQ�WKH�SURFHVV�RI�WKHLU�IXQGUDLVLQJ�RU�GHOLYHU\�RI�VHUYLFHV�LV�JHQHUDOO\�FRQ¿QHG�WR�WKH�ODUJHVW�RUJDQLVDWLRQV��DQG�WKRVH�LQYROYHG�LQ�LQWHUQDWLRQDO�DLG�DQG�GHYHORSPHQW�DFWLYLWLHV��0DMRU�DLG�GHVWLQDWLRQV�IURP�$XVWUDOLD�WHQG�WR�EH�WRZDUGV�HLWKHU�3DFL¿F�RU�(DVW�$VLDQ�FRXQWULHV��RU�PXOWLODWHUDO�RUJDQLVDWLRQV��:KLOH�$XVWUDOLD¶V�ODUJHVW�HGXFDWLRQDO�LQVWLWXWLRQV�DUH�PDLQO\�SXEOLF�RZQHG��VRPH�QRW�IRU�SUR¿W�LQVWLWXWLRQV�FDWHU�WR�LQWHUQDWLRQDO�VWXGHQWV��WKRXJK�service exports do not comprise a major

SDUW�RI�RYHUDOO�LQGXVWU\�UHYHQXH��'XH�WR�$XVWUDOLD�EHLQJ�D�ZHDOWK\�FRXQWU\�ZLWK�VWURQJ�GRPHVWLF�LQVWLWXWLRQV��WKH�FRXQWU\�GRHV�QRW�LPSRUW�DQ\�PHDQLQJIXO�DPRXQW�RI�DLG�RU�QRW�IRU�SUR¿W�VHUYLFHV�

What is important to note is that the

$XVWUDOLDQ�JRYHUQPHQW�KDV�FKRVHQ�WR�increase its foreign aid commitments to

�����RI�*1,�E\����������6LQFH�GXULQJ������WKHUH�KDV�EHHQ�D�GUDPDWLF�LQFUHDVH�LQ�$XV$,'¶V�JUDQWV�WR�WKH�LQGXVWU\��WKLV�ZLOO�EH�H[SHFWHG�WR�JUDQW�D�VWURQJ�UHYHQXH�ERRVW�WR�WKH�LQGXVWU\�RYHU�WKH�QH[W�VHYHUDO�\HDUV��UDLVLQJ�WKH�VWDWXUH�RI�LQWHUQDWLRQDOO\�IRFXVHG�FKDULWLHV�

Major Marketscontinued

IUDPHZRUN�VLQFH�WKH�JRDOV�RI�WKH�programs and organisations are

concerned about achieving non-

FRPPHUFLDO�JRDOV��7KLV�EURDG�FDWHJRU\�PDNHV�XS�������RI�LQGXVWU\�UHYHQXH��*HQHUDO�QLFKH�LQWHUHVWV�PDNH�XS�������RI�LQGXVWU\�UHYHQXH��ZLWK�H[DPSOHV�RI�VXFK�LQWHUHVWV�LQFOXGH�DUWV�DQG�FXOWXUDO�SURJUDPV��VSRUWV�FOXEV��DV�ZHOO�DV�]RRV�DQG�DTXDULXPV��2WKHU�QLFKH�LQWHUHVWV�UHODWH�WR�LGHRORJLFDO�FDXVHV����������LQFOXGLQJ�SROLWLFDO��UHOLJLRXV�DQG�VRFLDO�JRDOV��$OVR��FRPPXQDO�LQIUDVWUXFWXUH�SURJUDPV�DWWUDFW������RI�LQGXVWU\�UHYHQXH��LQFOXGLQJ�VRFLDO�FOXEV��SURIHVVLRQDO�DVVRFLDWLRQV�DQG�WUDGH�XQLRQV�)LQDOO\��SURJUDPV�DQG�RUJDQLVDWLRQV�

IRFXVHG�WRZDUGV�VFLHQWL¿F�SURJUHVV�PDNH�XS������RI�LQGXVWU\�UHYHQXH�,Q�WHUPV�RI�XVDJH��VHFWRUV�LQ�WKH�

industry that see the most activity are

KHDOWK�VHUYLFHV�DQG�UHOLJLRXV�RUJDQLVDWLRQV��XVHG�E\�����DQG�����RI�WKH�SRSXODWLRQ�LQ�WKH�SDVW�\HDU��UHVSHFWLYHO\��+HDOWK�VHUYLFHV��LQ�FRQMXQFWLRQ�ZLWK�DQ�DJHLQJ�SRSXODWLRQ��DUH�H[SHFWHG�WR�EH�XWLOLVHG�RQ�D�PRUH�UHJXODU�EDVLV��ZKLOH�UHOLJLRXV�VHUYLFHV�DUH�H[SHFWHG�WR�IROORZ�D�KLVWRULFDO�GHFOLQH�LQ�WHUPV�RI�DI¿OLDWLRQ��1RWDEO\��FRPPXQLW\�VHUYLFHV�DUH�XVHG�E\�����RI�WKH�SRSXODWLRQ�GXH�WR�LWV�EURDG�QDWXUH��$OVR��WKH�OHYHO�RI�LQYHVWPHQW�WRZDUGV�HGXFDWLRQ�VHUYLFHV��VLPLODU�WR�KHDOWK�VHUYLFHV��RQO\�FRYHUV�D�WRWDO�RI�������RI�WKH�SRSXODWLRQ�

Level & Trend Exports in the industry are Low and Increasing

Page 18: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 18

Products & Markets

SOURCE: WWW.IBISWORLD.COM.AU

TAS2.5

WA11.1

QLD21.9

VIC22.3

NSW30.9

NT2.0

SA7.6

ACT1.7

Establishments (%)

Cold Zone (<10) <25 <50 Hot Zone (<100) Not applicable

Business Locations 2011-12

Page 19: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 19

Products & Markets

Business Locations $V�DQ�HPSOR\HU�RI�RQH�PLOOLRQ�$XVWUDOLDQ�ZRUNHUV�LQ�D�ZLGH�UDQJH�RI�¿HOGV��WKH�geographic distribution of revenue for the

LQGXVWU\�FORVHO\�PLUURUV�RWKHU�QDWLRQDO�PHDVXUHV��VXFK�DV�JRYHUQPHQW�UHYHQXH�DQG�SRSXODWLRQ�GLVWULEXWLRQ�1HZ�6RXWK�:DOHV�LV�WKH�QDWLRQ¶V�

ODUJHVW�VWDWH�LQ�WHUPV�RI�SRSXODWLRQ�DQG�HFRQRPLF�RXWSXW��DQG�WKHUH�DUH�VLJQL¿FDQW�QXPEHUV�RI�ODUJH�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�KHDGTXDUWHUHG�LQ�6\GQH\��+RVSLWDO��KHDOWK��FXOWXUDO�DQG�HGXFDWLRQDO�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�DOO�KDYH�D�PDMRU�SUHVHQFH�LQ�1HZ�6RXWK�:DOHV�SURSRUWLRQDO�WR�SRSXODWLRQ��9LFWRULD�FDQ�EH�VXPPDULVHG�LQ�PXFK�WKH�VDPH�ZD\��ZLWK�LWV�KLJK�SRSXODWLRQ�GHQVLW\�DQG�IXOO�EUHDGWK�RI�VHUYLFHV�DWWUDFWLQJ�ODUJH�VFDOH�LQYROYHPHQW��RIWHQ�RQ�ODUJH�JRYHUQPHQW�FRQWUDFWV�6WDWHV�ZLWK�ORZ�SRSXODWLRQ�GHQVLWLHV�

and remote areas attract charities and

QRW�IRU�SUR¿W�RUJDQLVDWLRQV�IRU�VRPHZKDW�GLIIHUHQW�UHDVRQV��/RZ�RU�VFDWWHUHG�SRSXODWLRQV�PDNH�VHUYLFH�GHOLYHU\�OHVV�HI¿FLHQW�DQG�RIWHQ�QRW�FRPPHUFLDOO\�YLDEOH�DW�WKH�VWDQGDUGV�WKDW�SHRSOH�PD\�EH�XVHG�WR�LQ�ODUJH�FDSLWDO�FLWLHV��7KH�LQGXVWU\¶V�RUJDQLVDWLRQV�DUH�PRUH�OLNHO\�WR�EH�

LQYROYHG�EHFDXVH�RI�WKLV�UHDOLW\��GHOLYHULQJ�VHUYLFHV�WR�FRPPXQLWLHV�RI�OHVVHU�LQWHUHVW�WR�ELJ�EXVLQHVV��7KH�LQHI¿FLHQFLHV�RI�XQGHUWDNLQJ�WKHVH�WDVNV�DUH�JHQHUDOO\�subsidised by the government in the form

RI�JUDQWV��5HFHQWO\��UXUDOO\�IRFXVHG�¿UPV�KDYH�QRWHG�DQ�XQLQWHQWLRQDO�PRYH�WRZDUGV�SURYLGLQJ�DVVLVWDQFH�ZLWK�information and communications

WHFKQRORJ\�GXH�WR�WKH�WHFKQRORJLFDO�GLYLGH�EHWZHHQ�PHWUR�DQG�QRQ�PHWUR�DUHDV�

Page 20: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 20

Cost Structure Benchmarks

7KH�FRVW�VWUXFWXUH�RI�D�QRW�IRU�SUR¿W�FRPSDQ\�ORRNV�GLIIHUHQW�WR�D�SUR¿W�JHDUHG�FRPSDQ\��&KDULWLHV�DQG�QRW�IRU�SUR¿W�FRPSDQLHV�GR�QRW�GLVWULEXWH�DQ\�RI�WKHLU�RSHUDWLQJ�VXUSOXVHV�WR�PHPEHUV��DQG�WKHLU�UHDVRQ�IRU�H[LVWHQFH�LV�QRW�WR�PD[LPLVH�PDUJLQV��7KDW�LV�QRW�WR�VD\�WKDW�D�QRW�IRU�SUR¿W�FRPSDQ\�FDQQRW�EH�LQ�D�VLWXDWLRQ�ZKHUH�LWV�OHYHO�RI�LQFRPH�H[FHHGV�LWV�OHYHO�RI�H[SHQVHV�RYHU�D�JLYHQ�SHULRG��,W�LV�TXLWH�common for organisations in the

LQGXVWU\�WR�GHOLEHUDWHO\�XQGHUVSHQG�WKHLU�LQFRPHV��7KH�UHDVRQ�IRU�WKLV�LV�WKDW�SUXGHQWO\�UXQ�RUJDQLVDWLRQV�RI�PRVW�W\SHV�VHHN�WR�PDLQWDLQ�D�¿QDQFLDO�EXIIHU�DJDLQVW�XQIRUHVHHQ�HYHQWV�

'XULQJ�WLPHV�RI�HFRQRPLF�RU�SROLWLFDO�XSKHDYDO��WKH�LQGXVWU\�PD\�¿QG�WKDW�LWV�OHYHO�RI�LQFRPH�XQH[SHFWHGO\�GLSV�DW�SUHFLVHO\�WKH�VDPH�WLPH�WKDW�LWV�VHUYLFHV�DUH�PRVW�FUXFLDO�WR�WKH�VPRRWK�IXQFWLRQLQJ�RI�VRFLHW\��%\�EHLQJ�DEOH�WR�FDOO�RQ�¿QDQFLDO�UHVHUYHV��WKHVH�RUJDQLVDWLRQV�ZLOO�EH�EHWWHU�SRVLWLRQHG�WR�DFKLHYH�WKHLU�RUJDQLVDWLRQDO�REMHFWLYHV��:KLOH�WKHUH�LV�FRQVLGHUDEOH�YDULDWLRQ�LQ�RSHUDWLQJ�PDUJLQV�EHWZHHQ�organisations and segments in the

LQGXVWU\��,%,6:RUOG�HVWLPDWHV�WKDW�DERXW������RI�DQQXDO�LQFRPH�LV�FXUUHQWO\�EHLQJ�DOORFDWHG�WR�UHVHUYHV�7KH�ODUJHVW�H[SHQVH�IRU�WKH�LQGXVWU\�LV�

WKDW�RI�ZDJHV��&RPSULVLQJ�DOPRVW�KDOI�RI�WKH�LQGXVWU\�FRVW�VWUXFWXUH��SDLG�ZRUNHUV�

Key Success Factors Ability to attract local support/patronage$�ODUJH�QXPEHU�RI�RUJDQLVDWLRQV�in this industry are community-

EDVHG��DQG�UHO\�KHDYLO\�RQ�WKH�FRPPXQLW\¶V�VXSSRUW�

Ability to effectively manage risk5HYHQXH�VWUHDPV�IRU�PDQ\�FKDULWLHV�FDQ�EH�YRODWLOH��DQG�GHSHQG�RQ�HFRQRPLF�FRQGLWLRQV�RU�RQH�RII�HYHQWV��0DQ\�ODUJHU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�VHW�DVLGH�FDVK�reserves or other investments to reduce

VKRUW�WHUP�IXQGLQJ�ULVNV�

Optimum capacity utilisation&KDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�often operate on tight budgets and use

YROXQWHHU�ODERXU��8VLQJ�ERWK�¿QDQFLDO�DQG�KXPDQ�UHVRXUFHV�HI¿FLHQWO\�LV�YHU\�LPSRUWDQW�LQ�VXFK�D�VLWXDWLRQ�

Ability to raise revenue from additional sources,Q�DGGLWLRQ�WR�WUDGLWLRQDO�IRUPV�RI�fundraising and revenue from service

GHOLYHU\��PDQ\�RUJDQLVDWLRQV�GHULYH�FRQVLGHUDEOH�IXQGLQJ�IURP�JRYHUQPHQW�JUDQWV��GHFHDVHG�HVWDWHV��DQG�FRUSRUDWH�JLYLQJ�SURJUDPV�

Market Share Concentration

7KHUH�DUH�RYHU���������QRW�IRU�SUR¿W�RUJDQLVDWLRQV�FXUUHQWO\�RSHUDWLQJ�LQ�$XVWUDOLD��LQFOXGLQJ�DERXW��������HFRQRPLFDOO\�VLJQL¿FDQW�RQHV��$FFRUGLQJO\��LQGXVWU\�FRQFHQWUDWLRQ�OHYHOV�DUH�YHU\�ORZ��ZLWK�WKH�IRXU�ODUJHVW�SOD\HUV�LQ�WKH�LQGXVWU\�DFFRXQWLQJ�IRU�ZHOO�XQGHU�����RI�LQGXVWU\�UHYHQXH�EHWZHHQ�WKHP��0DQ\�RUJDQLVDWLRQV�DUH�FRPPXQLW\�IRFXVVHG�DQG�RSHUDWH�RQO\�LQ�WKHLU�ORFDO�DUHDV��$QRWKHU�LPSRUWDQW�IDFWRU�LV�WKH�ODUJH�UDQJH�RI�SURGXFWV�DQG�VHUYLFHV�RIIHUHG�E\�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�

Because organisations in the

LQGXVWU\�JHQHUDOO\�H[LVW�IRU�QRQ�

FRPPHUFLDO�UHDVRQV��FRPPHUFLDO�ORJLF�ZKHQ�DQDO\VLQJ�PHUJHU�DQG�DFTXLVLWLRQ�SRWHQWLDO�LV�RI�OLWWOH�XVH��0DQ\�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�SRVVHVV�VHOI�VXI¿FLHQW�RUJDQLVDWLRQDO�FXOWXUHV��ZKLFK�GR�QRW�DOZD\V�WUDQVODWH�ZHOO�WR�FRQVROLGDWLRQ��:KLOH�PDQ\�FKDULWLHV�KDYH�ERDUG�PHPEHUV�ZLWK�KLJK�OHYHOV�RI�EXVLQHVV�DFXPHQ��LW�LV�JHQHUDOO\�QRW�GHSOR\HG�WRZDUGV�DVVHVVLQJ�LQGXVWU\�FRQFHQWUDWLRQ��5HFHQW�HFRQRPLF�GLI¿FXOWLHV�LQ�$XVWUDOLD�DVVRFLDWHG�ZLWK�WKH�JOREDO�¿QDQFLDO�FULVLV�KDG�PLQLPDO�HIIHFW�RQ�LQGXVWU\�FRQVROLGDWLRQ�

Competitive LandscapeMarket Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalisation

Level Concentration in this industry is Low

IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:

Page 21: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 21

Competitive Landscape

Cost Structure Benchmarkscontinued

LQ�WKH�LQGXVWU\�XQGHUWDNH�WDVNV�UDQJLQJ�IURP�GULYLQJ�YHKLFOHV�WR�SHUIRUPLQJ�KHDUW�VXUJHU\��:DJHV�DV�D�SHUFHQWDJH�RI�industry revenue have risen in recent

\HDUV��ZLWK�LQFUHDVLQJO\�TXDOL¿HG�ZRUNHUV�RFFXS\LQJ�QRQ�YROXQWHHU�SRVLWLRQV�DW�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�:KLOH�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�DUH�

PDMRU�UHFLSLHQWV�RI�JUDQWV��PDQ\�RI�WKHP�WKHPVHOYHV�DOORFDWH�JUDQWV�DQG�RWKHU�SD\PHQWV��7KLV�FDQ�UHODWH�WR�VXEFRQWUDFWRUV�DQG�VPDOOHU�LQGXVWU\�SDUWLFLSDQWV�ZKR�XQGHUWDNH�ZRUN�IRU�ODUJHU�RQHV��'HSHQGLQJ�RQ�DQ�RUJDQLVDWLRQ¶V�OLQH�RI�ZRUN�LQ�WKH�LQGXVWU\��SXUFKDVH�H[SHQVHV�FDQ�LQFOXGH�PHGLFDO�VXSSOLHV��HGXFDWLRQDO�PDWHULDOV��IRRG��RU�HTXLSPHQW�KLUH�DQG�SXUFKDVH�WR�FRQGXFW�FXOWXUDO�RU�VSRUWLQJ�HYHQWV�

'HSUHFLDWLRQ�DQG�DPRUWLVDWLRQ�H[SHQVHV�DFFRXQW�IRU�MXVW�XQGHU������RI�LQGXVWU\�LQFRPH��'XULQJ����������RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�XQGHUWRRN�DQ�HVWLPDWHG������ELOOLRQ�LQ�QHZ�FDSLWDO�H[SHQGLWXUH�LQFOXGLQJ�ODQG��ZLWK�VXUSOXVHV�IURP�FXUUHQW�RSHUDWLRQV�EHLQJ�WKH�PDLQ�VRXUFH�RI�IXQGLQJ��,W�LV�FRPPRQ�IRU�VPDOOHU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WR�EH�SURYLGHG�ZLWK�IUHH�RU�QRPLQDOO\�H[SHQVLYH�HTXLSPHQW�DQG�IDFLOLWLHV�E\�EHQHIDFWRUV�RU�SXEOLF�ERGLHV��UHGXFLQJ�GHSUHFLDWLRQ�DQG�UHQWDO�FRVWV�EHORZ�QRUPDO�FRPPHUFLDO�OHYHOV�IRU�HTXLYDOHQW�RSHUDWLRQV��2WKHU�H[SHQVHV�LQFXUUHG�E\�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�LQFOXGH�VWDQGDUG�DGPLQLVWUDWLYH�FRVWV��WUDLQLQJ�DQG�UHFUXLWPHQW�H[SHQVHV�

Sector vs. Industry Costs

■ Profi t■ Wages■ Purchases■ Depreciation■ Utilities■ Rent■ Other

Average costs of all industries in

sector (2011-12)Industry costs

(2011-12)

0

20

40

60

Perc

enta

ge o

f rev

enue

80

100 6.40

26.6

3.8 2.23.5

41.2

16.2

24.6

4.0 3.34.3

16.8

47.0

SOURCE: WWW.IBISWORLD.COM.AU

Page 22: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 22

Competitive Landscape

Barriers to Entry (QWHULQJ�WKH�LQGXVWU\�PD\�VHHP�HDV\�HQRXJK��SDUWLFXODUO\�RQ�D�VPDOO�VFDOH�WKD�GRHV�QRW�UHTXLUH�D�VLJQL¿FDQW�LQFRPH�VWUHDP��6WDUW�XS�FRVWV�FDQ�EH�QHJOLJLEOH�IRU�FRPPXQLW\�EDVHG�VHUYLFH�SURYLGHUV��DQG�WKHUH�LV�WKH�WKHRUHWLFDO�FDSDFLW\�WR�WDS�LQWR�D�SRRO�RI�YROXQWHHU�ODERXU�WR�PLQLPLVH�H[SHQVHV��+RZHYHU��LW�LV�QRW�TXLWH�VR�VLPSOH�IRU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WKDW�VHHN�WR�RSHUDWH�RQ�D�ODUJHU�VFDOH�7KH�KLJK�SURSRUWLRQ�RI�QRQ�SUR¿W�

¿UPV�DOUHDG\�JDLQLQJ�VLJQL¿FDQW�WD[�FRQFHVVLRQV�PDNHV�DFFHVVLQJ�IXQGLQJ�IURP�IHGHUDO��VWDWH�RU�ORFDO�JRYHUQPHQWV�LQFUHDVLQJO\�GLI¿FXOW��SDUWLFXODUO\�DV�JRYHUQPHQWV�DUH�

LQFUHDVLQJO\�LQFOLQHG�WR�RIIHU�IXQGLQJ�WR�ODUJHU��SULYDWLVHG�VHUYLFHV�WKDW�RIIHU�a broad range of services to numerous

JHRJUDSKLF�UHJLRQV��,Q�DGGLWLRQ��IRU�WKRVH�ZKR�GR�JDLQ�JRYHUQPHQW�

Basis of Competition ,Q�UHFHQW�\HDUV��WKHUH�KDV�EHHQ�D�JURZLQJ�WUHQG�WRZDUGV�RUJDQLVDWLRQV�RXWVRXUFLQJ�VRPH�RU�DOO�IXQGUDLVLQJ�DFWLYLWLHV�WR�FRQVXOWDQWV��,QFUHDVLQJO\��GRQRUV�DQG�SRWHQWLDO�GRQRUV�DUH�UHTXLULQJ�information on the costs of charities’

programs and are directing donations to

WKRVH�FKDULWLHV�WKDW�DUH�HI¿FLHQW�DQG�FDQ�direct a high proportion of the funds

WKDW�WKH\�UDLVH�GLUHFWO\�WR�WKH�SHRSOH�UHTXLULQJ�ZHOIDUH�DVVLVWDQFH��7KLV�LQFUHDVLQJ�OHYHO�RI�DZDUHQHVV�DPRQJ�donors of charity and aid effectiveness is

FRPSHOOLQJ�RUJDQLVDWLRQV�WR�WU\�WR�RXWGR�HDFK�RWKHU�RQ�WKLV�PHDVXUH�

With organisations in the industry

motivated by service to recipients rather

WKDQ�UHWXUQV�WR�LQYHVWRUV��WKH�PDQQHU�RI�competition differs from an industry

GULYHQ�E\�FRPPHUFLDO�IRUFHV��7KDW�LV�QRW�to say that these organisations do not

VWULYH�IRU�H[FHOOHQFH�DQG�SURPLQHQFH�KRZHYHU��ZLWK�DEXQGDQW�H[DPSOHV�RI�competitive behaviour evident in various

VHJPHQWV�RI�WKH�LQGXVWU\�With government funding such an

LPSRUWDQW�SDUW�RI�WKH�LQGXVWU\¶V�LQFRPH��WKH�FRPSHWLWLRQ�IRU�OXFUDWLYH�ORQJ�WHUP�WHQGHUV�FDQ�EH�¿HUFH�DPRQJ�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��)DLOXUH�WR�obtain or retain important government

LQFRPH�VRXUFHV�KDV�WKH�SRWHQWLDO�WR�IRUFH�RUJDQLVDWLRQV�WR�VKDUSO\�FXW�EDFN�WKHLU�

VWDII�DQG�RXWSXW��RU�PHUJH�ZLWK�RWKHU�RUJDQLVDWLRQV��7KHUH�LV�DOVR�FRPSHWLWLRQ�LQ�UDLVLQJ�IXQGV��H�J��GRQDWLRQV�DQG�UDIÀHV��DQG�LQ�REWDLQLQJ�YROXQWHHU�ODERXU��ERWK�RI�ZKLFK�DUH�XVHG�WR�VXSSOHPHQW�DQ\�IXQGLQJ�LQLWLDWLYHV��,Q�DGGLWLRQ��SUHVHQW�LQ�PDQ\�SDUWV�RI�WKH�LQGXVWU\�LV�FRPSHWLWLRQ�PDLQO\�EDVHG�RQ�WKH�FRVW�DQG�TXDOLW\�RI�VHUYLFH��DQG�RQ�PDUNHWLQJ�WKH�EHQH¿WV�RI�VHUYLFHV�RIIHUHG�WR�WKH�FRPPXQLW\�JHQHUDOO\�

In competing for donations and

JRYHUQPHQW�IXQGLQJ��RUJDQLVDWLRQV�DOVR�FRPSHWH�ZLWK�RWKHU�ZHOIDUH�DQG�FKDULWDEOH�VHUYLFHV��DV�ZHOO�DV�ZLWK�WKH�DUWV�DQG�VSRUWLQJ�RUJDQLVDWLRQV���7KHUH�LV�D�¿QLWH�DPRXQW�RI�SULYDWH�FKDULWDEOH�GRQDWLRQV�WKDW�DUH�PDGH�HDFK�\HDU��DQG�DOO�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�FRPSHWH�ZLWK�RQH�DQRWKHU�IRU�WKRVH�GRQDWLRQV��Community services organisations tend to

IRFXV�IXQGUDLVLQJ�LQLWLDWLYHV�RQ�ORFDO�HIIRUWV��UDWKHU�WKDQ�EURDGHU�GULYHV�VXFK�DV�WKRVH�XQGHUWDNHQ�E\�JURXSV�OLNH�:RUOG�9LVLRQ��*RYHUQPHQW�EXGJHWV�HDFK�\HDU�DUH�¿QLWH�LQ�VL]H��ZLWK�WKH�GLIIHUHQW�VHJPHQWV�RI�WKH�LQGXVWU\�DOO�VHHNLQJ�WR�EH�DOORFDWHG�DV�PXFK�IXQGLQJ�DV�SRVVLEOH��7KLV�RIWHQ�PHDQV�WKDW�OREE\�JURXSV�IRU�KRVSLWDO�VSHQGLQJ�ZLOO�EH�VHHNLQJ�PRQH\�WKDW�PD\�FRPH�DW�WKH�H[SHQVH�RI�WKH�DUWV��HGXFDWLRQ�RU�RWKHU�OLQHV�RI�EXVLQHVV�DOVR�FDWHUHG�WR�E\�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�

Level & Trend Competition in this industry is Medium and the trend is Steady

Level & Trend Barriers to Entry in this industry are High and Steady

Barriers to entry checklist Level

Competition MediumConcentration LowLife cycle stage GrowthCapital intensity LowTechnology change MediumRegulation and policy MediumIndustry assistance High

SOURCE: WWW.IBISWORLD.COM.AU

Page 23: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 23

Competitive Landscape

Industry Globalisation

The vast majority of the organisations in

WKH�LQGXVWU\�DUH�VPDOO�VFDOH�DQG�RSHUDWH�LQ�ORFDO�FRPPXQLWLHV��0RVW�RI�WKH�VHFWRUV�WKDW�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�ZRUN�LQ��VXFK�DV�VSRUW�DQG�UHFUHDWLRQ��WKH�DUWV��DQG�FRPPXQLW\�KHDOWK�FDUH�UHTXLUH�OLWWOH�WR�QR�FRRUGLQDWLRQ�DFURVV�QDWLRQDO�ERUGHUV��7KH�PRVW�QRWDEOH�H[FHSWLRQ�WR�WKLV�UHODWHV�WR�QXPHURXV�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�LQYROYHG�LQ�LQWHUQDWLRQDO�DLG�

DQG�GHYHORSPHQW��2UJDQLVDWLRQV�VXFK�DV�:RUOG�9LVLRQ��WKH�5HG�&URVV��DQG�&DUH��DUH�JOREDO�RUJDQLVDWLRQV�GHGLFDWHG�WR�XVLQJ�VNLOOV�DQG�UHVRXUFHV�IURP�GHYHORSHG�FRXQWULHV�VXFK�DV�$XVWUDOLD�WR�EHQH¿W�SHRSOH�OLYLQJ�LQ�SRYHUW\�DQG�FRQÀLFW�RYHUVHDV��,Q�DGGLWLRQ�WR�SRYHUW\�DOOHYLDWLRQ��WKHVH�RUJDQLVDWLRQV�DUH�FRPPRQO\�DW�WKH�IRUHIURQW�RI�QDWXUDO�GLVDVWHU�UHVSRQVH�SURJUDPV�DURXQG�WKH�ZRUOG�

Barriers to Entrycontinued

IXQGLQJ��PDLQWDLQLQJ�JRYHUQPHQW�contracts and tax concessions can be

H[SHQVLYH��SODFLQJ�JUHDWHU�SUHVVXUH�RQ�industry entrants attempting to gain

HTXDO�VWDWXV�ZLWKRXW�WKH�QHFHVVDU\�IXQGV�WR�DFFHVV�WKHVH�FRQFHVVLRQV�&RQWUDFWV�RIIHUHG�E\�VWDWH�DQG�IHGHUDO�

governments for community services are

PRVW�FRPPRQO\�PHGLXP�WR�ORQJ�WHUP��L�H��¿YH�\HDUV�RU�JUHDWHU���PHDQLQJ�WKDW�QHZ�HQWUDQWV�PXVW�KDYH�D�VSHFL¿F�FRQWUDFW�LQ�PLQG�ZKHQ�HQWHULQJ�WKH�LQGXVWU\��RU�ZLOO�EH�IRUFHG�WR�FRPSHWH�ZLWKRXW�SXEOLF�IXQGLQJ��DVVLVWDQFH�RU�FOLHQWV�IRU�D�SURORQJHG�SHULRG��7KH�LQGXVWU\�H[SHULHQFHV�D�KLJK�OHYHO�RI�

UHJXODWLRQ�DQG�RIWHQ�VWULQJHQW�UHTXLUHPHQWV�PXVW�EH�PHW�WR�JDLQ�DOO�QHFHVVDU\�OLFHQFHV�DQG�DFFUHGLWDWLRQV�WR�RSHUDWH�LQ�WKH�LQGXVWU\��IXUWKHU�LQFUHDVLQJ�WKH�FRVWV�IRU�QHZ�HQWUDQWV�7KH�UHSXWDWLRQ�RI�HVWDEOLVKHG�

RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�LV�D�YHU\�UHDO�EDUULHU�WR�HQWU\��0DQ\�LFRQLF�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�KDYH�EHHQ�LQ�$XVWUDOLD¶V�QDWLRQDO�FRQVFLRXVQHVV�IRU�GHFDGHV�DQG�SRWHQWLDO�GRQRUV�DUH�IDPLOLDU�ZLWK�WKHLU�OLQH�RI�ZRUN��FUHGLELOLW\�DQG�SUHYLRXV�FDPSDLJQV��$V�D�UHVXOW��D�QHZ�HQWUDQW�WR�WKH�LQGXVWU\�PD\�¿QG�LW�GLI¿FXOW�WR�UDLVH�IXQGV�LQ�D�VLPLODU�LQGXVWU\�QLFKH�WR�DQ�HVWDEOLVKHG�RUJDQLVDWLRQ�

Level & Trend Globalisation in this industry is Low and the trend is Steady

Page 24: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 24

Other Companies 7KH�VKHHU�YROXPH�RI�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�RSHUDWLQJ�LQ�$XVWUDOLD�LV�VXFK�WKDW�HYHQ�ODUJH�QRW�IRU�SUR¿W�KRVSLWDO�RSHUDWRUV�VXFK�6W�-RKQ�RI�*RG�+HDOWK�&DUH�DFFRXQW�IRU�EDUHO\������RI�WRWDO�LQGXVWU\�UHYHQXH��,W�LV�HVWLPDWHG�WKDW�WKHUH�DUH�DSSUR[LPDWHO\��������HFRQRPLFDOO\�VLJQL¿FDQW�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�RSHUDWLQJ�LQ�$XVWUDOLD�WRGD\�

St John of God Health CareEstimated market share: 1.0%6W�-RKQ�RI�*RG�+HDOWK�&DUH�LV�D�QDWLRQDO�QRW�IRU�SUR¿W�&DWKROLF�KHDOWKFDUH�SURYLGHU��ZLWK�IDFLOLWLHV�DQG�VHUYLFHV�LQ�:HVWHUQ�$XVWUDOLD��9LFWRULD��1HZ�6RXWK�:DOHV�DQG�1HZ�=HDODQG��7KH�RUJDQL]DWLRQ�HPSOR\V�DERXW�������SHRSOH�QDWLRQDOO\�DQG�RSHUDWHV����KRVSLWDOV��SUHGRPLQDQWO\�ORFDWHG�LQ�UHJLRQDO�DUHDV���ZLWK�������EHGV�DQG�6W�-RKQ�RI�*RG�3DWKRORJ\�,Q�WKH�IRXU�\HDUV�WKURXJK����������6W�

-RKQ�RI�*RG�+HDOWK�&DUH�VSHQW��������PLOOLRQ�RQ�UHGHYHORSPHQWV��,Q����������6W�-RKQ�RI�*RG�+HDOWK�&DUH�JHQHUDWHG�WRWDO�UHYHQXH�RI��������PLOOLRQ��XS������RQ�����������ZLWK�KRVSLWDOV�DFFRXQWLQJ�IRU��������PLOOLRQ��XS������RQ�����������SDWKRORJ\�DFFRXQWLQJ�IRU��������PLOOLRQ��DQG�RWKHU�VHUYLFHV�IRU�������PLOOLRQ��+RVSLWDO�UHYHQXH�JUHZ�IURP��������PLOOLRQ�LQ���������WR��������PLOOLRQ�LQ����������UHSUHVHQWLQJ�DYHUDJH�DQQXDOLVHG�JURZWK�RI��������7KHUH�ZHUH��������LQSDWLHQW�VHSDUDWLRQV�LQ����������XS������RQ����������DQG��������GD\�FDVH�VHSDUDWLRQV��XS��������&DSLWDO�H[SHQGLWXUH�DPRXQWHG�WR�������PLOOLRQ�LQ����������XS�������RQ���������6W�-RKQ�RI�*RG�+HDOWK�&DUH�DFTXLUHG�

3DWK&DUH�&RQVXOWLQJ�3DWKRORJLVWV�LQ�

1RYHPEHU�������D�KRVSLWDO�LQ�%HQGLJR��9,&��LQ�)HEUXDU\������DQG�D�SV\FKLDWULF�KRVSLWDO�LQ�'DQGHQRQJ��9,&��LQ�0DUFK�������$�PHUJHU�EHWZHHQ�6W�-RKQ�RI�*RG�+HDOWK�&DUH�DQG�WKH�+RVSLWDOOHU�2UGHU�RI�6W�-RKQ��HIIHFWLYH���-XO\�������DGGHG�SV\FKLDWULF�EHGV��GLVDELOLW\�VXSSRUW�VHUYLFHV�DQG�D�\RXWK�VHUYLFH�WR�WKH�JURXS��DQG�H[WHQGHG�WKH�RSHUDWLRQDO�UHDFK�WR�1HZ�6RXWK�:DOHV�DQG�1HZ�=HDODQG�

Mater Health ServicesEstimated market share: 1.0%0DWHU�+HDOWK�6HUYLFHV��HVWDEOLVKHG�E\�WKH�6LVWHUV�RI�0HUF\�LQ�������RSHUDWHV�D�QHWZRUN�IHDWXULQJ�VHYHQ�KRVSLWDOV�LQ�%ULVEDQH��WKUHH�SXEOLF�DQG�IRXU�FR�ORFDWHG��DQG�HPSOR\V�DERXW�������VWDII��0DWHU�ZDV�LQFRUSRUDWHG�LQ������DV�0DWHU�0LVHULFRUGLDH�+HDOWK�6HUYLFHV�%ULVEDQH�/WG��7KH�FRPSDQ\�JHQHUDWHG�VDOHV�UHYHQXH�RI��������PLOOLRQ�LQ����������XS�IURP��������PLOOLRQ�LQ����������DQG�SURGXFHG�D�QHW�VXUSOXV�RI�DSSUR[LPDWHO\�������PLOOLRQ��XS�IURP������PLOOLRQ�LQ����������

Australian Red Cross SocietyEstimated market share: 0.9%$XVWUDOLDQ�5HG�&URVV�6RFLHW\�LV�DQ�$VVRFLDWLRQ�DVVRFLDWHG�ZLWK�WKH�LQWHUQDWLRQDO�5HG�&URVV�5HG�&UHVFHQW�0RYHPHQW�WKDW�RSHUDWHV�LQ�����FRXQWULHV��PDNLQJ�WKH�ZRUOG¶V�ODUJHVW�KXPDQLWDULDQ�RUJDQLVDWLRQ��,Q�$XVWUDOLD��WKH�PRYHPHQW¶V�DLP�LV�WR�LPSURYH�OLYHV�DQG�UHGXFH�YXOQHUDELOLW\�LQ�$XVWUDOLDQ�VRFLHW\��,Q�SUDFWLFDO�WHUPV��WKLV�HQWDLOV�distribution of funds and resources

WRZDUGV�DVVLVWLQJ�GLVDGYDQWDJHG�DQG�GLVDVWHU�DUHDV�LQ�$XVWUDOLD�DQG�DURXQG�WKH�ZRUOG��LQFOXGLQJ�$ERULJLQDO�DQG�

Major CompaniesThere are no major players in this industry | Other

St John of God Health Care Inc – fi nancial performance

YearRevenue

($ million) (% change)NPAT

($ million) (% change)

2007-08 759.1 N/C 38.2 N/C2008-09 804.3 6.0 29.6 -22.52009-10 895.1 11.3 39.8 34.52010-11 942.8 5.3 26.9 -32.4

SOURCE: IBISWORLD

Page 25: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 25

Major Companies

Other Companiescontinued

7RUUHV�6WUDLW�,VODQGHU�SHRSOH�DQG�IRVWHULQJ�FRPPXQLW\�LQFOXVLRQ��7KH�PRVW�VLJQL¿FDQW�DQG�REYLRXV�SUHVHQFH�WKH�VRFLHW\�KDV�ZLWKLQ�$XVWUDOLD�LV�WKHLU�%ORRG�'RQRU�6HUYLFH��ZKLFK�LV�ZKHUH�WKH�RUJDQLVDWLRQ�JHQHUDWHV�WKH�PDMRULW\�RI�LWV�LQFRPH�IURP�7KH�6RFLHW\¶V�%ORRG�'RQRU�6HUYLFH�KDV�

EHHQ�LQFUHDVLQJO\�PDUNHWHG�WRZDUGV�UHJXODU�EORRG�GRQRUV�DQG�JHQHUDO�VRFLHW\�DQG�DV�D�UHVXOW�KDV�VHHQ�LQFUHDVHG�GLYLGHQGV�IRU�WKH�RUJDQLVDWLRQ��2YHU�WKH�WKUHH�\HDUV�WR�������UHYHQXH�IURP�WKHLU�EORRG�VHUYLFHV�VHJPHQW�KDV�LQFUHDVHG�E\�DURXQG������PLOOLRQ�7KHLU�KXPDQLWDULDQ�VHUYLFHV�KDYH�DOVR�

EHQH¿WHG��ZLWK�WKH�VXFFHVV�RI�IXQGUDLVLQJ�HIIRUWV�HYHU�LQFUHDVLQJ��SDUWLFXODUO\�GXH�WR�VHYHUDO�VLJQL¿FDQW�GLVDVWHUV�DURXQG�WKH�ZRUOG�DQG�LQ�$XVWUDOLD�LQ�UHFHQW�\HDUV��LQFOXGLQJ�WKH�9LFWRULDQ�%XVK¿UHV�LQ����������WKH�4XHHQVODQG�)ORRGV�LQ����������WKH�-DSDQHVH�7VXQDPL�LQ���������DQG�WKH�+DLWL�(DUWKTXDNH�LQ����������DPRQJ�RWKHUV��7KH�VLJQL¿FDQW�DPRXQW�RI�RXWUHDFK�IRU�WKH�9LFWRULDQ�%XVK¿UHV�LQ�SDUWLFXODU�VDZ�UHYHQXH�OHYHOV�VN\URFNHW�LQ����������OLNH�RWKHU�$XVWUDOLDQ�KXPDQLWDULDQ�RUJDQLVDWLRQV��UDLVLQJ�WKHLU�UHYHQXH�OHYHOV�DERYH����ELOOLRQ�WKDW�\HDU�DQG�LQFUHDVLQJ�WKHLU�PDUNHW�VKDUH�WHPSRUDULO\�WR������IURP������WKH�\HDU�SUHYLRXV��6LQFH�WKHQ�PDUNHW�VKDUH�KDV�UHPDLQHG�VRPHZKDW�VWHDG\�DW�LWV�FXUUHQW�OHYHO�

Salvation Army AustraliaEstimated market share: 0.7%7KH�6DOYDWLRQ�$UP\��ZKLFK�VSOLWV�LWV�operations into its southern and

HDVWHUQ�WHUULWRULHV��LV�D�PDMRU�SURYLGHU�RI�HPHUJHQF\�VHUYLFHV��HPSOR\PHQW�VHUYLFHV��PHDOV��DJHG�FDUH�DQG�UHKDELOLWDWLRQ�VHUYLFHV�WR�SHRSOH�ZKR�KDYH�SUREOHPV�ZLWK�DOFRKRO��GUXJV�DQG�JDPEOLQJ��2WKHU�DFWLYLWLHV�LQFOXGH�WKH�SURYLVLRQ�RI�HYDQJHOLFDO�SURJUDPV��7KH�FRPELQHG�DVVHWV�RI�WKH�$XVWUDOLDQ�WHUULWRULHV�DUH�ZRUWK�RYHU������ELOOLRQ��VSOLW�EHWZHHQ�VRFLDO�ZHOIDUH�DFWLYLWLHV�DQG�FKXUFK�DFWLYLWLHV�,Q�������WKH�6DOYDWLRQ�$UP\¶V�HDVWHUQ�

DQG�VRXWKHUQ�WHUULWRULHV�DVVLVWHG�����

PLOOLRQ�SHRSOH��(DFK�ZHHN�WKHVH�RUJDQLVDWLRQV�SURYLGHG��DPRQJ�RWKHU�WKLQJV��UHKDELOLWDWLRQ�VXSSRUW�IRU�������SHRSOH��������FRXQVHOOLQJ�FDOOV��HPSOR\PHQW�VHUYLFHV�WR�������SHRSOH����������PHDOV��DQG��������IRRG�YRXFKHUV�'XULQJ�D�GRZQWXUQ��VXFK�DV�RQH�

H[SHULHQFHG�GXULQJ������DQG�������FKDULWDEOH�JLYLQJ�WHQGV�WR�VOLS�PDUNHGO\��+RZHYHU��WKH�KLJK�OHYHO�RI�JRYHUQPHQW�IXQGLQJ�IRU�ODUJH�JURXSV�VXFK�DV�WKH�6DOYDWLRQ�$UP\�HQVXUHV�WKDW�LW�LV�LQVXODWHG�IURP�WKH�ZRUVW�RI�WKLV��0RUHRYHU��WKHUH�LV�D�IDU�OHVVHU�SUHYDOHQFH�RI�$XVWUDOLDQ�FKDULWLHV�DQG�HQGRZPHQWV�LQYHVWLQJ�RQ�WKH�VWRFN�PDUNHW��SUHYHQWLQJ�WKH�NLQG�RI�¿QDQFLDO�FROODSVH�H[SHULHQFHG�E\�FKDULWLHV�LQ�WKH�8QLWHG�6WDWHV�,Q����������JRYHUQPHQW�IXQGLQJ�

DFFRXQWHG�IRU�������RI�WRWDO�RSHUDWLQJ�LQFRPH��OHJDFLHV�DQG�GRQDWLRQV��������VRFLDO�VHUYLFH�FOLHQW�FRQWULEXWLRQV��������GLYLGHQGV�DQG�LQWHUHVW�������DQG�RWKHU�LQFRPH�������([SHQVHV�IURP�RSHUDWLQJ�DFWLYLWLHV�ZHUH�EURNHQ�GRZQ�LQWR�VRFLDO�SURJUDPV��������RI�H[SHQVHV�IURP�RUGLQDU\�DFWLYLWLHV���HYDQJHOLFDO�DQG�RWKHU�SURJUDPV����������DJHG�FDUH����������HPSOR\PHQW�DQG�\RXWK�WUDLQLQJ����������UHF\FOLQJ�RSHUDWLRQV��������DQG�WKH�5HG�6KLHOG�$SSHDO��������

Epworth HealthCareEstimated market share: 0.5%(SZRUWK�+HDOWK&DUH��D�QRW�IRU�SUR¿W�RUJDQLVDWLRQ��LV�WKH�ODUJHVW�SULYDWH�KRVSLWDO�RSHUDWRU�LQ�0HOERXUQH��WKURXJK�WKUHH�FDPSXVHV��(SZRUWK�JHQHUDWHG�UHYHQXH�RI�DERXW������PLOOLRQ�LQ���������DQG�KDG�RYHU�������HPSOR\HHV��

Salvation Army Australia Eastern Division – fi nancial performance

YearRevenue

($ million) (% change)

2006-07 292.1 N/C2007-08 293.0 0.32008-09 341.7 16.62009-10 306.9 -10.22010-11 328.4 7.0

SOURCE: ANNUAL REPORT

Page 26: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 26

Major Companies

Other Companiescontinued

The organisation has improved its

¿QDQFLDO�SHUIRUPDQFH�LQ�UHFHQW�\HDUV�DQG�KDV�FRPSOHWHG�SODQV�IRU�PDMRU�EXLOGLQJ�ZRUNV��,Q�2FWREHU�������+HDOWK6RXWK�&RUSRUDWLRQ�RI�WKH�8QLWHG�6WDWHV�FORVHG�D�WUDQVDFWLRQ�WR�VHOO�&HGDU�&RXQW\�5HKDELOLWDWLRQ�+RVSLWDO�LQ�0HOERXUQH�DQG�UHODWHG�DVVHWV�WR�(SZRUWK�)RXQGDWLRQ�DQG�,1*�0DQDJHPHQW�/WG��7KH�&HGDU�&RXUW�DVVHWV�LQFOXGH�D����EHG�UHKDELOLWDWLRQ�KRVSLWDO�DQG�RXWSDWLHQW�FHQWUH��D�VWDQGDORQH�UHKDELOLWDWLRQ�IDFLOLW\�DW�2DVLV�/HLVXUH�&HQWUH�DQG�DQ�RFFXSDWLRQDO�PHGLFLQH�UHKDELOLWDWLRQ�WKHUDS\�EXVLQHVV�

World Vision AustraliaEstimated market share: 0.4%)RXQGHG�LQ�WKH�8QLWHG�6WDWHV�LQ�������:RUOG�9LVLRQ�LV�D�PDMRU�&KULVWLDQ�IXQGUDLVLQJ�DQG�FKDULWDEOH�RUJDQLVDWLRQ��ZLWK�D�SDUWLFXODU�IRFXV�RQ�\RXWK�SRYHUW\��HVSHFLDOO\�LQ�$IULFD��:RUNLQJ�RQ�VL[�FRQWLQHQWV��:RUOG�9LVLRQ�LV�RQH�RI�WKH�ODUJHVW�&KULVWLDQ�UHOLHI�DQG�GHYHORSPHQW�RUJDQLVDWLRQV�LQ�WKH�ZRUOG��ZLWK�D�EXGJHW�RI�RYHU������ELOOLRQ�SHU�\HDU��7KH�JURXS¶V�WRWDO�UHYHQXH��LQFOXGLQJ�JUDQWV��SURGXFW�VDOHV�DQG�IRUHLJQ�GRQDWLRQV��ZDV�DERXW������ELOOLRQ�LQ������:RUOG�9LVLRQ�,QWHUQDWLRQDO�RSHUDWHV�DV�

D�IHGHUDWLRQ�RI�LQWHUGHSHQGHQW�QDWLRQDO�RI¿FHV��HDFK�RYHUVHHQ�E\�WKHLU�RZQ�ERDUGV�RU�DGYLVRU\�FRXQFLOV��(DFK�RI¿FH�DQG�LWV�members have created a common mission

VWDWHPHQW��7KURXJK�DQ�RQJRLQJ�V\VWHP�RI�SHHU�UHYLHZ��HDFK�QDWLRQDO�SDUWQHU�LV�KHOG�

DFFRXQWDEOH�IRU�DQG�DELGHV�E\�FRPPRQ�SROLFLHV�DQG�VWDQGDUGV�7KH�JURXS¶V�$XVWUDOLDQ�RSHUDWLRQV�

UHDFKHG�UHYHQXH�RI�DERXW��������PLOOLRQ�LQ����������ZKLFK�ZDV�D�GURS�RI������PLOOLRQ�RQ�WKH�SUHYLRXV�\HDU¶V�¿JXUH�– indicating that donations over

&KULVWPDV�ZHUH�VHYHUHO\�FXUWDLOHG�E\�FROODSVLQJ�FRQVXPHU�VHQWLPHQW�LQ�WKH�ZDNH�RI�WKH�FUDVK�RI�JOREDO�¿QDQFLDO�PDUNHWV�LQ�6HSWHPEHU�7KH�ODUJHVW�VKDUH�RI�WKH�JURXS¶V�

UHYHQXH��XQOLNH�PDQ\�RWKHU�FKDULWLHV�LQ�$XVWUDOLD�ZKR�UHO\�RQ�JRYHUQPHQW�IXQGLQJ��FRPHV�IURP�WKH�DFWLYLW\�WKDW�WKH\�SLRQHHUHG��FKLOG�VSRQVRUVKLS��7KLV�PHWKRG�LQYROYHV�LQGLYLGXDOV�RU�groups paying a predetermined amount

SHU�ZHHN�RU�PRQWK�WR�:RUOG�9LVLRQ��ZKLFK�LV�WKHQ�DVVLJQHG�WR�D�VSHFL¿F�FKLOG¶V�VFKRRO�RU�YLOODJH��ZLWK�ZKRP�WKH�GRQRU�LV�HQFRXUDJHG�WR�LQWHUDFW��7KLV�SURJUDP�RI�GHYHORSLQJ�DQ�DZDUHQHVV�RI�WKH�HIIHFW�RI�GRQDWLRQV�KDV�SURYHQ�VXFFHVVIXO�DV�D�GULYHU�RI�FRQWLQXHG�GRQDWLRQV�

Salvation Army Australia Southern Division – fi nancial performance

YearRevenue

($ million) (% change)

2007-08 285.9 N/C2008-09 295.3 3.32009-10 285.4 -3.42010-11 334.6 17.2

SOURCE: ANNUAL REPORT

Page 27: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 27

Capital Intensity With so much of the industry’s activities

IRFXVHG�RQ�WKH�SURYLVLRQ�RI�VHUYLFHV��ZDJH�FRVWV�DFFRXQW�IRU�D�ODUJH�DPRXQW�RI�WKH�LQGXVWU\¶V�UHYHQXH��0DQ\�RI�WKHVH�VHUYLFHV�DUH�GHOLYHUHG�LQ�WKH�FRPPXQLW\��UDWKHU�WKDQ�LQ�LQVWLWXWLRQV��L�H��UHGXFLQJ�WKH�OHYHO�RI�FDSLWDO�QHHGHG�WR�GHOLYHU�VHUYLFHV���7KH�SUHVHQFH�RI�KXQGUHGV�RI�WKRXVDQGV�RI�YROXQWHHUV�LQ�WKH�LQGXVWU\�UHGXFHV�ZDJH�FRVWV�IURP�ZKDW�WKH\�PD\�KDYH�RWKHUZLVH�EHHQ��EXW�WKHUH�UHPDLQ�DOPRVW�D�PLOOLRQ�SDLG�SRVLWLRQV�LQ�YDULRXV�DGPLQLVWUDWLYH��PDQDJHULDO�DQG�RSHUDWLRQDO�UROHV��:KLOH�WKHUH�DUH�D�KLJK�QXPEHU�RI�YROXQWHHUV�LQ�WKH�LQGXVWU\��LW�LV�RIWHQ�QHFHVVDU\�WR�SD\�D�VDODU\�LQ�RUGHU�WR�JHW�HLWKHU�WKH�VSHFL¿F�H[SHUWLVH�or time commitment required by an

RUJDQLVDWLRQ��7KXV��WKH�FDSLWDO�WR�

ODERXU�UDWLR�LV���������WKXV�VLJQLI\LQJ�WKDW�IRU�HYHU\�������VSHQW�RQ�FDSLWDO���������LV�VSHQW�RQ�ODERXU�

Operating ConditionsCapital Intensity | Technology & Systems | Industry VolatilityRegulation & Policy | Industry Assistance

Tools of the trade: Growth strategies for success

SOURCE: WWW.IBISWORLD.COM.AU

Labo

ur In

tens

ive Capital Intensive

Change in Share of the Economy

New Age EconomyRecreation, Personal Services, Health and Education. Firms benefi t from personal wealth so stable macroeconomic conditions are imperative. Brand awareness and niche labour skills are key to product differentiation.

Traditional Service EconomyWholesale and Retail. Reliant on labour rather than capital to sell goods. Functions cannot be outsourced therefore fi rms must use new technology or improve staff training to increase revenue growth.

Old EconomyAgriculture and Manufacturing. Traded goods can be produced using cheap labour abroad. To expand fi rms must merge or acquire others to exploit economies of scale, or specialise in niche, high-value products.

Investment EconomyInformation, Communications, Mining, Finance and Real Estate. To increase revenue fi rms need superior debt management, a stable macroeconomic environment and a sound investment plan.

EducationHealth Services

Welfare Services and Fundraising

Sport Organisations and Other Sports ServicesReligious Organisations and Services

Charities & Not-for-Profi t Organisations

Level The level of capital intensity is Low

Page 28: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 28

Operating Conditions

Revenue Volatility $V�DQ�LQGXVWU\�WKDW�GHULYHV�D�VLJQL¿FDQW�share of its funding from private donations

DQG�SKLODQWKURS\��UHYHQXH�FDQ�VXIIHU�GXULQJ�SHULRGV�RI�HFRQRPLF�VWULIH��$QRWKHU�PDLQ�VRXUFH�RI�IXQGLQJ�LV�JRYHUQPHQW�JUDQWV��ZKLFK�FDQ�ÀXFWXDWH�GHSHQGLQJ�RQ�JRYHUQPHQW�SROLF\��WKH�HOHFWRUDO�F\FOH��DQG�FRPSHWLWLRQ�IURP�RWKHU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�*RYHUQPHQW�JUDQWV�DUH�D�VWHDGLHU�

medium-term source of funding for

RUJDQLVDWLRQV�LQ�WKLV�LQGXVWU\��EXW�WKH�FDSDFLW\�WR�DFFHVV�WKHVH�JUDQWV�YDULHV��'XULQJ�WKH�HFRQRPLF�GRZQWXUQ�LQ������DQG�������JRYHUQPHQW�IXQGLQJ�OHYHOV�UHPDLQHG�VROLG��ZKLOH�SULYDWH�GRQDWLRQ�OHYHOV�GLSSHG�RYHU�D����PRQWK�SHULRG��%\���������KRZHYHU��SULYDWH�GRQDWLRQ�conditions had become stronger as donors

IHOW�VXUHU�DERXW�WKHLU�RZQ�FLUFXPVWDQFHV�

Technology& Systems

7KH�OHYHO�RI�WHFKQRORJ\�XVDJH�E\�organisations in the industry varies

FRQVLGHUDEO\��SULPDULO\�GXH�WR�VFDOH��IXQGLQJ�OHYHOV�DQG�WKH�W\SH�RI�VHUYLFH�WKDW�WKH�FKDULW\�RU�QRW�IRU�SUR¿W�RUJDQLVDWLRQ�SURYLGHV��$�ODUJH�SDUW�RI�the activity in the industry focuses on

LQWHUSHUVRQDO�LQWHUDFWLRQ�DQG�SURYLGLQJ�KDQGV�RQ�FDUH��8VHUV��RU�FXVWRPHUV��RI�LQGXVWU\�VHUYLFHV�VXFK�DV�DJHG�FDUH��ZHOIDUH�DQG�HGXFDWLRQ�RIWHQ�KDYH�ORZ�LQFRPHV�DQG�D�ORZ�OHYHO�RI�H[SRVXUH�WR�WHFKQRORJ\��H�J��ORZ�FRPSXWHU�DQG�LQWHUQHW�XVH���DQG�RIWHQ�UHTXLUH�SHUVRQDO�DVVLVWDQFH�ZLWK�LQIRUPDWLRQ�SURYLVLRQ�DQG�GLVVHPLQDWLRQ��2UJDQLVDWLRQV�RSHUDWLQJ�RQ�D�ODUJH�VFDOH�QHHG�WR�KDYH�adequate accounting and management

LQIRUPDWLRQ�V\VWHPV�LQ�SODFH�WR�DOORZ�DQ�DQDO\VLV�RI�WKH�FOLHQW�EDVH��DQG�WKH�income from and costs of providing each

VHUYLFH�WR�VSHFL¿F�W\SHV�RI�FOLHQWV�1RQHWKHOHVV��WHFKQRORJ\�

UHTXLUHPHQWV�DUH�KHLJKWHQLQJ�TXLFNO\�for the industry as it continues to

DFNQRZOHGJH�WKH�KLJK�YDOXH�WHFKQRORJ\�FDQ�DGG�WR�WKHLU�SURFHVVHV��GHVSLWH�DQ�RIWHQ�KLJK�ODERXU�LQWHQVLW\��+RZHYHU��VWURQJ�UHVRXUFH�UHVWULFWLRQV�GR�QRW�DOORZ�WHFKQRORJ\�FKDQJH�WR�RFFXU�TXLFNO\�IRU�PRVW�SOD\HUV�LQ�WKH�LQGXVWU\�

,QFUHDVLQJO\��FKDULWLHV�DUH�XVLQJ�WKH�LQWHUQHW�WR�UDLVH�DZDUHQHVV�DQG�IXQGV��2QOLQH�FDPSDLJQV�FDQ�EH�HIIHFWLYH�PHWKRGV�RI�UHDFKLQJ�ODUJH��JHRJUDSKLFDOO\�VFDWWHUHG�DXGLHQFHV��DQG�WKH�FDSDFLW\�WR�H[HFXWH�RQOLQH�GRQDWLRQ�WUDQVDFWLRQV�FDQ�ORZHU�FRVWV�IRU�WKH�FKDULW\��5HFHQW�LQQRYDWLRQV�KDYH�LQFOXGHG�)DFHERRN¶V�&DXVHV�DSSOLFDWLRQ��ZKLFK�HPEHGV�D�FKDULW\�LQWR�VRFLDO�QHWZRUNLQJ�IHHGV��DQG�WKH�SRSXODULVDWLRQ�RI�PLFUROHQGLQJ�E\�ZHEVLWHV�VXFK�DV�.LYD�RUJ��2QH�RI�WKH�PRUH�QRWDEOH�VXFFHVV�stories on the domestic front is the

0RYHPEHU�FDPSDLJQ��ZKLFK�DOORZV�participants in a charity event to

SHUVRQDOLVH�DQ�RQOLQH�SUR¿OH�DQG�FDPSDLJQ�IRU�RQOLQH�GRQDWLRQV�'HVSLWH�WHFKQRORJLFDO�DGYDQFHPHQWV��

many donations given to the industry

DUH�LQ�WKH�IRUP�RI�FKHTXHV��$ERXW�����RI�QRW�IRU�SUR¿W�¿UPV�UHFHLYH�PRUH�WKDQ�����RI�WKHLU�GRQDWLRQV�YLD�FKHTXH��&RQVXPHUV�ZKR�WHQG�WR�XVH�FKHTXHV�DUH��DFFRUGLQJ�WR�WKH�$XVWUDOLDQ�3D\PHQWV�&OHDULQJ�$VVRFLDWLRQ��WKH�HOGHUO\��UXUDOO\�LVRODWHG�DQG�XQZDJHG��6LQFH�ROGHU�SHRSOH�WHQG�WR�JLYH�WR�QRW�IRU�SUR¿W�¿UPV�PRUH��WKLV�UHÀHFWV�WKH�GLI¿FXOW\�RI�QRW�IRU�SUR¿WV�WRZDUGV�UHDFKLQJ�RXW�EH\RQG�WKLV�DXGLHQFH�

Level The level of Technology Change is Medium

Level The level of Volatility is Medium

Page 29: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 29

Operating Conditions

Regulation & Policy :LWK�RSHUDWRUV�LQ�WKH�LQGXVWU\�LQYROYHG�in activities ranging from junior soccer to

WVXQDPL�UHOLHI��WKH�UHJXODWLRQ�DQG�SROLF\�IUDPHZRUN�IRU�SDUWLFXODU�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�GHSHQGV�KHDYLO\�RQ�WKHLU�OLQH�RI�ZRUN��+RZHYHU��WKH�IHGHUDO�JRYHUQPHQW�LV�VHHNLQJ�WR�UHIRUP�WKH�FXUUHQWO\�VWDWH�EDVHG�QRW�IRU�SUR¿W�UHJXODWLRQ�OHJLVODWLRQ��DV�VSHFL¿HG�LQ�WKH���������EXGJHW�

New Federal Legislation to be introduced,Q�WKH���������EXGJHW��WKH�*LOODUG�*RYHUQPHQW�GHFODUHG�LWV�LQWHQWLRQ�RYHU�WKH�QH[W�VHYHUDO�\HDUV�WR�RYHUKDXO�DQG�QDWLRQDOLVH�WKLUG�VHFWRU�UHJXODWLRQ��E\�HVWDEOLVKLQJ�WKH�$XVWUDOLDQ�&KDULWLHV�DQG�1RW�IRU�3UR¿WV�&RPPLVVLRQ��$&1&��DV�D�QDWLRQDO�LQGXVWU\�UHJXODWRU�IRU�RSHUDWLRQ�LQ�-XO\�������DQG�UHGH¿QLQJ�WKH�ZRUG�µFKDULW\¶�IURP�-XO\������ZKLFK�KDV�QRW�EHHQ�PRGL¿HG�IURP�(QJODQG¶V������GH¿QLWLRQ�LQ�$XVWUDOLDQ�ODZ��7KH�DLP�RI�such reforms is to create greater

FRQVLVWHQF\�EHWZHHQ�VWDWH�UHJXODWLRQV��DQG�create greater industry transparency as

ZHOO�DV�VLPSOLI\�WKH�V\VWHP�E\�LPSOHPHQWLQJ�D�µUHSRUW�RQFH��XVH�RIWHQ¶�VWUDWHJ\�WR�UHSRUWLQJ��7KHVH�PHDVXUHV�DUH�H[SHFWHG�WR�EULQJ�JUHDWHU�HI¿FLHQFLHV�WR�WKH�LQGXVWU\�IRU�ODUJHU�SOD\HUV��ZLWK�%UDG¿HOG�1\ODQG�*URXS�¿QGLQJ�WKDW�current reporting requirements account

IRU�DERXW������PLOOLRQ�ZRUWK�RI�ORVW�KRXUV�

ZLWK�WKH�FXUUHQW�V\VWHP��6PDOOHU�SOD\HUV��KRZHYHU��DUH�OLNHO\�WR�WDNH�RQ�JUHDWHU�UHSRUWLQJ�EXUGHQV��VWUDLQLQJ�WKHLU�UHVRXUFHV�HYHQ�PRUH�VR�0RUH�LPPHGLDWH�FRQFHUQV�WR�WKH�

LQGXVWU\��KRZHYHU��LV�WKDW�VLQFH�-XO\������WKH�LQGXVWU\�KDV�EHHQ�WD[HG�IRU�XQUHODWHG�FRPPHUFLDO�DFWLYLWLHV�LQ�RUGHU�IRU�WKH�JRYHUQPHQW�WR�KHOS�JXDUDQWHH�WKDW�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�PDLQWDLQ�WKHLU�DOWUXLVWLF�LQWHQWLRQV��7KLV�PRYH�LV�H[SHFWHG�WR�DOVR�SUHYHQW�LQGLYLGXDOV�DQG�FRPSDQLHV�IURP�VKHOWHULQJ�WKHPVHOYHV�IURP�WD[�HYDVLRQ�

Community services regulation(DFK�VWDWH�DQG�WHUULWRU\�JRYHUQPHQW�KDV�UHVSRQVLELOLW\�IRU�DOO�DVSHFWV�RI�FKLOG�DGRSWLRQ�DV�ZHOO�DV�FRUUHFWLYH�VHUYLFHV�ZLWKLQ�LWV�MXULVGLFWLRQ��LQ�DGGLWLRQ�WR�KDYLQJ�WKHLU�RZQ�OHJLVODWLRQ�UHODWLQJ�WR�FKLOG�DGRSWLRQ�DQG�FRUUHFWLYH�VHUYLFHV��LQFOXGLQJ�SDUROH���7KH�&RPPRQZHDOWK�*RYHUQPHQW�LV�SULQFLSDOO\�UHVSRQVLEOH�IRU�IDPLO\�DIIDLUV�WKURXJK�WKH�)DPLO\�/DZ�$FW�DQG�WKH�0DUULDJH�$FW�7KH�+$&&�$FW�DXWKRULVHV�WKH�

&RPPRQZHDOWK�*RYHUQPHQW�WR�SD\�¿QDQFLDO�DVVLVWDQFH�WR�VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�XQGHU�DJUHHPHQWV�ZLWK�WKH�&RPPRQZHDOWK�*RYHUQPHQW�IRU�WKH�provision of home and community

VHUYLFHV��7KH�REMHFWLYH�RI�WKH�DJUHHPHQW�LV�the provision of moneys by the

Revenue Volatilitycontinued

SOURCE: WWW.IBISWORLD.COM.AU

Volatility vs Growth

Reve

nue

vola

tility

* (%

)

1000

100

10

1

0.1

Five year annualised revenue growth (%)–30 –10 10 30 50 70

Hazardous

Stagnant

Rollercoaster

Blue Chip

* Axis is in logarithmic scale

Charities & Not-for-Profi t Organisations

A higher level of revenue volatility implies greater industry risk. Volatility can negatively affect long-term strategic decisions, such as the time frame for capital investment.

When a fi rm makes poor investment decisions it may face underutilised capacity if demand suddenly falls, or capacity constraints if it rises quickly.

Level & Trend The level of Regulation is Medium and the trend is Increasing

Page 30: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 30

Operating Conditions

Regulation & Policycontinued

FRPPRQZHDOWK��VWDWH�DQG�WHUULWRU\�governments to assist governments and

FRPPXQLW\�RUJDQLVDWLRQV�LQ�GHYHORSLQJ�D�range of integrated home and community

FDUH�IRU�WKH�IUDLO�DJHG�DQG�\RXQJHU�SHRSOH�ZLWK�GLVDELOLWLHV�DQG�WKHLU�FDUHUV��7KH�DJUHHPHQW�DOVR�IDFLOLWDWHV�WKH�PDLQWHQDQFH�RI�WKRVH�SHRSOH�LQ�WKHLU�RZQ�KRPHV��DQG�avoids their premature or inappropriate

DGPLVVLRQ�WR�ORQJ�WHUP�UHVLGHQWLDO�FDUH��WKHUHE\�LPSURYLQJ�WKHLU�TXDOLW\�RI�OLIH�7KH�6XSSRUWHG�$FFRPPRGDWLRQ�

$VVLVWDQFH�$FW������SURYLGHG�D�EDVLV�IRU�WKH�&RPPRQZHDOWK�*RYHUQPHQW�DQG�state and territory governments to fund

support accommodation and other

DVVLVWDQFH�VHUYLFHV��7KH�SURJUDP��6$$3��DLPV�WR�SURYLGH�WUDQVLWLRQDO�VXSSRUWHG�DFFRPPRGDWLRQ�DQG�UHODWHG�VHUYLFHV�WR�KHOS�SHRSOH�ZKR�DUH�KRPHOHVV��LQ�FULVLV�RU�DW�LPPLQHQW�ULVN�RI�EHLQJ�KRPHOHVV�WR�DFKLHYH�WKH�KLJKHVW�SRVVLEOH�GHJUHH�RI�VHOI�UHOLDQFH�DQG�LQGHSHQGHQFH��7KH�FRPPRQZHDOWK��VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�IXQG�WKH�6$$3�SURJUDP��7KH�&RPPRQZHDOWK�*RYHUQPHQW�SURYLGHV�DERXW�����RI�6$$3�IXQGLQJ�7KH�&RPPRQZHDOWK�6WDWH�7HUULWRU\�

'LVDELOLW\�$JUHHPHQW��&67'$��LV�D�IXQGLQJ�DJUHHPHQW�EHWZHHQ�JRYHUQPHQWV�WKDW�SURYLGHV�D�IUDPHZRUN�IRU�D�V\VWHP�RI�DGPLQLVWHULQJ�VHUYLFHV�IRU�SHRSOH�ZLWK�D�GLVDELOLW\��8QGHU�WKH�DJUHHPHQW��VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�DUH�UHVSRQVLEOH�IRU�SURYLGLQJ��LQWHU�DOLD��QRQ�UHVLGHQWLDO�FDUH��DV�ZHOO�DV�DFFRPPRGDWLRQ�VXSSRUW�DQG�UHVSLWH�VHUYLFHV��&RPPRQZHDOWK��VWDWH�DQG�WHUULWRU\�

JRYHUQPHQWV�KDYH�DGGLWLRQDO�FRPPXQLW\��LQGLYLGXDO�DQG�IDPLO\�VXSSRUW�SURJUDPV�WKDW�SURYLGH�IXQGV�WR�ZHOIDUH�RUJDQLVDWLRQV�WKDW�GHOLYHU�WKH�VHUYLFH��

0RVW�VWDWH�DQG�WHUULWRU\�JRYHUQPHQWV�KDYH�OHJLVODWLRQ�FRQWUROOLQJ�IXQGUDLVLQJ��7KH�OHJLVODWLRQ�VHHNV�WR�SURWHFW�WKH�SXEOLF�DJDLQVW�IUDXG��PLVDSSURSULDWLRQ�RI�IXQGV��PLVOHDGLQJ�FRQGXFW��DQG�HQVXUH�WKDW�WKH�SXEOLF�KDYH�DFFHVV�WR�LQIRUPDWLRQ�DQG�WKDW�RUJDQLVDWLRQV�XVH�DFFHSWDEOH�IXQGUDLVLQJ�SUDFWLFHV�

Fundraising and financial regulation7KH�LQGXVWU\¶V�NQRZOHGJH�RI�WKHLU�OHJDO�HQYLURQPHQW��DFFRUGLQJ�WR�ODZ�¿UP�0DNLQVRQ��G¶$SLFH��QHHGV�PXFK�LPSURYHPHQW��ZLWK�PDQ\�SOD\HUV�LQ�WKH�LQGXVWU\�VWDWLQJ�WKH\�DUH�XQDEOH�WR�GHDO�ZLWK�EHTXHVWV�DQG�SURSHUW\�OHJDO�LVVXHV�VXI¿FLHQWO\�

The states and territories have

WUXVWHH�OHJLVODWLRQ�WKDW�LPSRVHV�REOLJDWLRQV�JRYHUQLQJ�KRZ�WUXVWHHV��LQFOXGLQJ�FKDULWLHV��LQYHVW�WKHLU�IXQGV��&KLOGUHQ�DGRSWLRQV�DUH�SULQFLSDOO\�arranged by state and territory

JRYHUQPHQW�ZHOIDUH�GHSDUWPHQWV��DOWKRXJK�DGRSWLRQV�DUH�DOVR�DUUDQJHG�by non-government organisations in

VRPH�VWDWHV��2QFH�DQ�DGRSWLRQ�RUGHU�LV�JUDQWHG��WKH�DGRSWHG�FKLOG�EHFRPHV�WKH�FKLOG�RI�WKH�DGRSWHG�SDUHQWV�DV�LI�KH�RU�VKH�KDG�EHHQ�ERUQ�WR�WKHP�3DUROH�VHUYLFHV�DULVH�RXW�RI�RUGHUV�

LPSRVHG�E\�FRXUWV��ZKLFK�SUHVFULEH�FRQGLWLRQV�DQG�SODFH�RIIHQGHUV�XQGHU�FRQWUROOLQJ�VXSHUYLVLRQ�IRU�OHVV�WKDQ�����RI�WKH�WLPH��7KHVH�VHUYLFHV�DUH�IXQGHG�DQG�provided by state and territory

JRYHUQPHQWV��7KH�)XQGUDLVLQJ�,QVWLWXWH�$XVWUDOLD�KDV�LVVXHG�D�FRGH�RI�SURIHVVLRQDO�FRQGXFW��,W�SURYLGHV�JXLGHOLQHV�WR�PHPEHUV�UHTXLULQJ�GLVFORVXUH�WR�GRQRUV�and specifying correct procedures for

WHOHSKRQH�VROLFLWDWLRQ�

Page 31: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 31

Operating Conditions

Industry Assistance :KLOH�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�FRPPRQO\�H[LVW�IRU�DVVLVWLQJ�RWKHUV��WKH�RUJDQLVDWLRQV�WKHPVHOYHV�DUH�DOVR�DVVLVWHG�LQ�YDULRXV�ZD\V��$UJXDEO\��WKH�PRVW�VLJQL¿FDQW�PDQQHU�LV�YLD�WD[DWLRQ�FRQFHVVLRQV�WKDW�DSSO\�WR�UHJLVWHUHG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��$V�RI�-XQH��������������QRW�IRU�SUR¿W�RUJDQLVDWLRQV�ZHUH�UHJLVWHUHG�DV�WD[�FRQFHVVLRQ�FKDULWLHV��DQG�DERXW�����RI�WKRVH�HQGRUVHG�DV�GHGXFWLEOH�JLIW�UHFLSLHQWV��2UJDQLVDWLRQV�HQGRUVHG�DV�GHGXFWLEOH�JLIW�UHFLSLHQWV�HQDEOH�GRQRUV�WR�RIIVHW�WKHLU�GRQDWLRQV�DJDLQVW�WKHLU�DQQXDO�WD[�OLDELOLWLHV��FUHDWLQJ�DQ�LQFHQWLYH�WR�GRQDWH��$XVWUDOLDQ�WD[SD\HUV�FODLPHG������ELOOLRQ�IRU�GHGXFWLEOH�JLIWV�LQ����������LQFUHDVLQJ�DERXW�����SHU�DQQXP�IURP������PLOOLRQ�LQ����������2WKHU�WD[�EHQH¿WV�HQMR\HG�E\�RUJDQLVDWLRQV�LQ�WKH�LQGXVWU\�LQFOXGH�IULQJH�EHQH¿W�WD[�FRQFHVVLRQV��DERXW������ELOOLRQ�SHU�\HDU��DQG�VWDWH�SD\UROO�WD[�FRQFHVVLRQV��DERXW������PLOOLRQ�SHU�\HDU��$QRWKHU�VHW�RI�ODZV�WKDW�DVVLVWV�WKH�

LQGXVWU\�UHODWHV�WR�WKH�RSHUDWLRQ�RI�JDPLQJ�PDFKLQHV��7KH�VSHFL¿FV�RI�WKH�ODZV�YDU\�IURP�VWDWH�WR�VWDWH��EXW�RYHU������PLOOLRQ�ZRUWK�RI�FRQFHVVLRQDO�WD[�EHQH¿WV�DUH�FODLPHG�E\�VSRUWLQJ�FOXEV�DQG�FRPPXQLW\�EDVHG�RUJDQLVDWLRQV�ZLWK�OLFHQFHV�WR�RSHUDWH�JDPLQJ�PDFKLQHV�

In addition to tax concessions received

E\�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��ORFDO��VWDWH�DQG�IHGHUDO�JRYHUQPHQW�IXQGLQJ�LV�D�VLJQL¿FDQW�VRXUFH�RI�LQFRPH�DQG�UHVRXUFHV�IRU�WKH�LQGXVWU\��&RPPRQO\�PDGH�LQ�WKH�IRUP�RI�JUDQWV�RU�FRQWUDFWV��SXEOLF�PRQH\�LV�DOORFDWHG�WR�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�ZKR�SDUWQHU�ZLWK�JRYHUQPHQW�WR�SURYLGH�VHUYLFHV��7KH�IHGHUDO�JRYHUQPHQW�GHSDUWPHQW�WKDW�DGPLQLVWHUV�$XVWUDOLD¶V�LQWHUQDWLRQDO�DLG�SURJUDP��$XV$LG��ZRUNV�ZLWK�FKDULWLHV�DQG�QRW�IRU�SUR¿W�RUJDQLVDWLRQV�WR maximise the effect and reach of

$XVWUDOLDQ�DLG��&XUUHQWO\��DERXW������RI�$XV$LG¶V�DLG�SURJUDP�LV�GHOLYHUHG�E\�QRW�IRU�SUR¿W�RUJDQLVDWLRQV��ZLWK�PDQ\�ORQJ�WHUP�SDUWQHUVKLSV�LQ�SODFH�

Level & Trend The level of Industry Assistance is High and the trend is Steady

Page 32: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 32

Key StatisticsRevenue

($m)

Industry Value Added

($m) Establishments Enterprises Employment Exports

($m) ImportsWages ($m)

Domestic Demand

2002-03 62,896.5 37,072.0 44,662 37,250 713,154 3,271.0 -- 27,213.7 N/A2003-04 69,466.2 39,079.7 45,900 38,218 765,214 3,391.3 -- 29,989.5 N/A2004-05 75,791.3 41,397.4 46,935 38,982 811,893 3,785.3 -- 32,718.6 N/A2005-06 82,308.0 44,404.3 48,540 39,918 858,982 4,457.6 -- 35,597.8 N/A2006-07 88,283.4 47,253.5 50,030 41,008 889,919 4,709.3 -- 37,982.8 N/A2007-08 92,270.7 49,070.8 51,581 42,279 906,827 4,712.4 -- 40,185.8 N/A2008-09 89,424.9 49,933.0 51,890 42,533 937,660 5,029.6 -- 41,230.7 N/A2009-10 95,424.0 52,736.9 52,565 43,086 966,727 5,741.5 -- 44,611.6 N/A2010-11 101,536.8 54,119.1 53,511 43,861 1,018,930 5,760.9 -- 47,600.6 N/A2011-12 104,989.1 56,504.5 54,635 44,800 1,059,688 6,079.8 -- 49,742.7 N/A2012-13 108,978.6 58,548.1 55,837 45,758 1,099,956 6,783.2 -- 51,533.4 N/A2013-14 113,773.7 60,802.1 56,897 46,619 1,143,954 7,699.9 -- 53,491.6 N/A2014-15 117,755.7 63,320.2 58,035 47,531 1,190,856 8,585.7 -- 55,738.3 N/A2015-16 121,759.4 66,285.7 59,370 48,612 1,242,063 9,277.1 -- 58,413.7 N/A2016-17 127,969.1 69,727.1 60,855 49,797 1,297,956 9,926.5 -- 61,451.3 N/ASector Rank 5/24 1/24 4/24 4/24 1/24 3/8 N/A 1/24 N/AEconomy Rank 12/495 6/495 13/495 11/495 2/495 13/210 N/A 4/495 N/A

IVA/Revenue (%)

Imports/Demand (%)

Exports/Revenue (%)

Revenue per Employee

($’000)Wages/Revenue

(%)Employees

per Est.Average Wage

($)

Share of the Economy

(%)2002-03 58.94 N/A 5.20 88.19 43.27 15.97 38,159.64 3.562003-04 56.26 N/A 4.88 90.78 43.17 16.67 39,191.00 3.602004-05 54.62 N/A 4.99 93.35 43.17 17.30 40,299.15 3.712005-06 53.95 N/A 5.42 95.82 43.25 17.70 41,441.85 3.862006-07 53.52 N/A 5.33 99.20 43.02 17.79 42,681.19 3.972007-08 53.18 N/A 5.11 101.75 43.55 17.58 44,314.74 3.972008-09 55.84 N/A 5.62 95.37 46.11 18.07 43,971.91 3.982009-10 55.27 N/A 6.02 98.71 46.75 18.39 46,147.05 4.112010-11 53.30 N/A 5.67 99.65 46.88 19.04 46,716.26 4.152011-12 53.82 N/A 5.79 99.08 47.38 19.40 46,940.89 4.162012-13 53.72 N/A 6.22 99.08 47.29 19.70 46,850.42 4.152013-14 53.44 N/A 6.77 99.46 47.02 20.11 46,760.27 4.172014-15 53.77 N/A 7.29 98.88 47.33 20.52 46,805.24 4.222015-16 54.44 N/A 7.62 98.03 47.97 20.92 47,029.58 4.282016-17 54.49 N/A 7.76 98.59 48.02 21.33 47,344.67 N/ASector Rank 5/24 N/A 5/8 21/24 2/24 4/24 11/24 1/24Economy Rank 88/495 N/A 127/210 452/495 37/495 143/495 303/495 6/495

Figures are inflation-adjusted 2012 dollars. Rank refers to 2012 data.

Revenue (%)

Industry Value Added

(%)Establishments

(%)Enterprises

(%)Employment

(%)Exports

(%)Imports

(%)Wages

(%)

Domestic Demand

(%)2003-04 10.4 5.4 2.8 2.6 7.3 3.7 N/A 10.2 N/A2004-05 9.1 5.9 2.3 2.0 6.1 11.6 N/A 9.1 N/A2005-06 8.6 7.3 3.4 2.4 5.8 17.8 N/A 8.8 N/A2006-07 7.3 6.4 3.1 2.7 3.6 5.6 N/A 6.7 N/A2007-08 4.5 3.8 3.1 3.1 1.9 0.1 N/A 5.8 N/A2008-09 -3.1 1.8 0.6 0.6 3.4 6.7 N/A 2.6 N/A2009-10 6.7 5.6 1.3 1.3 3.1 14.2 N/A 8.2 N/A2010-11 6.4 2.6 1.8 1.8 5.4 0.3 N/A 6.7 N/A2011-12 3.4 4.4 2.1 2.1 4.0 5.5 N/A 4.5 N/A2012-13 3.8 3.6 2.2 2.1 3.8 11.6 N/A 3.6 N/A2013-14 4.4 3.8 1.9 1.9 4.0 13.5 N/A 3.8 N/A2014-15 3.5 4.1 2.0 2.0 4.1 11.5 N/A 4.2 N/A2015-16 3.4 4.7 2.3 2.3 4.3 8.1 N/A 4.8 N/A2016-17 5.1 5.2 2.5 2.4 4.5 7.0 N/A 5.2 N/ASector Rank 10/24 9/24 12/24 13/24 12/24 4/8 N/A 7/24 N/AEconomy Rank 142/495 123/495 93/495 79/495 60/495 40/210 N/A 68/495 N/A

Annual Change

Key Ratios

Industry Data

SOURCE: WWW.IBISWORLD.COM.AU

Page 33: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

WWW.IBISWORLD.COM.AU Charities & Not-for-Profit Organisations in Australia March 2012 33

Jargon & Glossary

BARRIERS TO ENTRY Barriers to entry can be High, Medium or Low. High means new companies struggle to enter an industry, while Low means it is easy for a firm to enter an industry.CAPITAL/LABOUR INTENSITY An indicator of how much capital is used in production as opposed to labour. Level is stated as High, Medium or Low. High is a ratio of less than $3 of wage costs for every $1 of depreciation; Medium is $3-$8 of wage costs to $1 of depreciation; Low is greater than $8 of wage costs for every $1 of depreciation.CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using 2011-12 as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the ‘real’ growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the Australian Bureau of Statistics’ implicit GDP price deflator.DOMESTIC DEMAND The use of goods and services within Australia; the sum of imports and domestic production minus exports.EARNINGS BEFORE INTEREST AND TAX (EBIT) IBISWorld uses EBIT as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding tax and interest.EMPLOYMENT The number of working proprietors, partners, permanent, part-time, temporary and casual employees, and managerial and executive employees.ENTERPRISE A division that is separately managed and keeps management accounts. The most relevant measure of the number of firms in an industry.ESTABLISHMENT The smallest type of accounting unit within an Enterprise; usually consists of one or more locations in a state or territory of the country in which it operates.EXPORTS The total sales and transfers of goods produced by an industry that are exported.IMPORTS The value of goods and services imported with the amount payable to non-residents.

INDUSTRY CONCENTRATION IBISWorld bases concentration on the top four firms. Concentration is identified as High, Medium or Low. High means the top four players account for over 70% of revenue; Medium is 40 –70% of revenue; Low is less than 40%.INDUSTRY REVENUE The total sales revenue of the industry, including sales (exclusive of excise and sales tax) of goods and services; plus transfers to other firms of the same business; plus subsidies on production; plus all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); plus capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.INDUSTRY VALUE ADDED The market value of goods and services produced by an industry minus the cost of goods and services used in the production process, which leaves the gross product of the industry (also called its Value Added).INTERNATIONAL TRADE The level is determined by: Exports/Revenue: Low is 0-5%; Medium is 5-20%; High is over 20%. Imports/Domestic Demand: Low is 0-5%; Medium is 5-35%; and High is over 35%.LIFE CYCLE All industries go through periods of Growth, Maturity and Decline. An average life cycle lasts 70 years. Maturity is the longest stage at 40 years with Growth and Decline at 15 years each.NON-EMPLOYING ESTABLISHMENT Businesses with no paid employment and payroll are known as non-employing establishments. These are mostly set-up by self employed individuals.VOLATILITY The level of volatility is determined by the percentage change in revenue over the past five years. Volatility levels: Very High is greater than ±20%; High Volatility is between ±10% and ±20%; Moderate Volatility is between ±3% and ±10%; and Low Volatility is less than ±3%.WAGES The gross total wages and salaries of all employees of the establishment.

Industry Jargon

IBISWorld Glossary

CHARITY The ‘Pemsel Promises’ identifies four charitable purposes: the relief of poverty, the advancement of education, the advancement of religion, and other purposes beneficial to the community as a whole.NGO Stands for non-government organisation.

NOT-FOR-PROFIT ORGANISATION An organisation that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals.

Page 34: IBISWorld Industry Report X0021 Charities & Not-for-Profit ...ethicaljobs.com.au/files/2012_NFP_report.pdf · WWW. IB IS W O R LD. COM .A U Charities & Not-for-Profit Organisations

Disclaimer

This product has been supplied by IBISWorld Pty Ltd. (‘IBISWorld’) solely for use by its authorised licenses strictly in accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other person resulting from

the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Pty Ltd. The publication is sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication – in papers, reports, or opinions prepared for any other person – it is agreed that it will be sourced to: IBISWorld Pty Ltd

$W�,%,6:RUOG�ZH�NQRZ�WKDW�LQGXVWU\�LQWHOOLJHQFH�LV�PRUH�WKDQ�DVVHPEOLQJ�IDFWV,W�LV�FRPELQLQJ�GDWD�ZLWK�DQDO\VLV�WR�DQVZHU�WKH�TXHVWLRQV�WKDW�VXFFHVVIXO�EXVLQHVVHV�DVNIdentify high growth, emerging & shrinking marketsArm yourself with the latest industry intelligenceAssess competitive threats from existing & new entrantsBenchmark your performance against the competitionMake speedy market-ready, profit-maximising decisions

Who is IBISWorld?We are strategists, analysts, researchers, and marketers. We provide answers to information-hungry, time-poor businesses. Our goal is to provide real world answers that matter to your business in our 500 Australian industry reports. When tough strategic, budget, sales and marketing decisions need to be made, our suite of Industry and Risk intelligence products give you deeply-researched answers quickly.

IBISWorld MembershipIBISWorld offers tailored membership packages to meet your needs.

Copyright 2012 IBISWorld Pty Ltd

www.ibisworld.com.au | (03) 9655 3881 | [email protected]