New data shows cost of living pressures taking toll on charities and communities
Australian Charities Report shows charity expenses surpassed significant revenue growth
Charities employed 11% of workforce but 53% operated with no paid staff
Cost of living pressures are taking a toll on both charities and the communities they support, according to new data from the Australian Charities and Not-for-profits Commission (ACNC).
Commissioner Sue Woodward AM said the 12th edition of the Australian Charities Report shows charity sector expenses surpassed significant revenue growth, based on analysis of 53,641 Annual Information Statements submitted by charities for the 2024 reporting period.
“Charities generated $239 billion in revenue in this latest period, a strong 7.5% increase that outpaced growth in the wider economy. But expenses climbed even faster, rising by 8.6%, to $231 billion, outpacing this growth. This growing gap reflects the reality charities are facing,” she said.
Ms Woodward said the larger total expenses bill reflects a combination of factors that many charities have highlighted to the ACNC in various forums.
“Demand for support is rising as more people feel the squeeze. Charities are responding by hiring more staff where they can—but at the same time, they’re being hit with higher costs for wages, insurance and utilities. That’s a tough combination for many charities.”
Charities employed 1.6 million staff, or 11% of Australia’s workforce, when compared with 2025 Australian Bureau of Statistics (ABS) workforce data. That’s a rise from 10.7% previously.
There were differences on key measures across the sector. The analysis confirmed that smaller charities operate with significantly fewer financial resources—not only in revenue, but also in the share of donations and bequests they attract and the assets they hold.
Extra-large charities, with annual revenue of $100 million or more, made up just 0.6% of the sector. Yet they generated 57% of total sector revenue, received around 21% of donations and bequests, and held roughly half of all sector assets.
By comparison, 60% of all charities were small or extra small, with less than $500,000 in annual revenue. Together, they generated just 1.4% of total sector revenue, received less than 9% of all donations and bequests, and held less than 5% of sector assets.
“This highlights how much less financial capacity these charities have across key measures,” Ms Woodward said.
Donations and bequests — second‑highest total ever
Donations and bequests reached $14.8 billion. This is the second highest total ever, even though it is a decline compared to $18.9 billion in the 2023 reporting period (which was higher only because of a record $4.9 billion donation to one single charity).
Government funding was the largest revenue source at $118 billion, while revenue from goods and services was $83 billion.
“Our data shows yet again that the sector is a major economic force - a contribution in addition to the sector’s vital social role as the connective tissue for communities across Australia and abroad.”
Volunteer count highest ever reported to ACNC by registered charities
Registered charities reported that they engaged 3.9 million volunteers—the highest registered charity volunteer count ever reported to the ACNC. There were 2.5 volunteers reported for every employee.
More than half of all charities, 53%, operate with no paid staff, relying entirely on the dedication of their volunteers.
“It is remarkable that we have seen this reliance on volunteers by around half of all charities in almost every edition of the Australian Charities Report, since we published the first report in 2014.”
More charities report servicing people aged 65 or over
The data shows more charities reported servicing people aged 65 or over. In the 2024 reporting period, there was a change among the top beneficiary groups. ‘Adults – aged 65 or over’ entered the top three, as the third most common beneficiary group, with 6.9% of charities reporting this group as a program beneficiary.
“This slight shift is important to be aware of, as it aligns with ABS data on Australia’s ageing population,” Ms Woodward said.
“This edition of the Australian Charities Report is a foundation for conversations about how we can nurture and sustain this vital sector. High-quality data boosts transparency and bolsters confidence in the sector. It helps donors and funders make informed decisions, supports governments to develop sound policy and gives charities a clearer picture of their operating environment.”
Read more in the 12th edition of the Australian Charities Report.
Interrogate the dataset in the Charity Data Explorer, which allows you to tailor your search based on location, size and other attributes that may be of particular interest.
This report and all previous editions are available in the Charity Data Hub.
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