23.04.2020
2 min read

Coronavirus threatens to leave charities and non-profit sector ‘paralysed’, says Tim Costello

In Australia, 1.3 million people are employed by charities. But due to coronavirus, it’s expected nearly 300,000 could find themselves unemployed.

Tim Costello discusses COVID-19's impact on charities

In Australia, 1.3 million people are employed by charities.

But due to coronavirus, it’s expected nearly 300,000 could find themselves unemployed.

Watch the full story above

Former World Vision Australia CEO Reverend Tim Costello delivered these stats upon the launch of the Charities Crisis Cabinet.

Some of the biggest players in the not-for-profit sector have come together to discuss the fallout of COVID-19 and secure support from the government.

“The Cabinet has made some submissions to government to say, could you allow 150 per cent tax deductibility for any gift given, so that it increases the incentive for people who are feeling anxious to actually give to charity,” Costello said.

“We have also written to the government in the hopes of harmonising the state fundraising rules - as six different states plus territories all have different rules, so that’s a lots of compliance red tape for charities.”

Charities are being ‘paralysed’

“Charities that have received government help have been those delivering emergency food and shelter,” Costello said.

“But most charities - 60 per cent of them in Australia - only have reserves for six months, and 30 per cent only for three months.

“Of course, this is the quarter leading up to June 30, which is the end of the financial year - and also when most of the fundraising goes on for charities.

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“None of the public events and community events can happen. People are also feeling anxious and saying they can’t give because they might be out of a job.

“Suddenly, the 1.2 million employees and more importantly, the really important work charities do in this community is flatlining and paralysed.”

People hurt and causes hurt

“I don’t think the public realises how much of the heavy lifting in society is done through charity,” Costello said.

“Even a lot of what government funds is actually through charities. That means that when many will not survive that there will be people hurt and causes hurt.

“The charities that I’m talking about include everything from the RSPCA to music and arts charities.

“This is actually what makes life liveable - people volunteer, they have passion, they serve - it’s the glue that holds the country together, really. That’s why the crisis is worrying for us.”