The impact generated by not-for-profit organisations is fuelled by those who support them. Those who benefit most from the work of not-for-profits are often not the ones who are paying for it. Instead, philanthropy and government funders provide billions of dollars every year, much of it unheralded, to support the varied roles that the sector plays in society.

Thriving not-for-profit organisations are critical to the future productivity and wellbeing of Australia. But right now, when they are needed most, many not-for-profits are struggling.

Social Ventures Australia and the Centre for Social Impact launched this project to look at the issue of indirect cost funding in Australia and to investigate if there was an evidence base for action to be taken to promote and support changing the practice of funders and not-for-profit organisations, with a specific focus on philanthropic funders. This report summarises the key findings from the first stage of evidence collection across the larger project.