The wealthy really do give more to charity in dollar terms, but when it comes to proportion of incomes, it’s some of the poorer families who give most.
Here’s Alan Oster, NAB Chief Economist, commenting on the NAB Charitable Giving Index:
“We are giving more to charity in spite of below trend economic growth, rising joblessness and elevated anxiety around the cost of living. Indeed, charitable giving grew by more than 8% in the year to February 2014, a substantial improvement on the 3.3% rate of growth seen in the previous year. Overall, charitable giving has grown by almost 19% since December 2010.”
The highest average was in Mosman, New South Wales, at $204 per person, or around three times the national average. Average taxable income for Mosman was $145,900, or three times the national average income (about $53,000).
Average spending across the top 20 Australian postcodes was $175 per person.
Here they are:
According to Australian Taxation Office data, average taxable income in the top 20 postcodes was around $107,000 in 2010/11, about twice the Australian average.
Donors from higher income postcodes typically donate the most in dollar terms but do not donate the most relative to their incomes.
Maleny in Queensland, Weston in the ACT and Ainslie in the ACT lead the way for generosity, donating 0.27% of their annual incomes to charity.
The gulf is even more apparent when comparing the most generous postcodes for giving by income against the most generous in dollar terms.
Residents in Maleny earned on average $38,800, or just over one-quarter of that earned by residents in Mosman, yet they donated nearly twice as much of their annual incomes to charity.
Here’s the most generous suburbs by percentage of income:
In terms of average dollar giving by state or territory, the ACT was most generous with an average annual donation of $121 per person in the year to February or around $55 higher than the national average.
Average dollar giving was lowest in TAS ($52).
“We suspect this may have partly reflected the under-performance of the state economy, with much higher rates of unemployment and relatively subdued income growth,” the NAB says.
The ACT was also the standout for charitable giving on an income basis. On average, residents living in the ACT donated 0.20% of their annual incomes to charity, significantly above the national average of 0.13%.
Donations from Queensland and Victoria were also slightly ahead of the national average.