Not-for-Profit Navigator
With Nicole Aebi-Moyo - SalesFix For Purpose Practice Lead
The For Purpose sector in Australia is huge and represents over 10% of the workforce. That’s about the same number as work in retail or construction, and larger than mining, agriculture and manufacturing combined. The ACNC estimates that there are approximately 600,000 For Purpose organisations out there.
Should some of these organisations be looking to merge to drive efficiency and economies of scale; or remaining separate to drive specialisation?
Whilst working in the For Profit sector, I’ve been through 3 acquisitions where the Salesforce partner I was working for was gobbled up by a larger, usually global partner. It’s never been fun: for the employees or the clients.
Over the last few months, the number of clients and potential clients I’ve spoken to who’ve been concerned that we’re going to get acquired seems to be growing. In some circumstances, we’ve actually won the business because we’ve made it clear that we’re not here to be acquired.
There have also been some significant mergers within the For Purpose sector this year (for example with the formation of Baptist Care creating a major aged care provider) and so I’ve been pondering the various different models out there, the different sized organisations, those that specialise in a niche area and those that look to be a one-stop shop. Is there one model that works best?
Bigger Is Better, right?
In the For Profit world, the general consensus is that growth is good and targets are set accordingly. But is that necessarily always the case? My wife and I were discussing this with some friends over dinner recently. One of our friends was having some issues at work: the organisation they had excitedly joined some years ago had grown beyond recognition and the values were becoming diluted. The focus was now on growth rather than quality work and the stress was becoming unbearable.
My wife mentioned the concept of the German Mittelstand and I was intrigued. What could the For Purpose sector in Australia learn from the specialised, niche and highly successful organisations in Germany?
The Mittelstand World
Mittelstand translates to middle class so is the Mittelstand sector simply the same as the SME sector then? No. The SME sector is defined by metrics (below a certain threshold for revenue and/or employees). In contrast, the Mittelstand sector is defined by qualitative traits:
- Unity of Ownership & Management: the owner runs the business, often family owned and run. They are personally liable and deeply involved in daily operations.
- Generational (or Long-Term) Thinking: these organisations are planning for the long-term future. They’re not thinking in terms of quarters to please investors, they’re looking at the next 20, 30 or even 50+ years. They prioritise long-term survival to short term-profit maximisation.
- Regional Roots: many world-leading Mittelstand organisations are based in, or were born out of small rural villages. They are embedded in their local communities, supporting local schools and clubs, building a loyal local workforce.
- Financially Conservative: they prefer to reinvest in the company rather than paying out dividends or taking on external debt.
How do these traits align to the For Purpose sector?
Whilst the financial model might be different between For Purpose and For Profit organisations, I see a lot of similarities between the ideas behind the Mittelstand concept and the For Purpose sector. Many people who work in the For Purpose sector do so because they feel a deep connection to the cause of the organisation, They are often closely involved in the communities they serve and engage with, and can be extremely loyal employees.
The owner of a Mittelstand organisation will often see themselves as the “steward” of the organisation: ensuring its longevity for future generations, just as leaders and employees of For Purpose organisations see themselves as the stewards of the mission.
Financially, reinvesting in the organisation is a given in the For Purpose sector. There’s no shareholders to be accountable to and no profit to be made. Surpluses are reinvested into, and used to ensure the long-term survival of, the organisation.
Of course, one fundamental difference between For Purpose and For Profit organisations is that ultimately, For Purpose organisations are doing their best not to exist in the future. Environmental organisations hope the world comes to its senses and does the right thing; campaigning groups hope what they’re campaigning for or against is resolved; disability advocacy groups hope that people with disabilities have nothing to advocate for. But in reality, we know that seems unlikely and so longevity is still key.
Specialising to achieve your mission
We work with a range of different types of organisations: generalist and specialist. Of course, within the often larger, generalist organisations, there are smaller teams that specialise. So which model works best? What delivers the better outcome for the organisation’s mission?
I don’t claim to know, so let’s take a look at some of our clients instead:
- Education Equity Australia is a new organisation: their goal is to act as the enabler, a match maker, bringing together niche organisations that provide education support services, with schools that need them. They recognise that each organisation can fill a gap and are focused on establishing connections and encouraging collaboration.
- DonateLife Victoria is a well established, mid-sized organisation “housed” within the much larger Lifeblood Australia. The specialised team is well positioned to be nimble and agile, able to really hone in on the complex area of organ donation. But they do so surrounded by the infrastructure and support of Lifeblood Australia. We’ve seen the benefits of this most recently where DLV has been able to piggyback off the AI frameworks of Lifeblood, whilst not being hampered by the complexities of the larger organisation’s procurement processes.
- Catholic Care NT is a large organisation, providing a variety of support through various programmes. Each team specialises in the service they offer and so they’ve established niche capability within a much larger organisation.
Three different organisations, three different models. All working to deliver the best outcomes for people in different ways.
Where does SalesFix sit?
In a slight side bar (and thanks for bearing with me on this!), I think I now understand why SalesFix feels so right to me. I’ve always said it’s the closest I’ve come to being back in the For Purpose sector and this is why. SalesFix is very much aligned to the Mittelstand model: we’ve been owned and run by Jason Lawrence for over 15 years and he has always seen us as one big family; he’s planning for the future, a future that doesn’t involve selling the business to make a short-term profit; our commitment to the various communities we’re part of is considerable and whilst not the traditional “local” community, the way we engage and contribute to the world around us feels just as real; and finally, we’re financially conservative. This isn’t about making money for the shareholders or even a few top C-suite people, this is about delivering quality work for our clients and building a great community of people whilst we do so.
So what’s the conclusion?
The debate over size and specialization in the For Purpose sector ultimately reveals that there is no single model for success. While the commercial world often defaults to ‘bigger is better,’ the long-term sustainability and mission delivery of For Purpose organisations may be better served by adopting a philosophy akin to the German Mittelstand: prioritizing generational thinking, deep connection to the cause, and financial stewardship over short-term growth targets.
Thanks for entertaining my end of year musings! It’s been a great one and I look forward to engaging with you all in some way in 2026.
If you need any assistance understanding any of the information provided in this edition of NFP Navigator please feel free to reach out I am always happy to help.
If you need any assistance understanding any of the information provided in this edition of NFP Navigator please feel free to reach out at [email protected], I am always happy to help.
Until next time,
Nicole
Useful Resources
Join our Fundraising Community of Practice: meeting virtually once a month to discuss all things fundraising and tech. Email [email protected] to join.
Coming Up in 2026
- SalesFix will be at the Fundraising Institute of Australia’s conference in Melbourne in February. Join us!
- Salesforce Community Sprint: 23-24 February, Sydney. Register for this in person hack-a-thon style event and influence the products built for the For Purpose sector.
- Salesforce Agentforce World Tour: 25 February, Sydney. Make a week of it and attend to find out all about the latest releases and developments.
- True Blue Blazing: we’ll be back in 2026! Watch this space for date announcements and more.
- Attend one of F&P’s fundraising events to keep up to date with trends.
Australian Salesforce user groups
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