Survey on Business Giving Australia: Research on Philanthropy in Australia

Key Findings Additional Information How this research was conducted
 

September 2005

The '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).

Additional Information is available at these websites

 

How this research was conducted

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:

28th February - 4th March 2005

Initial personalised letter sent, with self-completion questionnaire, incentive flyer and reply-paid envelope to 7,316 businesses

14th March - 18th March 2005

1st reminder letter sent to 7,097 businesses

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

11th - 15th April 2005

2nd reminder letter / re-send of questionnaire sent to 4,930 businesses

26th April - 13th May 2005

Second wave of reminder phone calls placed with 825 businesses that had not responded

May - June 2005

Data collation and processing

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.

 

 

Key Findings

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.

  • 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.

McNair Ingenuity Research Pty Ltd