Wednesday, 7 May 2008 
 
 
Australians are giving more to charity at a rate of 12.5 per cent per annum said David Knowles, Head of Philanthropy, Perpetual at the Perth Chartered Accountants Business Forum today. 
 
“Since 1997, giving by individuals has increased with 87 per cent of Australians giving a total of $7.7bn per year to charities. In addition, 67 per cent of all businesses donate a combined total of $3.3bn per year,” said Mr Knowles.  
 
The trend is set to continue as Australia gets richer. The average Australian household wealth grew 14 per cent in the two years to 2007 to $563K, with the wealthiest 20 per cent of households holding more than 60 per cent of this wealth. 
 
The higher the income level the greater the propensity to donate with high net worth individuals (defined as a net income of $1m per year) typically donating two per cent of income compared to a national average of 0.35 per cent. 
 
“Many companies are turning to philanthropy because it offers a tax solution for clients, employees and businesses. Philanthropy provides planned, deductible contributions into a charitable trust or foundation which grows and produces annual income for the donors charities of choice,” said Mr Knowles. 
 
As well as being an effective financial planning tool with donors electing to spread their tax deduction, philanthropy is also an opportunity to strengthen ties with clients, employees and communities that their stakeholders operate in. 
 
“Increasingly philanthropy is a factor in recruitment where prospective employees, especially generation Y, expect companies to have some form of philanthropy activity,” said Mr Knowles. 
 
Prescribed Private Funds have become the fastest growing option in Australia as a tax effective and flexible vehicle for private giving. A Gift Fund account also allows for deductible contributions and can be an effective low cost, low admin option. Gift Fund donations can be made up to 30 June 2008.