Charities would lose about 200,000 of their 1.3 million jobs if COVID-19 emergency financial supports such as JobKeeper end in October, The Australian reports.
And about 17 per cent of the nation’s 16,000 registered charities would be at high risk of shutting down within six months, a new study reveals.
The report, released by advocacy group Social Ventures Australia and research organisation the Centre for Social Impact, paints a bleak picture of the potential post-COVID future of the charities sector, which employs one in 10 workers and accounts for 8 per cent of the nation’s GDP.
Modelling a 20 per cent revenue cut to the sector, the study found 88 per cent of the nation’s charities would immediately be operating at a loss, and nearly one in five would be at high risk of having to shut down within six months. In that scenario, more than 200,000 jobs would be lost.
To limit the potential damage to the sector, the report makes a number of recommendations including the retention of the JobSeeker payment at its current level, smoothing the transition away from the JobKeeper payment in October so it remains available for needy sectors, and increasing funding for government-contracted services delivered by charities.
SVA chief executive Suzie Riddell said the impact of COVID-19 on the economy meant strong charities were more important than ever, but it was struggling to secure funding in the post-virus environment.
“We should be pump-priming charities to aid the recovery. They are the social glue in our communities. Without thriving charities our productivity and wellbeing is at risk,” she said.
The report notes there are more than 57,000 registered charities in Australia. In 2018 charities employed more than one in 10 employees in Australia – 1.3 million people.
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Coronavirus: Cash drought puts 200,000 charity workers at risk of losing jobs (The Australian)
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