Growing Philanthropy
John Howard’s least talked about success story has been the increase in businesses helping charities do their community service. Ten year ago, while talking to the PM about my experiences in seeking to get businesses to financially support charities, John Howard told me he believed that corporations should be doing more to fund the programs that charities and government alone could not fund. He told me he wanted to increase corporate philanthropy as it is in America. I told him of my doubts and indicated how hard I had found it going getting many corporations to support Wesley Mission Sydney.
Not long afterwards he set up a Board to change the attitudes among Australia’s business leaders and he invited me to become a Board member. I have served ever since and this week received an invitation to continue. The Prime Minister chairs our meetings usually in the Parliament House Canberra Cabinet Room and all of our public functions around Australia. This Prime Minister’s Community Business Partnership examined all of the problems facing businesses, identified changes that would have to be made to the Tax Act, and established the Prime Minister’s Awards for corporations of various sizes that support community activities. Hundreds of millions of dollars have since been given by corporations to communities across Australia.
Corporate donations are now tax deductible to registered charities that are involved in providing benevolent support to individuals and communities. But we recognised that that old criteria was too narrow, and encouraged corporations to allow staff to volunteer their services, for companies to match staff and client donations and for gifts to be given in kind.
So we also became involved in developing Prescribed Private Funds where a donor could make tax-deductible capital donations to registered causes, where the majority of the money must be given away, and where accumulation of funds is not allowed, as the whole aim is to get money into communities. As a result I have learned this week that over $11 billion has now been given by companies and over 450 Prescribed Private Funds have been established with about $600 million set aside for charitable giving. These Private Funds for charities now give as much annually as the traditional Philanthropic Trusts.
Today it is not only Americans like Bill Gates, Ted Turner and Warren Buffett who are giving generously to community activities, the arts, medical research, education and health issues, but leading Australian business men also. Geoff Dixon CEO of Qantas recently announced his windfall on the successful part take-over of Qantas (reported to be $60 million) will be given to charity and one of Australia’s most successful advertising company owners, Harold Mitchell, announced the proceeds of the sale of part of his business ($100 million) would be donated back to the community.
Of course some people will say these people are not going to miss this money, and others will criticize them for getting it anyhow, but the fact is that the strategy of the Prime Minister in changing the tax laws, and of leading by example and encouragement has changed the attitudes of Australian companies and successful businessmen towards helping those people and organizations that are helping others. To have all that happen in just ten years is amazing and it is a story worth telling.
REV HON DR GORDON MOYES AC MLC