Aussie donors want more charitable bang for their buck: report

A new study by the philanthropy-focused not-for-profit Giving What We Can and the University of Queensland revealed that eight out of ten people had cut back on charitable giving because of the cost-of-living crisis.

More than 90% of those surveyed as part of the research project said they were more likely to donate to charities that demonstrated clear, measurable outcomes.

The findings reinforce a growing trend in which donors are demanding more transparency, measurable impact and accountability from charities and NFPs.

Founded at Oxford University in 2009, Giving What We Can is a global philanthropy network whose members pledge to donate at least 10% of their income to charities deemed effective at achieving their purpose.

Giving What We Can executive director Luke Freeman said it was clear people wanted to ensure their donations made a real impact before parting with their money.

“Australians are increasingly aware of the importance of effective charitable giving and this survey highlights a significant shift in donor priorities towards transparency and measurable outcomes,” he said.

Mr Freeman said he believed the current challenging economic circumstances may be contributing to that awareness.

“While people may not have more to give this financial year, they can make their charitable donation go much further.”

Mr Freeman said charities needed to step up to the challenge and provide the accountability that donors want to see.

“This demand for transparency and measurable impact is a call to charities: prove your worth or risk losing support.

“The message is clear – Australians want their donations to count, and they are ready to pivot towards charities that can demonstrate real, tangible results.”

The survey also revealed:

• more than 73% of Australians were uncertain whether their previous donations had had much impact
• an overwhelming 93% of those surveyed wanted a reliable source of information that compared the effectiveness of different charities to help them make donation decisions
• more than 85% of people demanded that charities be accountable for the impact of their work and the effectiveness of their programs
• almost four out of five (79%) believed that donating to highly effective charities should be the norm in society.

Mr Freeman said the survey also revealed a potential significant shift among donors to high-end philanthropy, with 87% of those surveyed expressing a willingness to switch their donations to highly effective charities.

"As we begin to turn a corner on the cost-of-living crisis, with many Australians now believing that inflation and interest rates have peaked and tax cuts are coming, it's a critical moment to think about how we can use our good fortune to help others,” he said.

“Australia is often referred to as 'the lucky country' and for good reason: most Australians are among the top one to three per cent highest earners on the planet.

“With that luck comes an opportunity to support those who are less fortunate."

Charities Minister Andrew Leigh said providing more information to donors aligned with the federal government’s target to double philanthropy by 2030.

“That means inspiring existing donors to give more and encouraging more people to become charitable givers,” said Dr Leigh.

“Providing more information about the effectiveness of philanthropy is sure to boost both the quantity and quality of donations.”