Australians Are Donating Less To Charity

Australian Charities Would Befit Hugely If People Left Bequests

Despite Australia ranking as the sixth most generous country in the world, it would appear Aussies themselves are making far fewer donations to charity. According to a recent report, Australian charities are coming to depend more on membership fees and user-pays services to generate income. Donations have dropped by roughly $1 billion during 2016, falling from $11.2 billion to $10.5 billion according to the Australian Charities Report 2016.

Overall revenue rises

Despite the fact that donations have declined, funds raised by Australian charities actually rose to $142.8 billion in the last year. Approximately half of all revenue was produced through membership fees and user-pays services. 43 per cent of revenue were generated by government grants and contract payments whilst donations were responsible for just 7.3 per cent of income during the time period.

Donations remain a significant source of income

According to the ACCC 26 per cent of all charities depended on donations for more than half their total income during 2015. Despite the decline in donations, there are over 50,000 charities in Australia and donation revenue remains a significant source of income. The Australian Charities and Not-for-profits Commission says the decline in donation is not the result of street collectors which many people find annoying. So called chuggers may well have even contributed to a rise in revenue through membership additions.

Education providers generate the most income

The ACNC said it was sure that total revenue had risen but so far has not been able to determine by how much because of new reporting procedures that small charities must follow since the previous 2015 report was released. The charitable organisations with the largest revenue were those that provided educational services, including universities, and non-government schools. The group comprises 18.6 per cent of all charities but generated 45 per cent of the entire sector’s total income.

Aussies are still incredible generous

Whilst donations did fall the report also found that the number of volunteers had increased to a high of 2.9 million. Murray Baird ACNC’s acting commissioner says that Australians are still very generous and that his agency hoped that this Christmas their generosity was on full display.  According to last year’s World Giving Index, Australia was ranked sixth, behind Myanmar, Indonesia, Kenya, New Zealand and the United States.

"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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