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September
2005
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'Giving Australia' project is an initiative of the
Prime Minister's Community Business Partnership,
and is being coordinated by the Australian Council
of Social Service (ACOSS) in collaboration with
the Centre for Australian Community Organisations
and Management (CACOM) at the University of Technology,
Sydney, the Centre of Philanthropy and Nonprofit
Studies (CPNS) at the Queensland University of Technology,
Roy Morgan Research (RMR), McNair Ingenuity Research
and the Fundraising Institute of Australia (FIA). |
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Additional
Information is available at these websites
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How
this research was conducted
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This
survey comprised a hardcopy self-completion device distributed
to a representative sample of over 7,300 organisations
throughout Australia. While the final response rate
was essentially in the hands of respondents, a rigorous
procedure of reminders and encouragements was put in
place to maximise response, as follows:
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28th February -
4th March 2005
Initial personalised
letter sent, with self-completion questionnaire,
incentive flyer and reply-paid envelope to 7,316
businesses
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14th March - 18th
March 2005
1st reminder letter
sent to 7,097 businesses
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4th April -
22nd April 2005
Reminder phone
calls placed with 5,306 businesses that had not
responded. Personal contacts were established,
and questionnaire kits were re-mailed to correct
contacts if they had not arrived
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11th - 15th April
2005
2nd reminder letter
/ re-send of questionnaire sent to 4,930 businesses
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26th April - 13th
May 2005
Second wave of
reminder phone calls placed with 825 businesses
that had not responded
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May - June 2005
Data collation
and processing
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Throughout the field period
for this survey, replacement kits of the original mailing
were sent to anyone who contacted McNair Ingenuity Research
and communicated that they had mislaid or spoilt their
original materials. Also, during the telephone reminder
calls all potential respondents were asked if they had
the materials they needed to participate in the survey
- particularly the questionnaire. Any respondents who
had mislaid the materials were sent a replacement questionnaire,
letter, reply-paid envelope and incentive flyer. In
practice, including in-bound calls, re-sends were made
from mid March right through to the end of the survey
period.
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Key Findings
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Key findings from
this research include:
- The total value of giving found
through this survey for the 2003-04 year was $3.3
billion - given by 67% of all Australian businesses
or 525,900 businesses.
- What this business giving
consisted of was 68% in money ($2.21 billion),
16% in goods ($0.52 billion) and 16% in
services ($0.52 billion).
- How this business giving occurred
consisted of 58% in donations ($1.90 billion
- given by 58% of all Australian businesses or 451,600
businesses); 25% in sponsorship ($0.81 billion
- given by 20% of all Australian businesses or 156,700
businesses); and 17% in community business projects
($0.54 billion - given by 19% of all Australian businesses
or 148,700 businesses).
There are a number of important
qualifications in comparing the Business Survey reported
here with the only other study of business giving undertaken
in Australia (ABS, 2002). The ABS for its survey was
able to sample from a full array of Australian businesses
and was able to compel businesses to participate. Also
a 'halo effect' of the Tsunami appeals just prior to
the conduct of the present survey was likely to have
had an influence on businesses to exaggerate or wrongly
count their non-tsunami giving. However, even with these
qualifications it is evident that business giving has
grown.
For the 2000-01 year the
ABS (2002) estimated the following:
- The total value of giving was
$1.5 billion.
- What this business giving
consisted of was 64% in money ($0.9 billion),
16% in goods ($0.2 billion) and 20% in services
($0.3 billion).
- How this business giving occurred
consisted of 40% in donations ($0.6 billion);
47% in sponsorship ($0.7 billion); and 13%
in Business to Community projects ($0.2 billion).
At face value the comparisons
between the ABS data for 2000-01 and the findings of
this research for 2003-04 suggest an increase of more
than double in business giving over three years. This
may be an over-estimate and will partly be a function
of the different methods employed by the two studies.
Somewhat more confidence may be had in comparing the
proportions of 'what' (money, goods, services) and 'how'
(donations, sponsorship, business to community) of business
giving.
These comparisons suggest
that over this period business is now somewhat more
likely to give money and goods, but is relatively less
likely to give in the form of services.
The same comparisons for
how business gives suggest that business is now
more likely to give by way of donations and business
to community projects, but is relatively less likely
to give through sponsorship.
Other key findings from
the present research include:
- The industries which gave the largest
amounts overall in the 2003-04 year were Property
/ Business Services ($668 million), Construction ($529
million) and the Retail Trade ($505 million). Whilst
these are some of the biggest industries in terms
of number of businesses, the proportion of businesses
actually giving from these industries was above average.
- The most generous industries in
terms of proportion of businesses giving were Construction
(92%), Health and/or Community Services (90%), Utilities
(87%), Communication Services (84%) and Accommodation,
Cafes and/or Restaurants (76%).
- By size, businesses with 1-10 employees
gave the largest amount overall - $1.5 billion or
47% of all business giving. This group makes up 89%
of Australian businesses. However, businesses with
501+ employees gave a relatively large amount ($654
million or 20% of all business giving) for a group
of only approximately 1,500 businesses (less than
1% of all businesses).
- Businesses with 501+ employees contributed
the largest amount of all groups in Sponsorship ($264
million) and the second largest amount in Business
to Community projects ($184 million).
- The largest barrier to making any/more
donations was that business resources were committed
elsewhere. This was seen as a barrier by 340,700 businesses
- 44% of all businesses in Australia. 12% of businesses
(91,800) did not believe it is business responsibility
to make donations, and 11% of businesses (84,000)
had not considered making donations.
* Note that some businesses
mentioned more than one barrier to making any (more)
donations.
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- Community Service and Welfare benefited
most from overall business giving with almost $1 billion
given to that activity. The vast majority (nearly
$800 million) of this came from donations. Health
also received over $600 million in total, and Sports
and Recreation received almost $560 million (largely
from Sponsorship). The Environment received one of
the least - $30 million.
- The industries giving the most to
Community Service and Welfare were Construction ($295
million), Retail Trade ($196 million) and Property
/ Business Services ($119 million). The Retail Trade
($166 million) and Health / Community Services ($119
million) were the biggest givers to Health, and the
Wholesale Trade ($89 million) and Property / Business
Services ($85 million) were the biggest givers to
Sports and Recreation.
- The biggest single barrier to business
giving - by way of Donations, Community projects or
Sponsorship - was that "business resources are committed
elsewhere". Other barriers included "had not considered"
and "the business was not approached by anyone".
- The most preferred way of being
approached for donations was through a form or letter
(30% of businesses). The next most preferred way was
a request from an employee or director involved with
the beneficiary organisation (8% of businesses).
- 63% of businesses were aware that
there are tax concessions for payroll deductions by
staff to deductible gift recipient organisations.
43% of businesses were aware of tax concessions for
establishing a private foundation/trust that has been
prescribed in tax regulations.
- Only 1% of businesses, a total of
7,000 businesses, operate a foundation/trust for the
purpose of making donations.
- 4,700 businesses with 1-10 employees
operate a foundation / trust for the purpose of making
donations. However, businesses with 11 or more employees
are relatively more likely to operate this type of
foundation / trust. In fact, of businesses with 11
employees or more, 3% operate a trust / foundation,
compared with less than 1% of businesses with 1-10
employees.
- 4,100 businesses in Cultural / Recreational
Services operate a foundation / trust of this type
and they are the most likely of all businesses to
do so.
* Note that some businesses
mentioned more than one benefit of making donations.
- Making donations was seen as 'a
good thing to do, irrespective of the return for us'
by 403,600 businesses, or almost 90% of the 451,600
businesses which made a donation. 137,100 felt that
making donations was good for their business's image,
while 76,500 believed it was good for their relationships
with certain clients or suppliers.
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