Denise Cheng

Australia has been ranked the fourth most generous country among 119 countries, with three in five Australians making a financial donation to a charity, according to the Charities Aid Foundation (2022) – with the data from the ACNC reporting a total of $19bn in donations and bequests in 2023^[1].

Of those who donate in the way most do (on an ad hoc basis), the average annual donation totalled $580 per taxpayer, according to recent research commissioned by Equity Trustees.

Some gave more – with people on higher incomes averaging $850 and those with religious affiliations averaging $720.

This was despite over half (52%) of people saying the cost of living and managing other financial priorities was a barrier to them donating.

Looking forward, 3 in 20 people said they plan to donate $1,000 or more in the next 12 months and 1 in 20 said they expected to donate more than $5,000.

Equity Trustees surveyed more than 1,000 Australians and found 96% of them had donated money to charity over the past year.

“We often hear about philanthropy among the super-rich, but philanthropic giving is no longer just for the wealthy,” says Equity Trustees’ Business Development Manager of Philanthropy, Denise Cheng.

“Despite the cost-of-living crisis, we are seeing that more Australians than ever are looking to give, and this is driving an increase in philanthropic activity.

“Another reason for the increase in philanthropic giving is that it has become more accessible, with new technology and online platforms.”

Ms Cheng adds that while tax deductions are an attractive benefit of donating to charity, the Equity Trustees research found the main motivators for Australians to give to charity were around personal alignment to a cause and a desire to make a difference.

Equity Trustees General Manager, Philanthropy and Community Trustee Services, Jodi Kennedy, adds, “We know that many Australians are keen to make a difference in the world through charitable giving, regardless of how much wealth they have at their disposal.”

“That’s why we believe it’s time to redefine what giving looks like – by offering a smarter way to make lasting change, that’s accessible to more people.”

New portal launches

Equity Trustees is helping more Australians to participate in structured giving by offering a new way to set up their own sub-account in the Equity Trustees Charitable Foundation (ECF), a public ancillary fund.

The ECF is powered by the Equity Trustees Philanthropy Portal, enabling people to become a philanthropist with just $5,000. “They can give their account a name that resonates with them – perhaps after someone they care about, or something aspirational to them,” says Ms Kennedy.

Ms Cheng adds, “The ECF offers a way to give that goes beyond one-off donations. It enables individuals to establish a tax-effective giving structure that harnesses the power of investment to deliver greater, long-term impact. It is a way for people to start giving now, and watch their contribution grow while continuing to support the causes they care about well into the future.”

The online Equity Trustees Philanthropy Portal provides easy access to each giving account, while Equity Trustees deploys its 145+ years of experience to take care of the investment, compliance, governance and administration. Equity Trustees manages more than 1,200 charitable trusts and foundations and distributes more than $100 million of philanthropic granting to charitable causes annually.

“The goal of the portal is to make philanthropy accessible, affordable, self-directed and tech-enabled so more Australians can give sustainably to change tomorrow,” says Ms Cheng. “It provides an easy and affordable entry point to becoming a philanthropist.”

The online Equity Trustees Philanthropy Portal also provides transparency and easy access to giving, she says. This accessibility is common in the US, where the technology underpinning our portal originates.

“Equity Trustees is providing access to Australia’s leading philanthropic expertise – with real time visibility at your fingertips. Anytime, anyplace.”

Survey conducted in December 2024 by Equity Trustees of more than 1000 Australians who give also showed that: 

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Notes:
[1] https://www.acnc.gov.au/tools/reports/australian-charities-report-11th-edition

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Denise Cheng

It might be tax time, but a deduction for charitable giving is not top of mind for Australians who donate, according to research commissioned by Equity Trustees underpinning an ambitious new campaign to redefine giving and grow the national spirit of philanthropy.

• Australians who donate to charity are driven by a desire to make a difference more than a tax deduction
• 96% of Australians give to charity, even though 52% face their own financial challenges
• Income is not an indicator of whether people will give or not, with those under or over $150,000 annual income equally likely to donate around $5,000 a year
• Age is not a factor – with younger Australians (18-24 years) more committed to giving than older age groups.

Tax time is a traditional fundraising period for charitable organisations, and while Australians are a generous bunch, with research from Australia’s leading source of trustee–managed philanthropic funding, Equity Trustees, indicating that of 96% of Australians who gave to charity over the past 12 months, only 20% said the tax benefit was a key motivation.

National Manager of Active Philanthropy, Denise Cheng, said with every dollar donated to charity offsetting taxable income, an increasing number of taxpayers prefer to direct their money to charities of their choice.

“Tax deductions are an attractive benefit of donating to charity, but our research found that the main motivators for Australians to give to charity are around personal alignment to a cause, a desire to make a difference, and trust in the charity,” Ms Cheng said.

General Manager, Philanthropy and Community Trustee Services, Jodi Kennedy, added: “We know that Australians are keen to make a difference in the world through charitable giving, regardless of how much wealth they have at their disposal. That’s why we think now is the time to redefine giving – we want to provide a smarter way to make lasting change that’s more accessible to more people.”

Of Australians surveyed who have donated time, money or goods to charity over the past 12 months, 52% had donated despite facing barriers in managing other financial priorities. In fact, 3 in 20 said they’d give $1,000 or more in the next 12 months and 1 in 20 said they’d give more than $5,000. This sentiment was higher in young age groups.

Equity Trustees’ research also shows that while higher income generally increases the capacity to donate, people who earn $60,000-$100,000 were just as likely to say they’d be willing to donate more than $5,000 in the next 12 months as people who earn $150,000 or more.

“Like many in the for-purpose sector, Equity Trustees is committed to doubling structured giving in Australia by 2030, and these findings show we’re taking promising steps towards achieving that goal,” Ms Kennedy said.

“Equity Trustees is helping everyday Australians to participate in structured giving by offering a new way to set up their own sub account in the Equity Trustees Charitable Foundation (ECF), a public ancillary fund.  The ECF is powered by the Equity Trustees Philanthropy Portal, enabling people to become a philanthropist with just $5,000. What’s more, they can even give their account a name that resonates with them – perhaps after someone they care about, or something aspirational to them,” said Ms Cheng.

“Structured giving is a strategic way to give that goes beyond one-off donations. It’s about the creation of a tax-effective giving structure, that leverages the power of investments to create greater impact over a longer period. It’s a way people can start now – and see their contribution continue to make a difference over time.”

Equity Trustees manages more than 1,200 charitable trusts and foundations and distributes more than $120 million of philanthropic granting to charitable causes annually.

The online Equity Trustees Philanthropy Portal enhances the new (and existing) philanthropist’s donation experience, providing transparency and easy access to their giving account, while Equity Trustees deploys its 145+ years of experience to take care of the investment, compliance, governance and administration.

“The goal of the portal is to make philanthropy accessible, affordable, self-directed and tech-enabled so more Australians can give sustainably to change tomorrow,” said Ms Cheng.

How to make the most of the charitable giving tax deduction

• Keeping accurate and timely records and receipts is important
• Consider structured giving with Equity Trustees, which:
  • allows you to receive a tax deduction
  • amplifies your giving through smart, responsible investment
  • lets you choose which registered charities to give to – and automates your giving if you prefer
  • leverages a technology platform to keep track of donations, and security that your donation goes to registered charities
  • provides sustainable ongoing income to the charitable sector.

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Those who want to make a longer-term commitment to giving – and have a minimum of $5000 in mind available to donate – can consider creating a structured giving vehicle. The entry point is usually by establishing your own sub-fund and becoming a part of an existing public ancillary fund. One of the drawcards of a charitable fund of your own – including a sub fund – is the ability to set it up in a family name.

“The best-known charitable funds have grown over a long period of time, being added to over many years, and we know them by the name of the family who established it. Many are established to keep a memory of a loved one alive – and to keep their commitment to a cause alive as well,” says Denise Cheng, national manager of Active Philanthropy at Equity Trustees.

“Money put into a charitable fund also provides a tax deduction for initial and subsequent donations to the fund by family members – or anyone.”

“Also because, charitable funds are tax-exempt, according to the ATO the fund is eligible to receive a refund on any franking credits^[1].  This boosts the investment return of all donations made into the fund.”

Ms Cheng adds: “Making regular donations to a charitable fund can build a legacy that lasts for generations. You can develop a values-based mission, well beyond your lifetime.”

“Structured giving vehicles are purpose-built to deliver an annual income stream to support causes and programs that matter the most to you – it can be anything from a commitment to the arts and culture, to education or medical research, or the environment and so much more.”

“For our clients with multi-generations, by engaging family in these decisions, it is an opportunity to bring family together, motivated by a shared opportunity to make the world a better place,” said Ms Cheng

“So in the lead up to tax time this year, give some thought to how, and how much you donate to charitable causes. There just might be a way to make that dollar go further – not just this year, but in perpetuity, and we know our community and charitable sector will welcome that steady consistent support.”

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[1] Eligibility for a refund 

The post Tax time – make this year different and build a legacy of giving appeared first on AdviserVoice.

Denise Cheng

As 30 June approaches, maximising tax deductions is top of mind for many. One of the simplest options available is to make a charitable donation that helps others in need.

Those who want to make a longer-term commitment to giving – and have a minimum of $5000 in mind available to donate – can consider creating a structured giving vehicle. The entry point is usually by establishing your own sub-fund and becoming a part of an existing public ancillary fund. One of the drawcards of a charitable fund of your own – including a sub fund – is the ability to set it up in a family name.

“The best-known charitable funds have grown over a long period of time, being added to over many years, and we know them by the name of the family who established it. Many are established to keep a memory of a loved one alive – and to keep their commitment to a cause alive as well,” says Denise Cheng, national manager of Active Philanthropy at Equity Trustees.

“Money put into a charitable fund also provides a tax deduction for initial and subsequent donations to the fund by family members – or anyone.”

“Also because, charitable funds are tax-exempt, according to the ATO the fund is eligible to receive a refund on any franking credits^[1].  This boosts the investment return of all donations made into the fund.”

Ms Cheng adds: “Making regular donations to a charitable fund can build a legacy that lasts for generations. You can develop a values-based mission, well beyond your lifetime.”

“Structured giving vehicles are purpose-built to deliver an annual income stream to support causes and programs that matter the most to you – it can be anything from a commitment to the arts and culture, to education or medical research, or the environment and so much more.”

“For our clients with multi-generations, by engaging family in these decisions, it is an opportunity to bring family together, motivated by a shared opportunity to make the world a better place,” said Ms Cheng

“So in the lead up to tax time this year, give some thought to how, and how much you donate to charitable causes. There just might be a way to make that dollar go further – not just this year, but in perpetuity, and we know our community and charitable sector will welcome that steady consistent support.”

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[1] Eligibility for a refund

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