The majority of participants expressed their concerns about the role of advocacy in dealing with funders and governments. They identified a "politics of retribution" (for example, the requirement of complying with non-contact with the media about issues affecting the industry or funded program) as an inhibiting factor on both the behaviour of non-profit organizations and the effective development of the non-profit sector.

Where the funder was the Government, grant recipients could then be characterized, in some cases, as "the invisible eyes and ears of the Government". Such a position created a tension for organisations in that it tended to limit them in formulating policy changes envisaged by the SE sector, and transparent participation in the policies implemented by Government. In some cases it was suggested that failure to comply with funder requirements could have more severe consequences such as the erasure of Tax Concession Charity and Deductible Gift Recipient status.