34 COMMUNITY | LEGAL SECTOR SUSTAINABILITY INSIGHT 2018 CHARITABLE GIVING 0 5 10 15 20 25 30 Corporate donations Staff giving Matched giving Foundations Appeals and collection drives Inkind support Not-for-profit organisations and charities provide a range of critical services in Australia and play an invaluable role in responding to community needs, building social capital and bolstering our resilience. They also generate almost four percent of Australia’s GDP or around $55 billion and facilitate the contribution of over 600 million hours of volunteer work - equivalent to 320,000 full-time jobs. Australian businesses facilitate two streams of philanthropy; charitable giving and workplace giving, or in many cases a combination of both. Corporate Giving In 2015/16 large businesses of over 200 employees gave $9 billion through donations of money, goods and services ($2.5 million on average). These financial contributions went to fund education and research ($3 billion), health ($1 billion) and social services ($990 million). Businesses see this giving as being strategic and a source of competitive advantage by boosting employee engagement, social licence, and stakeholder engagement (2016 Giving Australia Report). Corporate community partnerships are becoming more sophisticated and widespread as the size and importance of firms’ giving programs grows. Law firms continue to package their legal pro bono, non-legal volunteering and financial support into structured and longer-term partnerships that deliver on their community and social development objectives. In 2016 these community partnerships accounted for sixty-nine percent of the total value of large business giving in large Australian businesses. Workplace Giving Workplace giving includes a wide range of activities including volunteering, general fundraising as well as payroll giving. The 2016 Giving Australia Report showed: • eighty-five percent of reporting businesses facilitated payroll giving, • fifty-six percent provided donations matching programs, and • forty-six percent had a formal workplace volunteering program. Payroll giving allows employees to make regular donations from their pre-tax pay and receive the tax benefit straight away. It has become an important component of giving within large business. Since 2002, payroll giving has raised more than a quarter of a billion dollars in new funding for charities. ATO data from FY17 shows 173,500 working Australians donated $36m to charities through employee payroll giving which was then multiplied by employer contributions. Payroll giving is a highly efficient way for employees to donate to charity delivering a reliable, untied and recurring revenue stream for charities without the high fundraising costs which can be up to 30-40% of funds raised. Contributions from payroll giving are also doubly valuable to the chosen charity as they are usually matched by employers providing higher and more consistent funding. The 2016 Giving Australia Report and the 2018 Workplace Giving Australia JB HiFi Case Study described a series of drivers for supporting giving and volunteering: • seeking to do good by making a positive contribution to the community • generating social impact • employee expectations • a business desire to attract and retain the best people (employee engagement) • a strategy for the community to allow the business to operate and implement its plans. FORMAL PROGRAM INITIATIVES 93% 4% 3% Yes No Not Reported Number of firms