Assignment Task
Climate for Change Australia is an Australian not-for-profit charity and incorporated community group that has a formal legal structure as part of an incorporated organisation.
CITATION (Consumer Affairs Victoria, 2021)The charity was founded in 2014 and is based in Melbourne. The key focus is around enhancing awareness of climate change and educating people with the scope of encouraging a change in the communities and collective attitudes surrounding the topic of climate change and gaining public support by encouraging people to actively work towards a sustainable future. With their growing community support and involvement, the organisation has managed to expand its operations across Australia, particularly within Victoria and Queensland. However, with their implemented volunteer programs activities have spread across New South Whales, South Australia, Tasmania, ACT, Northern Territory and Fiji. The aim of the charity is to encourage social awareness and motivate politicians to implement reforms, aiming to prevent and stop the detrimental effects of global warming. Through the use of policies and practices, which would enable Australian citizens to actively take a stance and make the changes necessary, which is the main scope of the organization. Thus, resulting in effective climate action practices being implemented across societal, cultural and economic structures and creating a unified front against climate change and creating positive change all across Australia.
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Get Help Now!CITATION Cli21 \l 1033 (Climate for A Change Australia, 2021)Since the inception of the organization in 2014, the charity has participated in the training of more than 340 volunteer assistants. The charity has raised awareness by engaging in more than 1,100 Climate Conversations and at the moment they are engaging approximately one Climate Conversation per day. They have affiliated with over 10,000 guests at their talks and seminars and have managed to complete 6 successful crowdfunding campaigns. This resulted in the organization to raise close to $1,000,000, contributing towards activities and strategies to raise awareness and motivate effective climate action in Australia. CITATION Cli21 \l 1033 (Climate for A Change Australia, 2021)
PESTLE ANALYSIS
POLITICAL
Considering the ever-changing regulations and scrutinies, the implementation of government policies impact heavily on the non-for-profit sector, its business environment and prospects. The regulatory changes imposed by the federal government, are aiming to impose harsh sanctions on minor offences, which would lead on the deregistration of charities where organisations commit a summary offence. This in return could restrict political advocacy from the part of the charities, limit the freedom of speech of organisations and staff and stifle the sector as a whole. CITATION Chr21 \l 1033 (Knaus, 2021)Additionally, new bill proposals from the Morrison government in Australia would see the expenditure threshold for charities and political campaigners decrease in their budget. Meaning that organisations that spend more than the amount indicated for political advocacy will be subject to restrictions and additional reporting. Especially during election times this would limit charitable advocacy practices. CITATION Luk21 \l 1033 (Michael, 2021)ECONOMICAL
The financial state of affairs in Australia over the past year has been greatly affected by Covid-19. The pandemic had a detrimental effect on the economy, which resulted in an increase of the unemployment rate by 7% and in return a reduction in Australia’s annual revenue. Both of these factors had been caused due to the ongoing state lockdowns which resulted in the closure of businesses, reduction in personnel and productivity. As a result, the purchasing power and net income of Australians was reduced dramatically. CITATION CEI21 \l 1033 (CEIC Data, 2021)The financial situation impacts the commerce and the businesses both within Australia and worldwide. Especially when it comes to charity organizations fluctuations in the financial stability and government support can be detrimental for the survival of these organisations. Especially in light of the events from last year, with the lack of necessary transitional support in the likes of JobKeeper, more than 200,000 jobs could be lost among Australian charities. CITATION Soc20 \l 1033 (Social Ventures Australia, 2020)
SOCIAL
Australian consumers are cautious when it comes to their financial habits and incredibly hesitant to spend money in charitable events and organizations. The ongoing shift towards digital innovation and increasing online presence among consumers, would allow organisations to work more efficiently when it comes to engaging and educating their audience. Because of the online interactions flourishing this year, that has been a benefit for the charities too. Charities that have more permanent relationship with the public, will be more successful CITATION Goo20 \l 1033 (Good 2 Give, 2020)Despite the positive effects on customer engagement, research suggests that because of the pandemic Australian philanthropy would be negatively affected due to the unforeseen situation of the financial and global health crisis. JBWere estimated that the total chartable habits would decrease by 7.1% in 2020, which contrasted the rise of those by 5% in between 2018 and 2019. CITATION Joh20 \l 1033 (McLeod, 2020)Especially when it comes to understanding the behaviour of Australian consumers under the current circumstances, a more frequent approach needs to be taken and a more detailed analysis needs to be implemented in order to effectively understand consumers, and continue follow the ongoing social developments. CITATION Ele20 \l 1033 (Eleanor Bensley, 2020)
ECHNOLOGICAL
The rate of technological innovation and emerging trends can be a huge factor of influence and engagement when it comes to the not-for-profit sector. By implementing innovative technologies this can maximise the efficiency of the practices of an organisation. Key trends include, the rise of mobile donations, the implementation of learning management systems to assist with the training, education, and development courses and activities for the improvement of employee and volunteer performance. Additionally, there has been a huge push towards the adoption of the use of virtual reality in order to further engage with donors and prospects closer to the organisations. As the social distancing measures of Covid-19 are in place, this gives the opportunity to engage in more remote learning experiences through the use of VR and effectively maximise the organisation’s impact. CITATION For21 \l 1033 (Forbes Nonprofit Council, 2021)
LEGAL
In terms of legislative measures, non-for-profit organizations and purposes are coming after the 2013 Charities Act. CITATION Aus \l 1033 (Australian Government, 2021)The Charities Act states all the statutory classifications of charities and their purpose related to Commonwealth legislation and thus providing more structure in the not-for-profit sector. Considering in the past the terms were only classified by case law. Within the Act, the meaning of ‘charitable purpose’ is also outlined, in order to better discourse the practices and requirements of the contemporary not-for-profit sector as a whole.
CITATION Mad14 \l 1033 (Maddocks, 2014)Additional legislative measures are placed by the Australian Charites and Not-for-Profit Commission, when it comes to the financial statements provided by organisations. The financial statements that are provided by medium or larger charities and especially if the identify as reporting entities, need to prepare General Purpose Financial Statements that meet all the legislative requirements and with the option to comply with Reduced Disclosure Requirements (RDR). Charities may reevaluate and reform their finances to derive the information that is needed for the announcements.
CITATION Aus20 \l 1033 (Australian Government, 2020)
ENVIRONMENTAL
In terms of Australia’s policies towards climate action, according to recent reports Australia is ranking last among the rest of the United Nations member countries when it comes for climate action. According to a recent report on sustainable development, Australia is only ranking 10 out of 100 on reducing fossil fuel emissions. (Jeffrey D. Sachs, 2021)
When it comes to business practices, because of Covid-19, there is a more sustainable approach during Covid times and the necessary steps towards that have been made. The companies are more interested than ever to stop or lower greenhouse gas emissions and they demonstrate their capacity to do so with changes in their structure, to face the new era of climate change. It is a government’s job to be involved with this, but mostly it comes from the ability of the companies to lead the way with sustainable projects that are already in place. There are some financial assets already helping companies for that cause, in structure, technology and moneywise, but it comes to each business to prepare and do the proper action. Every company in the industry diminishing landfill waste or greenhouse gas emissions, leads the way for the next to come. CITATION Pro20 \l 1033 (Hoetker, 2020)The Covid era brought into light the global economic, social and environmental deficits around the globe. Sustainability factors are greatly affecting the business world decisions and become part of their financial, social and environmental status. The lesson coming out of these challenging times, that from the bottom to the top people need to be prepared for the next crisis, around the planet and in each and every company and community. This is beneficial to peoples’ thinking and the business world being active and alert.
(KPMG, 2020)
PORTERS FIVE FORCES
In the area of Non-Profit Organisations the most significant force is the donors. However, when the demand in a particular service is increased and the cost is low; new programs and companies might be attracted, and there is a confusion among the new entrants. There is a constant threat of members or donor’s substitution to switch between NFPs/Charities as the cost is low among the organisations. Competitive rivalry is common between NFPs in the industry and the public sector has to realise that. The leadership and the strategies of the organisations need to adjust to the new reality. The grantmakers can benefit from the impact the NFP/Charity has established, and they will buy their mission/vision from whoever has the greatest impact in the society. The Bargaining power of the service providers/suppliers is affected by the influence of the subcontractors. All the above are subject to changes due to the new situation with COVID 19.
Summary & preliminary analysis
As evidenced on the findings of the report, Climate for Change Australia is currently operating in a very profitable market and has the potential to exponentially grow and gain advantage over the competition.
In order to further establish its position within Australia it is crucial that the organization invests more into lobbying and creating partnerships in order to increase exposure, raise awareness and motivate people to actively participate and positively influence governments, with the scope of implementing the necessary environmental reforms and fulfill the vision of the organization.
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