Workplace giving could help reach philanthropy goal

The rate of workplace giving is stagnating, but the government believes it can turn the situation around and help it become key to reaching national philanthropic giving targets. 

Workplace giving in Australia isn’t living up to its potential, but applied correctly, it could help get Australia to its charitable giving target by 2030, says Assistant Minister for Competition, Charities and Treasury, Andrew Leigh.

According to the ATO, 4.3 million people were employed at a workplace that had a workplace giving program in 2020-21. However, just 206,954 employees participated in those programs – a participation rate of just 4.7 per cent.

The average amount given per employee was $258, with employees of micro-employers giving the most at an average of $714 per employee.

In contrast, employees in the government sector gave the least per employee with an average of $169.

According to the ATO data, the percentage of employees participating in giving through work has barely budged over the past ten years, despite more employers taking part in the practice.

In the 2009-10 income year, the total employees employed by a company participating in workplace giving was 2.3 million, and the percentage of employees who participated in the programs was 4.3 per cent

In the 2015-16 income year, the workplace giving participation rate was 4.7 per cent.

And the number of employees participating in a workplace giving program fell from 2019-20 to 2020-21, from 211,316 to 206,954.

Harnessing the potential of workplace giving

Leigh believes that workplace giving has not lived up to its potential, and boosting the practice could help the government reach its goal of doubling philanthropy by 2030.

Leigh told Pro Bono News that it could form a key part of the measures to reach that goal.

“Workplace giving has great potential to be a major source of donations for Australia’s charities. Not only does it link employees with important causes, but it can spark that vital conversation about giving back to build a reconnected Australia,” he said.

See more: Is corporate volunteering the answer to our volunteering woes?

The issue was thrashed out at a recent roundtable with the Business Council of Australia, co-hosted by CEO of the council, Jennifer Westacott.

According to the assistant minister, ideas discussed included questions about the ideal number of charities to be supported through workplace giving, how management can foster the practice, how workplace giving ties in with corporate volunteering and how to make it easy for employees to sign up to giving programs.

“We’re greatly encouraged that the Business Council of Australia and other corporate leaders engaged on this issue. The sooner we can remove barriers to workplace giving, the better our whole community will be,” Leigh said.

“We’re encouraging Australians to start the conversation at their workplace and encouraging employers to embrace workplace giving.”

Westacott agreed that workplace giving is a “key channel” for companies to support not for profits.

“It’s something workers enjoy doing, it brings teams together and it helps support some incredible initiatives. We’re looking forward to working with government to make the process of workplace giving easier for employees and businesses,” she said.

“Australian businesses already give generously to causes across the spectrum but they’re always looking for ways to do more because it’s the right thing to do and it’s what our customers, suppliers and workers want.

“Following this roundtable we’re going to look at what best practice is for companies and explore the frictions in the system that make it harder to collect donations on behalf of employees who we know want to contribute. This work is critical to unlocking even more philanthropy.”