Research from The Australian Charities Fund shows that over 75% of people who join workplace giving programs increase the total amount they donate to charity, and nearly 30% are thinking about further increasing the amount they give.
It is estimated that $20 million is contributed to charity each year through workplace giving programs. More than $50 million has been donated to community organisations through programs facilitated by ACF since it was established in 2003.
However, prior to this research the net benefits of workplace giving were unknown. There was some concern that the employee donations were ‘taking from Peter to pay Paul’, with those giving through payroll deductions reducing their donations outside the workplace. For the first time this study shows that is not the case – indeed the reverse is true.
ACF marketing and research project manager Mei-Ling Ho said “prior to our research we had more questions than answers. The big question everyone kept asking us was does workplace giving increase the size of the fundraising pie. While we believed it did, we didn’t have the hard evidence to back it up. Now we can tell people with confidence, yes - it does.”
“Just as importantly, by listening to employees, senior leaders and charities about what matters most and why, we’ve gained the insights we need to take workplace giving to the next level in Australia” she said.
Toby Hall, CEO of Mission Australia said “This is exciting news. From an efficiency perspective we’ve always known how important workplace giving is to non-profits. Workplace giving has created an annual income stream of several hundred thousand dollars for Mission Australia. As a low cost form of fundraising this has allowed us to put nearly every cent into programs to help the most disadvantaged in Australia. This consistent donation stream allows us to plan for the long term, which is invaluable. But now we know it’s unleashing an untapped stream of income, which is incredibly welcome news for the non-profit sector. This tells me we need to increase our level of focus on workplace giving and really get behind this as a fundraising stream. It is a true example of one Australian giving another a go.”
Professor Peter Shergold believes workplace giving’s potential will be realised only if all sectors collaborate to drastically build awareness and uptake. He believes that governments can play an active role in helping to incentivise employers to implement programs, and to encourage employees to participate.
“Internationally, we have seen Government initiatives help increase the penetration of workplace giving programs. We would love to see some of these initiatives implemented in Australia, with governments actively promoting a giving culture.”
The study also showed that for 60% of employees, employer matching of their donations is the primary motivation for giving through the workplace, making the program more compelling, and reinforcing the organisation’s commitment to supporting the community.
For Mallesons Chief Executive Partner, Robert Milliner, providing opportunities for face-to-face contact with charity partners and communicating real stories and personal experiences is a great way to do this. “We know workplace giving is as beneficial for the employer and employees as it is for the charities. Employers with programs need to communicate these benefits to organisations which do not have workplace giving programs, and encourage them to get on board so we can really increase the community impact through this form of giving.”
“The results of this research give us invaluable insight. Gaining a deeper understanding of what motivates our employees to participate in workplace giving is important. We look forward to harnessing this research to strengthen the impact of this important community programme,” Stephen Fitzgerald, Goldman Sachs JBWere Co-CEO said.
Initiated and led by The ACF and supported by ANZ, Bain & Company, the Centre for Social Impact, Goldman Sachs JBWere, Mallesons Stephen Jaques and Buyology Lab, the study is the first of its kind in Australia.
View the full 'Cutting to the Heart of Workplace Giving' report.
View our first research report 'The Giving Business'.
