After Switzerland and Ukraine, we’re off to Australia and New Zealand with John Godfrey, fundraising expert for the Asia-Pacific region and founder of John Godfrey & Associates.
Australia and New Zealand are two sports mad countries with their own unique wildlife (think kangaroos, platypus and kiwis), at the bottom of the world. Or the top as we sometimes like to think! But what are we like in terms of philanthropy and fundraising?
Giving trends
Both countries rank consistently high in the Charities Aid Foundation (CAF) World Giving Index rankings. In the 10th anniversary edition of the Index, we were noted as the most consistent of all countries ranked for their generosity. In the two most recent publications, as in many years, we rank in the top 10.
New Zealand has been cited (quoting national giving as 0.79 percent of GDP) as an exemplar that the UK should follow. A recent report suggested that if the UK should follow New Zealand “it would mean an extra £5.2 billion a year.”
There is significantly more wealth in Australia. Australian media regularly celebrates gifts such as a recent $250 million (Euros 150m) for a global pandemic therapeutics centre in Melbourne. Gifts over a billion dollars are not unusual. There are three Australian signatories to the Giving Pledge, New Zealand has none. The largest recent gift in New Zealand was $50 million (Euros 30m) towards a children’s hospital.
Cultural and legal aspects
The two countries are not homogenous. There are some significant cultural differences, though these are not necessarily apparent to visitors. We share a common heritage of colonial settlement. As a result, our legal systems and laws around charitable giving are consistent with the UK, Canada and the USA. The famous 1603 charitable statute remains the basis for determining the charitable causes that benefit from tax incentives.
There are variations, but broadly nonprofits whose purposes relate to education, health, public welfare, culture, sports, animal welfare and the environment are eligible for tax exemptions. Resident tax-paying individuals and businesses in both countries can claim rebates against income tax for in-country gifts to registered charitable nonprofits.
Transnational giving
Sadly, however, generous as Australians and New Zealanders are within their national borders, cross-border philanthropic giving is low. In absolute cross-border giving, Australia stands at 8th among High Income Countries, giving USD $712 million to international causes. New Zealand is 21st, giving USD $79 million. In terms of GDP, Australia is 11th (alongside Belgium, Sweden and Hungary) giving around 5% of its GDP internationally. New Zealand stands at 12th (alongside Austria, France, Ireland, Italy and South Korea) giving around 4% (source).
Restrictions on tax incentives for giving overseas are the probable reason. In Australia, tax deductions can only be made to charities whose expenditure and purpose relate principally to Australia. Exceptions are made by the government for organizations operating outside of Australia but are rare. The New Zealand government position is almost identical.
Conclusion
In summary, Australia and New Zealand are both generous nations, consistently ranking high by international standards. However, cross-border philanthropic giving is restricted by each country’s regulatory and tax codes.
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