Organisations need to be adaptable, innovative and strategic to overcome the current economic challenges.
The 2024 Not for Profit Leader’s Report on Financial Management provides leaders with industry findings, insights and best practice solutions to help the organisation achieve long-term sustainability. 2024 marks our fourth annual survey on financial management.
Report summary
- Loss of major funding is the number one financial risk for 59% of respondents
- 68% reported their financial performance has been negatively affected by the current economic climate
- Rising operational costs are the biggest financial challenge for 85% of respondents
- Turnover within finance teams is at 60% which is affecting the teams output
- Budget constraints and limited resources are the primary barriers to technology investment
- HLB Mann Judd Sydney surveyed members of the Exclusive Not for Profit Community and other not profit leaders on financial management to produce the findings for this report.
The outlook
The sector continues to face challenges with increasing operational costs, reduced funding streams and an increased demand for services.
Leaders must be adaptable to changing circumstances to ensure long-term survival. This requires a proactive approach that includes pricing reviews, funding diversification, expense reviews, embracing technology, and establishing a strong risk management framework.
"Organisations that don’t adopt technology and automation risk falling behind in today’s rapidly changing landscape."
Head of Not for Profit, HLB Mann Judd
Key findings
With rising operational costs for all organisations, it is surprising to see only 44% reporting they had put prices up over the last 12 months, and 49% are looking to do it over the next 12 months.
Cash reserves are still being affected by the current economic situation with 56% of reporting their cash reserves had been negatively affected.
63% of respondents have at least six months of cash reserves.
Data security, automation and integration are the top three priorities for leaders.
However, many still don’t know or understand how to include automation or artificial intelligence in their organisation.
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About the Not For Profit Leader's Report
The Not For Profit Leaders Report is a semi-annual publication produced by HLB Mann Judd Sydney. It involves surveying leaders in the not for profit (NFP) community, focusing on key aspects of strategic planning in March, with findings shared in May. Similarly, in July, NFPs are surveyed again on financial management, with the corresponding report released in September.
During July and August 2024, we surveyed more than 80 not for profit leaders on financial management. Of those that responded, 52 per cent were charities, 19 per cent member, club or peak body organisations, 9 per cent religious organisation, 8 per cent school or training provider. 5 per cent social enterprise, 5 per cent foundation and the remaining 2 per cent were 'other'.
About HLB Mann Judd Sydney
Mann Judd in Sydney was formed in 1970 and over the past five decades has grown to 30 partners and directors and over 180 staff members. Today the firm provides a comprehensive range of advisory and financial services. We work with many not for profits, specialising in strategic planning, business transformation and financial management, mergers & acquisitions, risk analysis including governance and cyber.
The Sydney firm is a member of the HLB Mann Judd Australasian Association. HLB Mann Judd has offices in most of the major business centres in Australia, New Zealand and Fiji. HLB Mann Judd is a member of HLB International, the global advisory and accounting network.
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