Presented by: The National Roundtable of Nonprofit Organisations

Size

• There are as many as 700,000 nonprofit organisations in Australia, most of which are small and entirely dependent on the voluntary commitment of members
• Approximately 380,000 nonprofit organisations are incorporated in some form or another (meaning that they have a legal identity independent from their members)
• About 35,000 nonprofit organisations employ staff
• There are approximately 20,000 organisations with Deductible Gift Recipient status in Australia. Most of these are nonprofit organisations.

Economic Contribution

In 1999/2000, nonprofit organizations that employed staff:

• Employed 604,000 people, 6.8% of Australians in employment
• Had an income of $33.5 billion
• Contributed $21 billion, or 3.3%, to GDP
• Made an economic contribution larger than the communications industry and about equal to that of the agriculture industry; a contribution almost twice as large as the entire economic contribution of the state of Tasmania

Philanthropy

• In 1997, 8.6 million Australians donated $2.8 billion to nonprofit organisations.
• Not all donations can be claimed as a tax deduction; in 1996/97, $550 million was claimed.
• In 1999-00 the total amount claimed as gift deductions had increased to $700 million.
• In 2000/01, Australia's business sector provided $1.4 billion to nonprofit organisations as gifts and sponsorship.

Volunteering

• During 2000, 3.7 million Australians volunteered a total of 600 million hours of labour for non-profit organisations of all sizes
• This voluntary contribution was equivalent to an additional $8.9 billion worth of income to the non-profit sector
• When this voluntary contribution is added to the financial data, Australia’s nonprofit sector contributed $29.6 billion or 4.7% to GDP. This is a larger economic contribution than the mining industry

Sources of Income

In 1999/2000 the nonprofit sector’s main sources of income were as follows:

• 58% - sale of goods and services
• 30% - government
• 9% - households

Overseas Comparisons

In terms of its contribution to employment, Australia’s nonprofit sector:

• Is of a similar size to that of the United States
• Is larger than that in the United Kingdom and most other European countries
• Is smaller than the nonprofit sector in the Netherlands and Ireland

The Sector’s Importance to Democracy

"Like most modern democracies, Australian society is supported and served by a not-for-profit charitable sector which delivers a range of social welfare services to its citizens. In this role the charitable sector is a crucial partner with business and government, which it complements but with which it also contrasts.

The sector in Australia pre-dates any form of comprehensive government intervention on behalf of people in need. It arose from the compassion, goodwill and foresight of men and women of philanthropic, humanitarian and religious convictions and has continued to serve, expand and diversity since early colonial days.

The charitable sector underscores many basic values in Australian democracy. It exemplifies the principles of pluralism, free choice and the rights of citizens to participate in and take responsibility for their community. It helps ensure that no government has a monopoly on the way society deals with its citizens – especially those who are most vulnerable because of economic or personal need."

Industry Commission, Report into Charitable Organisations in Australia 1995

Components of the Sector

Organisations in the following fields account for the following percentages of nonprofit sector employment:

• Social Services - 26%
• Education and Research - 24%
• Culture and Recreation (including registered clubs) - 21%
• Health - 15%
• Business and Professional Associations and Unions - 2.5%
• Other - 11.5%

National Roundtable of Nonprofit Organisations

The National Roundtable was formed in October 2002 by a group of committed national peak bodies and nonprofit organizations to present to the Australian community the valuable contribution of the nonprofit sector in Australia, and to raise and deal with shared issues concerning that sector.

This independent Roundtable exists to present to the community and decision makers the full breadth of the nonprofit sector which comprises the arts, sports, health, environment, churches, welfare, education, overseas aid, consumer protection and many other parts. The Roundtable and its participating members are committed to ensure that the nonprofit endeavour enhances the community wellbeing and common good of Australia. It does so by seeking to build the capacity, reputation and respect of the nonprofit sector in this country.

Sources

Australian Bureau of Statistics, Non-profit Institutions Satellite Account, Australian National Accounts 1999/2000. Cat.No. 5256.0, ABS, Canberra, 2002.
Australian Bureau of Statistics, Generosity of Australian Business Cat.No. ABS, Canberra, 2002.
Industry commission, Charitable Organisations in Australia, Report No. 45, 16 June 1995
Mark Lyons and Susan Hocking, Dimensions of Australia’s Third Sector, CACOM, UTS Lindfield 2000.
Lester Salamon et al, Global Civil Society. Dimensions of the Nonprofit Sector, Center for Civil Society, Johns Hopkins University, Baltimore, 1999.