The ACNC report says that in 2021, $7.5 billion was directed from grant-making charities, such as private ancillary funds, to Australian charities, an increase of 2.3 per cent.
Meanwhile, grants and donations to international charities rose to $2.2 billion, up 15.8 per cent, to a combined international and domestic total of $9.7 billion, bringing the overall increase to 5 per cent.
Philanthropy Australia chief executive Jack Heath said the increase in giving was not enough to meet the government’s 2030 philanthropy goal, and more needed to be done.
“It’s good to see that giving has increased by 5 per cent, but we need to lift our game if we are to double giving by 2030,” said Mr Heath.
“To double giving by 2030 we need to grow by at least 8 per cent per annum going forward.”
Mr Heath said the Productivity Commission’s philanthropy inquiry would be important in reaching the goal.
In its submission to the inquiry, Philanthropy Australia recommends making it easier for people to bequeath money from super once they die.
“At present, legislation forbids people using what’s termed a ‘binding death nomination’ to give a proportion of any unspent superannuation to charity,” the submission says.
Powerful lever
“[Changing this is] by far the most powerful lever we have to lift giving. It is highly cost-effective as such giving does not attract a tax deduction.”
The government could introduce new laws allowing super funds to offer charity nominations to their members, although it may be prudent to limit the provision to, for example, 10 per cent of balances up to $1 million to ensure dependents are well taken care of.
“This is not about dipping into your super while you’re alive, this is about giving people the choice and the ability to say, ‘When I’m gone, I’d like to direct 10 per cent or 20 per cent to a charity’,” Mr Heath said.
As a nation, Australia gives at a lower rate than other countries in the OECD, according to the Centre for Social Impact. The US gives at a proportion of 2.1 per cent of GDP, while New Zealand gives at 1.84 per cent and the UK 0.96 per cent. Australia, by comparison, gives at 0.81 per cent.
The Charities Report also found that while charities generated $190 billion in revenue in 2021 and employed 10.5 per cent of the workforce, 596,000 fewer Australians were volunteering than in 2018.
“Behind the top-line figures are thousands of small charities operating with mostly volunteers. In fact, 65 per cent of charities are small, with annual revenue under $250,000, and a third of all charities have less than $50,000 annual revenue,” said ACNC commissioner Sue Woodward.
“This decline is of concern as we know volunteers are vital across the sector, and overall, 50 per cent of charities operate with no paid staff.”
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