Learning & Sharing
Useful facts, figures and research about giving and philanthropy.
There is ample evidence in research and literature to show that Australian giving lags behind that of other Western nations. The facts below show why Australian attitudes to giving must change and identify specific areas where we can improve.
- Around 6 in 10 of the wealthiest Australians who make up about 5 per cent of the total population claim tax deductions for charitable giving. As this group tends to use professional tax advisers, it is likely that 40 per cent of the wealthiest Australians do little if any giving.
- Australians with taxable incomes between $100,000 and $500,000 claim tax-deductible donations worth about 0.45 per cent of their incomes. This is only slightly more than the average Australian figure of 0.33 per cent.
- The personal wealth of affluent Australians has grown faster than their charitable giving. Over the 10 years to 2005, mean household income for Australia’s affluent population increased by 36 per cent. Its percentage of taxable income claimed as charitable giving increased by 25 per cent.
- There is little evidence to show that Australia’s ultra-rich ($1 million plus in taxable income) give at the same rate as their overseas counterparts. Over the 10 years to 2005 they increased their giving from 0.7 per cent to 1.98 per cent of their taxable incomes. The World Wealth Report (Merrill Lynch/Capgemini, 2007) estimates that the top 17 per cent of ultra-rich donors worldwide (assets equivalent to $US30 million plus) give away about 10 per cent of their assets annually.
- Australian tax statistics indicate that making substantial donations is still the exception rather than the norm for the wealthy.
- Tax changes support a philanthropic culture. More tax-related strategies are called for, given the establishment of some 600 Prescribed Private Funds (PPFs) by individuals and companies since being introduced in 2001.
- Although 90 per cent of Western Australians give, the dollar value of their donations is low. Western Australia’s average is lower than Australia’s, and Australia’s average is lower than the rest of the western world.
- Although Western Australian personal wealth has grown faster than in any other state, levels of giving are not growing at the same rate.
- Australia is not following the global trend of wealthy philanthropists and causes led by Bill Gates and Warren Buffet in the United States.
- The Perth average donation is $303, the lowest of all Australian capitals. The national average of $424 is 40 per cent higher. The Sydney average of $524 is 70 per cent higher.
- The Australia Taxation Office figures for 2007-08 showed that:
- The Australian average of 0.4 per cent of income given to charities came from one third of the 1.2 million taxpayers who contributed to charities with deductible gift recipient (DGR) status.
- Over 8 million, or two thirds, of 12.6 million individual tax returns lodged did not claim a gift to a charity with DGR status.
- 37 per cent of the 7,905 who earned more than $1 million in that financial year did not claim a tax deduction.
- The Petre Foundation has also found similar statistics:
- Affluent Australians give less than half a percent, or a tenth of what is given in the US
- Although 8,000 Australians earn over $1 million, there are only 850 Private Ancillary Funds
- In 2010, Time Magazine published a prosperity index by an organisation called Legatum. Australia is number 4 on the index, making us a relatively prosperous nation. Australian trends in giving should reflect this prosperity. On the index, Australia is behind Scandinavian countries and marginally ahead of New Zealand.
Further reading
Refer to the links below for research reports, resources, data, news articles and sources.
How to Find a Cause
With so many individuals and organisations that you can support, it’s important to find the right cause, or causes, to commit your giving to. This is a critical part of the giving process.
