Cost of living hits donations

Posted on 01 May 2025

By Greg Thom, journalist, Institute of Community Directors Australia

The cost-of-living crisis has curtailed many Australians’ capacity to donate to charity according to new research.

A study by Australia Post revealed 40 per cent of people who regularly give to a worthy cause cut the level of their donations over the past year in response to tough economic conditions.

Half of those surveyed said they give less to charity because of the rising cost of essentials such as groceries.

The research, which explored shifting donation trends, also found:

more than 57% of Australians want to support local causes which address immediate community needs

a third agreed they have seen the direct impact and benefit these causes have had on the community or someone close to them.

In response to falling donations from the community, Australia Post said it had significantly expanded its People of Post grants program.

A total of 224 grants comprising more than $400,00 have been distributed to grassroots community and not-for-profit groups across the nation so far this year – a 47 per cent increase on last year.

Corporate giving — Employees are becoming more comfortable with corporate giving programs at work.

"We know that people want to continue to support their local not-for-profit, but with cost of living impacting both households and communities, many people are finding it increasingly difficult.”

Australia Post general manager of community and stakeholder engagement, Nicky Tracey.

The program enables Australia Post employees to nominate local community or not-for-profit groups for a grant of up to $2,000.

Since its launch in 2018, People of Post has awarded almost $2 million in grants to 2,158 community organisations across Australia, supporting causes ranging from initiatives designed to tackle social isolation and loneliness to restoring habitat for native animals.

Australians have increasingly embraced workplace giving programs.

The Australia Post research found almost half of Australians would be more likely to work for an organisation that supports a charity in their local area.

More than a quarter (26%) said it would positively influence their perception of the organisation.

Australia Post general manager of community and stakeholder engagement, Nicky Tracey said that being part of a community and feeling connected is more important than ever before.

"We know that people want to continue to support their local not-for-profit, but with cost of living impacting both households and communities, many people are finding it increasingly difficult,” she said.

“We're proud to continue supporting our team members to champion the causes they see making a real difference at a local level and strengthen Australia Post's commitment to creating a culture of giving for our people."