Australia's Charitable Future At Risk? Cost-of-Living Crisis Strains Charitable Giving

A recent report has revealed that a staggering AU$13 billion was given in 2023 to charities by 80% of Australia's population.

However, baby boomers and silent generations, who accounted for the majority of the donors, were aging or passing away, which in turn was triggering a behavior among charities to hunt for younger donors to ensure continued impact, McCrindle research highlighted.

The cost-of-living crisis makes it harder to get younger donors involved. But if they do not manage to step up, those who need help the most will be left behind.

McCrindle's report revealed that 45% of survey participants stated that cost-of-living and housing pressures had hindered their ability to give.

Dan Wilson, director of fundraising consultancy The Data Collective, said older donors gave generously, as people older than 55 tended to have a cleaner financial slate.

"It doesn't matter what type of giving, the older the donor, the better the giving behavior," he said. "For people who are over 55, they've paid off their mortgage, their kids are looking at moving out of home, they're well established financially — that's why we tend to see those older donors be more generous or more likely to give. Typically, your nan would be a great donor," per ABC.

Katherine Raskob, CEO of Fundraising Institute Australia, however, said younger donors can't be ignored.

"Charities have to make investments in future revenue," said Raskob. "They have to engage younger donors in their causes, even though they know that the revenue is not going to come soon.

"And all the while, they've got to keep engaging their traditional older donors, because that's where the revenue is now. Younger donors really are cause-aligned, much more so than Baby Boomers," Raskob said. "They are very interested in world affairs and aligning their activities with their values.

"They are a bit more sceptical; they want to make sure that they're making a really big impact with their dollar."

A report from fundraising consultancy More Strategic said that younger donors actively volunteer in fundraising events.

"People choose to volunteer because it means something very special to them personally. It's not about just throwing money at a particular cause," said Alexandra Catling, a postdoctoral research fellow at the University of the Sunshine Coast.

Charities are also exploring newer methods to maintain the influx of funds such as digital fundraising strategies to convince Gen Z to come onboard.