Australia Post plans to step up its efforts to foster innovation in the not-for-profits sector as a new survey reveals less than 40 per cent of NFP organisations have an innovation strategy in place. 
The annual Innovation Index - commissioned by digital giving provider GiveEasy, with support from Australia Post and Westpac - to be released today, revealed NFP organisations that were innovative were 34 per cent more likely to secure an increase in their annual budget. It showed Australia's largest NFPs - with budgets in excess of $10 million - were less innovative than their counterparts with budgets of between $500,000 and $1m, as well as those with budgets of between $5m and $10m.
"We are looking to help them all embrace the new opportunities that e-commerce and the digital age present them. We are committed to helping all the NFPs and small businesses embrace that opportunity," Australia Post chief innovation officer Greg Sutherland said.
"We think there is real potential in the delivery of services and the nature of the way those services engage with the clients to leverage our infrastructure." Australia Post has launched a $20m venture capital fund that is examining opportunities to invest in e-commerce businesses.
It has also forged a partnership with Melbourne University that will see two new places, aimed specifically at e-commerce businesses, in the Melbourne -accelerator program.
Australia Post managing director and group chief executive Ahmed Fahour expected the new fund to grow to more than $100m in coming years.
The company has also begun a major drone delivery trial.
"Our business has always operated with a social purpose to support every community. We are already engaged with many NFPs ... We have services for a digital age related to e-commerce that businesses use all the time that can equally be applied to the delivery of services in the NFPs," Mr Sutherland said.
The Innovation Index showed an overall average innovation rating of 58.3 in the NFP space in 2016, little improvement on last year which saw an overall rating of 57.7."The index shows that there is a lot of innovation in the sector which we should be proud of, but also that there is significant room for improvement," said Sharon Watkins, national head of education and social -sector at Westpac.
GiveEasy chief Jeremy Tobias said the survey confirmed passive fundraising campaigns "no longer cut through".
"Emerging social enterprises and crowdsourcing campaigns compete for the share of donor wallet. These new models are the disruptive 'Ubers' of the social economy, and innovation will be the key to thriving in a new NFP landscape," he said.The index showed NFPs believe funding is the No 1 one thing they need in order to be innovative, along with better digital capabilities, cultural change, a clear, documented innovation strategy and less red tape.