Big business sets the pace for charity support
But the head of Philanthropy Australia says Australians are among the world's best when it comes to corporate giving, through acts such as pro bono professional work, allowing staff a day off for charity work and funding a moustache for Movember.
Louise Walsh, the philanthropy body's newly appointed chief executive, said the Sydney Olympics raised the bar for Australian corporate philanthropy.
Volunteers then sprung from large companies such as AMP and Westpac and companies gave up on the traditional model of "free tickets and putting up logos".
Nowadays, it was accounting giant PwC and electronics company JB Hi-Fi that were leading the way on corporate giving, Ms Walsh said. Start-up incubator Atlassian has also attracted plenty of kudos for promising to donate 1 per cent of its profits to charity.
But there's more to be done before Australian companies can get comfortable.
First, there is a dearth of hard data on corporate giving. The most comprehensive research was the government-commissioned Giving Australia report, released in 2005, which said that in the four years to 2004, the proportion of businesses giving through donations rose from 40.5 per cent to 58 per cent.
The report said that corporate giving was more likely to be made by larger businesses, particularly those that had "won management commitment, have a formal budget, qualified staff and systems in place to manage this function within the organisation".
Those least likely to give, the report said, were often small and medium-sized enterprises (SMEs) focused on business survival or concerned that giving contradicted their responsibility to stakeholders.
But Ms Walsh said workplace-giving initiatives, in which employee donations were matched by employers, had been a success story at large companies and work was under way to encourage smaller companies to adopt the practice.
Charities Aid Foundation, a not-for-profit that seeks to match donors with charities, will use a recent donation to tailor workplace-giving software for SMEs.
Meanwhile, religious charity Anglicare said although schools and churches were the biggest supporters of its toy and food appeal, many businesses were weighing in. The number of "giving trees" at the top end of Collins Street increased to five this festive season from just two in 2011, Anglicare Victoria communications manager Andrew Yule said.
Mr Yule said donations to Anglicare's broader Christmas appeal had been stable since the start of the financial crisis, with the number of donations slightly down but an increase in the average amount given.
Frequently Asked Questions about this Article…
Corporate giving in Australia has been growing, with big businesses increasingly supporting charities through pro bono work, staff volunteer days and workplace-giving programs. The article notes a shift away from old sponsorship models (like free tickets and logos) toward more engaged philanthropy driven by larger firms.
The article highlights accounting firm PwC and retailer JB Hi‑Fi as current leaders in corporate giving, and notes that start-up incubator Atlassian received praise for pledging to donate 1% of its profits to charity. AMP and Westpac are also mentioned for providing volunteer support around events like the Sydney Olympics.
The government‑commissioned Giving Australia report (released in 2005) found that in the four years to 2004 the proportion of businesses giving through donations rose from 40.5% to 58%. For investors, this suggests a growing corporate focus on philanthropy, particularly among larger firms with management commitment and formal giving systems.
According to the article and the Giving Australia report, larger businesses are more likely to donate because they often have management commitment, formal budgets, qualified staff and systems to manage corporate giving. Small and medium enterprises (SMEs) are less likely to give as they may be focused on survival or concerned about responsibilities to stakeholders.
Workplace giving is when employee donations are matched or supported by their employer. The article says workplace‑giving initiatives have been a success at large companies, and efforts are underway — including software development by Charities Aid Foundation — to encourage adoption among SMEs.
The article describes the most recent Christmas as particularly tough for some charities, with some calling it the worst in recent memory. However, some organisations like Anglicare reported stable overall donations since the start of the financial crisis, with slightly fewer donations but a higher average donation amount.
Anglicare said schools and churches remain its biggest supporters for toy and food appeals, but many businesses also weighed in. For example, the number of 'giving trees' on the top end of Collins Street increased from two in 2011 to five in the recent season, showing growing corporate participation.
Better data on corporate giving helps investors assess companies' social impact and ESG commitments. The article notes a dearth of hard data on corporate giving, with the last comprehensive study cited being the 2005 Giving Australia report, indicating a need for more up‑to‑date measurement and transparency.
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