Australia Lacks Enough Donors? Charity Sector Reaches Saturation


The latest report has revealed that Australia has a huge number of charities per capita, housing around 422 people each.

Wealth Management organisation JBWere released the Cause Report on Tuesday, showing how the growth of the sector has reached $200 billion a year in the past two decades. It stated that the frequency of the establishment of charities has been doubling every 20 years with the number reaching to currently 56,894 across the nation. However, the report has also indicated the saturation of the charities because of the deteriorating number of donors for non-profit establishments.

For the first time, an in-depth study of the Australia’s Not for Profit sector has been conducted which is a big change in focus from the corporate sector findings and reports. In the report, the charity concentration rate was compared to that of the United States that accommodates 648 people each. However, the Aussie Not for Profit sector has begun noticing the shortage of funds with only 0.23 percent people donating funds to the establishments, which is lower than the 1.44 percent of people donating in the US.

JBWere CEO Justin Greiner said that Australia’s charity industry requires innovation to stay stable and operational. “There is no question that Australia’s charity sector, which helps the most vulnerable and needy people in Australia and overseas, is crucial to our country’s future prosperity,” Greiner said as quoted by Pro bono Australia. “But after two decades of strong growth, the sector is fast approaching a crossroads. With overall spending growing at about 8.4 percent a year since 1996, and the sector facing potentially tighter funding models, something has to change.”

The report indicated that over 56,000 registered organisations seek public donations at present, with 2,000 organisations for breast cancer alone. The average donation is about $500 each fiscal year, as revealed in the report. The participation in philanthropy is observed to be significant in the case of women than their male counterparts, the report stated. “Philanthropy has come a long way in Australia since 1979 and even in the last decade we have seen dramatic changes,” Yahoo News quoted John McLeod, the author of the report, as saying. “However, more needs to be done.”

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