Overview
The nonprofit sector in Australia is large and diverse. According to the National Roundtable of Nonprofit Organisations (2003:1) key features of the sector in Australia include:
- an estimated 700,000 nonprofit organisations in Australia, most of which are small and entirely dependent on the voluntary commitment of members
- approximately 380,000 nonprofit organisations are incorporated in some form or another
- about 35,000 nonprofit organisations employ staff
- there are approximately 20,000 organisations with Deductible Gift Recipient status in Australia. Most of these are nonprofit organisations
- for 1999-2000 the ABS (2002a) estimated the nonprofit sector’s total revenue at $33.5 billion.
Data collected through this study could not capture all of the detail of such a large and diverse sector. For example, it has been necessary to collate data on the recipients of nonprofit related giving under broad headings such as ‘arts and culture’ and ‘community and welfare services’ etc, even though under each such heading a wide range of activities is undertaken (eg visual arts, performing arts; community housing or legal services etc).
Table 6 presents the proportions of value of giving (ie the proportion of total dollars given through individual donations and business giving and of total hours volunteered) to selected fields of nonprofit activity. The row at the bottom of the table records the total dollars donated or given and total hours volunteered for those years. It should be kept in mind that in fields where the percentage of dollars and hours given is less than 10% there is likely to be a large error. Indeed, all the movements estimated here are indicative, not definitive. This table enables us to gain an understanding of the preferences for giving by different sources to different nonprofit activities.
Key features from this comparison, by nonprofit field of activity, include:
- Community and welfare services are significant beneficiaries of giving, receiving from all individual donations about one in eight dollars, better than one in four hours of all volunteering and almost a third of all business giving.
- Education nonprofit organisations receive about the same proportion of overall individual donations and business giving, about one in twenty dollars from these sources. This field receives comparatively more by way of volunteering, accounting for one in eight hours volunteered.
- Environment and animal welfare groups receive about one in twenty of the value of all donations by individuals, about half that proportion of hours volunteered and a very modest level of the total support from business giving (at less than 1% of its total).
- Health nonprofit organisations, including medical research organisations, are significant beneficiaries from all sources of giving, receiving about one in six of the total value of donations by individuals, one in ten hours volunteered and almost one in five of the total value of business giving.
- Sporting and recreation groups receive only a modest proportion of the total of all individual giving but very much more support from volunteering and business giving, at between one in five to one in six in total, respectively.
- Arts or cultural organisations receive about one in every forty dollars donated by individuals and a slightly higher proportion of total volunteer hours. These organisations receive almost 10% of total business giving.
- Religious institutions are very significant beneficiaries of donations by individuals (accounting for more than one in three of the total value) and account for about one in six of all hours volunteered. Business giving to religious institutions was not specifically recorded through the Survey of Business.
- International aid and development nonprofit organisations receive a little more than one in eight of all dollars donated by individuals, but a negligible amount of volunteering. Business giving to international aid and development organisations was not specifically recorded through the Survey of Business.
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Table 6: Giving and volunteering in 2004 by recipient sector
| |
INDIVIDUAL DONATIONS
(% TOTAL VALUE) |
INDIVIDUAL VOLUNTEERING
(% OF TOTAL HOURS) |
BUSINESS GIVING
(% TOTAL) |
| Arts or cultural associations |
2.3 |
3.4 |
9.3 |
| Community or welfare services |
12.8 |
28.2 |
30.5 |
| Education |
6.6 |
12.2 |
5.0 |
| Environmental or animal welfare groups |
4.8 |
2.6 |
0.9 |
| Health (including medical research) |
14.2 |
10.3 |
18.5 |
| Sporting and recreational groups |
3.7 |
19.7 |
17.7 |
| Religious institutions |
36.1 |
15.0 |
n/a |
| International aid |
13.3 |
1.4 |
n/a |
| Other nonprofit sectors |
6.2 |
7.2 |
18.1 |
| Total |
100 |
100 |
100 |
| Total Value |
$5.7 billion |
836 billion hours |
$3.2 billion |
Table 7 below sets out these comparisons over time, for available years, of giving to selected fields of nonprofit organisational activity. While in some fields the total number of dollars donated or hours volunteered has increased, often spectacularly, in a few it has declined. In considering these trends it is important to recall that in adjusted dollar values and in hours volunteered, there have been significant increases over the period since previous surveys.
Since 1997, donations by individuals have increased 88% or 58% in current dollar values and since 2000, hours volunteered increased by 16%. Although direct comparison of the two business surveys for 2000-01 and 2003-04 must be heavily qualified, it seems that such giving has about doubled in nominal terms.
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Table 7: Comparisons of giving and volunteering over time by recipient sector
| FIELD |
%TOTAL INDIVIDUAL
DONATION |
%TOTAL HOURS
VOLUNTEERED |
%TOTAL IBUSINESS
GIVING |
| |
1997 |
2004 |
2000 |
2004 |
2000-01 |
2003-04 |
| Arts or cultural associations |
0.7 |
2.3 |
4.8 |
3.4 |
4.8 |
9.3 |
| Community or welfare services |
15.8 |
12.8 |
26.0 |
28.2 |
23.4 |
30.5 |
| Education |
15.1 |
6.6 |
14.3 |
12.1 |
8.6 |
5.0 |
| Environmental or animal welfare |
2.2 |
4.8 |
1.3 |
2.6 |
2.3 |
0.9 |
| Health (including medical research) |
11.9 |
14.2 |
5.3 |
10.3 |
9.6 |
18.5 |
| Sporting and recreational groups |
8.1 |
3.7 |
21.2 |
19.7 |
43.4 |
17.7 |
| Religious institutions |
34.1 |
36.1 |
16.8 |
15.0 |
n/a |
n/a |
| International aid |
10.3 |
13.3 |
n/a |
1.4 |
n/a |
n/a |
| Other |
1.8 |
6.2. |
10.3 |
7.3 |
7.8 |
18.1 |
| Total ($ & hrs) |
$$3018 mil |
$5687 mi |
702 mil hrs |
836 mil hrs |
$1446 mil |
$3251 mil |
The following notes summarise some of the trends in relation to the proportions of total giving to nonprofit fields from three main sources (individual donations, volunteering and business giving). While many proportions have changed, it is relevant to note that overall from all sources giving has grown. Some observations based on these figures include:
- Arts and cultural associations have enjoyed marked increases in the proportion of the total value of donations from individuals and business giving – although this comes from a low initial base and should be treated with some caution, the trend is clear. By contrast, the proportion of total hours volunteered to this field has declined, going against a general rising trend.
- Community and welfare services now receive a smaller proportion overall of total individual donations, but have enjoyed a rise in the total proportion of hours volunteered. The proportion of total value of business giving has risen.
- Education nonprofit organisations have experienced a comparative fall in the proportion of donations from individuals, total volunteering hours and of business giving.
- Environment and animal welfare groups have benefited from marked increases in the proportion of total individual donations and volunteering, although from a small initial base leading to caution in assessing magnitude, the trend is clear. Similarly, business giving to this field has been and remains modest, so caution is needed, but the proportion of such total giving seems to have fallen.
- Health nonprofit organisations are experiencing substantial increases in the proportion of total giving from all sources.
- Sporting and recreation groups are receiving proportionately smaller totals of individual donations, of total volunteer hours and business giving.
Of course the amounts and rates of giving to nonprofit organisations, including over time, might ideally be assessed against indicators of the community needs, to enable judgements to be made about whether or not these are being met adequately by giving. Such an assessment is beyond the brief of this project.
4.1 Giving to nonprofit organisations by individuals and households
The tables below set out for organisations in each major field of nonprofit activity, the levels of support received from individuals, both through donations and then volunteering. These have been drawn from the Individual and Household Survey.
Table 8 presents data on donations to nonprofit fields including the percentage who are donating, the average donation per giver and the percentage of total donations to a given field.
More people support organisations providing community services than organisations in any other field, but the average size of each supporter’s donation is among the smallest, and so these organisations, the traditional “charities”, receive only one dollar out of every eight donated. Similarly, donations for medical research are common, three out of every five adult Australians give to these, but are of relatively small amounts on average. By contrast, international aid and development organisations receive slightly more overall, even though they are supported by only one-quarter of the population. The proportion of those donating to religious institutions is high and the total proportion of donations to these higher still.
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Table 8: Donations by recipient sector
| |
% DONATION |
% AVERAGE DONATION
PER GIVER ($) |
%TOTAL
DONATION |
| Arts or Cultural Associations |
4.8 |
220 |
2.3 |
| Australian Emergency Relief Services |
36.6 |
52 |
4.2 |
| Community or Welfare Services |
69.5 |
81 |
12.8 |
| Education |
18.6 |
156 |
6.6 |
| Environmental or Animal Welfare Groups |
24.7 |
87 |
4.8 |
International Aid and
Development Organisations |
25.6 |
234 |
13.3 |
| Medical Research |
57.9 |
77 |
10.2 |
| Health Services |
20.5 |
88 |
4.0 |
Interest Groups (professional and business assns,
unions, politicalparties, other advocacy groups) |
6.1 |
125 |
1.6 |
| Recreational or Hobby Groups |
3.9 |
75 |
0.7 |
| Religious or Spiritual Organisations |
30.2 |
529 |
36.1 |
| Sporting Clubs |
15.2 |
86 |
3.0 |
| Other |
0.5 |
355 |
0.4 |
Table 9 provides data on volunteering by nonprofit fields, including the proportion of those who volunteer, average hours volunteered and the total proportion of all volunteering hours given.
The picture for volunteering has some interesting differences. Organisations providing community and welfare services receive voluntary support from one-third of the adult population and they receive almost one-third of the total hours volunteered. Education (mainly schools and parent groups) are supported by 20% of the population and receive 12% of the hours volunteered. Sporting clubs are supported by 17% and receive around the same percentage of hours. Religious organisations receive a lower proportion of volunteer assistance than donations. Volunteers for arts and hobby groups seem to put in the most time volunteering – an expression of their commitment and their affiliation.
Table 9: Volunteering by recipient sector
| |
% VOLUNTEERING |
% AVERAGE HOURS
PER VOLUNTEERS |
%TOTAL HOURS
DONATION |
| Arts or Cultural Associations |
3.1 |
159 |
3.4 |
| Australian Emergency Relief Services |
4.8 |
119 |
4.0 |
| Community or Welfare Services |
33.9 |
119 |
28.2 |
| Education |
19.6 |
87 |
12.1 |
| Environmental or Animal Welfare Groups |
3.3 |
117 |
2.6 |
| Health Services |
8.5 |
126 |
6.9 |
| Interest Groups |
3.2 |
78 |
1.6 |
| International Aid And Development Organisations |
3.0 |
72 |
1.4 |
| Medical Research |
9.3 |
51 |
3.4 |
| Recreational or Hobby Groups |
3.0 |
162 |
3.1 |
| Religious or Spiritual Organisations |
15.6 |
136 |
15.0 |
| Sporting Clubs |
17.0 |
136 |
16.6 |
| Other |
0.4 |
143 |
1.6 |
An analysis was undertaken to explore the extent and strength of affiliation as a factor in giving to different fields of nonprofit activity. Table 10 below presents findings across a range of nonprofit fields and sets out the percentage of donors that have some form of affiliation (member, volunteer or user) with organisations in that field, along with the mean donation to those organisations by affiliated and non-affiliated donors and the percentage of donations made to organisations in that field that are contributed by affiliated donors. The fields where affiliated giving is greater than 60% are: arts, education, sport, recreation, interest groups, and religious organisations.
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Table 10: Affiliated giving by recipient sector
| |
NUMBER CASES |
% WITH FORM
OF AFFILIATION |
MEAN BY
NON-AFFILIATED
GIVERS($) |
MEAN BY
AFFILIATED
GIVERS($) |
%TOTAL DONATION
BY AFFILIATED
GIVERS |
| Arts or Cultural Associations |
103 |
64.1 |
87 |
140 |
73.1 |
Australian Emergency
Relief Services |
1,396 |
23.8 |
70 |
76 |
25.4 |
| Community or Welfare Services |
3,485 |
24.0 |
82 |
96 |
26.9 |
| Education |
631 |
73.1 |
54 |
131 |
87.0 |
Environmental or Animal
Welfare Groups |
895 |
15.1 |
64 |
143 |
29.0 |
| Health Services |
836 |
48.1 |
65 |
88 |
56.1 |
| Interest Groups |
174 |
56.6 |
87 |
110 |
62.0 |
International Aid and
Development Organisations |
1,038 |
18.5 |
252 |
360 |
26.9 |
| Medical Research |
2,629 |
30.4 |
77 |
94 |
34.3 |
| Recreational or Hobby Groups |
143 |
66.9 |
70 |
63 |
63.6 |
Religious or Spiritual
Organisations |
1,386 |
69.8 |
277 |
575 |
82.7 |
| Sporting Clubs |
556 |
53.8 |
42 |
77 |
68.3 |
| Other |
109 |
21.3 |
77 |
274 |
47.3 |
| Total |
13,381 |
34.1 |
114 |
214 |
49.2 |
4.2 Giving to nonprofit organisations by business
Table 11 presents data on business giving by nonprofit recipient sector. This is drawn from the Survey of Business.
Of all businesses giving during the 2003-04 year, 280,600 businesses, or 53%, gave to community service and welfare nonprofit organisations. Most of these gave in donations. A total of 127,800 businesses gave to health, and 147,800 gave to sports and recreation. The latter included 49,300 organisations that gave in sponsorships. Only 3,200 businesses gave to environment organisations.
Table 11: Business giving by recipient sector
| |
TYPE OF GIVING |
| |
DONATIONS |
COMMUNITY
PROJECTS |
SPONSORSHIP |
TOTAL |
| Arts and Culture |
43,000 |
1,000 |
8,700 |
51,100 |
| Health |
125,800 |
9,200 |
18,300 |
127,800 |
| Community Service and Welfare |
266,600 |
43,400 |
31,700 |
280,600 |
| Sports and Recreation |
90,400 |
32,200 |
49,300 |
147,800 |
| An Individual Sports Person |
- |
- |
1,500 |
1,500 |
| Environment |
2,900 |
500 |
300 |
3,200 |
| Education and Training |
44,900 |
2,300 |
16,500 |
61,700 |
| Total (inc. others, not stated) |
451,600 |
148,700 |
156,700 |
525,900 |
Note: This is the total number of businesses that gave. As some businesses gave more than once, the total is lower than the number of instances of giving reported in the table.
Table 12 presents data on the value of business giving, in various forms, to a range of nonprofit fields of activity. 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. It should be noted that many businesses did not state the beneficiaries of their giving.
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Table 12: Value of business giving by recipient sector
| |
TYPE OF GIVING |
| |
DONATIONS
$' 000 |
COMMUNITY
PROJECTS
$' 000 |
SPONSORSHIP
$' 000 |
TOTAL
$' 000 |
| Arts and Culture |
219,895 |
6,773 |
76,849 |
303,517 |
| Health |
369,360 |
109,255 |
122,295 |
600,910 |
| Community Service and Welfare |
773,970 |
119,101 |
97,110 |
990,181 |
| Sports and Recreation |
154,488 |
48,695 |
354,371 |
557,554 |
| An Individual Sports Person |
– |
– |
18,634 |
18,634 |
| Environment |
16,513 |
8,753 |
4,914 |
30,180 |
| Education and Training |
106,892 |
22,263 |
34,356 |
163,511 |
| Other/Not stated |
260,043 |
225,141 |
102,036 |
587,220 |
| Total |
1,901,161 |
539,979 |
810,566 |
3,251,706 |
Note: The above dollar amounts for individual activities of benefit may be understated because some businesses did not state an activity of benefit for their giving.
Table 13 presents data on the amounts given by businesses across different industries for field of nonprofit activity. 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. Businesses in the Property/Business Services industry gave most of all to recreation and arts and culture nonprofit organisations.
Table 13: Business giving by industry by recipient sector
| |
ARTS &
CULTURE
$' 000 |
HEALTH
$' 000 |
COMMUNITY
SERVICE &
WELFARE
$' 000 |
SPORT &
RECREATION
$' 000 |
INDIVIDUAL
SPORTS
PERSON
$' 000 |
ENVIRONMENT
$' 000 |
EDUCATION &
TRAINING
$' 000 |
TOTAL
$' 000 |
| Mining |
296 |
1,094 |
1,120 |
3,128 |
0 |
89 |
952 |
9,743 |
| Manufacturing |
20,082 |
21,679 |
65,116 |
73,572 |
3,317 |
7,469 |
24,654 |
247,925 |
| Electricity,Gas, Water |
54 |
146 |
451 |
145 |
15 |
119 |
68 |
1,043 |
| Construction |
7,186 |
48,673 |
295,084 |
58,544 |
673 |
1,192 |
61,616 |
528,706 |
| Wholesale Trade |
2,010 |
17,875 |
32,371 |
88,988 |
5,005 |
821 |
7,709 |
159,316 |
| Retail Trade |
4,748 |
166,479 |
196,275 |
56,303 |
2,681 |
3,002 |
5,516 |
505,385 |
Accommodation,
Cafes,Restaurants |
4,238 |
5,025 |
26,052 |
21,477 |
209 |
547 |
919 |
136,492 |
Transport,
Storage |
12,964 |
42,913 |
59,780 |
75,560 |
3,730 |
446 |
13,689 |
223,137 |
Communication
Services |
777 |
3,996 |
3,371 |
9,722 |
0 |
372 |
1,048 |
26,068 |
Finance,
Insurance |
9,950 |
36,452 |
45,135 |
32,716 |
134 |
950 |
6,447 |
251,585 |
Property,
Business
Services |
189,397 |
99,158 |
118,778 |
84,646 |
418 |
1,607 |
22,012 |
667,536 |
| Education |
268 |
256 |
2,095 |
2,153 |
5 |
49 |
588 |
9,873 |
Health,
Community
Services |
624 |
119,458 |
29,120 |
3,200 |
240 |
11,750 |
6,464 |
192,555 |
Cultural,
Recreational
Services |
48,942 |
28,847 |
34,830 |
39,902 |
2,161 |
1,630 |
11,522 |
178,893 |
Personal/
Other Services |
1,978 |
10,856 |
80,604 |
7,499 |
46 |
136 |
308 |
113,449 |
| Total |
303,517 |
600,910 |
990,181 |
557,554 |
18,634 |
30,180 |
163,511 |
3,251,706 |