In Australia, we like to think of ourselves as a generous society.
But, according to tax data, (those whose taxable income is more than $1 million) in Australia claimed no tax deductions for donations in 2014-15.
Associate Professor Wendy Scaife, director of the at QUT, would like Australia to develop a philanthropic culture where giving is the norm, like it is the United States. “In the States, if you’re not giving you’re regarded as a little bit strange,” she says.
Two factors contribute to America’s strong culture of giving: traditions of asking and of celebrating wealth. In Australia, we’re reluctant to do either. “We are still more egalitarian in that way,” she says.
So how much time and money do we give?
The reveals that in the 12 months prior to interview, for 932 hours at charities and non-profit organisations.
According to the report, in the same period , or 80.8 per cent of the adult population, donated $11.2 billion to charity.
In 2016, the average donation was $764.08 – about one per cent of the average income in Australia. If we think about how much we spend on Easter eggs and at Christmas and respectively), many of us can afford more, says Scaife. “It does make you stop and think that… for a lot of Australians who aren’t struggling, we could raise our sights.”
Ten years ago, 87 per cent of the population gave $5.7 billion ($7.5 billion in 2016 money) to charity. “There are fewer Australians participating in giving, but those who are participating are giving more,” says Scaife. “To some degree, that reflects the fact that we have more inequality in Australia.”
Another reason for the fall in the number of donors is a lack of trust in the sector. “Some people are concerned that money is spent on a flash car for the charity’s executive director…In our experience, that’s a very rare occurrence.”
Many non-profits are large and complex organisations that need well-qualified leaders to run them. The notion that charities should be entirely volunteer-run is unrealistic, says Scaife. “You can’t work out of a carpark, you can’t work without computers, you can’t work without people to deliver the services.”
Corporate giving
Scaife says one of the surprises of Giving Australia 2016 was the “huge uplift” in . Small and medium enterprises, which represent 99.8 per cent of all businesses in Australia, gave $8.5 billion. Large businesses with 200 or more employees, representing the other 0.2 per cent, gave $9 billion. Of that, $7.9 billion, or 88 per cent, came from corporations.
“The top end of town…[is] increasingly involved in activities in the community,” says Scaife. Most, she says, do it through business-community partnerships, where a business makes a formal agreement to provide a non-profit organisation with funds, training and expertise or workplace volunteers. “It’s become part of how they do business.”
Creating a strong culture of giving
Christmas is one of the peak times for donations, along with the pre-tax period and, increasingly, Giving Tuesday (the first Tuesday after Thanksgiving).
It’s important to approach the festive season with generosity, says Scaife. “Giving is about the story of your life. It’s expressing who you are. It’s expressing the values your family stands for. It’s showing your kids what’s important in life, and remembering that for a lot of people, Christmas is not a happy time.”
A positive development in the sector is an increase in the number of ‘planned donors’ – people who sign up to give regular amounts over the year. “This has been a real boon for charities because it gives them a more predictable income flow, and it’s manageable for most of us – the cost of a cup of coffee,” says Scaife.
This trend helps make giving a cultural norm, she says. “We found that people who plan their giving – as opposed to giving spontaneously, when somebody rattles a tin under a nose – tend to give six times as much.”
More positive change has come from social media and the advent of crowdfunding and peer-to-peer fundraising. “Instead of the charity doing the appeal, it’s us appealing to our email or Facebook networks, and saying ‘we’re going to do the Oxfam walk, would you chip in a bit?’” says Scaife. “That has revolutionised our ability to reach out to whole new groups of people.”
What you can do
Scaife emphasises the importance of making an example of regular giving for children. Make it a Christmas tradition to sit down with the kids and talk about making a family donation. Ask each other how you want to help the community.
She also suggests leaving a legacy for your favourite charity in your will. “Look after your family and friends – no one is saying leave them out – but most of us will have something…that the next generation doesn’t need, but can make a big difference. Particularly if you have supported a charity all your life, it’s continuing that life story, and writing the last chapter of your life.”
