The National Disability Insurance Scheme (NDIS) was introduced in 2016, replacing the existing system of disability care and support provided under the National Disability Agreement (NDA).
The NDIS ‘insurance’ approach can be contrasted to the previous NDA “welfare” approach, whereby expenditure is now factored in over the life of an individual and measured by calculating the total future costs of all those who are insured.
The Impact Suite’s Co-founder, Darren Howlin, said that during this time of change, it is important for business operations to remain under scrutiny and control.
Finance
The NDIS presents charities with opportunities for growth and expansion however, there are also many associated challenges.
“Many not-for-profits are transforming from block-funded organisations paid in advance, to organisations that are largely or fully commercial in their orientation. Therefore, not-for-profits need to have an efficient and up-to-date service design, workforce planning and risk management practices to survive in the diverse landscape,” he said.
Workforce Development
Less efficient organisations are struggling to survive as funding is not sustainable to support the whole sector.
“This NDIS is making it difficult for organisations to prioritise workforce development, with staff shortages already evident in the sector. Not-for-profits are struggling to recruit and maintain the necessary staffing and skills to meet demand” Darren said.
There is also an ever-growing pressure for service providers to be competitive, flexible and responsive, leading to an increased demand for flexible working arrangements in the sector.
“This workforce change can be to the detriment of the financial viability of an organisation. The quality of service provided by frontline staff can be the difference between a person staying with or leaving the service,” he said.
Competition
The current competitive landscape, it is more important than ever for organisations to show their financial and operational sustainability and efficiency. “By placing additional buying power in the hands of the consumer, competition amongst NDIS providers has also intensified. Charities need to think about what the client wants, how they want it delivered and why they want it in the first place,” Darren said.
The Impact Suite
The Impact Suite is an online platform which allows donors to measure and compare charities.
“The Impact Suite bridges the trust gap within the philanthropic community and can help your organisation appear more transparent and accountable during this period of change,” Darren said.
Visit www.theimpactsuite.com.au and get your charity's Social Impact Rating free-of-charge today!
