The Australian not-for-profit (NFP) sector is one of limited resources, rising competition, and high community expectations for evolution. As such, every dollar matters.

In this environment, market research is no longer a “nice to have” — it is a strategic tool that helps organisations make smarter decisions, deepen engagement, and maximise impact.

Square Holes has worked alongside several charities and community groups looking to refine their services, track their impact/need, and expand their ability to serve the community.

From environmental groups looking to engage young people, to homeless shelters raising awareness through renowned events, to a not-for-profit organisation tracking loneliness, what our research has uncovered time and time again is that organisations best serve the community when they work off of insight, rather than assumption.

Research also enables resource-light organisations to get more bang for their buck, with insights helping to steer where they place their limited funding and capacity.

Erica Stacey, Marketing and Communications Manager from the Nature Foundation, says that market research helps NFP NGOs stretch their limited resources to make a significant impact.

“Nature Foundation’s mission is ‘Engaging people, resources and good science to conserve the precious habitat of South Australia and beyond.’ As a non-profit NGO with limited resources and a commitment to evidence-based decision-making, focused market research enables us to understand our audiences and use the data and insights to inform strategic decisions about the actions we take towards achieving measurable outcomes.’

In the case of volunteer-run organisations — which make up 43% of Australian charities according to the ACNC — research can be especially valuable in ensuring limited resources are directed where they will have the greatest impact.

Current picture

Australia’s charity and not-for-profit sector is one of the largest contributors to the national economy. According to the Australian Charities and Not-for-profits Commission (ACNC), the sector generated more than $222 billion in revenue in 2023, representing a 10.7% increase year-on-year. The sector now contributes almost 8% of Australia’s GDP.

At the same time, fundraising conditions are becoming more challenging.

Recent Australian research from McCrindle found that while 76% of Australians still give financially to charities or NFPs, this has declined from 84% the previous year. The research also showed that donors are shifting away from long-term loyalty towards more spontaneous and issue-driven giving.

For NFPs, this means assumptions about audiences, supporters and messaging can quickly become outdated, with organisations that rely on instinct rather than evidence risking losing relevance and donor engagement.

One of the greatest advantages of market research is the ability to better understand donors and supporters, with Australian giving trends showing that personal connection to a cause is now one of the strongest drivers of charitable support.

With the right research, NFPs can segment audiences more effectively and tailor communications to different supporter groups, which leads to more personalised engagement, stronger donor loyalty and improved fundraising outcomes.

Square Holes has worked alongside NFP Helpmann Academy since 2016, providing the organisation with vital research on their impact on emerging artists in South Australia.

Kate Zealand, Communications and Marketing manager for Helpmann Academy, says that research has enabled the organisation to remain responsive to the evolving needs of creatives in the state.

“Research is fundamental to ensuring our work remains relevant, impactful and responsive to the needs of the emerging creatives in South Australia. It helps us identify opportunities to help empower emerging creatives and make evidence-based decisions for our program,” says Zealand.

“It also provides valuable insight into changing industry trends, enabling us to adapt and realise meaningful outcomes.”

A strong strategy depends on strong evidence, with market research supporting leadership teams and boards by providing data to guide decisions around service delivery, program development, and brand positioning.

It also helps organisations identify unmet needs and emerging opportunities within the communities they serve. Zealand states that Square Holes research has enabled the organisation to make improvements to their services, as well as how they communicate their offerings.

“Research insights have informed the way we position and promote the programs and events we offer, helping us broaden awareness and connect with those we support. Research has also helped us to make improvements to our application processes, communications and engagement, connecting more creatives with our transformational professional development programs,” says Zealand.

“By combining sector research with participant feedback, we have been able to strengthen our impact and expand our reach.”

While research may seem like a ‘nice to have’ investment for some, the cost of making uninformed decisions can be far greater.

Poorly targeted campaigns, declining donor retention, ineffective messaging or services that fail to meet community needs can all reduce impact and waste precious resources.

Market research helps organisations reduce uncertainty and increase confidence in decision-making. It provides a clearer understanding of supporters, communities and stakeholders — enabling NFPs to create stronger programs, more effective fundraising and deeper community trust.

In an increasingly competitive and fast-changing environment, evidence-based decision-making is becoming essential for not-for-profits that want to remain sustainable, relevant and impactful.

Square Holes is a cultural insight studio.

We design mixed-method explorations of people and culture beyond the category, uncovering the patterns, tensions and shifts shaping behaviour to inform strategy, inspire innovation and enable confident decisions. Our studio model brings together the right mix of thinkers, researchers and specialists for each exploration.

If you’re navigating change, entering a new market, or seeking deeper understanding of people and culture – let’s start a conversation >