Research commissioned by Equity Trustees underpins an ambitious new campaign to redefine charitable giving and grow the national spirit of philanthropy.
It might be tax time, but a deduction for charitable giving is not top of mind for Australians who donate, according to research from Equity Trustees, Australia’s source of trustee-managed philanthropic funding.
Below are the key findings of the research:
- Australians who donate to charities are driven by a desire to make a difference, more than a tax deduction.
- A vast majority of Australians (96%) give to charities, even though 52% face their own financial challenges.
- Income is not an indicator of whether people will give or not, with those under or over $150,000 annual income equally likely to donate around $5,000 a year.
- Age is not a factor, with younger Australians (18-24 years) more committed to giving than older age groups.
Tax time is a traditional fundraising period for charitable organisations, and while Australians are a generous bunch, the research indicates that among those who gave to charities over the past 12 months, only 20% said the tax benefit was a key motivation.
Denise Cheng, National Manager of Active Philanthropy, said that with every dollar donated to charity offsetting taxable income, an increasing number of taxpayers prefer to direct their money to charities of their choice.
“Tax deductions are an attractive benefit of donating to charity, but our research found that the main motivators for Australians to give to charity are around personal alignment to a cause, a desire to make a difference and trust in the charity,” Cheng said.
Jodi Kennedy, General Manager, Philanthropy and Community Trustee Services, added that Australians are keen to make a difference in the world through charitable giving, regardless of how much wealth they have at their disposal.
“That’s why we think now is the time to redefine giving – we want to provide a smarter way to make lasting change that’s more accessible to more people,” Kennedy said.
Of Australians surveyed who have donated time, money or goods to charity over the past 12 months, 52% had donated despite facing barriers in managing other financial priorities. In fact, three in 20 said they’d give $1,000 or more in the next 12 months, and one in 20 said they’d give more than $5,000. This sentiment was higher in young age groups.
Equity Trustees’ research also shows that while higher income generally increases the capacity to donate, people who earn $60,000-$100,000 were just as willing to donate more than $5,000 in the next 12 months as people who earn $150,000 or more.
“Like many in the for-purpose sector, Equity Trustees is committed to doubling structured giving in Australia by 2030, and these findings show we’re taking promising steps towards achieving that goal,” Kennedy noted.
Meanwhile, Cheng said that Equity Trustees is helping everyday Australians participate in structured giving by offering a new way to set up their own sub-account in the Equity Trustees Charitable Foundation (ECF), a public ancillary fund. The ECF is powered by the Equity Trustees Philanthropy Portal, enabling people to become philanthropists with just $5,000. What’s more, they can even give their account a name that resonates with them, after someone they care about or something aspirational to them.
“Structured giving is a strategic way to give that goes beyond one-off donations. It’s about the creation of a tax-effective giving structure that leverages the power of investments to create greater impact over a longer period. It’s a way people can start now and see their contribution continue to make a difference over time,” Cheng explained.
Equity Trustees manages more than 1,200 charitable trusts and foundations and distributes more than $120 million of philanthropic grants to charitable causes annually.
The online Equity Trustees Philanthropy Portal enhances the new (and existing) philanthropist’s donation experience, providing transparency and easy access to their giving account, while Equity Trustees deploys its 145+ years of experience to take care of the investment, compliance, governance and administration.
“The goal of the portal is to make philanthropy accessible, affordable, self-directed and tech-enabled so more Australians can give sustainably to change tomorrow,” Cheng added.
How to make the most of the charitable giving tax deduction
- Keep accurate and timely records and receipts
- Consider structured giving with Equity Trustees, which:
- allows you to receive a tax deduction
- amplifies your giving through smart, responsible investment
- lets you choose which registered charities to give to – and automates your giving if you prefer
- leverages a technology platform to keep track of donations, and security that your donation goes to registered charities
- provides sustainable, ongoing income to the charitable sector
Read also: High cost of living dictates charitable giving trends – research
Geraldine is currently the Content Producer for Third Sector, an Akolade channel. Throughout her career, she has written for various industries and international audiences. Her love for writing extends beyond the corporate world, as she also works as a volunteer writer at her local church. Aside from writing, she is also fond of joining fun runs and watching musicals.
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