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Can business help charities survive the COVID-19 economic downturn?

Can business help charities survive the COVID-19 economic downturn?

A featured article outlined the charities in Australia will struggle to survive the COVID-19 economic downturn without drastic action. Charities are expected to see reductions in income from government grants, losses in revenue from the provision of goods and services and a loss of donations as a result of the downturn. Research by Social Ventures Australia (SVA) and the Centre for Social Impact (CSI) shows that without continued government support, 17% of charities will face foreclosure within 6 months and more than 200,000 jobs could be lost as a result of cost-cutting and organisational closures.[1]

Supporting the financial health of the charity sector is now more important than ever to ensure the continued prosperity of our society. As highlighted by SVA and CSI. [2]

For Australia to thrive, charities will need to grow, not shrink, in the recovery phase. Financially stronger charities will be well positioned to provide the services needed to support the community, accelerating our collective recovery. Financially weakened charities, forced to cut jobs and services, will compound the collective challenges we face.

Leaders from the community sector are advocating that the impending crisis is addressed with a number of complementary measures. They are calling on government to extend JobKeeper, provide funding to help charities transition to a “new normal”, increase funding for government-contracted service delivery, retain JobSeeker at a higher level, simplify fundraising and philanthropy, and support research.[3] The philanthropic community are also encouraging philanthropists to increase their grant amounts and to make funds more flexible.[4]