Philanthropy is having its moment. Spurred on by the July release of the Productivity Commission’s final report on the future of giving, the largest ever gathering of the philanthropy sector met at the 2024 Philanthropy Australia Conference to take action on growing giving across our nation. This article shares our latest insights into philanthropy in Australia, and answers the question, is the opposite of isolation, a connected community?
Philanthropy is one solution for Australians who are facing unmet social needs, environmental crises and shrinking engagement in civil society. Set against a backdrop of a society that is more isolated and less connected, philanthropy is an act to grow the love of humanity.
Societal Challenges Impacting Philanthropy and Volunteering
Changing societal norms have led to a decline in community engagement and a retreat from shared value systems – people are isolated and less connected than ever. Families moving from one rental property to another results in less opportunity to put down roots in their community – people are less likely to engage deeply with the institutions in their neighbourhood.
The decline of civic participation in places of faith, sport and unions, plus a 24-hour outrage-driven news cycle, is triggering repercussions from a loneliness epidemic to poor teen mental health to lagging national productivity. Despite Australians highly valuing community organisations, only 20% are enthusiastically engaged. And we’re seeing an alarming 94% of donations being funnelled to the top 10% of charities, leaving grassroots efforts underfunded despite their significant impact.
In volunteering trends, Baby Boomers are 5 times more likely than Gen Z to volunteer at least weekly. In giving trends, there’s a growing preference for spontaneous ‘opportunity giving’ in times of immediate need, rather than sustained commitments to familiar charities.
Giving Circles are emerging as new havens for discourse and connection, countering the passive habits of doom scrolling and messaging of digital content on social media. In fact, a study of five decades has shown that “joining an organisation that invites a sense of community literally increases one's life expectancy”.
The Power and Potential of Philanthropy
Philanthropy is vital for nurturing societal bonds by providing individuals a sense of belonging, purpose, and narrative. The opening address of the 2024 Philanthropy Australia Conference highlighted the importance of philanthropy for our collective common good: "Things that preserve society – helping people to feel they have a place to belong, a contribution to make and a story to be heard. A country that still aspires to be egalitarian – an ideal to act as if our future depends on it. Because it does."
The Australian for-purpose sector comprising NGOs, charities, not-for-profits, social enterprises and philanthropy advisors have seen philanthropy used as a force for positive change time and time again. For example, the changes to gun control, gambling reform, supporting people seeking asylum, enabling medical research and bridging the digital divide.
"Philanthropy is an outcome of wealth and privilege – it's a vital component of a strong democracy and a crucial force for social good. But it should not be about the 1%. The big investments should not be the only stories we're headlining in the media or celebrating in our publications - if they are the majority of stories we see represented, it's very possible that we are having the opposite effect to what we are seeking, making giving seem like something unattainable from the average Australian.” - Maree Sidey, CEO, Philanthropy Australia
Despite an overall rise in donations, fewer Australians are engaging in philanthropy. This trend must be reversed to enable a more inclusive philanthropic culture. Emerging technology platforms are democratising giving, alongside grassroots collective giving movements.
"We want more people getting a taste for the helper's high." - The Hon Dr Andrew Leigh MP, Assistant Minister for Competition, Charities, Treasury and Employment.
The Inquiry into Philanthropy: Shaping the Future of Giving
The once-in-a-generation Productivity Commission Inquiry 'Future Foundations for Giving' report (July 2024), shaped by over 3000 submissions, directs its findings and recommendations at the four cornerstones of social change: government, business, philanthropy, and not-for-profits. Its recommendations encompass a myriad of reforms:
- Increasing distribution rates of ancillary funds
- New independent Indigenous organisation to improve First Nations' access to philanthropy
- Streamlining the Deductible Gift Recipient application process
- Improved public data about charities and donations including corporate giving and bequests
- More collection of volunteering participation
- Streamlining national fundraising regulations.
The inquiry's controversial topics, such as the tax deductibility of school building funds and expansion of DGR endorsements, present a double-edged sword – greater opportunities for giving against potential reductions in government revenue.
The Be BlueRock Foundation is a public ancillary fund and we welcome the increased minimum distribution to charities from 4% to 5-8%. We also welcome the harmonised national fundraising regulations to reduce the wastage in multiple applications per state/territory and reporting burden on resource-poor fundraisers.
For a comprehensive understanding of the inquiry's outcomes:
- Visit: Unpacking the Final Report
- Watch the summary: Philanthropy Inquiry Highlights
Start Your Philanthropic Journey
Embrace the call to double Australia's charitable giving by 2030. Whether you're eager to begin your philanthropic journey, impact your community, or integrate giving into your family or business culture, our Philanthropy team at BlueRock is here to guide you. Connect with us via the form below and take the first step towards meaningful philanthropy.
Latest industry reports:
- Bequest Report, JBWere (August 2024) https://www.jbwere.com.au/content/dam/jbwere/documents/campaigns/JBWere-Bequest-Report.pdf
- Our Community report (May 2024), https://www.communitydirectors.com.au/articles/new-research-produces-snapshot-of-australians-perceptions-of-community-sector
NFP Insights: Empowering Impact, McCrindle Research (2024) https://www.slideshare.net/slideshow/nfp-insights-2024-empowering-impact/267257338
