New Survey shows Australians Demand Accountability in Charity

Pearl Dy June 25, 2024

3 min read

Conducted by Giving What We Can in collaboration with the University of Queensland, the survey comes as respondents say they are reducing giving due to the cost of living crisis.

Australians are demanding for their charitable buck, even as they cut back on donations due to cost of living pressures, according to a new study by Giving What We Can, a global community of effective givers, in collaboration with the University of Queensland.

Almost 8 out of 10 respondents said they had reduced charitable giving because of the cost of living crisis. At the same time, Australians surveyed expressed a strong preference for transparency, measurable impact, and accountability in charitable giving, with 9 out of 10 more inclined to donate to charities that demonstrate clear, measurable outcomes.

This puts pressure on charities to demonstrate routine, verifiable impact, which is not currently happening. Most respondents (73%) are uncertain about whether their previous donations had a lot of impact or didn’t think their previous donations had a lot of impact.

An overwhelming 93% of Australians surveyed indicated they would utilise a reliable source of information comparing the effectiveness of different charities to inform their donation decisions.

This finding points to a strong desire for informed and effective giving. Further, 85% demanded that charities be accountable for the impact of their work and the effectiveness of their programs, and 79% believe that donating to highly effective charities should be the norm in society.

Australians seem willing to stand behind these convictions with their own behaviour, with 87% expressing a willingness to switch their donations to highly effective charities. This reflects a significant potential shift towards high-impact philanthropy.

“As we begin to turn a corner on the cost of living crisis, with many Australians now believing that inflation and interest rates have peaked and tax cuts are coming, it’s a critical moment to think about how we can use our good fortune to help others,” said Giving What We Can Executive Director Luke Freeman.

Freeman added that Australia is often referred to as ‘the lucky country’, and for good reason, most Australians are among the top 1-3% highest earners on the planet.

“With that luck comes an opportunity to support those who are less fortunate.”

“Australians are increasingly aware of the importance of effective charitable giving and this survey highlights a significant shift in donor priorities towards transparency and measurable outcomes.”

“I think these challenging economic times may be contributing to that awareness. While people may not have more to give this financial year, they can make their charitable donation go much further.”

According to Freeman, it’s clear that Australians want to ensure their donations make a real impact.

“Charities must step up to this challenge and provide the accountability that donors want to see.”

Freeman highlighted that this demand for transparency and measurable impact is a call to charities to prove their worth or risk losing support.

“The message is clear – Australians want their donations to count, and they are ready to pivot towards charities that can demonstrate real, tangible results.”

Survey respondents on average believe the best interventions are around 1.44x (44%) more effective than average. However, research suggests a much greater variation among donation opportunities, with most donors easily able to 100x their impact by choosing to fund the best interventions, according to Giving What We Can’s research team.

70% of respondents believe they should donate more effectively, demonstrating an awareness and desire to have more impact in their charitable giving.

Luke Furness, a Brisbane-based lawyer, has been monitoring the impact of his philanthropy for several years and has already pledged to give 10% of his earnings to high-impact causes.

He said, “Initially, I found the thought of charitable giving challenging, but putting it into a global perspective helped. Australians who earn over AUD100k are in the richest 1% of the global population, even taking into consideration our higher cost of living.”

“That made it clear that I, like most Australians, am in the position to help those less fortunate, something that I am easily able to do through the Giving What We Can pledge.”

Hon Dr Andrew Leigh MP, Assistant Minister for Competition, Charities and Treasury added that the Australian Government has a target to double philanthropy by 2030.

“That means inspiring existing donors to give more and encouraging more people to become charitable givers. Providing more information about the effectiveness of philanthropy is sure to boost both the quantity and quality of donations.”

Pearl Dy

Pearl Dy is a community manager and journalist. She is passionate about business and development particularly involving not-for-profits, charity and social entrepreneurship.