OPINION: Australia falls short on getting the for-purpose sector on to a more sustainable footing.
By 2030, Australia’s for-purpose sector has the potential to be more connected, more impactful and more strategic.
We could be unlocking unprecedented funding for those on the front lines of social change, fuelling innovation and tackling our most pressing challenges with long-term solutions.
Right now, we’re falling short.
Despite the passion and dedication of individuals and organisations, the sector remains stuck in a scarcity loop.
It’s a cycle where limited resources force short-term decision-making, which in turn perpetuates the lack of investment in long-term solutions, trapping organisations in survival mode.
Too often, the bigger picture – building the infrastructure, leadership and strategic capacity of the sector – goes ignored.
This isn’t just an oversight; it’s a fundamental flaw in how we think about impact.
If we’re serious about strengthening the for-purpose sector, we need to address three major gaps: the lack of investment in ‘field’ building, an aversion to risk and patient (long-term) capital and the under-utilisation of existing institutions.
Australia’s for-purpose sector has always been good at stepping in where governments and markets fail but, on top of identifying and filling these gaps, we must also strengthen the foundations of the sector itself through field building.
We often treat the symptoms of social issues rather than the root causes, funding frontline services while neglecting the infrastructure that would allow organisations to thrive.
To break free, we need to invest in leadership development, collaboration rather than competition with peers, advocacy and impact measurements.
We need to invest in the financial advisory space so donors can give more effectively, paying for-purpose organisations for the full costs of delivering impact.
Change is not just about more knowledge; it’s about shifting mindsets and adopting new practices.
At Minderoo Foundation, we continue to evolve our ways of working informed by listening and engaging with the ecosystem.
We are acting in response to calls for change.
This includes adopting the ‘pay what it takes’ approach, funding both direct program costs and indirect expenses.
In the 2026 financial year, we will make changes to our grant making to cover indirect costs, understanding that sustainable change demands full funding for charitable efforts.
This is our step toward breaking the cycle of under-investment, ensuring our non-profit partners have the resources to thrive, invest in their teams and build lasting impact.
What we have learned is that philanthropy in Australia is too safe.
There’s an overwhelming preference for funding short-term, tangible outcomes – projects that can be measured in months, not years.
But the biggest, boldest solutions take time.
They require a willingness to back untested ideas, invest in systems change and provide the kind of patient capital that enables long-term solutions to take root.
Most philanthropists understand the power of risk in business.
They know that real innovation doesn’t happen without bold moves. Yet in philanthropy, that appetite for risk seems to dissipate.
We need to embrace a mindset of being ‘patiently impatient’ – investing for the long term while demanding urgency in how we act.
In business, when leaders are uncertain of how to navigate complexity and drive growth, they turn to their advisers, financial experts and strategists, and that should be no different for philanthropy.
There’s an untapped resource for our sector hiding in plain sight, and that’s Australia’s network of peak bodies and legacy institutions.
Too often, we assume that innovation means new ideas. But instead of bypassing existing institutions, we should focus on modernising them.
Many of these organisations have decades of experience, deep networks and influence that could be harnessed for sector-wide impact.
The reality is reforming and repurposing what already exists is often more effective than building something new.
Leaders in philanthropy recognise that the greatest opportunities are not always found in shiny new initiatives but in re-imagining the institutions that already shape our sector.
At Minderoo Foundation, our 2030 strategy is built on this shift.
We’re prioritising convening, advocacy and partnerships with government, peak bodies and intermediaries.
A new civic compact, one driven by bold ideas, shared responsibility, and decisive action to build a stronger, more resilient for-purpose sector, to create lasting impact.
• John Hartman is chief executive of Minderoo Foundation
