Making your giving count; when, how and why to donate.
How much should I give?
There is no set amount you need to give; philanthropy is a personal decision that depends on your financial situation, values, and long-term goals. Here are some factors to consider when determining how much to give:
Giving can mean more than money
- Anyone can donate to charity whenever they have spare cash or time to give away
- Volunteering your time and expertise is a great way to support charities
Start small and scale over time
- You don’t need to wait for a business sale or significant wealth event to begin giving
- Many donors start with a small percentage of their income and increase their contributions as their wealth grows
- You can also consider donating equity in your company to your foundation
Consider a percentage-based approach
- Some people commit to donating a fixed percentage of income each year.
- The Giving What We Can movement asks people to pledge 10% of income each year. Similarly, some religious traditions encourage people to tithe 10% of their income.
Give more as your wealth grows
- Many high-net-worth individuals allocate at least 10% of their wealth to philanthropy.
- Some philanthropists commit to even higher levels. The Giving Pledge encourage billionaires to give away the majority of their wealth.
A liquidity event is a great time to give big
- An exit, major secondaries, funding round, or IPO is the ideal time to think seriously about structuring your giving.
- Setting up a PAF allows you to take advantage of the tax deduction in a high tax year and to set aside funds for future philanthropy.
Expand your impact through your company
- You can have an impact through your company as well as personally
- Consider corporate initiatives like Pledge 1% where companies gift 1% of product, employee time, profits and equity to charity
There is no “right” amount to give. The most important thing is to start somewhere and build a giving strategy that works for you.
How can I give effectively?
Giving effectively doesn’t have to be complicated, but it will take a little time upfront. Here are some key steps to make the most of your philanthropy:
- Start small and build over time
Begin with what you can afford now, so you’re ready to scale up when you have more resources. - Choose a cause that matters to you
Invest time in learning about the issues and organisations making a difference. Consider joining organisations like the Australian Environmental Grantmakers Network (AEGN), Australians Investing in Women (AIIW) or Australian International Development Network (AIDN) to better educate yourself about the causes you are passionate about. You’ll meet lots of other like-minded people too. - Connect with charities
Research online, but don’t hesitate to reach out and have direct conversations with the organisations you’re considering supporting. - Stay flexible
Unlike government or large foundations, personal giving allows you to be nimble and respond quickly to where help is needed. Use this to your advantage. - Be realistic about impact measurement
While tracking outcomes is important, don’t overburden charities with excessive reporting, especially for smaller donations. A $5,000 gift can have a big impact, even if it doesn’t come with the same level of reporting as a $500,000 grant. - Look beyond the headlines
Don’t be discouraged by unhelpful media reports on charity administration costs. Most charities are very efficient, highly cost-conscious and need strong infrastructure to maximise their impact. - Collaborate
Learn from others who have experience in philanthropy and explore co-funding or collective giving opportunities for greater impact.
By following these steps, you can give in a way that is meaningful, effective, and sustainable.
How do I set a giving strategy?
A well-thought-out philanthropic giving strategy helps you maximise the impact of your donations while aligning with your personal values and financial goals. Here’s how to create one:
1. Define your philanthropic vision
– What issues or causes matter most to you?
– Do you want to focus on local issues, national causes, or have a global impact?
– Are you interested in short-term relief (e.g., crisis response) or long-term systemic change?
2. Choose your giving structure
– If you want to set up a foundation, identify which structure is best for you
3. Decide how much to give and when
– Set a giving budget based on your financial position. Here’s some tips on how much to give.
– Consider one-time or multi-year giving commitments
4. Research and select charities
– Identify organisations that align with your goals
– Consider engaging with charities directly to understand their needs and funding priorities
5. Measure impact and adjust over time
– Define the success metrics that matter to you. This could be as simple as the number of people helped or as detailed as long-term societal change.
– Stay flexible. Adjust your giving strategy as new opportunities arise.
6. Collaborate
– Join philanthropic networks like the Australian Environmental Grantmakers Network (AEGN), Australians Investing in Women (AIIW) or Australian International Development Network (AIDN) or collaborate with others to increase impact.
– StartGiving can help connect you to other philanthropists and charities
Need help?
If you’re ready to develop your philanthropic strategy but unsure where to start, get in touch.
What's the difference between personal and corporate philanthropy?
Both personal and corporate philanthropy aim to create positive social impact, but they differ in structure, motivations, and decision-making processes.
A personal foundation – you donate your personal cash and/or equity to set up your foundation. Talk to StartGiving for personalised support and guidance at no charge to you.
A corporate foundation – your company gives staff time, product, profit and equity for community benefit. See Pledge 1% to join the leading corporate philanthropy community.
Many founders choose to combine both approaches, starting with corporate giving and later establishing a personal philanthropic fund for lasting impact.
Your time, connection and skills are also valuable. Sharing these with good causes can be worth more than money.
See our founders guide to giving for more.
How do I do due diligence to understand if a charity is effective?
Measuring the impact of your donations helps ensure your giving is making a meaningful difference. While not all charitable work can be easily quantified, here are key ways to assess effectiveness:
1. Understand the charity’s goals
– Review the organisation’s mission and objectives to see what problem they aim to solve.
– Look for clear explanations of how donations contribute to their work.
2. Look at key impact metrics
– Outputs: What has been delivered? (e.g., number of meals provided, scholarships awarded, medical treatments given).
– Outcomes: What change has been achieved? (e.g., improved literacy rates, reduced homelessness, increased employment).
– Long-term impact: Has the program created sustainable change over time?
3. Check impact reports
– Many charities publish annual reports or case studies detailing how donations are used.
– Look for transparency and clear explanations of results.
4. Consider independent evaluations
– Third-party research or assessments can provide insights into a charity’s effectiveness.
– Resources like the ACNC Charity Register, Impact Investing Australia, and Effective Altruism Australia can help assess impact.
5. Engage with the charity
– Visit programs, speak with staff or beneficiaries, and learn more about their work.
– Direct engagement provides insights beyond financial reports and data.
6. Be realistic about measurement
– Some social change takes time, and not all impact can be measured in numbers.
– Avoid placing excessive reporting demands on charities that could divert resources from their core mission.
7. Learn from others
– Connect with other donors, philanthropic networks, or impact-focused groups to share insights.
– Seek expert advice to identify high impact giving opportunities.
By taking these steps, you can ensure your donations support effective, evidence-based solutions and contribute to lasting social change.
What is DGR status?
A deductible gift recipient (DGR) is a charity that can receive tax deductible gifts.
There are two main types of DGR endorsement:
- DGR Item 1 – known informally as a ‘doing’ DGR. Most charities endorsed as DGRs fall into this category. They will often be the charities that you already give to, who issue you with a receipt to claim a tax deduction. There are over 20,000 charities that have DGR1 status, including many that operate internationally.
- DGR Item 2 – known informally as a ‘giving’ DGR. This includes private and public ancillary funds. These organisations exist only for the purposes of providing donations to DGR1 charities.
DGR Item 2 organisations, such as PAFs and PuAFs, must only provide funds to DGR1s.
To check the DGR status of an organisation, you can check the Australian Business Register.
