Meagre Growth in Aussie Donations
21 May 2015 at 10:58 am
Giving to charity in Australia grew by just 2 per cent over the year to February 2015, down from 10 percent at the same time last year, according to the latest NAB Charitable Giving Index.
The National Australia Bank’s bi-annual Charitable Giving Index shows that the average donation size grew by $2 to $336 per donor, with nearly all charity sectors experiencing an increase in average donation size.
The Index shows that growth slowed in most age groups (except 65+), in all regions and there was significant divergence in the rate of charitable giving growth across charity categories.
“The slowdown in giving mirrors some key findings from our Consumer Anxiety Reports which shows that Australians are responding to heightened stress by cutting back spending on ‘non-essentials’, including charitable donations,” Alan Oster, Group Chief Economist said.
“Slower growth in charitable donations has also occurred against a backdrop of below trend economic growth and rising unemployment,” he said.
The NAB Index also shows a very strong relationship between average dollar giving and average incomes in affluent suburbs across the country.
Middle Park in Victoria has again recorded the highest average donation amount of $316.
In terms of giving as a percentage of income, Victoria’s Castlemaine continues to lead the country for generosity, donating 0.36 per cent of residents’ annual incomes, closely followed by Sturt in South Australia, where residents donate 0.35 per cent of their annual incomes.
Humanitarian services charities continue to attract the biggest market share of all donations, with 35 per cent of all donations.
Health and Disability charities received the next biggest share (13 per cent), followed by Charitable Lotteries (11 per cent) and Community Service & Children/Family charities (11 per cent).
“The NAB Charitable Giving Index provides a clear window into people’s contribution to charities – playing an important role in helping the Not for Profit sector realise the giving potential in Australia,” Rebecca Kotow, NAB’s Head of Community Engagement said.
The Index is also a powerful indicator of how people are giving to their charities. Mobile apps and web-based charities are changing the landscape and revolutionising the way people donate.
“With more seamless channels for donation, and a much stronger desire to give digitally, it’s important for charities to understand this shift in behaviour,” she said.