Philanthropists scope out a big year for giving

Push for reforms amid elections

Philanthropy Australia chief executive Maree Sidey told Community Directors Intelligence that 2025 would be a significant year for philanthropy, building on the momentum generated by last year’s release of the Productivity Commission’s inquiry into doubling philanthropy, the Not-for-profit Sector Blueprint, and a national conference that attracted 1,000 delegates.

“In 2025, we can expect another big year, with the findings of our recently released Better Philanthropy Telescope taking the pulse of the sector and helping to identify the trends, issues and opportunities that will shape philanthropy and the work of the wider not-for-profit sector,” Sidey said.

The report described a sector “that more than ever is considering how external developments, from elections through the ongoing cost-of-living crisis and the rise of disinformation, will shape the context in which philanthropy operates”.

With the federal election approaching, Philanthropy Australia “will be seeking tangible commitments from both the government and the Opposition to support efforts to grow philanthropy and its impact, and the work of the not-for-profit sector, for the benefit of the Australian community”.

At the top of that list of commitments sought would be deductible giving recipient (DGR) reforms. Five major reports, including two in 2024, have recommended changes to the system.

“The current system is unnecessarily complex and puts the Australian philanthropic sector at a distinct disadvantage compared to other countries in terms of providing effective support to charities and the work they do in the community,” Sidey said.

“The case for fixing the DGR system is clear and we shouldn’t be waiting for a sixth or seventh report to recommend it, yet again – there should be action now.”

Sidey said Philanthropy Australia had welcomed the “positive focus” on sector issues by Charities Minister Andrew Leigh and “extensive engagement” by the Shadow Charities Minister, Senator Dean Smith.

She noted that the adoption of deductible giving recipient (DGR) status for community foundations by the Albanese government was a step in the right direction.

“This significant reform will make it easier for community foundations to receive funds, including from private ancillary funds, and to facilitate granting to organisations and groups without DGR status,” she said.

“It’s really important to finally get this category up and running early in the year.”

Collaboration efforts will increase in 2025

Philanthropy Australia would also ramp up its campaigns on “paying what it takes” and “reframe overhead”, which advocated for full funding of grant recipients, Sidey said.

In 2025 funders were also expected to place more stock in long-term relationships, collaboration with community and government, and understanding impact.

Examples of these approaches included the Investment Dialogue for Australia’s Children and the Queensland Government’s plans for a new Office of Social Impact, supporting social enterprises.

“The type of strategic collaboration we’re increasingly seeing also has a strong focus on lifting practice as well. This is vital given it’s not just the amount of giving that matters, but also the effectiveness of that giving and how it meets the needs of charities and the community,” Sidey said.