“Would you tell me please, which way I ought to go from here?” “That depends a good deal on where you want to get to,” said the cat. “I don’t much care where…” Said Alice. “Then it doesn’t matter which way you go,” said the cat. – Lewis Carroll, Alice in Wonderland
Your organisation is in a current position. It has a certain level of revenue, a certain number of employees and makes a certain impact.
From a financial perspective you need to know where you ought to go from here. Asking this question allows the following:
It forces key stakeholders to consider the future of the organisation
Multiple parties can be brought into an overall vision, including board members and third-party stakeholders
Realistic operational and strategic goals can be set
Potential pitfalls can be identified before they happen
An actionable road map for the organisation can be developed
As we move into 2020, the question arises, financially, which way ought you go from here?
The topic of salaries in not for profit organisations is a sensitive one. To a certain extent, we’ve shot ourselves in the foot with some of our messaging about ‘every cent you donate’ going to the cause, creating an expectation that employees in the not for profit sector should work for the love of it, rather than drawing a market wage.
The truth of it is that we are dealing with some of society’s most complex issues and it takes skill, experience, perseverance and long hours to lead and manage organisations that deliver social impact, meet stakeholder expectations and generate sufficient profit to keep your organisation afloat, and to invest in the necessities of new technologies and innovations. The move to consumer-directed care models in aged and disability services has pushed the sector further towards commercial business models, broadening the range of skills and experience needed to operate effectively.
In July 2019, the NDIA introduced the Temporary Transformation Payment (TTP) for providers of Assistance with Daily Living and Community Participation. The payment is only available to registered providers and is conditional to a set of obligations. The increase was welcomed by providers who continue to struggle financially with the administrative burden of the NDIS and the introduction of the Quality and Safeguard regulations and the associated compliance and audit requirements.
In a national survey among 381 disability service providers, 76% of organisations stated that they are worried that they won’t be able to provide NDIS services at current prices (NDS 2019). The TTP payment is set at 7.5% above the base price, however given the previous Temporary Support for Overheads of 2.5% was removed, it is merely a 5% incentive and this will reduce by 1.5% each year.