On the surface, Australia's charitable sector appears strong. Two-thirds of respondents describe the sector as fairly or very healthy, yet many organisations are also grappling with rising demand, capacity constraints and increasing pressure on resources.

Nearly eight in ten have experienced increased demand for services over the past 12 months and a similar proportion report struggling to keep up. In response, 41% are prioritising support based on severity of need, almost a third have introduced waitlists and only around a third are in a position to expand their workforce.

These pressures are reflected in charities' financial outlook. While 63% report having more than six months of financial runway, this falls to just 38% with funding secured beyond a year.

The findings also highlight opportunities to strengthen funder relationships. Australian charities were more likely than their global peers to say that reducing reporting requirements would help them be more effective. Almost six in ten identified networking and learning opportunities as valuable support, particularly given limited time for collaboration.

Impact measurement remains a priority, with more than half of charities using a formal framework and a further 35% developing one. Yet nearly half say reporting requirements are overly burdensome. The findings suggest that trust-based funding and investment in organisational capacity may be as important as funding services themselves.