Not-for-Profit Navigator
With Nicole Aebi-Moyo - SalesFix For Purpose Practice Lead
The start of the year is often a time when people think about trends in their area of work: fundraisers look at what others are doing to make their campaigns sing (hint: join the Raisely webinar on what worked in 2025); those delivering services look at what their funding and reporting requirements might be or where the next round of funding might come from; others look at what events are coming up this year and plan around those.
It’s a time for reflection and consideration.
In the last edition of Not-for-Profit Navigator, I asked if 600,000 for purpose organisations in Australia was too many. In this edition, I’m reflecting on the challenges faced by the disability sector and what that means for the small, often highly specialised service providers. With significant external factors impacting their ability to function within a challenging market, are more and more mergers likely and is this good for the sector?
Many of the issues they face will be recognised by those across the sector more widely where only 1 in 4 organisations feel financially secure according to the “NFP Resilience Report 2025” from the Australian Communities Foundation.
The Impact of the NDIS on the For Purpose Sector
Over a decade ago, a major social reform was imagined for those in Australia with a disability. With the goal of removing the inequalities in access to support, the NDIS was touted as the solution to the “support“ lottery often experienced by those with a disability. Where you lived, how your local service provider was funded, even how you acquired your disability all had an impact on the sort of support you could receive. The NDIS was supposed to do away with all that.
The scheme has completely changed the landscape of disability support in Australia in ways that are too numerous to discuss here, and the impacts are felt at all levels from participants and their families, to the organisations providing support and the many thousands of independent allied health workers.
But what has the impact been on the For Purpose organisations and what lies ahead?
Released in late 2025, the “State of the Disability Sector Report 2025” from the National Disability Services found that 81% of NDIS providers believe they cannot continue to provide services at current price levels.
The almost constant sudden regulatory rule changes and the pressure on organisations to operate to a more “commercial” model have had a real impact on an organisation’s ability to focus on the client rather than the finances.
The Rush to Merge
With significant pressures on funds, some would say there has been a rush to merge with organisations like Berry Street and Yooralla announcing plans to join forces in 2024, Kirinari and LiveBetter amalgamating to form Australia’s largest regional provider, and so on. And it’s not just the larger organisations that are merging: smaller providers are too, all to try to maintain financial stability. This is not surprising when the ACNC’s 11th annual report showed that extra small charities (that make up 30% of the sector) generate only 0.1% of the total revenue.
From 1st January of this year, organisations that want to merge will potentially have additional hoops to jump through depending on their size with the introduction of the Mandatory Merger Control Regime which requires notification to the ACCC for significant mergers. Many are saying the introduction of this new regulation is in direct response to the increased volume of M&A activity in the sector.
How can small organisations survive
As discussed last year, there is definitely some value to the highly specialised organisations that serve a niche market (take a look at December’s edition which highlights lessons learnt from the German Mittelstand market). So how can small organisations maintain their independence in an ever harder environment?
Strategic Suggestions for Small Organisation Survival
Operational Modernisation: To survive a market where 81% of providers struggle with current price levels, small organisations must transition toward more efficient, “commercial” operating models that protect their ability to focus on the client.
Leveraging Technology for Efficiency: Small NFPs can utilize tools like Agentforce Nonprofit and AI solutions to reduce administrative burdens in the sector.
Specialisation as a Competitive Edge: Rather than trying to compete on scale, small organisations can lean into their highly specialised nature to provide niche services that larger, generalist organisations may overlook.
Embrace Targeted Amalgamation: Small providers can follow the example of regional entities that are already amalgamating to maintain financial stability without losing their local identity.
While the data suggests a difficult road ahead, survival is not solely about size. Small organisations can survive by leaning into their highly specialised expertise while adopting the efficient, ‘commercial’ operational models required to weather current NDIS price pressures. By proactively engaging with new technology, smaller providers can build the resilience needed to remain client-focused in an increasingly consolidated landscape.
If you think a merger might be in your future or you need any assistance understanding any of the information provided in this edition of NFP Navigator please reach out at [email protected], I am always happy to help.
Until next time,
Nicole
Useful Resources
- Webinar for those considering migrating from NPSP to Agentforce Nonprofits (previously called Nonprofit Cloud). It’s in the middle of the night in Australia but the recording is worthwhile: Webinar link here!
- Information about what is already underway through the Community Sprints (the last one was virtual, the next one is in Sydney in February)
- Want more helpful Salesforce How To Videos? Complete this survey to influence what videos get made next!
Coming Up in 2026
- 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.
- SalesFix will be at the Fundraising Institute of Australia’s conference in Melbourne 26 February. Join us!
- Attend one of F&P’s fundraising events to keep up to date with trends.
Australian Salesforce user groups
If you use Salesforce and you’re not part of a user group, you’re missing out! There’s over 30 groups in Australia and New Zealand alone, and many now meet online so there’s no excuse for not joining in and finding out more.