Charitable Giving Shows New Life
Tuesday, 22nd December 2015 at 11:25 am
After a stagnant period following the global financial crisis, the charitable giving sector is rebounding through a surge in multi-million dollar gifts, a growing number of private ancillary funds and an increase in corporate donations, according to new research.
Wealth management firm JBWere’s annual report on giving, titled Australian Giving Trends – Signs of Life, reveals that the sector is “rebounding” with continued gains in annual donations achieved through both 2014 and 2015.
Nearly ten years since the Giving Trends report was launched, this year’s report showed that corporate giving had grown at a faster rate than individual donations, rising to $862 million from $635 million in 2007. Sponsorships have also grown from $1.1 billion to $1.4 billion.
A strong and growing number of private ancillary funds (PAFs), has led an overall improvement in the giving environment. Since 2013, 300 new PAFs have been established, reaching almost 1,400 in total.
However, with over 36,000 people in Australia earning over $500,000, JBWere said PAFs have considerable potential for even greater growth.
Report author from JBWere Philanthropic Services, John McLeod, said macroeconomic indicators, including the increasingly competitive Australian dollar, growing business confidence and rising spending in retail, construction, transport and services, could see the trend continue into 2016.
“Philanthropy and the Not for Profit sector are evolving and it seems that for philanthropy, we are entering a new golden period,” McLeod said.
“PAFs remain a growing force alongside an increase in major gifts and the changing nature of corporate support.
“It is important for the Not for Profit sector to not only understand its own needs but examine who gives and in what proportion to better target and resource their fundraising efforts.
“Making sense of the changes to the philanthropic landscape is more important than ever and we would like to call all Not for Profits to action so that they can fully engage in corporates’ support and philanthropic strategies to ensure the sustainability and success of their own organisations into the future.”
Individual gift sizes have increased to $504, only the second time it has risen above $500. However, with just over a third, 35.6 per cent, of taxpayers claiming a deduction for a charitable gift JBWere said the level of individual giving remained flat.
“It is still less certain whether we have been successful at improving overall philanthropic culture,” McLeod said.
“Hopefully the growth of PAFs and the number of multi-million dollar gifts signals an improvement in that culture and one that might trickle down to all income brackets.”