SociaLink has undertaken some research about the impact of increasing inflation on community
organisations and communities to help inform SociaLink’s understanding of pressure points and to
provide insight to funders. SociaLink collated relevant research and surveyed local not-for-profits to
gain insight on the impact of inflation locally.

The following report includes information about:

• Definition and causes of inflation
• Effects of inflation
• Measure of inflation
• Why inflation is high now?
• Implications of the pandemic and inflation for the community and not for profit sector
  including organisational costs, income and demand for services
• Ideas on what the sector can do to address inflation
• A summary of the responses from local organisations about the impact of inflation

Recommendations for funders are:

• If funders are providing multiyear grants, review agreements to ensure CPI accurately
  reflects increases in inflation.
• Ask applicants to ensure funding applications reflect inflation, particularly in staff and
  transport costs.
• Ask applicants if they are projecting an increase in demand for their services due to inflation
  increases.