Professor David Gilchrist University of Western Australia

1. Professor David Gilchrist University of Western Australia Value of the Community Sector to the NT Economy 2017 NTCOSS Conference Darwin Convention Centre 25 September 2017

2. Some key points Data is from ACNC 2015 AIS Collection Australian Bureau of Statistics NTCOSS Survey Predominantly charities only Removed One Significant Outlier Focus on Medians rather than Averages THANK YOU!!

3. Territory’s NFP Sector – first baseline data Source: Gilchrist, D. J. and P. A. Knight, (2017), Value of the Not-for-profit Sector 2017: An Examination of the Economic Contribution of the Not-for-profit Human Services Sector in the Northern Territory. A Report for the Northern Territory Council of Social Service, Darwin, Australia.

4. Highly Diverse Services – The Top 10 Economic, social and community development Religious activities Culture and arts Other education Primary and secondary education Social services Other health service delivery Sports Law and legal Environmental 50% • Charities are one kind of NFP • St John Ambulance • CatholicCare NT • Lifeline Central Australia

5. Charities by Activity Type

6. Income by Activity Type

7. Income Sources Charities generate more than half of their own income

8. NFPs must make a profit Median profit percentage by activity type • 49% made a profit • 28% broke even • 23% made a loss • 25% made a profit of less than 2% Health CPI for 30 June 2015 – 4.3%

9. NT’s Charities – a billion dollar asset • Built by generations of Northern Territorians for Northern Territorians • Essential resource for communities • Cost efficient and effective service delivery • NFPs provide over a dollar for every dollar of government funding • Vulnerable in current policy and economic environment

10. Car Industry $5Bn National Scale & Economic Impact Mining $217Bn 919,000 Employees 50,000 Employees 190,000 Employees 500,000 Employees Charities $100Bn Agriculture $75Bn

11. What we have forgotten… • The reality of public sector service provision – merit goods versus private goods • The non-optional nature of service requirements • The positive externalities that arise from holistic service provision versus transactional service provision

12. Changing the Conversation: • Discussion – focus on value for money and fiscal policy rather than simply expenses • Discussion – focus on investment already made and restructuring not on reduction and replacement • Discussion – focus on fit-for-purpose rather than sector of origin • Lack of data supporting national conversation • Lack of consistency in our economic approach to this sector compared to others…

13. NFP Sector Responsibilities • Set high expectations for performance and outputs • For some, this should be world class services • Build strong strategic planning, financial management and costing skills • Maximise ‘return for beneficiaries’ – today’s and tomorrow’s • Lead the development of a strong sector-wide brand • COLLABORATION • INDUSTRY PLAN

14. Contacts For Report Copies or Queries and Comments • Penny Knight • E: penny.knight@uwa.edu.au • Twitter: @PennyAKnight • Professor David Gilchrist • School of Accounting and Finance University of Western Australia • E: david.gilchrist@uwa.edu.au • Twitter: @GilchristDJ