Go Salary
News  |  Fundraising

GFC Hit Tax Deductible Giving to Australian NFPs

Monday, 6th June 2011 at 3:24 pm
Staff Reporter
The Global Financial Crisis in 2008-09 saw a decrease in the amount of money Australians donated to Not for Profit organisations, according to a recent examination of tax-deductible giving data.

Monday, 6th June 2011
at 3:24 pm
Staff Reporter



GFC Hit Tax Deductible Giving to Australian NFPs
Monday, 6th June 2011 at 3:24 pm

Despite tax deductible giving in Australia growing strongly at 15% per year, the Global Financial Crisis saw a decrease in the amount of money Australians donated to Not for Profit organisations, especially among the very rich, according to a recent examination of tax-deductible giving data by Professor Myles McGregor-Lowndes.

Director of the Australian Centre for Philanthropy and Nonprofit Studies Professor Myles McGregor-Lowndes reported on the extent of tax-deductible donations claimed by Australian taxpayers in their 2008-09 individual income tax returns in a recent podcast.

The global financial crisis saw an increase in the number of Australian taxpayers claiming tax-deductible donations, however the size of these donations decreased for the first time in a decade, according to McGregor-Lowndes.

He says that according to the Productivity Commission report into the Not for Profit sector, philanthropy revenue for the sector in 2006-07 was about $7.2 billion – of which around $2 billion is declared by individuals as tax deductible gifts.

He says while this data is not comprehensive, it does provide an annual metric of giving.

Tax deductible giving in Australia is growing by an average of nearly 15% per annum, which McGregor-Lowndes says is due in part to the incentives to encourage philanthropy such as Private Ancillary Funds and a very strong Australian economy.

He says 2008-09 saw the amount given as tax-deductible donations to Not for Profit organisations in Australia down 10.79%, mirroring a worldwide trend with a 3.8% decrease in the United States, 11.4% decrease in the United Kingdom, and 5.4% in Canada.

Despite the decrease, the amount given as donations in 2008-09 was still $208 million (or 11.04%) higher than 2006-07 in Australia.

McGregor-Lowndes says the average tax-deductible donation made in 2008-09 was $450.05, compared to $523.10 in the previous financial year, and $440.01 in the year previous to that.

The GFC had the greatest influence on the donations of the nation’s wealthy donors, with taxpayers with an annual taxable income of over $1 million claiming an average of $48,706.38 – down 53% on the previous year’s high of $102,543.08.

He says people earning over $1 million per annum donated 1.71% of their taxable income, down on 2.89% the year before – but still far above the national average of just 0.38%.

The Black Saturday Bushfires which occurred in Victoria in early February of 2009 impacted on philanthropic giving, with the Victorian Bushfire Appeal raising $379 million. McGregor-Lowndes says compared with the previous year Victoria accounted for 7% more of all deductible gifts in Australia, and the state’s gross deductible gifts rose by 27.30% to $601 million.

He says the average gift in Victoria also rose from $433.49 to $470.08, an 8.44% increase compared to a drop of nearly 11% nationally.

McGregor-Lowndes says this probably points to giving expanding to meet the challenge of the needs created by the bushfires.

The Australian Centre for Philanthropy and Nonprofit Studies (CPNS) is based at the QUT Business School.

ACPNS has put together a database of tax-deductible giving which is searchable by postcode and occupation. Access the database here: http://www.bus.qut.edu.au/research/cpns/publications/postcode.php

If you would like a more detailed report on tax-deductible giving, download the latest ACPNS Working Paper here: http://www.bus.qut.edu.au/research/cpns/publications/

Listen to the full podcast here: http://www.bus.qut.edu.au/research/cpns/podcast/shows/show56.jsp

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers?

Get in touch at news@probonoaustralia.com.au

Get more stories like this


Write a Reply or Comment

Your email address will not be published. Required fields are marked *


The share of Americans giving to charity has fallen post-recession

Luke Michael

Monday, 28th October 2019 at 4:23 pm

Australians’ generosity a “mixed bag”

Maggie Coggan

Tuesday, 20th August 2019 at 8:23 am

My Story – Maria da Graca Guerreiro


Tuesday, 30th July 2019 at 7:00 am

The UK’s super rich are shunning philanthropy

Luke Michael

Thursday, 18th July 2019 at 4:59 pm


Our royal commission is not yet a safe place for people with disability

Emma Bennison

Wednesday, 6th November 2019 at 4:59 pm

Disability royal commission begins amid fears around support services

Luke Michael

Monday, 4th November 2019 at 12:58 pm

The toolbox set to democratise charity impact

Maggie Coggan

Thursday, 31st October 2019 at 8:02 am

Mental health system failing vulnerable Aussies

Luke Michael

Friday, 1st November 2019 at 12:29 pm

Go Salary
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!