A reimagined approach to philanthropy in Australia.

Over the next 10 years, we will see the largest intergenerational wealth transfer in Australia’s history. Meanwhile, the federal government has set an ambitious goal to double charitable giving by the end of the decade.

This goal – supported by three reviews into various parts of the for-purpose sector – represents a transformative opportunity for social change and for those working on the front line to solve some of our nation’s most intractable issues.

However, this inflection point comes with a healthy dose of contention.

Many Australians are grappling with a spiralling cost of living while wealth is concentrated to a few. A recent JBWere report, which revised the government’s original 2021 redistribution figures of $3.5 trillion, underscores the widening gap between the rich and the rest of society.

This reality feeds the perception that philanthropy is primarily a domain of the ultra-wealthy, influenced by high-profile contributions and media coverage of affluent philanthropists. Such views often overshadow these significant contributions, but more importantly, those of grassroots philanthropy and community-based giving, which are crucial for fostering a more cohesive and generous nation.

Philanthropy encompasses more than just large financial gifts; it includes the 6 million Australians who volunteered last year, small-scale donations and community-led fundraising that contribute to the $13 billion given annually to charity.

These efforts, though less visible, collectively make a substantial impact. This broader view of philanthropy is essential for ensuring that everyone feels empowered to contribute to meaningful change and social cohesion.

This week [5 - 7 August, 2024] in Adelaide, nearly 1000 purpose-driven leaders will gather for the sold-out biennial Philanthropy Australia conference to discuss these critical issues.

The conference will challenge participants to rethink philanthropy through diverse lenses – climate, gender, First Nations and more – thereby encouraging more inclusive and effective giving. Key questions will be posed: Who is being seen? Who is and isn’t “in the room”? These questions are vital for ensuring that philanthropic efforts are truly inclusive and equitable.

At Minderoo Foundation, we are focused on a partner-driven approach to philanthropy, backing those who are closest to the problems we seek to solve and empowering communities to drive lasting change.

By building an evidence base to support law and policy reforms, organisations like Minderoo, together with their partners, demonstrate what scale can look like in the social sector.

Philanthropy is often referred to as the R&D arm of government. Minderoo embraces our role as a partner, collaborator, supporter and funder, working together with government, business and non-profits to tackle pressing social challenges.

This partnership allows for experimentation with innovative solutions, piloting new programs and taking risks that government agencies might avoid due to bureaucratic constraints or political considerations. Together, these sectors can identify and replicate impactful initiatives, ensuring resources are used efficiently and effectively.

To fully realise the potential of philanthropy, we need a reimagined approach – one that is strategic, collaborative and committed to addressing the root causes of inequality.

This requires a stronger foundation for giving and a reshaped regulatory framework. The status review of the deductible gift recipient (DGR) in the Productivity Commission’s recent report into philanthropy is a crucial step forward in achieving this.

The existing rules, which limit DGR status to certain types of charities, need to be reformed to remove inequities and allow all registered charities to qualify. This would streamline operations, reduce administrative burdens and enhance the impact of charitable activities.

Extending DGR status to all registered charities would also boost giving rates, aligning Australia with the UK, the US and New Zealand, where giving as a percentage of GDP is higher. Such reforms are not just administrative adjustments, they are essential for creating an environment conducive to increased philanthropy and greater social impact.

As we look towards the future, the need for a fair and just society becomes evermore pressing.

Philanthropy, with its unique capacity for innovation and addressing complex challenges, stands at the forefront of this journey. Yet, to fully harness this potential, we must embrace collaboration, focus on systemic change and remain open to learning and adaptation.

By adopting a more strategic and unified approach, we can harness the collective power of giving to build a future where opportunity and fairness are universal.

This vision for a better Australia calls on all of us to take action, to contribute in whatever ways we can and to believe in the power of philanthropy as a force for good.