Not-for-Profit Governance and Performance Study 2023

The Australian Institute of Company Directors (AICD) Not-for-Profit Governance & Performance Study 2022-23 reveals the increased challenges and demands impacting directors in the Not-for-Profit sector.

The latest edition of the annual NFP Study shows that directors are being required to commit more time and provide greater and more rigorous focus to the operations of their not-for-profit organisations.

Tougher governance standards resulting from various Royal Commissions, workforce shortages and the ongoing legacy of COVID-19 all continue to affect not-for-profit organisations, with many directors forced to re-evaluate their role in this vital sector.

Key findings of this edition of the NFP study include:

• 68 per cent rated their organisation as highly effective in achieving its purpose, although the most used measurement was from CEO reports and other management metrics.
• Directors are committing more time, with over 40 per cent spending more than three days per month on a single NFP.
• For organisations responsible for providing care, directors were mainly using CEO reports as the primary source of information on the quality of care provided.
• The percentage of directors being remunerated has increased to 22 per cent, compared to 14 per cent, five years ago.
• Profitability has fallen with almost a quarter (24%) making a loss, compared to 15 per cent last year.
• Despite the drop in profitability almost 75 per cent said their organisation would be financially stronger in three years’ time.
• Only five per cent were currently undertaking a merger.
• Workforce planning, staff shortages and board succession planning identified as key issues.

Download the study here

Download the media release here.

Now in its second year, the interactive dashboard allows users to delve into more detail of this research.  Data from the survey can be filtered according to geographical region, sub-sector, and other variables such as profit to enable even greater insights on how the sector is performing.

Click here to view the interactive dashboard