Tax benefits no longer front of mind for donors: | Australian Markets

New analysis from Equity Trustees has discovered the tax deductibility of donations is no longer the driving pressure behind Australians’ giving to charity, after being taken over by the ‘desire to make a difference’.

Of the 96 per cent of Australians who donated to charity within the final 12 months, solely 20 per cent cited tax deduction benefits as the principle motivation. Similarly, 52 per cent had given to charity on the similar time as dealing with their own financial challenges.

“Tax deductions are an attractive benefit of donating to charity, but our research found that the main motivators for Australians to give to charity are around personal alignment to a cause, a desire to make a difference, and trust in the charity,” National Manager of Active Philanthropy, Denise Cheng, mentioned.

“Equity Trustees helps on a regular basis Australians to take part in structured giving by offering a new option to set up their own sub account within the Equity Trustees Charitable Foundation (ECF), a public ancillary fund.

“The ECF is powered by the Equity Trustees Philanthropy Portal, enabling people to change into a philanthropist with simply $5,000. What’s more, they will even give their account a title that resonates with them – maybe after somebody they care about, or one thing aspirational to them.

“Structured giving is a strategic option to give that goes past one-off donations. It’s in regards to the creation of a tax-effective giving construction, that leverages the facility of investments to create larger affect over a longer period. It’s a manner people can begin now – and see their contribution proceed to make a distinction over time.

“The goal of the portal is to make philanthropy accessible, affordable, self-directed and tech-enabled so more Australians can give sustainably to change tomorrow.”

The analysis additionally recommended youthful Australians and people on decrease incomes had been more or simply as more likely to donate; 15 per cent of these surveyed mentioned they might give $1,000 or more within the subsequent 12 months, and 5 per cent mentioned they might donate $5,000 or more. People who earn between $60,000 and $100,000 a 12 months had been simply as more likely to donate more than $5,000 within the subsequent 12 months as people who earn $150,000 or above.

“We know that Australians are keen to make a difference in the world through charitable giving, regardless of how much wealth they have at their disposal. That’s why we think now is the time to redefine giving – we want to provide a smarter way to make lasting change that’s more accessible to more people,” General Manager, Philanthropy and Community Trustee Services, Jodi Kennedy, mentioned.

“Like many in the for-purpose sector, Equity Trustees is committed to doubling structured giving in Australia by 2030, and these findings show we’re taking promising steps towards achieving that goal.”