Responding to changing external stakeholder expectations has increased as a key challenge for the sector as identified in our 2025 not-for-profit (NFP) survey. This increase highlights the growing importance for NFPs to adapt their strategies to meet the evolving demands of donors, communities and suppliers.
The landscape for NFP organisations is continually evolving, with changing expectations from external stakeholders requiring leaders to be keenly aware of the marketplace while remaining agile and responsive enough to maintain and grow their support base.
Tools to demonstrate impact
One of the primary responses to this challenge is developing impact measurement, policies and storytelling to ensure NFPs communicate more effectively about how funds are used and the societal impact they create. Stakeholders increasingly demand evidence of the tangible impact of their contributions. By improving how they measure and report on their activities, NFPs can provide compelling stories that highlight their successes and the difference they make, strengthening the organisation’s narrative and appeal. This can have a strong return on investment by helping to improve donor engagement with external stakeholders – by extension improving employee and volunteer satisfaction at an organisational level.
Collaborating for insights
Engaging with external professionals is also essential. Collaborating with experts in various fields can provide NFPs with the insights and tools needed to navigate complex stakeholder landscapes. Whether it’s through consulting services, partnerships or advisory boards, leveraging external expertise can help NFPs stay ahead of trends and meet stakeholder expectations more effectively.
Recent funding increases for social enterprises and community organisations were highlighted in the 2025–26 Federal Budget, aimed at ensuring they can continue to deliver essential services to those in need. Specifically, the Budget outlines several key funding initiatives for the NFP sector.
Expertise in action
Background: Four years ago, a NFP sector audit client faced significant challenges in securing continued funding for their services relating to mental health and emotional wellbeing of Australian infants, children and families. The organisation was even considering winding up its operations due to financial uncertainties.
The primary challenge was finding sustainable funding to support their principal activities – vital mental health. The organisation needed to find a way to not only secure ongoing funding but also to expand its reach and impact.
Through persistent and strategic discussions with funding bodies and leveraging meaningful storytelling, the organisation was able to turn the situation around. They successfully secured funding by demonstrating the value and impact of their services. Moreover, they expanded their services to other states and engaged subcontractor services to enhance their capacity and reach.
As a result of these efforts, the organisation not only secured the necessary funding but tripled their funding income. Their funding agreements were structured to renew every three years, and they have successfully secured funding for a second renewal. This strategic approach has ensured the sustainability and growth of their mental health services, allowing them to continue making a significant impact in the community.
What this means for you
- Enhance impact measurement and storytelling: Invest in robust impact measurement tools and craft compelling stories that showcase your organisation’s achievements.
- Engage with external professionals: Seek advice and collaboration from experts to better understand, meet and respond to stakeholder expectations.
- Regularly review stakeholder feedback: Implement mechanisms to gather and act on feedback from donors, communities and suppliers.
- Stay informed on trends: Keep up to date with the latest trends and expectations in the NFP sector to proactively address stakeholder needs.
