We expect growth in the global economy to remain subdued out to 2026.
Insight
More Aussies are opening their wallets to charity, says NAB report.
A greater number of Australians have donated to charity in the past 12 months while the average donation per person is holding strong at $350, according to new research released by NAB today.
The rate of charitable giving in Australia increased 1.2% over the year to February 2018, more than reversing a -1.0% fall in the same period last year. Despite this encouraging improvement, overall growth is still relatively weak and below the average growth rate of 4.7% seen since late-2011.
By state, giving accelerated sharply in SA to 11.0%, underpinned by exceptional growth in Charitable Lotteries. SA was also the only state to report above average growth during the year. Charitable giving in VIC (2.9%) and the ACT (2.9%) also outperformed the national average. In contrast, it fell heavily in both the NT (-9.8%) and WA (-6.0%).
The report highlights key long term changes in relation to where donations are going.
Charitable Lotteries (9.2%) was the fastest growing category nationally over the year to February 2018. Cancer was next (6.0%), followed by Community Service & Children/Family (4.3%). Medical Research was flat while growth fell in all other categories, led by ‘Other’ charities (-5.3%).
While Humanitarian Services still held the largest share of all donations at 32% in the year to February 2018, this has fallen from 39% since late-2010. In contrast, the market share of Charitable Lotteries segment has grown rapidly – almost doubling to 17% now from just 9% in mid-2011. Market share in all other categories is broadly unchanged.
The average donation per donor was $350 over the year to February 2018, slightly down from $353 in the year to February 2017.
Older Australians continued to give more than younger generations with over 55s accounting for almost half of total donations in the year to February 2018. In contrast, Australians aged 15-24 accounted for just 4% of total giving.
“There is a continued generosity from Australians amid relatively subdued economic growth and a consumer that remains under some pressure,” said NAB Chief Economist Alan Oster.
“It was very also pleasing to see giving grow in spite of a modest fall in the average donation per donor. This shows that more Australians also donated.”
With an average donation size of $303, Cremorne NSW (2090) and Fitzroy North VIC (3068) shared top spot as the most generous postcodes in the country by dollars given in the year to February 2018, with an average donation of $303 per person – just over three times the national average ($99).
In terms of giving as a percentage of income, Fitzroy North VIC (3068) was ranked the most generous donating 0.41%, followed by Sturt SA (5047) with 0.38%, Castlemaine VIC (3450) with 0.37%, Maleny QLD (4552) with 0.37% and Coolangatta QLD (4225) with 0.36%.
Fiona Lynch, CEO of Bayley House, a not-for-profit organisation that supports adults with an intellectual disability in Melbourne, says there is an increasing importance in monitoring fund raising performance and to adapt to changing consumer spending behaviour.
“Data from this type of report helps provide useful information to compare whether our fundraising performance is aligned with broader trends, as well as helping us set KPI’s for fundraising staff,” Ms Lynch said.
“The relatively weak growth in public giving necessitates new and alternative fundraising initiatives to help manage increasing demand for services and rising costs, especially in the disability sector.”
For further analysis download the full report:
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