Australians Giving Less To Charity

Australian Charities Would Befit Hugely If People Left Bequests

The total net worth of all Australian households totalled $8.9 trillion during the 2016 financial year according to the Australian Bureau of Statistics. Collectively Australians have never been more wealthy which can be attributed to the fact that house prices are at record highs and there has been a recovery in financial markets. However, whilst Aussies have never been richer they are not sharing it. Australians have failed to put their hands in their pockets when it comes to charitable causes.

Spike in 2015

According to the latest Charitable Giving Index from National Australia Bank, donations in the year ending August decline by 0.3 per cent, the first such drop in the last five years. According to NAB this occurred because there was a heavy spike in donations last year driven by the Nepal earthquake and this year there were lower donations to the humanitarian services sector. NAB said that the one-off event which occurred last year drove a significant spike in donations during April and May 2015.

Older Australians put their hand in their pocket

Older Australians tend to be wealthier than younger generations so it is unsurprising that the only age groups that increased their giving over the last year were the over 55-year-old age groups which recorded an increase of between 1.1 per cent for over 65’s and 2 per cent for the 55 to 64-year-old bracket. All other age groups reduced their donations when compared to the previous year.

 “Young people usually earn less than older people. They are also facing much greater employment challenges. Unemployment rates in this age group have remained elevated over the past year and significantly above the Australian average. Job uncertainty is likely to be a contributing factor to more cautious donation behaviours in this group,” NAB said.

South Australia was the most generous

It is also quite possible that younger people are looking to save cash for a housing deposit as well as deal with the expenses of day-to-day living which makes charitable giving take a back seat. South Australia has the oldest demographics in the country, so the state stood out amongst all other states and territories with donations increasing by a whopping 6.4 per cent compared to the previous year. Victoria saw an increase of 1.2 per cent making it the only other state which saw an increase in donations compared to the previous 12 months.

"Please note, any prices mentioned in the Charity Gifts blog are correct at the time of posting. Please check the relevant website for the latest pricing information."

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