Why mid-sized charities should be ready

I was putting the final touches on a Case for Support for a client, polishing the narrative arc, swapping in fresher statistics, making sure it had the right balance of head and heart, when my brain wandered to the next jobs on my list: finding philanthropic funders to connect with, then re-framing the whole thing for a government audience.

This is the part of fundraising that people outside the sector rarely see. The glossy PDF or beautifully bound booklet is just the last piece in a complicated jigsaw. Before that comes months of planning: deciding which stories will land, which data will persuade, which funders are worth pursuing. The best Case for Support isn't just a sales pitch; it's a blueprint for how an organisation will be understood in a crowded, competitive world.

And as I started building a target list of potential funders for the client, some numbers jumped out.

On average, only 8.5% of a charity's revenue comes from philanthropy. That's the sector-wide figure. But zoom in on the mid-sized charities, those with annual revenue between $500,000–$3 million and $3–$10 million, and the picture shifts: philanthropy makes up 23% and 13.5% of their income, respectively. By contrast, the very largest organisations lean on philanthropy far less, at just 6–7% of revenue.

Here's the kicker: the giants dominate the market. A handful of extra-large organisations absorb more than half of all sector revenue, nearly nine in ten government dollars, and around 40% of all donations. At the same time, the donor pool is narrowing, with CPA Australia noting that half of all tax-deductible donations now come from just 1% of income earners, and fewer people donated last year.

It sounds bleak. And yet, this is precisely the opening for mid-sized organisations.

Philanthropy is often looking for partners with the right balance of scale and agility, organisations that deliver impact at pace and show exactly how donor dollars make a difference. That's where mid-sized charities excel. They can turn a six-figure grant into visible, measurable impact. They can offer the accountability of scale without losing the intimacy and responsiveness that donors crave. They are nimble enough to innovate but established enough to prove staying power.

The lesson is simple: philanthropy will never be the biggest slice of income, but for mid-sized charities, it can be the lever that lifts everything else, credibility, contracts, partnerships, and sustainability.

A call to action
Funders: Look beyond the mega-charities and household names. Mid-sized organisations are where your dollars will have a transformative impact.
Mid-sized charities: Be ready. Show, in clear and compelling terms, the outcomes you deliver and how a modest investment can change lives and communities.

The big players may receive most of the money. But if you're mid-sized, you're in the sweet spot. And the smart funders are already looking for you.