The Generosity of Australian Business

Australia’s business sector gave $1,447 million to community organisations in 2000-01 according to the first comprehensive survey of business generosity released by the Australian Bureau of Statistics (ABS).

The Business Generosity Survey (BGS) also gives some pointed reasons as to why some businesses didn’t engage in any corporate community partnerships! One reason is that they weren’t asked! More on that later….here are the statistics:

The most common form of ‘business giving’ was money ($921m), followed by ‘services’ valued at $290m, and ‘goods provided’ valued at $236m.

Of the total amount given, $679m was in the form of sponsorship, $586m in donations and $182m by way of partnership arrangements between business and community organisations.

Small businesses donated the most ($251m), while large businesses were the biggest sponsors ($427m). Large businesses also contributed the highest value in business-to-community projects ($113m).

Activities associated with community service and welfare received the most donations ($243m), while activities associated with sport and recreation attracted the most sponsorship ($480m). Activities associated with community service and welfare benefitted the most from business to community projects ($51m).

Previous Australian Bureau of Statistics (ABS) surveys have collected information on sponsorships of a monetary nature.

A feature of the BGS was that it not only collected such data, but also the ‘dollar equivalent values’ of any goods or services components associated with any business giving arrangements.

The data contained in this publication are based on a live response rate of 93%.

BARRIERS TO GIVING

Businesses who did not undertake any giving during 2000-2001 were asked to provide reasons for their decisions. The most common reason for businesses not giving was that business resources were committed elsewhere. Other reasons provided were that the business had not considered giving and /or the business had not been approached to give.

The survey was funded by the Department of Family and Community Services via the PM’s Community Business Partnership.

Of those businesses that provided reasons for not donating, 70% indicated their business resources were committed elsewhere, 31% indicated they had not been approached to make a donation and 41% indicated they had not considered making any donations.

Similarly, in respect of sponsorship, 63% of businesses indicated their business resources were committed elsewhere, 27% indicated they had not been approached by anyone seeking sponsorship and 44% indicated they had not considered undertaking any form of sponsorship.

In respect of business to community projects, 59% of businesses indicated their business resources were committed elsewhere, 34% indicated they had not been approached by anyone seeking to enter into business to community projects and 45% indicated they had not considered entering into any business to community projects.

VALUE OF GIVING

For the businesses who gave, the total value of giving represented 0.15% of Total income, 1.02% of Wages and salaries and 1.66% of Operating profit before tax.

Of all businesses, those in the Manufacturing industry gave the most ($277m). Businesses in the Property and Business Services industry gave the most in the form of donations ($124m).

The biggest providers of sponsorships were businesses in the Manufacturing industry ($192m) and also contributed the most to community projects ($35m).

The small business sector donated $251m, more than each of the medium and large business sectors. Large businesses were the biggest sponsors ($427m). They also contributed the highest value to business-to-community projects ($113m).

In terms of donations received, the largest amount ($243m) went to activities associated with Community services and welfare. The biggest contribution of donations to Community service and welfare came from businesses in the Finance and Insurance industry ($53m).

Activities associated with Sport and recreation attracted the biggest sponsorship ($480m). Businesses in the Manufacturing industry were the biggest sponsors of Sport and recreation activities ($148m).

Organisations providing Community service and welfare activities were the biggest beneficiaries of business-to-community projects ($51m). Businesses in the Property and Business services industry provided the most ($10m) to Community service and welfare through business-to-community projects.

If you would like to comment on the survey and give your organisations/corporations insight into ‘business giving’, join our online Forum at probonoaustralia.com.au.