Collective Giving and its role in Australian Philanthropy James Boyd and Lee Partridge A Report Commissioned by the Prime Minister’s Community Business Partnership July 2017

Introduction Research project commissioned in June 2016 by the Department of Social Services to assist the work of the Prime Minister’s Community Business Partnership. The Prime Minister’s Community Business Partnership brings together leaders from the business and community sectors to promote philanthropic giving and investment in Australia. The Partnership is chaired by the Prime Minister, with the Minister for Social Services as Deputy Chair.

Definition Donors pool their resources Collectively decide how and where to distribute funds Educational and/or community building element Donor-initiated Giving group in place of giving circle

Impact100 Pensacola

Impact100 Pensacola

Members influenced to… give more give more strategically give more broadly, particularly to women and ethnic and minority groups be highly engaged in the community be more knowledgeable about philanthropy, non-profits, and the community

Methods & research questions What are the characteristics of existing giving groups in Australia? How do giving groups differ, compare and relate to other forms of philanthropy in Australia? What are the lessons learnt from establishing giving groups in Australia? What might be the future of giving groups in Australia?

Stakeholders Groups Founders of giving groups (17) Members of giving groups (donors) (237) Host organisations/community foundations (7) Charities that received funding from giving groups (24)

Characteristics Volunteer-based Mission to grow philanthropy “100%” funds raised distributed in grantmaking activities Larger groups typically provide tax-deductiblity to donors Smaller groups often forego tax-deductibility

Member demographics

54% 64% 80% 17% Member demographics Highly educated with post graduate qualifications Pre-tax household income > $125,000 Living comfortably on present income Getting by on current income 64% 80% 17%

Giving group relationships Business Giving Group Charity Donor Host organisation

Differences, comparison & relationships How do giving groups differ, compare and relate to other forms of philanthropy in Australia? Differences, comparison & relationships   Aims and mission Operational differences The impact of giving groups - The donor experiences - The charity experience

The impact of giving groups How do giving groups differ, compare and relate to other forms of philanthropy in Australia? The impact of giving groups The real benefit of a giving circle is the role it plays in raising awareness of the participants about their community or the issue area, the systemic issues and in supporting and enabling them to become much more thoughtful donors, much bigger donors personally and to engage with the issue in all sorts of ways. (Ruth Jones, former CEO SVP (USA))

Learning and awareness raising The impact of giving groups: The donor experience 67% developed a greater awareness of the needs of [their] community learnt more about evaluation and assessment of charitable programs or organisations developed or solidified a longer term commitment to giving and volunteering learned more about the charitable sector and how charitable organisations operate 74% 66% 65%

Philanthropic behavior: treasure The impact of giving groups: The donor experience 70% Increase in the amount of money they gave to charities Increased consideration of the effectiveness of the organisations they supported Unchanged number of organisations they gave to Increased number of organisations they gave to 59% 52% 37%

Philanthropic behaviour: time and talent The impact of giving groups: The donor experience 63% Unchanged amount of time volunteered each year Unchanged amount of probono support offered Unchanged involvement in fundraising efforts in support of charities Unchanged involvement in changing government policies 65% 70% 65%

The charity experience The impact of giving groups: The charity experience The grant-making process Unexpected benefits in the form of incidental capacity building A better experience - more engaged and supported - enhanced credibility - valuable networking - leveraging capacity of original contact

The charity experience: more engaged The impact of giving groups: The charity experience It felt like they really cared in what we were up to. That was really nice and I haven’t experienced that with any other funding body. I always thought it was a bit crazy that you can apply for these [other] grants and then win them and nobody’s ever seen your office, or what you’re actually up to, you know? (Charity representative)

The charity experience: enhanced credibility The impact of giving groups: The charity experience I think since winning Impact100 and then we had The Funding Network pitch shortly afterwards, there was momentum. It was almost like other organisations bought into us or felt they could support us because all the due diligence had been done. (Charity founder)

Lessons learnt Volunteer-nature Champion/enabler What are the lessons learn from establishing giving groups in Australia? Lessons learnt Volunteer-nature Champion/enabler Philanthropic literacy Charitable organisations and tax laws Closed-shop Capacity building of the sector Growth & sustainability

The future of giving groups What might be the future of giving groups in Australia? The future of giving groups Growth likely to be in-line with international trends, with the potential to have significant multiple impacts: Growing philanthropy Capacity building the community sector Dependent on: Growing community awareness Increasing diversity and geographical reach Overcoming hurdles

Social Innovation – Big Society “So no, we are not going to solve our problems with bigger government. We are going to solve our problems with a stronger society. Stronger families. Stronger communities. A stronger country. All by rebuilding responsibility” (David Cameron, 2009).