A not-for-profit leadership group says legislation may be to blame for the sector's increasing vulnerability.

It comes as a new report from Grant Thornton warns they'll soon be at breaking point if they don't adapt.

The report shows there's little understanding for law changes, while maintaining staff and financing are top concerns for the sector.

Garth Nowland-Foreman - director of Centre for Not For Profit  Government and Leadership told Tim Dower the Government hasn't been very good at engaging with the sector about these changes.

He says they seem to find more in additional compliance requirements put upon these groups each year, many of which are unnecessary.

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