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Giving Up - NAB Giving Index 2013

7 November 2013 at 10:49 am
Staff Reporter
Donations to Australian charities have grown by 2.5 per cent with an average annual donation of $312 per donor, according to the latest NAB Charitable Giving Index.

Staff Reporter | 7 November 2013 at 10:49 am


Giving Up - NAB Giving Index 2013
7 November 2013 at 10:49 am

Donations to Australian charities have grown by 2.5 per cent with an average annual donation of $312 per donor, according to the latest NAB Charitable Giving Index.

The latest NAB Charitable Giving Index contains new data such as donations by age, metropolitan and regional area, frequency, number of charities supported and share of charity wallets.

The index is derived by analysing credit card, debit card, direct debit, BPAY and EFTPOS donations which are scaled up to represent a snapshot of giving across the Australian economy.

“The index also ranks for the first time the top 20 national postcodes and the top 20 postcodes by state,” NAB Group Chief Economist Alan Oster said.

“Charitable giving in Australia continues to increase despite a slowing domestic economy, softening labour market and heightened consumer anxiety over the cost of living.”

The NAB Charitable Giving Index reached an all time high 121.7 points (annual average terms) in August 2013, up from 120.8 points in July 2013 and 118.8 points in the same period last year.

“In terms of growth, charitable giving increased by 2.5 per cent in the year to August, up from 1.3 per cent in July, but it was slower than the 4.9 per cent annual rate recorded in August last year,” he said.

“The upturn in growth seen in the past two months has reversed the downward trend in growth evident since 2012.

“Overall, charitable giving has grown by more than 11 per cent since December 2010.”

The Index says charitable giving improved across most age groups in August, with growth rates strongest among older donors. The rate of growth in charitable giving from metropolitan areas has now surpassed regional areas.

Charitable giving improved across most age groups in August, with the rate of growth among older donors significantly faster. In the 65+ group, donations increased by 5.7 per cent in August (4.4 per cent in July), with donations also up 4.3 per cent in the 55- 64 group (2.7 per cent in July). Modest growth was seen in all other age groups, except in the 35-44 age group where giving fell -0.4 per cent.

Also notable was the much weaker rate of growth in the 15-24 year-old group (1.8 per cent), compared with year-on-year growth to August 2012 of 15.5 per cent.

Giving grew fastest for “Other” (12.8 per cent) and Health and Disability (9.1 per cent) charities, but fell for Humanitarian Services (-3.2 per cent) and Medical Research and Services (-2.4 per cent) charities.

Humanitarian Services ($380) had the largest average annual donation size, while Cancer ($123) was smallest. Humanitarian Services charities continue to attract the biggest share of donations (32.2 per cent), but this share has fallen since 2011.

“Donations growth was faster among older donors. Older donors also had higher average annual donations for all charities, donated more frequently across most categories and supported more charities,” Oster said.

“New data shows considerable divergence in giving between metropolitan and regional areas.

“The data also highlights the generosity of particular postcodes across Australia. Donors from higher income postcodes tend to donate the most in dollar terms, but do not necessarily donate the most as a share of their incomes.”

The Index says average charitable giving across all Australian postcodes was $64 per person in the 12 months to August 2013, excluding postcodes with fewer than 5,000 residents.

By individual postcode, charity spend per person was highest in 2088 (Mosman), with an average give of $204. This was around 10 per cent higher than the second best postcode of 2041 (Balmain, NSW) and more than three times the national average (excluding postcodes with fewer than 5,000 residents).

NSW featured prominently on the list of top 20 national postcodes, with eight state postcodes represented. Average incomes have a strong influence on dollar giving.

According to recently released data from the Australian Taxation Office (ATO), average taxable income for postcode 2088 (Mosman) was $145,900 in 2010/11, which was almost three times the national average of $54,334. Average taxable income in the top 20 postcodes was $107,007 in 2010/11 – almost twice the Australian average.

Staff Reporter  |  Journalist  |  @ProBonoNews

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