Sustainability of not-for-profit organisations: absence of a common definition

Today, organisations face increasing pressures to account for their sustainability approaches. Mandatory Australian climate-related financial disclosures for large for-profit organisations, effective from July 2024, require disclosures relating to governance, strategy, risk management, and metrics and targets, that sit within a sustainability report. Due to these mandatory disclosures, there has been renewed interest in the sustainability of other organisations, including not-for-profit organisations (NFPs).

The NFP literature has explored sustainability in myriad ways for decades. For example, relatively recent studies have explored web-disclosure practices for transparency and sustainability (Nair et al., 2023), financial sustainability (Herrera, 2023), unique supportive strategies used to promote sustainability (Edwards Harris, 2023), factors influencing sustainability (Singh and Mthuli, 2021), differences in sustainability perceptions (Ceptureanu et al., 2018), and sustainability models (Ceptureanu et al., 2017). Yet there is still a lack of consensus on the definition of the concept within the NFP sector. This problem is compounded by the fact that posited definitions of sustainability have varied over time. For example, it may be stipulated in terms of the ability to maintain operations and fulfil missions (Phillips, 2006; Bowman, 2011) and commitments to different stakeholders (Weerawardena et al., 2010; McDonald et al., 2015); the availability of funds, non-financial resources, effective management, and design of programmes (Okorley & Nkrumah, 2012); and the ability to deliver social impact (Jenner, 2016). Although there is acknowledgment that NFP sustainability is a complex concept (Singh and Mthuli, 2021) that encompasses a range of factors and extends beyond financial sustainability, the literature addressing the definitional dimensions of NFP sustainability remains limited. Through a systematic literature review, this study aims to develop a sustainability definition specifically relevant to NFPs. In addition to making an analytical contribution to the NFP sustainability literature, it is hoped the findings of the study will assist NFPs in improving their sustainability disclosures, as well as inform the thinking of standard setters on NFP sustainability reporting and financial disclosures.