Christmas is around the corner and, for many of us, our thoughts turn to the giving side of our nature. Giving is a wonderful thing. To donate to a charity, or to volunteer one's time, is how many people choose to give back to their community.
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Australians hold an enviable record for giving. The 10th edition of the Charities Aid Foundation World Giving Index, which tabulated 10 years of giving trends for over 1.3 million people in more than 125 countries, found that Australia ranked fourth overall behind the United States, Myanmar, and New Zealand. Australia ranked eighth for donating money and 12th for volunteering.
Australia's business sector also made an impressive contribution in 2019. As businesses became more aware of the value of good corporate citizenship, the top 20 companies increased their philanthropy by almost 10 per cent, to more than $1 billion. Donations made by the top 50 businesses totalled $1.25 billion, as part of over $4 billion contributed by the sector. However, the business sector could be doing more - much more.
Until these figures are put into context, it is easy to be impressed by business sector largesse. In 2019, the top 10 companies donated just 0.37 per cent to 2.39 per cent of their pre-tax profits, which equates to $33 million from Westpac and $80 million from CSR respectively. Imagine what we could achieve as a nation if the business sector committed as little as 1 per cent of its annual pre-tax profits to charity each year? It is an elegant solution to an otherwise complex issue.
We could address homelessness, feed the hungry, and end child poverty almost immediately; to name just three persistent social challenges. The best way for a business to start the process is to think about partnering with a charity that benefits the local community. The Examiner's Winter Appeal and Christmas Appeal are excellent examples of a local business partnering with local charities and the community to benefit the disadvantaged. When a business partners with a charity it helps the less fortunate. However, a charitable partnership will accomplish much more than this. The not-for-profit sector fully understands there are practical reasons why businesses support charities. Many people favour more and more businesses that demonstrate good corporate citizenship. Depending on the charity partnership selected by the business, the resulting opportunities could translate to completing their triple bottom line of people, planet, and profit.
Another idea is to involve customers in the business' charitable initiative. Charities registered with the Australian Charities and Not for Profits Commission are obliged to spend donations on the cause stipulated by the donor. Therefore, instead of just donating, offer customers and staff a choice and donate to the charities that are important to them. This helps customers to shop their values by supporting stores that are aligned with causes close to their hearts; and in turn promotes brand loyalty.
As partnering with a charity in Australia becomes more the rule not the exception, the benefits to all concerned - charities, businesses, those in need, and the wider community - will become more apparent. Until then, it falls to the more civic-minded businesses to pave the way and to reap the benefits for their brands. An alliance between charities and businesses, when implemented well, will pay dividends, amplify brand awareness, and identify networking opportunities - all while supporting those in need.
- Lara Alexander is a CPA and the chief executive of the St Vincent de Paul Society Tasmania.
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