Why Charities Rely on Giving

It may come as no surprise that charities rely on giving to survive. It is the uncertain act of giving that allows a charities sustainability, go figure. It may not seem like the best business plan; however, Australians’ generosity has allowed many charities to play a significant part in social change.

The three primary incomes of a charity are government funding and grants, public giving through donations and bequests, and other income such as merchandise sales and memberships. 

Around a quarter of charities rely heavily on giving and philanthropy for over half of their revenue, with smaller charities having a higher dependence than larger charities. The Australian Charity and Not-for-profits Commission reported in 2018 an increase in donations and bequest of $600million from the previous year. Indicating that Australians want to help others in need is as strong as ever.

A recent comprehensive study showed that in the 2015-16 financial year, an estimated 80% of Australian adults donated to charities, with an approximate figure of $12.5 billion, the result of the mass generosity. The average donation was $764, with a common belief that the average figure would have increased in recent years.

Australian businesses play a massive part in giving for charitable purposes. With a mixture of monetary, goods and service donations, there was an estimated $17.5 billion to charity in 2015-16. Community partnerships seem to be more favourable for both charity and business as they allow both to build a strong, trusting relationship.

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