Not-for-profit aged care providers such as Leigh Place, play a critical role in shaping the aged care landscape in Australia. But what does it mean to be a not-for-profit aged care provider in Australia? How do they differ from for-profit organisations, and what makes this model so essential in the context of Australian aged care?
The Not-for-Profit Model Explained
A not-for-profit aged care provider is an organisation that operates without the primary aim of generating profits for shareholders or owners. In Australia, many of these organisations (like Leigh Place) are charities governed by a broad range of legislation, including oversight by the Australian Charities and Not-for-Profits Commission (ACNC). They are generally governed by a Board of Directors who ensure that resources are used to fulfil the organisation’s charitable purpose (mission) rather than to benefit investors financially.
The Role of Not-for-Profit Providers in Aged Care
Not-for-profit aged care providers have a distinct role to play in the sector. They often focus on ensuring that care is accessible, affordable, and equitable for all older Australians, including those from vulnerable or disadvantaged backgrounds.
Here are some of the key characteristics of not-for-profit aged care providers, such as Leigh Place:
- Community
Many not-for-profit aged care providers are deeply embedded in their local communities due to their strong sense of social responsibility. Founded for purpose, with a desire to provide care and support to elderly Australians within the community, Not-for-profit providers have strong ties to the broader environment in which they operate and continue to forge partnerships to enhance this connection.
- Mission-Driven
Not-for-profit organisations that are registered charities, are driven by a clear charitable purpose to improve the lives of older Australians. Leigh Place’s charitable purpose is defined in our Constitution and is the bedrock of our care and services. Opened in 1989 as a joint initiative between the local Council (Canterbury) and the NSW Department of Housing, Leigh Place was founded on the ideals of providing high quality, affordable accommodation and aged care, with strong links to the local community – a driving force behind all that we do to this day.
- Accessibility
One of the hallmarks of not-for-profit aged care providers is their commitment to making services accessible to a wide range of people. With policies in place to support low-income seniors, and a range of additional services such as pastoral care, spiritual support, and cultural activities, Leigh Place is holistic in approach, supporting health care but also emotional and mental well-being.
- Reinvestment in the organisation and its future sustainability
Because not-for-profit providers don’t distribute profits to shareholders, they reinvest any surplus funds back into the organisation. This might include upgrading facilities, investing in staff training, improving technology, or expanding their range of care and services. This reinvestment ensures not only that current residents receive the best possible care, but also that Leigh Place can continue to operate sustainably over the long term, supporting future generations on their aging journey.
Not-for-profit aged care providers such as Leigh Place offer a powerful reminder that, ultimately, the value of aged care lies not in financial returns, but in the quality of life provided to those who have spent their lives contributing to our community.