Never mind tax time: it's the desire to help that drives Aussies to donate

Posted on 17 Jun 2025

By Greg Thom, journalist, Institute of Community Directors Australia

Charity donation

Donations to community organisations ahead of the end of the financial year have increased for the second year running, confirming June as the most active month for giving in Australia.

Analysis of activity on donation and fundraising platform GiveNow for early June 2025 revealed a rise of four to five per cent in the number of one-off donations compared to the same period last year.

The data point to recovering donor confidence following a sharp decline in 2022 and 2023.

The average June donation value has remained steady at $300 - – significantly higher than the annual average.

Over the past decade, more than one-third of all one-off donations made through GiveNow have occurred in June. Transaction numbers typically double during the final month of the financial year, in line with long-established donor habits.

GiveNow executive director Cathy Truong said the current trajectory of donations reflects strong public engagement.

“We’re seeing steady giving levels across most segments, with more donors returning in 2025,” she said.

Tax deductibility not the primary driver

Despite the timing, sector experts warn that the assumption that donors give in June purely to obtain a tax deduction is not true.

Equity Trustees’ latest research found that while 96 per cent of Australians donated to charity in the past year, only 20 per cent cited the tax benefit as a key motivator.

Respondents pointed instead to personal alignment with a cause, a desire to contribute to community outcomes, and trust in the organisation they had chosen to donate to as primary reasons for giving.

This aligns with findings from the Australian Giving Trends Report, which also notes that cause-driven giving outweighs financial incentives.

“There are many fabulous community organisations [without DGR status] who still deserve our financial support.”
GiveNow executive director Cathy Truong.

Equity Trustees national manager of active philanthropy, Denise Cheng, said that with every dollar donated to charity offsetting taxable income, an increasing number of taxpayers preferred to direct their money to charities of their choice.

“Tax deductions are an attractive benefit of donating to charity, but our research found that the main motivators for Australians to give to charity are around personal alignment to a cause, a desire to make a difference, and trust in the charity,” she said.

GiveNow executive director Cathy Truong.

Truong said that fundamentally, people gave because they cared about a cause and believed in the organisation’s purpose.

“They connect with what an organisation does and want to be a part of it.”

Recent Red Cross research indicated that six out of seven Australians donate to charities, but fewer than one in three report those donations to receive a tax deduction.

Australian Taxation Office (ATO) data reflects this finding, with many eligible donations – especially small ones – going unreported to the ATO.

While some donors are unaware of their eligibility for a tax break, others simply choose not to file claims — which suggests the donation itself remains the central act of value.

Non-DGR charities encouraged to participate

Truong said that with giving activity peaking in June, the GiveNow team urged even community organisations without Deductible Gift Recipient (DGR) status to engage in EOFY giving appeals.

“There are many fabulous community organisations [without DGR status] who still deserve our financial support”, said Truong.

“They should [conduct appeals] not by offering tax incentives, but by appealing directly to the reasons why their supporter base believes in them.”

Importantly, non-DGR groups need to be transparent about their tax status, yet be proactive in the June spike, making clear their impact and their urgent need for support at this time of year, she said.

Truong said one approach was to invite donors to give the “net equivalent” of a typical deductible donation.

For example, many donors give $100 and receive $30 back at tax time. A $70 donation without the deduction would cost the donor the same and help fund an organisation’s programs.

This reframing provides clarity and helps supporters make informed decisions without confusion or misrepresentation.

“The idea that you have to offer a tax deduction to be part of June fundraising is out of date,” said Truong.

“The cultural momentum of EOFY giving is something every community organisation can – and should – take part in. We encourage all GiveNow organisations on our platform to take advantage of the high donor engagement in June.”

More information

National campaign aims to inspire greater giving

Financially struggling Aussies still support giving

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