Squeezed Australian Not-For-Profit Companies Are Having Merger Talks

Photo: Joe Raedle / Getty Images.

Australia’s not-for-profit (NFP) organisations are in merger talks as a way of cutting costs.

An Australian Institute of Company Directors (AICD) study found that 30% of Australia’s not-for-profits have discussed mergers in the past year.

They survey found the sector wants to improve its efficiency and expand the services it offers to users.

There are about 57,000 significant not-for-profits generating more than $107 billion a year in income and employing more than one million people, or about 8% of the work force.

Uncertainty about government funding was ranked as the second most important challenge for school boards in the next three years, behind only the need to maintain or enhance a school’s reputation.

Many NFPs are struggling to determine the impact of reforms, or proposed reforms, to government policy and legislation.

Three-quarters (78%) called on the government to clarify its direction and create stability in operating environments as a matter of priority in the next three years.

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