A New Narrative for NFP–Government Engagement
The relationship between not-for-profits (NFPs) and government in Australia is long-standing, yet often fraught with power imbalances, short-termism and policy volatility. Now, a compelling new paper from Pro Bono Australia and Impact Economics and Policy argues for a strategic reset. How Not-for-Profits Should Engage with Government: A New Narrative calls for a more constructive, equitable and long-term partnership—one built not just on contracts, but on shared purpose.
The paper arrives at a critical time. With increasing social need, constrained public funding and widespread trust deficits, the NFP sector must reimagine how it positions itself within policy ecosystems. And government, in turn, must recognise that NFPs are not just service providers, but architects of public value.
“NFPs are vital to Australia’s social infrastructure, but they are too often treated as subordinate stakeholders rather than equal contributors to national policy.”
Reframing the NFP-Government Relationship
The paper’s central thesis is clear: the status quo of transactional engagement no longer serves either sector well. Instead of acting as passive recipients of government direction—or as reactive lobbyists—NFPs must actively shape public discourse, bring long-term insights to the table, and position themselves as strategic partners in nation-building.
Historically, many NFP-government relationships have been defined by compliance, funding dependency and risk aversion. However, this paper argues that the sector has untapped power, as knowledge holders, trusted intermediaries in communities, and innovators in systems-level change. To wield that power effectively, NFPs must develop new capabilities: policy literacy, narrative framing, and sustained cross-sector collaboration.
A New Engagement Framework
Rather than outlining a tactical checklist, the report offers a strategic reframing. It suggests that effective engagement rests on three critical shifts:
From short-term transactions to long-term stewardship
NFPs must move beyond project-by-project advocacy and contribute to whole-of-system reform. This means staying at the table between funding rounds and election cycles.From deficit narratives to shared public value
Instead of framing issues solely in terms of crisis and unmet need, the sector should highlight its contribution to economic, social and environmental outcomes—often more efficiently and inclusively than traditional public policy pathways.From sectoral silos to coalition-building
Stronger partnerships—with peak bodies, research institutions, businesses and across levels of government—are essential. Collective voice and policy coherence strengthen impact.
This is a shift from charity to citizenship. From managing relationships to co-creating solutions. From being recipients of decisions to being designers of public good.
Implications for NFP Leadership
For boards and CEOs, this paper is a prompt to rethink government engagement as a leadership function, not an external relations activity. It means investing in policy capacity, not just communications. It means understanding government incentives and constraints, and learning how to engage constructively within them.
Just as importantly, it requires building internal consensus about the organisation’s policy identity. What issues does it speak on? How does it back its claims with data and lived experience? What kind of change is it seeking to enable?
As the report puts it: “Advocacy is no longer a fringe activity—it is core to organisational purpose and sector sustainability.”
The most impactful organisations we work with are those that understand policy as part of their operating environment.
However, this requires confidence, coordination, and capacity. It also takes a long-term mindset. Governments come and go; the sector’s purpose endures. Reclaiming that strategic voice is not just good advocacy—it’s good governance.
NFPs looking to strengthen their government engagement can begin by:
Clarifying their strategic policy positions
Building deeper relationships across political lines and public service departments
Shifting from reactive submissions to proactive collaboration
Framing their impact in economic and social terms—not just outputs
The full paper, How Not-for-Profits Should Engage with Government: A New Narrative, is available at Pro Bono Australia and provides a thoughtful, ambitious and practical roadmap.
