Greater Giving - Tax time prompts to increase charitable donations

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The Albanese Government has set a goal of doubling charitable giving by 2030. This represents a once-in-a-generation opportunity to stimulate increased levels of giving in the community.

In this report, commissioned by Philanthropy Australia, we explore the economic potential of government, through the Australian Taxation Office (ATO), prompting taxpayers to consider donating to charity as part of the annual income tax return process. The report looks at three prompts – or interventions – that could be effective ways to encourage people to donate to charity.

The interventions have significant potential as they:

• Can help to overcome barriers to giving.
• Are informed by behavioural economics.
• Could substantially lift giving.
• Would deliver considerable community benefit.

Impact Economics and Policy estimates that by 2030, the interventions could yield between $300 million and $5.7 billion a year in additional donations for charity.

The report also considers some of the practical issues involved in designing tax time prompts.