We've been writing about what's happening in major gift fundraising in FR&P and here on their website (subscription only, sorry)
Our website list of Australia’s $1m+ donors has grown to over 250 names: the list now includes 10 donors who have given more than $100m in donations, 57 who have given more than $10m, and a further 190 who have given $1m+, as well as a number of estates which are distributing $1m or more each year. You can find the list here on our website
Many of those donors will be among the 226,000 High Net Worth Individuals the 2015 Capgemini World Wealth Report estimates can be found in Australia.
Capgemini’s World Wealth Report for 2015 (figures for 2014) came out in June, showing continued but slower growth in the world’s population of wealthy individuals, and that for the first time the number of high net worth individuals in Asia has overtaken the number in the USA. Key growth countries are India and China. Australia showed some growth, with the total population of individuals meeting Capgemini’s criteria rising from 219,000 in 2013 to 226,000 in 2014.
The report defines a ‘High Net Worth Individual’ as someone who has US$1m or more in investable assets; figures exclude the individuals main residence but do not exclude superannuation.
The most interesting feature for our sector is the increasing attention the WWR has been giving to the question of social impact and philanthropy over the last few years. In this edition of the report, they highlight advice on social impact as one of the key things that investors, and especially younger investors, are looking for from their advisors. More on this topic here https://www.worldwealthreport.com/Social-Impact-for-Wealth-Managers
You can access and download the 2015 report here
The NAB's latest annual report on charitable giving says that
Giving to charity grew by just 2% over the year to February 2015, down from 10% at the same time last year. Growth slowed in most age groups (except 65+), in all regions and there was significant divergence in the rate of charitable giving growth across charity categories. The slowdown in giving mirrors some key findings from our Consumer Anxiety Reports which shows that Australians are responding to heightened stress by cutting back spending on “non essentials”, including charitable donations. Slower growth in charitable donations has also occurred against a backdrop of below trend economic growth and rising unemployment.
Despite these challenges, the average donation size for all charities increased by $2 over the past year to $336 per donor, with nearly all charity sectors experiencing an increase in average donation size.
You can read the rest of their summary here
And download the full report here
JBWere's latest report on Private Ancilliary Funds finds record distributions in 2014
Some key findings
· There are now 1,240 PAFs operating across Australia with a post GFC record number established in 2014.
· New South Wales saw its highest ever year of new PAFs and now has 42% of all PAFs.
· Family involvement and particularly the engagement of children is proving an important driver for the use of structured giving such as PAFs. This extends to all areas of their operations including distribution and investment decisions and it provides an ideal broad learning environment, often for both generations.
· Distributions from PAFs have grown to record levels reaching $251million in 2012 and estimated to exceed a cumulative $1.7billion in 2014. The strong and consistent growth in distributions has highlighted the value of having a dedicated philanthropic corpus through variable financial market conditions.
· PAFs continue to distribute around 9% of assets annually, well in excess of the minimum 5% required, with the average PAF distributing around $250,000 each year.
· Welfare still dominates as the most popular cause for distributions with a 28% share in 2012 and an estimated total to date of $500m since PAFs began. Health and research enjoyed good gains in 2012 while culture slipped although it still sees support from PAFs well above the proportion seen in broader giving measures.
· The overall PAF corpus jumped to $2.9billion in 2012 and with an increase in new PAFs established since, plus financial market gains, is estimated to be currently around $4billion.
JBWere have published their latest report on Australian Giving Trends, available from their website here
BRW has published its list of Australia's wealthiest women; since the demise of the print edition of BRW, access to the website is now free of charge and you can find the full list here
The list does not include women with inherited wealth, so for example Gina Rinehart doesn't feature. The BRW says women need to get better at asking for funding for business for more of us to become successful as entrepreneurs
The Australian profiles philanthropist Simon McKeon
"McKeon, who was named Australian of the Year in 2011 for his humanitarian efforts and philanthropy, believes the only way to find real joy and meaning in life is to give to others." Link to the article here
Major gifts at a tipping point?
There's no doubt that we've seen a real uplift in the size and frequency of serious large philanthropic donations over the past 18 months, with three record-breaking donations to Australian higher education since February this year. Some recent reports have pointed to increases in major giving, and various reports including the Cap Gemini World Wealth report are reflecting increasing wealth in Australia
We've updated our 'Top 200' list of known donations over $1m in Australia to reflect these recent gifts
JBWere's recent report on Australian giving trends points to a recovery in giving in 2011,
but a slowing in that recovery in 2012-13.
The report notes the number of publicly announced major gifts in 2013, and suggests 'this may represent the start of a cultural shift in the way wealthy Australians give.' Click to view it here Australian Giving Trends - Recovery Confirmed, Evolution Gains Pace
QUT have published their examination of tax-deductible donations for 2010-11, which shows an increase on previous years in the number of individuals claiming for tax deductions at the $25k+ level.
The full report is available here
World Wealth Report 2013
The World Wealth Report for 2013 from Cap Gemini and RBC Wealth Management shows Australia's population of HNWIs up to 207,000 in 2012.
More information, downloads, at the Capgemini website, with some new rather funky interactive maps if you want to look at growth in numbers in Australia, Asia or globally.
We try to keep up to date with news on developments in and reports on philanthropy in Australia and post it here: if you have something to share, please send it to us!