INTHEBLACK February 2025 - Magazine - Page 45
“Wage increases are well-deserved, but they make it harder for
the NFPs to operate. Payroll costs are a significant proportion
of their costs, and a 3.75 per cent wage increase really hurts.”
ELLIE PATERSON CPA, NOT FOR PROFIT
ACCOUNTING SPECIALISTS (NFPAS)
they’re compliant, because otherwise a lot
of these passionate people will be forced
to walk away from the industry.”
SEEKING NEW INCOME STREAMS
Even charities that depend mostly on
philanthropic revenue may still be feeling
the squeeze, with philanthropy likely
among the expenses people are cutting
under cost-of-living pressures.
Andri Yusetia FCPA is CFO of
United In Diversity (UID), an Indonesian
not-for-profit organisation with a
mission to serve as an educational
platform and act as a catalyst for building
trust and cooperation among business,
the public sector and civil society for a
sustainable future.
UID has galvanised leaders from all
sectors to collaborate and address
challenges across the nation, using
Theory U as the social methodology
and the United Nations’ Sustainable
Development Goals (SDGs) as a
framework. Its sponsors include
The David and Lucile Packard Foundation,
The World Bank and The United Nations
Development Program, plus a range of
corporate partners.
“We have yielded tangible changes in
policy reform, governance, social innovation
and inclusion of marginalised groups,
as well as gender equality,” Yusetia says.
This strengthens the local grassroots
economy and drives business-sector
transformation “as a key engine of
sustainable development”.
Yusetia says UID’s funding model requires
the organisations to be “strategic in how
we try to attract philanthropic funding and
secure funding for the long term as well”.
“That’s one of the reasons we focus on
the SDGs,” he says.
Diversification is also on the agenda at
GenWest. As demand for services increases,
Idris says the organisation is seeking new
funding streams.
CHARITY VERSUS NOT-FOR-PROFIT —
WHAT’S THE DIFFERENCE?
In Australia, a not-for-profit is an organisation that engages
in work to benefit the public rather than for profit. To be
legally recognised as a charity, an organisation must
meet a strict set of requirements and be endorsed by
both the Australian Charities and Not-for-profits
Commission and the Australian Taxation Office. All
registered charities must be NFPs, and they must only
have charitable purposes (as deemed by Australian law)
for the public benefit, and not be a government entity,
an individual or political party.
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