Wealthy Australians gave less to charity, due to the global financial crisis. Data from the Australian Tax Office (ATO) shows a “significant” decrease in charitable donations Australian millionaires.

The data shows a drop of 73 per cent on average “claimed deductions for charitable giving”. The average donations, from 63% of Australians with a taxable income of over $1 million, fell to $27,000 in financial year 2009-2010 from $102, 000 in the 2007-2008.

The significant slump had cause concern for charitable organisations, with applications for funding rising each year.

"While charitable giving has plummeted as even wealthy Australians are feeling the pinch, the need for charitable funding certainly hasn't. In fact, applications for funding from Perpetual's charitable trusts continue to rise each year," said Mr Andrew Thomas of General Manager of Perpetual, one of the largest managers of private charitable foundations in Australia.

"Given the broad range of charitable organisations doing important work in the wider community, which is feeling the brunt of the economic downturn, it's unfortunate that the downturn also caused high-income earners to become more nervous about sharing their wealth," he said.

Mr Thomas believes that Australians are generous overall. He attributed the drop in charitable donations to the lack of information on how to give more effectively. He urges donors "to focus on organisations that deliver real outcomes" and "have measurable impact."

"Donors should look at what their donation will achieve by addressing the root cause of a societal issue, rather than a band aid solution that will continue to need propping up," Mr Thomas said.

Mr Thomas added that contributions to the community don't have to be financial.

"The rallies and petition we've seen in the past week in support of the National Disability Insurance Scheme are a great example of how people can support efforts and encourage long-term and sustainable change," he said.

"There are also many other ways to support your preferred charity, such as volunteering or fundraising, and I encourage all Australians to get involved."