The Productivity Commission's report Future foundations for giving recommends major changes to the Australian charitable trusts regime. The Commission comments
Philanthropy contributes to a better society by providing money, time, skills, assets or lending a voice to people and communities who would otherwise have lower quality outcomes or have less access to goods and services. • Many Australians give money, other assets or their time. Over $13 billion was donated to charities in Australia in 2021 and 6 million people volunteered in 2022. • Philanthropy, particularly volunteering, can help build social capital by contributing to social networks, building trust within communities, and diffusing knowledge and innovations through communities. • Philanthropy can also provide untied, flexible or long-term funding for more innovative and riskier projects compared to what government funding can offer.
Philanthropy in Australia is increasing and government policies are supporting this growth. The Productivity Commission’s recommendations reinforce the foundations for philanthropy in Australia, so that the benefits of giving can continue to be realised into the future.
The deductible gift recipient (DGR) system is not fit for purpose and should be reformed. • The arrangements that determine which entities can access DGR status are poorly designed, overly complex and have no coherent policy rationale. • All Australian taxpayers co-invest in charities through the DGR system, so reform is needed to simplify the DGR system and direct support to where there is likely to be the greatest net benefits to the community from subsidised philanthropy. If adopted, the Commission’s recommendations would mean that more charities overall would be able to access tax-deductible donations.
An independent organisation should be established to strengthen relationships between Aboriginal and Torres Strait Islander organisations and philanthropic networks. • Provisionally called ‘Indigenous Philanthropy Connections’, it should be led and controlled by Aboriginal and Torres Strait Islander people and be funded by an endowment provided by the Australian Government. Reforms are needed to enhance the regulatory framework for charities and to support high levels of public trust and confidence in charities now and into the future. • Establishing a National Charity Regulators Forum comprised of Australian, state and territory charity regulators would formalise the regulatory architecture to embed coordination and cooperation.
The Commission has designed policy principles to inform the minimum distribution that ancillary funds are required to make each year to charities for the benefit of the wider community. • Guided by these principles, the Australian Government should set the minimum distribution rate for ancillary funds between 5% and 8%, following further consultation with the philanthropic and charitable sectors.
The Australian Government should create more value for the public from the data collected about charities and giving, including by publishing aggregate information on corporate giving and by requiring listed companies to be more transparent to stakeholders about their giving.
Philanthropy literally means ‘the love of humanity’. Each day, millions of Australians express this sentiment in practical ways, seeking to improve the wellbeing and resilience of their communities by contributing to causes they care about. People and organisations give for many reasons. Some are highly personal, such as those associated with a loved one or with their family experiences. Religious traditions and values provide an important source of motivation for many people and shape the ethos of many Australian charities. Other motivations can be broader, such as wanting to ‘give back’ to the community by helping those in need. Access to philanthropic networks and information also shape decisions to give.
Whatever our reasons for giving, Australians give generously. Over $13 billion was donated to charities in Australia in 2021 and 6 million people volunteered in 2022. In real terms, the Productivity Commission expects giving to increase by $6.4 billion or 48% by 2030 (box 1). This once-in-a-generation inquiry comes at a key point in time. While the Australian Government has a goal to double giving by 2030, some of the most important policy settings that would underpin such an increase are not fit for purpose. This report therefore focuses on reforms to build firmer foundations for philanthropy in Australia, so that the benefits of giving can continue to be realised into the future.
The reforms proposed in this report focus on four main areas: improving the system that determines which charities have access to tax-deductible donations; improving access to philanthropic networks for Aboriginal and Torres Strait Islander people; enhancing the regulatory framework for charities and ancillary funds; and improving public information on charities and donations.
Policy choices come with trade-offs. Subsidising philanthropy through tax deductions can encourage giving, but it also means the Government collects less revenue through income tax, which could otherwise be used to fund core government services or fund charities directly. Regulation can provide benefits, but it can impose compliance burdens and require additional resources for regulators. The bottom line is: there is no free lunch.
With this in mind, the Commission developed a framework to assess where there is a role for government to support philanthropy and where policy changes are needed. This assessment was based on the expected benefits and costs to the community of different forms of government involvement in philanthropy.
The Commission drew on the perspectives of donors, charities, philanthropic foundations, researchers and governments to analyse policy options to support giving, including their effect on equity and efficiency. The Commission was informed and guided by the contributions of inquiry participants through 1,611 public submissions, 1,593 brief comments, over 120 consultations, 10 roundtables and 6 days of public hearings, as well as previous government reviews and the academic literature.
The report states
Charities are subject to oversight from multiple national, state and territory regulators, each with their own institutional arrangements, responsibilities, powers, priorities and resources. The Australian Charities and Not for profits Commission (ACNC) is the national charities regulator. However, regulatory oversight is not consolidated at the national level because the Australian Parliament does not have the constitutional power to generally legislate for charities or the full range of structures a charity can adopt. Two effects of this are: • charities found to have engaged in the same kind of misconduct can face different regulatory consequences • the full scope of the ACNC’s regulatory powers is limited to a small proportion of charities characterised as ‘federally regulated entities’ and charities that operate outside Australia.
A referral of powers by state parliaments is likely to be the best approach to address the constitutional limitations of the ACNC, but that would involve significant implementation challenges and costs. Variation across jurisdictions may still occur if some states decline to refer a matter to the Australian Parliament.
Given this, the Commission proposed a suite of recommendations that build on the existing collaborative approach to charities regulation that would strengthen the ACNC’s information gathering powers and are proportionate to current and foreseeable risks. The Commission’s recommendations include enabling the ACNC to: • require a charity to provide information necessary to form an opinion on whether it is a ‘federally regulated entity’ • require a charity undergoing revocation of its ACNC registration to evidence the distribution of its net assets to an eligible entity, unless the ACNC Commissioner waives that requirement • have standing so it can seek orders in the Supreme Courts of all jurisdictions, where necessary, to protect charitable assets.
There are also technical issues in charities law that require further examination. In consultation with the Standing Council of Attorneys-General, the Australian Attorney-General should refer an inquiry to the Australian Law Reform Commission to examine: • the scope and coverage of Australian, state and territory charities laws focused on opportunities to simplify and harmonise laws across jurisdictions • the roles and responsibilities of state and territory Attorneys-General and other relevant regulators in relation to the oversight of charities, including charitable trusts.
As the behaviour of donors and charities evolves, a referral of powers may need further consideration by governments, should it become apparent that the current sharing of responsibilities for charities regulation is not sufficient.
A sound regulatory framework will only promote trust and confidence in the charitable sector if the ACNC exercises its powers when the need arises. ACNC data suggests that it has made limited use of its formal enforcement powers. The Commission was not asked to assess the effectiveness of the ACNC as a regulator and acknowledges there are several explanations for why the ACNC may not have used its formal enforcement powers more routinely. As the ACNC progresses through its second decade of operation, it may have greater ability to assume a more assertive enforcement and compliance posture, where necessary, to support trust and confidence in the charitable sector.
The role, powers and functions of the ACNC would be expanded if these recommendations were adopted. The reforms the Commission is proposing to strengthen the ACNC are more likely to be successful if the ACNC is able – and resourced – to adopt a more assertive regulatory posture, while retaining its emphasis on supporting charities to meet their obligations through education and guidance.
The Commission's Findings and Recommendations are -
Chapter 3: Philanthropy in Australia
Finding 3.1 Rising income and wealth are the major reasons behind rising tax-deductible donations
Tax-deductible donations by individuals made directly to charities have increased in value, but fewer people are making such donations. From 2000-01 to 2020-21, tax-deductible donations tripled (in real terms) despite the number of taxpayers increasing by only 38%. The available evidence indicates that this coincided with individuals’ financial capacity to donate increasing.
The Australian Government also made policy changes that provided additional or more flexible financial incentives to give, which likely also played a role in increasing giving. Giving into private and public ancillary funds has grown in value (from $692 million in 2011-12 to $2.4 billion in 2020-21). The relative importance of private ancillary funds has also grown from 15% to 27% of individual giving.
Finding 3.2 Volunteering is widespread in Australia, but the formal volunteering rate has declined
In 2022, about one in four people in Australia (about 6 million people) volunteered for an organisation. Nearly twice as many people volunteered informally (that is, assisting people other than family members, outside of the context of an organisation or group). However, the formal volunteering rate fell from 36% in 2010 to 25% in 2020. Data indicates that by 2022, the volunteering rate had recovered slightly to 26.7% following the COVID-19 pandemic. xx These figures likely understate total volunteering given official data sources use language and definitions that may result in underreporting of such giving because of different cultural meanings of volunteering.
Finding 3.3 People give or do not give for a range of personal reasons
People give for a range of complex and multifaceted reasons that can change over time. Specific events can also prompt people to give. Common patterns of giving behaviour include: • people affected by natural disasters are likely to donate more to help others in their own community • some people with high net worth use giving vehicles (such as ancillary funds or trusts) to connect with family through giving, to leave a legacy or to teach skills to the next generation • many businesses use high-visibility giving, including pro bono work, to bolster their corporate reputation, and to attract and retain employees and customers. xx People choose not to give for a variety of reasons. A lack of financial resources is one of the main reasons people do not donate money and common reasons people do not volunteer are work and family commitments. A lack of trust in how charities will use donations and financial constraints on volunteering are also common reasons people choose not to give.
Chapter 4: How governments can incentivise giving
Finding 4.1 People respond to incentives, with those on a higher income more likely to give
Modelling undertaken by the Commission indicates that people give more than they otherwise would because of the personal income tax deduction for donating to entities with deductible gift recipient status. The modelling draws on Australian taxpayer panel data and is the first time panel data has been used in Australia to estimate how people respond to personal income tax deductions for donations. The Commission used two models to estimate the price elasticity of giving – which is how people change their giving behaviour in response to changes in tax incentives for giving – and the income elasticity of giving, which is how people change giving behaviours in response to changes in their own income. The Commission’s estimates fall within the following ranges for: • price elasticity of giving in Australia: from -1.67 to -0.48, meaning a 1% increase in the tax deduction for giving is associated with a 0.48% to 1.67% increase in giving • the income elasticity of giving in Australia: from 0.86 to 1.17, meaning a 1% increase in income is associated with a 0.86% to 1.17% increase in giving. However, these estimates are only one factor to consider when evaluating the effectiveness of tax incentives to give. The share of taxpayers claiming a deduction for giving increases with income. Most of the tax benefits from giving that accrue to people in the lowest taxable income decile go to people who had high incomes before claiming any tax deductions.
Recommendation 4.1 Remove the $2 threshold for tax-deductible donations
The Australian Government should amend the Income Tax Assessment Act 1997 (Cth) to remove the $2 threshold for tax-deductible donations to entities with deductible gift recipient status.
Finding 4.2 A personal income tax deduction is likely to be an effective way to encourage giving
Tax incentives can be designed to target the total amount donated, increase the number of people participating in giving or to encourage particular types of giving, such as money, physical assets or time. The current design of the personal income tax deduction is likely to be the most cost-effective way for the Australian Government to encourage giving. A flat tax credit would likely incentivise more people to give, but the total amount given overall would likely fall if people who have a high income faced a higher price of giving than they currently do. Adjustments to a tax credit to account for the likely fall in overall giving, including a hybrid approach – a tax deduction for some income cohorts and a tax credit for others – would add complexity and the effect on total donations would be uncertain. Whether a tax deduction or tax credit would encourage more people to volunteer is highly uncertain, but they would likely increase tax integrity risks and compliance costs given volunteer work and expenses are often undocumented or informal. Government grants to support volunteering where there is a clearly identified need would likely generate greater net benefits to the community than tax incentives for volunteering, if properly targeted and evaluated.
Chapter 5: An assessment of the deductible gift recipient system
Finding 5.1 The deductible gift recipient (DGR) system is poorly designed, overly complex and has no coherent policy rationale
The DGR system is not fit for purpose as a mechanism for determining which entities should be eligible to receive indirect government support through tax-deductible donations. There is no coherent policy rationale for why certain entities are eligible for DGR status and others miss out. The complexity of the system continues to increase as new DGR endorsement categories are added in a piecemeal manner. The DGR system creates inefficient, inconsistent and unfair outcomes for donors, charities and the community. It needs reform.
Chapter 6: Reforming the deductible gift recipient system
Recommendation 6.1 A simpler, refocused deductible gift recipient (DGR) system that creates fairer and more consistent outcomes for donors, charities and the community
The Australian Government should amend the Income Tax Assessment Act 1997 (Cth) to reform the DGR system to focus it on activities with greater community-wide benefits. The scope of the reformed system should be based on the following principles. • There is a rationale for Australian Government support because the activity has net community-wide benefits and would otherwise be undersupplied. • There are net benefits from providing Australian Government support for the activity through subsidising philanthropy. • There is unlikely to be a close nexus between donors and beneficiaries, such as the material risk of substitution between fees and donations. In applying these principles, the Australian Government should: • extend eligibility for DGR status to most classes of charitable activities, drawing on the charity subtype classification in the Australian Charities and Not-for-profits Commission Act 2012 (Cth) to classify which charitable activities are eligible for DGR status and which are not • expressly exclude the following classes of charitable activities or subtypes: – primary, secondary, religious and informal education activities, with an exception for activities that have a specific equity objective (such as activities undertaken by a public benevolent institution) – the activities of early childhood education and care and aged care (other than activities undertaken by a public benevolent institution) – all activities in the subtype of advancing religion – activities in the other analogous purposes subtype that are for the purpose of promoting industry or a purpose analogous to an exclusion in another subtype – activities in the law subtype that further another excluded subtype • only grant DGR status to government entities where they are analogous to a charity and undertake activities that would be eligible for DGR status if undertaken by a charity • continue to limit the scope of the DGR system to registered charities and equivalent government entities • only use the specific listing mechanism in exceptional circumstances. When it is used, the Australian Government should increase the transparency of applications, how these are assessed, and the decision-making process to maintain confidence in the broader DGR system.
Recommendation 6.2 Supporting reforms to improve the deductible gift recipient (DGR) system
To facilitate the implementation of reforms to the DGR system, and provide greater clarity to both charities and the Australian Charities and Not-for-profits Commission (ACNC), the Australian Government should: • amend the Australian Charities and Not-for-profits Commission Act 2012 (Cth) to require the ACNC to register new and existing charities with all applicable charitable subtypes where a charity has endorsement as a DGR or has indicated they will be seeking such endorsement. This should include any necessary amendments to enable the ACNC to compel the provision of necessary information to assess eligibility for subtype registration where that registration has not been applied for by an entity. Charities should continue to be able to seek review of subtype registration decisions through the Administrative Appeals Tribunal or its successor • develop a legislated definition of what constitutes a public benevolent institution to delineate its scope more clearly.
Recommendation 6.3 Transition arrangements to support reform of the deductible gift recipient (DGR) system
In implementing reforms to the DGR system, the Australian Government should also provide a transition period of five years, during which time entities with DGR status (largely, school building funds and entities that provide religious and ethics education in government schools) can maintain their existing DGR endorsements and receive tax-deductible donations. Subsequently, there should also be a further period in which these entities can use those donations for their intended purposes. The length of this period should be determined by balancing the potential constraints imposed on entities with the benefits of simplifying the DGR system over the longer term. In the context of the proposed withdrawal of DGR status for school building funds, the Australian Government should concurrently develop and put in place other funding mechanisms for primary and secondary school infrastructure outside the DGR system.
Chapter 7: A sound regulatory framework
Recommendation 7.1 A more transparent and consistent approach to regulating charities
The Australian Government should amend the Australian Charities and Not-for-profits Commission Act 2012 (Cth) to remove the concept of ‘basic religious charity’ and associated exemptions, so all charities registered with the Australian Charities and Not-for-profits Commission are regulated in a consistent manner. This should include obligations to comply with principles based governance standards and reporting requirements proportionate to size.
Recommendation 7.2 Strengthening the Australian Charities and Not-for-profits Commission
The Australian Government should: • amend the Australian Charities and Not-for-profits Commission Act 2012 (Cth) (the Act) to enable the Commissioner of the Australian Charities and Not-for-profits Commission (ACNC) to require a charity to provide the information necessary to assess whether the charity is likely to be a ‘federally regulated entity’ • amend the Act to enable the Commissioner of the ACNC to require a charity undergoing revocation of its ACNC charity registration to evidence the intended or actual distribution of its net assets to an eligible entity unless that requirement is waived by the Commissioner • work with state and territory governments to ensure the Commissioner of the ACNC has the necessary enforcement powers to fulfil their role within the regulatory framework for charities. This should include implementing or reforming laws, where necessary, to confirm that the Commissioner of the ACNC has standing to make applications in a state or territory Supreme Court for orders regarding the administration of charities, including the protection of assets held in trust for charitable purposes, regardless of a charity’s structure.
Recommendation 7.3 Review of charities law by the Australian Law Reform Commission
The Australian Government should refer an inquiry to the Australian Law Reform Commission to examine: • the scope and coverage of Australian, state and territory charities laws focused on opportunities to simplify and harmonise laws across jurisdictions • the roles and responsibilities of state and territory Attorneys-General and other relevant regulators in relation to oversight of charities, including charitable trusts.
Recommendation 7.4 Increasing certainty about Australian Charities and Not-for-profits Commission regulation
The Australian Government should: • provide test case funding for the Australian Charities and Not-for-profits Commission (ACNC) to distribute to charities in specific circumstances for the purpose of developing the law • amend the Australian Charities and Not-for-profits Commission Act 2012 (Cth) to introduce a rulings scheme for the ACNC, modelled on part 5-5 of schedule 1 of the Taxation Administration Act 1953 (Cth), to support certainty in regulatory outcomes.
Recommendation 7.5 Regulatory architecture to improve coordination and information sharing among regulators
The Australian Government should: • establish a permanent National Charity Regulators Forum comprised of Australian, state and territory charity regulators • develop and agree to an intergovernmental agreement to, among other things: – give effect to the National Charity Regulators Forum and determine its terms of reference, how the chair is selected and the corresponding secretariat support, frequency of meetings, and any other operational matters – clarify roles, responsibilities and information sharing arrangements between the Australian Charities and Not for profits Commission, relevant Australian, state and territory regulators, and Attorneys General through the development of memorandums of understanding, including in relation to referrals, joint compliance approaches, appointments of a lead regulator, non-operating charities and processes to protect charity assets – progress charities law and regulation reform – identify any regulatory risks in the sector and collaborative approaches for managing, mitigating and responding to these risks, including the development of legislative or policy responses where needed.
Recommendation 7.6 Review of nationally consistent fundraising regulation reforms
The Council on Federal Financial Relations should: • continue to monitor the implementation of nationally consistent fundraising registration, reporting and conduct requirements by state and territory governments • commission an independent review of the outcomes of the fundraising harmonisation process and options to maintain regulatory consistency over time within 12 months of the tabling of this report in Parliament. This review and the response from the Council on Federal Financial Relations should be made public.
Recommendation 7.7 Explicitly consider the effects on volunteers when designing policies and programs
To support volunteering, Australian, state, territory and local governments should consider how changes to policies and programs would affect volunteers. This includes adopting measures that may mitigate any adverse effects on volunteer participation and identifying opportunities for volunteers as part of policy or program design.
Chapter 8: Structured giving vehicles
Recommendation 8.1 Improving the effectiveness and performance of ancillary funds for the whole community
The Australian Government should amend the private ancillary fund and public ancillary fund guidelines to: • set the minimum distribution rate at between 5% and 8% for ancillary funds, based on: – the Government’s assessment of the trade-off between bringing forward the funds that are distributed to charities and a lower amount distributed in the future – available information – further consultation with the philanthropy and charitable sectors • require that ancillary funds develop a ‘distribution strategy’ outlining how they will support eligible entities to further their charitable purpose. The Australian Government should also: • change the name of ancillary funds to Private and Public Giving Funds to make their philanthropic purpose clearer • provide a five-year period of notice before any new minimum distribution rate applies to allow existing ancillary funds to make any necessary changes to their investment strategies • conduct a periodic review of the minimum distribution rate every 10 to 15 years to decide whether the rate should be adjusted • conduct and publish a survey of charities on their preferred minimum distribution rate for ancillary funds and how money is distributed to charities each time the minimum distribution rate is reviewed.
Recommendation 8.2 Enabling distributions of funds to be smoothed over three years
The Australian Government should increase the flexibility of the regulatory regime by amending the private ancillary fund and public ancillary fund guidelines to enable smoothing of the distribution rate over a period of up to three years, with integrity measures to ensure the resulting distributions are at least equal to (or higher than) the amount that would have otherwise been payable under existing rules.
Recommendation 8.3 Improving public information on ancillary funds
The Australian Taxation Office should: • publish additional aggregate information on distributions by ancillary funds • collect and publish additional information on sub-funds within public ancillary funds • raise public awareness of information on ancillary funds, including by collaborating with the Australian Charities and Not-for-profits Commission to include additional information in the Australian Charities Report.
Finding 8.1 There is no case for reducing superannuation taxes for bequests
The current tax arrangements for superannuation treat a donation to a charity in the same way as a payment to any other non-dependant beneficiary. The tax system is not neutral in death and provides a larger tax benefit for the superannuation component of an estate. Adding further concessions at the time of death would be a relatively costly way for the Australian Government to incentivise philanthropic giving.
Chapter 9: Public information about charities and giving
Finding 9.1 Administrative expenses are not an accurate reflection of the performance of a charity
An overemphasis, amongst donors and other stakeholders, on the amount of revenue that charities spend on administrative expenses can lead to incorrect conclusions about charity effectiveness and create perverse incentives for charities. For example, it can result in the underreporting of administrative costs or underinvesting in core capabilities and capacity, such as staff training, which undermines long-term capacity to further charitable purposes and benefit the community. Charities have incentives to provide information about effectiveness to donors and this information is shared in various ways. Introducing additional requirements, such as standardised effectiveness measures, would be impractical and may lead to significant unintended consequences.
Recommendation 9.1 Enhance information published by the Australian Charities and Not-for-profits Commission
The Australian Charities and Not-for-profits Commission (ACNC) should enhance the usefulness of the information it provides on charities and giving for donors and the public. The ACNC should: • present data on the ACNC charity register in ways that are more meaningful and accessible to donors and the public based on stakeholder consultation • publish the DGR status of charities on the ACNC charity register • raise public awareness of the ACNC charity register and other government sources of information on charities.
Recommendation 9.2 Introduce enhanced disclosure and reporting of corporate giving
The Australian Government should introduce a requirement for listed companies to publicly report itemised information on their donations of money, goods and time (volunteering) to entities with deductible gift recipient status. This would enhance accountability to shareholders, consumers, employees and other stakeholders within the community. The Australian Taxation Office (ATO) should amend the company tax return to require listed companies to report donations of money and assets to entities with deductible gift recipient status as a distinct line item in deductions, similar to what is required for individuals. The ATO should regularly publish aggregate information on corporate giving in Australia (for example, in the Australian Taxation Statistics) including, at a minimum, donations by company size, taxable status and industry.
Recommendation 9.3 Improve data on charitable bequests
To provide more information about giving through charitable bequests, including trends over time, the Australian Charities and Not-for-profits Commission should require registered charities to separately report income from bequests in their annual information statement and publicly report the aggregate data.
Recommendation 9.4 Improve the usefulness of public information sources on volunteering
The Australian Bureau of Statistics (ABS) should improve the usefulness of public information sources on volunteering. It should amend the questions on volunteering in the Census to capture: • whether respondents engaged in informal volunteering (in addition to whether they engaged in formal volunteering with an organisation) • the amount of time the respondent engaged in formal or informal volunteering (for example, hours each week). The ABS should also collect more detailed information on volunteering annually through a survey such as the General Social Survey. At minimum, the survey should collect information on whether respondents engage in formal and informal volunteering, and the time spent engaged in these activities. However, the ABS should strongly consider including additional questions to improve information on volunteering, in consultation with relevant stakeholders. Following engagement with communities, the ABS should develop methodologies that enable better measurement of volunteering by Aboriginal and Torres Strait Islander communities and culturally and linguistically diverse communities.
Chapter 10: Increasing participation in giving
Recommendation 10.1 Establish Indigenous Philanthropy Connections
The Australian Government should establish an independent organisation, provisionally called Indigenous Philanthropy Connections, controlled by – and for the benefit of – Aboriginal and Torres Strait Islander people and communities. The goals of Indigenous Philanthropy Connections should be to strengthen the capacity of: • non-Indigenous philanthropic organisations to be more culturally safe and responsive to the needs of Aboriginal and Torres Strait Islander people and organisations • Aboriginal and Torres Strait Islander people and organisations to build relationships and partnerships with philanthropic and volunteering networks • Aboriginal and Torres Strait Islander communities by supporting the establishment and growth of new and existing Aboriginal and Torres Strait Islander philanthropic organisations. Indigenous Philanthropy Connections should: • have governance arrangements that support self-determination, including a board comprised by a majority of Aboriginal and Torres Strait Islander people • not replace or replicate existing Aboriginal and Torres Strait Islander philanthropic organisations • be funded by an endowment from the Australian Government that is large enough to guarantee that it is financially sustainable and independent, without need to seek further funding from either government or philanthropy. The Australian Government should also fund an independent evaluation of Indigenous Philanthropy Connections, to be conducted 10 years after its establishment.
Finding 10.1 A government-funded public campaign could help broaden participation in giving, but there is insufficient evidence to conclude that such an intervention would be effective
More evidence is needed, including through rigorous evaluations from Australia or overseas, to demonstrate that a government-funded campaign would be effective at increasing giving and yield net benefits to the community. Governments could maximise the chances of a successful public campaign (and opportunities for learning) by ensuring any public campaigns that involve public resources (whether it be a campaign run by a government agency or public funding of a sector-led campaign) adhere to sound program design, evaluation and transparency principles.
