“As a percentage of GDP we are behind comparable countries,” said Sam Rosevear,Philanthropy Australia’s executive director of policy,government relations and research.
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“Our members say we are a kind and generous culture,but part of the shift to improve is having a culture of encouraging the more fortunate-placed to give.
“You do that through the joy of giving and highlighting.”
The Productivity Commission found fewer people are giving,but those who do give more.
The proportion of taxpayers claiming tax‑deductible donations fell from 35 per cent in 2009‑10 to 29 per cent in 2019‑20,according to ATO figures.
But the value of donations nearly doubled,from $2 billion to $3.8 billion,in that time,and some who give don’t seek deductions. Just 53 per cent of Australians earning $1 million or more are claiming tax deductions for giving,compared to 90 per cent of millionaires in the United States.
‘We don’t have the same culture of philanthropy like the United States.’
Catherine Brown,Lord Mayor’s Charitable Foundation
The 2022 Global Philanthropy Environment Index showedAustralia’s environment for encouraging philanthropy ranks 19th in the world,below similar advanced economies including France,Germany,Singapore,Sweden and Norway.
The charity sector is calling for reforms to superannuation bequests,deductible gift recipient (DGR) status and tax refund donations.
One reform would be granting all charities DGR status,which allows people to claim a tax deduction on donations. This occurs in New Zealand,the UK and the US,but only about half of Australian charities get that status and applying can be a long and involved process.
The Productivity Commission previously recommended granting all charities DGR status in a 2010 report.
Another proposed reform is simplifying the complex arrangement that makes it difficult for people to make bequests from their superannuation after death.
A third reform would be simplifying the process of allowing Australians to pass on a portion of their tax refund – estimated at $30 billion annually – to charities.
A charity lunch last week hosted by the Sony Foundation raised hundreds of thousands of dollars for its River 4Ward initiative,which gives cancer patients aged between 15 and 25 a place to stay near their treatment centre.
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Celebrities including singer Kate Miller-Heidke,Collingwood star Mason Cox and broadcaster Hamish McLachlan gathered to hear student Tess McMurtrie tell the audience about how her love of backpacking around the world was cut short when she learnt at age 21 she had sarcoma cancer.
The Sony Foundation’s You Can Stay program allowed McMurtrie to stay at nearby Quest Apartments with her family as she attended hospital to endure multiple rounds of chemotherapy,ICU emergencies and an above-the-knee amputation.
At the end of the lunch,McMurtrie told the crowd at Melbourne’s Crown casino the event had raised $651,000,which was a big jump on last year’s $470,000 and eclipsed the $650,000 raised at the Brisbane lunch.
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“We don’t have the same culture of philanthropy like the United States,” said Catherine Brown,of the Lord Mayor’s Charitable Foundation,which is Australia’s oldest community foundation and whose donors have raised more than $255 million in grants for non-profit organisations.
“It hasn’t been part of our DNA that as you grow up you give to your school or university.
“I think middle Australia is very generous,but I think maybe with our high net worth,or uber high net worth,while there are great examples,not everyone gives. You would hope at that level everyone would give and want to be giving back.”
Polling for Philanthropy Australia found the three key motivations for donating were a personal or emotional connection to a cause that affected loved ones;people preferred donating on their own terms;and when giving made them feel part of a bigger community.
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