Matters that Matter – Edition 2 – Government Engagement

PREFACE

‘Matters that Matter’ captures sector insights from discussions with non-profit and philanthropic leaders attending and presenting at the many events facilitated by Koda’s Philanthropy & Social Capital team.
In government engagement, most non‑profits have a secret weapon they often don’t recognise: their CFO. While CEOs and external/government relations teams are often front of house, CFOs bring capabilities that can materially strengthen an organisation’s ability to secure sustainable funding, navigate policy shifts, and influence the regulatory environment. In this edition of ‘Matters that Matter’, we explore the CFO’s role in government engagement.
From funding agreements and compliance to reporting and regulation, decisions made in Parliament and bureaucratic offices shape an organisation’s financial health and impact. Yet CFOs and other finance leaders are often absent from the conversations that arguably most affect sustainability.

This update draws on insights from Koda Capital’s most recent Finance Leaders Forum series, held with Tanck’s Co-Founders and government engagement experts, Neil Pharaoh and Angus Crowther, in Sydney, Melbourne,Brisbane and Perth. From these discussions a compelling case emerged:

To reimagine the CFO’s role, from back-office responder to a strategic voice who translates policy landscapes into financial opportunity and turns data into funding and advocacy wins.

At the back of this edition, there are a series of self-reflection questions that non-profit executive teams and boards can ask themselves, to gauge whether they are optimising their government engagement and their CFO as a key strategic asset in this effort.
Koda thanks Neil, Angus and the Tanck team for their contribution to this publication and for the insights shared with participants nationwide.
We hope you enjoy reading this edition and find it useful in your work.

Key Takeaways

• CFOs are an underutilised strategic asset in government engagement, offering data capability, financial credibility, and the ability to translate organisational impact into compelling value for money arguments.
• Government policy and reform directly shape financial sustainability, influencing compliance costs, reporting requirements, contracts, inflation gaps, and overall organisational viability.
• Periods of reform create windows of opportunity for organisations that maintain close relationships with governments, gain early intelligence, and position themselves ahead of policy shifts.
• Timing matters. For instance, Federal Budget proposals are considered around six months before the May Budget, meaning funding requests must be finalised by October of the preceding year, with engagement commencing from that point.
• Diversifying funding pathways reduces vulnerability. By blending grants, contracts, co-investment models, social procurement opportunities, and innovative financing structures, an organisation reduces risk.
• Government engagement requires resourcing, with a useful rule of thumb being to invest approximately 10% of expected government funding into securing and managing government relationships.
• Organisations often have far more connections into government than they realise, through board members, corporate partners, donors, volunteers, and other stakeholders. Many of whom may be well placed and willing to advocate to governments on their behalf.
• Mapping organisational activity to electorates creates powerful, politically relevant data. This includes quantifying participants served, staff employed, economic contribution, and community impact in each electorate, making for a far more persuasive case to government decision-makers.
• Government engagement is a long-term investment, typically requiring 12–18 months of consistent interaction to build trust and produce tangible outcomes.

Section 1: Understanding the Reform and Policy Landscape

Current reform and policy agendas across all levels of government present both significant risks and compelling opportunities. For CFOs, understanding where reform is heading, and positioning accordingly, is essential to long-term financial sustainability.

Finance Leaders Forum attendees discussed the critical importance of monitoring policy and reform developments across funding agreements, compliance costs, and reporting requirements. The challenge is that these shifts often emerge with limited warning, requiring organisations to be nimble and well-prepared.

The Financial Implications of Policy Reform

Policy changes ripple directly through non-profit balance sheets in ways both immediate and systemic. A shift in funding priorities can eliminate revenue streams organisations have relied upon for years, while new government agendas create unexpected opportunities for those positioned to respond.

Changes to compliance requirements alter administrative cost burdens, potentially freeing resources for mission work or, more commonly, diverting capacity to bureaucratic obligations. Modifications to reporting frameworks demand system upgrades carrying real financial consequences. Contract term adjustments affect cashflow predictability and planning horizons. Regulatory reforms can fundamentally reshape operating models, requiring capital investment or forcing difficult decisions about service viability. Lack of inflation adjustments in contracts create structural deficits.

Even seemingly distant policy decisions (e.g. minimum wage increases, superannuation changes, workplace safety regulations) flow through to non-profit cost structures, often without corresponding funding adjustments. For CFOs, policy monitoring isn’t peripheral work, it’s fundamental to financial sustainability, because changes directly determine whether budgets balance, reserves grow or shrink, and organisations thrive or struggle.

A non-profit’s finance function is uniquely positioned to prepare the organisation for policy and reform changes through several key actions:

• Systems: Aligning systems to government reporting requirements before they become mandatory.
• Scenario Modelling: Modelling policy scenarios to understand financial implications of potential reforms, to better manage risks and opportunities.
• Reform Support: By staying closely attuned to policy discussions across government, CFOs can anticipate reforms early and prepare for shifts that may fundamentally impact their organisation’s funding model.

This isn’t about politics; this is all about strategy. CFOs have powerful tools at their disposal to help secure sustainable funding and impact.

Neil Pharaoh, Co-founder and Director, Tanck

A CFO needs to be involved in government advocacy work to both inform this work and begin preparing the organisation for any policy or reform on the horizon that could impact operations.

Section 2: The CFO as a Strategic Voice in Government Engagement

Traditional models of government engagement sometimes relegate CFOs to a preparation and implementation role, managing the financial mechanics of grants and contracts negotiated by others. This misses a critical opportunity. CFOs possess unique capabilities that make them unusually persuasive. They bring a deep command of data and the ability to translate cost-benefit analysis into messages that resonate with government decision-makers.

Translating Finance Language into Government Messaging

Governments increasingly make funding and policy decisions based on evidence, data, and demonstrated value for money, precisely the language CFOs speak fluently. Members of the Albanese Government, including Minister Tanya Plibersek MP and Assistant Minister Andrew Leigh MP, have publicly emphasised a shift from outputs to outcomes, highlighting the growing expectation that programs demonstrate measurable impact to justify ongoing government investment. In this environment, CFOs play a critical role in ensuring their organisations have the financial systems, data, and reporting capability needed to demonstrate impact and make a compelling case for government funding. Further to this, one of the most valuable skills CFOs can develop is translating financial analysis into narratives that resonate with government priorities. By way of example, rather than presenting budget requests, CFOs can help frame proposals as investment opportunities that deliver measurable returns aligned with government objectives.

CFO supported government engagement delivers distinctive value in many ways:

• Credibility with Treasury and Finance departments: Finance-to-finance conversations carry particular weight. When CFOs engage with government finance officials, they speak a common language and share professional frameworks that build trust.
• Data-driven advocacy: CFOs can help organisations move beyond anecdotal evidence to present rigorous analysis of funding impacts. This evidence base makes advocacy more persuasive and harder to dismiss.
• Strategic foresight: CFOs engaged with government budgetary cycles and policy discussions can help determine how identified funding shifts may impact their organisation financially.

Many CFOs lack experience in government engagement, making training and support essential. The most effective learning happens through immersion, by bringing CFOs into live conversations alongside experienced practitioners like the CEO or government engagement professionals.

At each Forum, attendees highlighted that government engagement isn’t just about securing funding, it’s fundamentally about advancing the mission. When CFOs advocate for their cause, using data and insights they’re uniquely positioned to curate, they’re not simply chasing revenue streams. They’re telling the story of impact in language that resonates with policymakers.

This perspective transforms how organisations approach government relationships. Yes, funding matters, but the benefits extend well beyond the dollars. For organisations, a seat at the table with government provides insights into how policy decisions affecting their sector are being shaped. Being engaged with government provides organisations with the ability to build relationships with MPs and bureaucrats who can champion their cause, open doors to new opportunities, and provide early warning of changes that could impact their organisation. These non-financial benefits often prove more valuable than individual grants or contracts. They can position an organisation as a partner in solving societal challenges, rather than a supplicant purely seeking funding support.

When finance leaders step into government engagement, they bring capabilities that can transform their organisation’s strategic position.

Angus Crowther, Co-founder and Executive Director, Tanck

Section 3: Securing Sustainable Funding in a Shifting Policy Landscape

Financial sustainability increasingly requires CFOs to think beyond traditional grant applications and reactive funding approaches. The most successful organisations actively align their finance strategies with government priorities to unlock diverse funding sources: grants, contracts, co-investment partnerships, and innovative funding arrangements.

Matching Engagement to Budgetary Cycles

One of the most practical insights from the discussions was the importance of timing government engagement to align with budgetary cycles.

At the federal level, proposals are typically considered around six months before the May Budget. This means organisations should have a clear funding ask by October of the preceding year and be proactively engaging with key government stakeholders from that point onward.

State budgets follow similar patterns, though timing varies by jurisdiction. CFOs who understand these cycles intimately can ensure their organisation’s proposals are positioned for consideration when funding decisions are actually being made rather than after allocations are finalised.

Equally important is understanding when not to make funding requests. Approaching government immediately after a budget is delivered, when the next year’s allocations are already locked in, wastes relationship capital that could be better deployed.

The Three ‘Ps’: People, Politics and Priorities

A framework that resonated strongly with many attendees was the three ‘Ps’ framework, a lens for assessing government engagement readiness:

• People: Do you know who the key decision-makers are? This extends beyond ministers to senior bureaucrats, who often wield more sustained influence than political appointees. Building relationships with the right people at treasury, in relevant departments, and within the bureaucracy is fundamental to effective engagement.
• Politics: Do you understand the political dynamics at play? This includes a government’s political capital, pressure points, and priorities at any given time. CFOs don’t need to become political operatives, but developing basic political literacy enables them to frame data in ways that align with current political realities.
• Priorities: Are you clear on what government has identified as priorities? These may be explicit (published documents) or implicit (evident in speeches, media commentary, and budget allocations). Aligning proposals with government priorities dramatically increases the likelihood of success.

Establishing Varied Funding Pathways: The Importance of Diversification

Over-reliance on any single government funding source creates vulnerability when policy priorities shift, as they inevitably do. Participants emphasised the value of building multiple funding pathways that strengthen financial resilience:

• Grant funding remains important but should be balanced with other revenue sources. It’s important to pursue grants strategically, targeting those that align with organisational priorities rather than distorting mission to chase available funding.
• Government contracts for service delivery can provide stable, recurring revenue. However, rigorous cost analysis is essential to ensure contracts are genuinely sustainable rather than under-funded obligations that drain organisational resources.
• Co-investment models are increasingly favoured by government as they demonstrate shared commitment and leverage public funding with private or philanthropic capital. CFOs who can structure, articulate and manage co-investment arrangements, position their organisations favourably for emerging funding opportunities
• Social procurement frameworks have been put in place by some governments, valuing social and environmental outcomes alongside value for money. CFOs should evaluate if their organisation lends itself to being a supplier of goods and/or services to governments with these frameworks in place.
• Social impact bonds and payment-for-results arrangements represent innovative financing mechanisms that require CFO leadership to assess feasibility, structure appropriately, and manage effectively.

Reducing Dependency and Building Resilience

Government policy shifts frequently and sometimes with little warning. Organisations overly dependent on government funding can face existential threats when political priorities change or budget pressures emerge.

Relationship diversification across multiple government departments, levels of government, and political parties is critical. As one attendee noted: “Work with candidates on all sides and be the first organisation through the door after an election.”

The CFO’s role in building resilience extends beyond funding diversification and can include:

• Scenario planning for potential policy changes, including financial modelling of impacts and development of contingency strategies. This enables organisations to respond strategically rather than reactively.
• Building reserves and focussing on revenue diversification when funding conditions are favourable, creating financial buffers that provide runway during transition periods.
• Ensuring mission alignment must remain paramount. Pursue government funding strategically, targeting opportunities that advance organisational objectives, not funding that creates mission drift.

It’s important to recognise that government funding isn’t free – effective government engagement requires dedicated resources. A useful rule of thumb is to budget approximately 10% of expected government funding for the staff capacity needed to secure and manage it. Organisations that underfund their government engagement function often struggle to compete, especially against well-resourced lobbyists representing for-profit industries, who are the real competition for government attention, rather than other non-profits.

Section 4: Building Relationships That Deliver Results

Government engagement is fundamentally about relationships. Data, analysis, and strategic alignment become effective only when delivered through trusted relationships built over time with the right stakeholders.

Building Strategic Relationships: MPs and Bureaucrats

The most underutilised opportunity in government engagement is the relationship with local Members of Parliament (MP). MPs must demonstrate responsiveness to valued local organisations and constituents in their electorates, and their influence extends far beyond local issues. They raise matters in party rooms, question ministers, and leverage parliamentary platforms to advance causes. Tanck noted that organisations consistently underestimate their MP’s influence up the political chain.

Attendees were encouraged to focus on MPs where they deliver value to their electorate. Build relationships across the political spectrum, particularly during pre-election periods, to maintain access regardless of election outcomes.

Equally critical are relationships with senior bureaucrats, who are often as important as ministers. Bureaucrats provide continuity through political change, often outlasting ministers and maintaining institutional knowledge across election cycles. They ultimately design funding programs, set reporting requirements, and make countless decisions shaping how policies affect organisations. When bureaucrats become champions for an organisation or proposal, they provide crucial support during ministerial decision-making.

Effective organisations strategically mobilise their broader network in government engagement. Board members often bring valuable government connections, political literacy, or sector expertise that can open doors. Volunteers and community champions lend an authentic community voice. Corporate partners may have established government relations functions and relationships that can be leveraged collaboratively. When constituents speak directly to MPs about an organisation’s impact, it carries weight professional advocacy cannot replicate. The key is to be intentional about which individuals in an organisation’s network are best placed to support specific relationships, and to ensure they are properly briefed and supported when engaging on its behalf.

Quantifying an Organisation’s Electoral Footprint

One of the most powerful yet underutilised tools is a comprehensive analysis of an organisation’s footprint across electorates. Understanding where an organisation’s participants, impact, staff, board members, volunteers, and spending are concentrated transforms abstract advocacy into concrete political value.

Organisations serving a significant number of constituents, employing local staff, or addressing issues that resonate strongly with voters possess political capital that CFOs can help quantify and communicate. It’s about understanding the strategic leverage an organisation may possess and using it appropriately to secure sustainable funding and favourable policy settings for their mission.

CFOs can help quantify political value by analysing:

• Constituents served within an electorate (participants, clients, families).
• Employment impact (staff, volunteers, casuals, and their families).
• Economic contribution (local procurement, suppliers, capital projects).
• Community support indicators (waiting lists, event attendance, referral volumes).
• Alignment with local issues (housing stress, youth unemployment, domestic violence rates).

This data enables organisational leaders to walk into meetings with local MPs armed with specific, electorate-relevant impact information. For instance:

In your electorate, we serve 847 families, employ 23 staff, and inject $340,000 annually into the local economy.

This isn’t abstract mission; it’s tangible community value that MPs care deeply about.

Importantly, this work doesn’t require expensive government engagement staff. A capable graduate in finance, data science or analysis can compile and maintain this information effectively. The investment is modest – perhaps initial consultation with a government engagement specialist to build an internal process driven by a talented staff member. AI tools can also help match postcodes to electorates automatically, analyse and map organisational data, and generate electorate-specific and funding-relevant briefing documents in minutes rather than days.

The CFO’s role is critical. Finance teams already hold much of the required data – payroll, procurement, participant databases, etc. What’s needed is strategic direction to compile and analyse it through an electoral lens, then ensure it reaches the right stakeholders at the right moments.

The Relationship Investment Timeline

Building relationships and achieving outcomes through government engagement is a long-term investment requiring patience and persistence. Meaningful relationships often take 12-18 months or longer to develop to the point where they deliver tangible results.

This timeline reflects several realities:

• Trust building requires repeated interactions over time and a demonstration of reliability.
• Government processes move slowly by design.
• Political cycles mean some opportunities only emerge at particular moments.

It’s important to engage in relationship building even when there are no immediate asks. The old saying remains true:

If you ask for money, you get ideas; if you ask for ideas, you get money.

Initial conversations focused on sharing expertise, offering insights, or supporting government priorities build relationship capital that can be drawn upon when funding needs arise.

Importantly, almost all of government engagement is a grind – consistent meetings, regular updates, patient relationship building. There are no shortcuts, but consistency pays off. The small actions matter: send thank you cards after meetings, maintain follow-up invitations to events, and write to all candidates before election cycles to establish relationships, regardless of who wins. These relationship fundamentals are surprisingly rare and help organisations stand out.

Navigating Bureaucratic and Political Turnover

High turnover within both non-profit organisations and governments can undermine carefully cultivated relationships. Ministers shuffle portfolios, bureaucrats move departments, and elections change the political landscape. This churn makes relationship building both more difficult and more important.

Several strategies emerged from discussions with participants:

• Build institutional relationships rather than depending solely on individual connections.
• Document relationship history so that when handovers occur, new relationship owners understand the context and progression of previous interactions.
• Engage early with new appointees whenever turnover occurs. Being among the first organisations to brief a new minister or welcome a new department head signals an organisation’s commitment and begins relationship building immediately.
• Maintain non-partisan professionalism that enables relationships to transcend political changes; those seen as professional partners maintain access across political cycles.

Final Remarks

The CFO should be a strategic voice in government engagement, not simply a financial manager implementing decisions made by others. The organisations that recognise this first will have an advantage that compounds over time.

The case is compelling. CFOs command data, speak the language of evidence and return on investment, and bring credibility that opens doors in treasury and finance departments that other advocates cannot. Yet too often this potential sits dormant.

The question is not whether strategic government engagement matters. It does. The real question is whether an organisation is approaching it with the intentionality, resources and capability it deserves.

To help answer that honestly, we encourage you to work through the self-reflection questions that follow. They are designed for executive teams and boards to use together, not as a checklist, but as a genuine conversation starter to gauge where your organisation stands and where the greatest opportunities lie.