Changing Trends in Australian Giving
Over the last decade or so, the way in which Australians have interacted with charities has evolved, but in the last few years in particular there have been more drastic shifts in the way people donate.
The annual Australian Communities 2020 report indicates that transparency, integrity, reputation and delivering strong outcomes are important to the public and their charitable giving.
The report is an indicator of the key trends affecting the not-for-profit sector, to better equip organisations regarding strategies.
So what are the notable trends in Australia according to the report?
Australians want to make a difference, and charities give them a way
The annual report shows that Australian donors (61%) and charity workers (68%) somewhat to strongly agree that charity organisations provide an essential pathway for Australians to support those who are in need, as is their moral duty. Platforms like mycause.com.au allow Australians to find any charity and donate to them.
The Government has a responsibility to fund areas of need
Australians believe that their government has the responsibility to fund charities and non-profit areas of need. Whatever shortfall there is after government support is the responsibility of corporate organisations according to the public.
Young people are donating more
In recent years Gen Z and Y are donating more and more to charities (at a faster rate than older generations) and driving their social licence to operate.
More support for environmental causes
The report shows that Australians are more motivated to support charities who protect and preserve the environment. Environmental charities have moved from the 12th most popular cause in 2019 to the seventh most popular cause in 2020. The younger donors are mainly responsible for the rise in support for the environment.
An increase of need responder giving
Nearly half (46%) of donors in recent months are need responders. Four years ago in 2016 that was figure was only 30%.
This increase correlates with the 2019/2020 summer bushfires when over half of Australian donors (54%) became highly motivated to donate to or volunteer for organisations associated with disaster response in Australia. This raised the rank of disaster response causes from fourth in 2019 to first in 2020.
Donating locally
Over two thirds of Australian givers (67%) prefer supporting Australian charities who do their work within Australia as they believe it is vital to care for Australia and Australians first. Some donors choose to donate to multiple Australian charities. Using mycause's Portfolio Giving feature makes this process seamless.
Foster trust
In order for a charity organisation to receive support from donors, they must trust the organisation. Open communication, transparency and accountability, and delivering strong outcomes are all important for fostering trust within donors.
84% of Australian donors somewhat to definitely trust the charities and not-for-profits they support to use their money wisely.
An increase in Corporate Social Responsibility (CSR)
The report indicates that in recent times Australians have prioritised CSR for corporates, expecting corporate organisations to operate under a triple bottom line. This is great news for not-for-profits as they will have more opportunities to partner with corporates who are working on their CSR.
Digital giving is helping the little guys
With newer technology and online giving, small charities who easily adapt are able to engage with donors more. This means that, due to the competitive landscape, older, less flexible organisations cannot use just their reputation to get public support.
Donating more than money
An incredible 82% of Australians donate money but that’s not all. 64% of Australians have donated goods to not-for-profits in the last year and a third (33%) have volunteered. More than a fifth of Australians have been involved with fundraising for a specific charity (23%) or advocating and raising awareness for a charity (21%).
Strategising for the future
Having a look at all of the trends outlined in the report, charity organisations need to implement new strategy for the coming decade. The report recommends three actions for charities to undertake.
1. Simplify their mission
2. Move from complexity to simplicity
3. Lead change