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By Greg Thom, journalist, Institute of Community Directors Australia
While the cost-of-living crunch continues to bite many Australians, charity donations may have finally emerged from a post-pandemic slump, according to new research.
The latest data from the online giving platform GiveNow has revealed average donation amounts were up 5% between January and April this year compared to the same period in 2023.
The data showed that while donor numbers remained stable, the amount of money people were giving had increased.
GiveNow executive director Cathy Truong said significantly, the average number of large donations (above $5,000) surged 30% in May compared to the same period the previous year.
“While May is traditionally a good precursor to increased giving activity in June ahead of the end of the financial year, the average value of these larger donations has ballooned by more than 37% from $5,600 to $7,700,” she said.
The GiveNow research came as the ACNC released the 10th edition of its annual Charities Report, which showed that Australians donated a record $203 billion in the 2022 reporting period – a 5.6% increase on the previous year.
The ACNC report also revealed that the good news was tempered by a $22 billion increase in expenses incurred by charities – a rise of more than 12%.
“So, whilst there is unsettled [donor] behaviour due to the cost of everyday food and household bills, there is confidence from these older, more established supporters to donate again."
Ms Truong said while the ACNC report contained valuable insights, it was a moment-in-time report on the state of play in 2022.
“Our analysis is very much a real-time indication of giving trends, which I think are looking increasingly positive,” she said.
Ms Truong said the lingering impact of the pandemic combined with the ongoing cost-of-living crisis had made a severe dent in many people’s capacity to donate to worthy causes in late 2022 and 2023.
“I think these two factors were very unsettling for many Australians, and as a consequence 2023 was not a good year for donations to charity.”
Ms Truong said not all Australians were experiencing the cost-of-living crisis in the same way, however.
“I think in 2024 we are seeing that the cost-of-living crisis is a two-speed experience,” she said.
“While young people, especially those in their 20s and 30s with young families and a mortgage or renting, are hurting, many people over 50 at the moment are luckier in the current circumstance as they are not subject to the same level of mortgage stress.”
Ms Truong said it was this older demographic who tended to be committed donors to community organisations.
“So, whilst there is unsettled [donor] behaviour due to the cost of everyday food and household bills, there is confidence from these older, more established supporters to donate again.
“I think that’s a trend that should be embraced by community organisations.”
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