Big companies back to giving large

Australia’s top companies donated eye-watering sums this year, but there is opportunity for more.

Corporate Australia continued record levels of giving to community causes this year, with the latest GivingLarge Report revealing billions of dollars in donations.

The fifth annual GivingLarge Report lays bare the state of corporate philanthropy in Australia in 2022, based on analysis of the community investments made by the nation’s biggest public and private companies.

According to the report more than $1.22 billion was donated from the top 50 corporate givers, representing an increase of $50 million on last year’s figure and continues the trajectory of growth set in 2020 and 2021.

The increases have been driven primarily by support after natural disasters and COVID-19, according to report author and Strive Philanthropy founder Jarrod Miles.

The funding has flowed to causes like social and public welfare, public safety, and the environment.

The largest dollar contributions came from BHP, Coles, CSL, Rio Tinto and Westpac, while the largest percentage contributions (of profit over a rolling three years) came from Coles, Bendigo & Adelaide Bank, IAG, CSL and Newcrest.

Coles donated $120 million in 2022, donating towards food rescue, health and disaster relief.

The report reveals the percentage of pre-tax profit given from Top 50 companies in 2022 was an overall 0.78 per cent, compared to 0.92 per cent in 2021. This was attributed to a large increase in profits across the top companies which offset percentage calculations.

And an increase in profits over 2022 presents an opportunity for companies to increase their donations in the coming years, Miles added.

“Lifting percentage contributions up towards — and over — 1 per cent of pretax profit should be an ongoing focus,” he said.

Notably, 14 of the top 50 companies increased their community investment by more than 20 per cent, with the increase from the top four biggest movers adding more than $73 million to the total.

Growth in giving was highest from the materials sector with large increases from companies like Rio Tinto (up $28 million), BHP (up $23 million) and South32 (up $13 million).

Donations to areas like social welfare, public safety and the environment increased on last year’s numbers, however most giving was directed to areas within health, education and social welfare.

Philanthropy Australia CEO Jack Heath said the report showed there was continued opportunity for corporate philanthropy.

“Alongside government funding, corporate giving contributes significantly to improved social outcomes. The 2022 GivingLarge report invites our corporate sector to be ambitious — if we are to double corporate giving by 2030, corporate Australia needs to maintain its rolling three-year average of eight per cent growth.

“The research is a timely reminder of the opportunities we have to grow giving and to create a more generous and inclusive Australia.”