b'COMMUNITY| LEGAL SECTOR| 2020SUSTAINABILITY INSIGHTCHARITABLE GIVINGCharities generate almost four percent of Australias GDP or around $55 billion and facilitate the contribution of over 600 million hours of volunteer work - equivalent to 320,000 full-time jobs. The demand for critical services provided by not-for-profit organisations and charities is significant and growing. As economies are placed under increasing strain, charities will play an ever more critical role in responding to community needs and building social capital and resilience. This period saw two crisis that will significantly increase the strain on the Australian charity sector over the short, medium and long term.The bushfire crisis affected hundreds of thousands of Australians who lost homes, livelihoods, and businesses and suffered both physical and mental health issues.The immediate response from individuals and business (which occurred in a time of relative economic security and stability) was swift, with over $530 million donated to various charities by the end of January 2020.However, the rebuilding process is ongoing and will take significant resources and effort over a number of years. As the country was reeling from the impact of the fires, the COVID pandemic hit. Associated with this many charities have begun to report a significant reduction in revenue whilst their demand is rising. The types of fundraisers that often form large portions of charitable income, including events, collection drives, commerce, and workplace giving have all been restricted by COVID and may be for some time.In parallel, lower levels of security, higher unemployment and lower business profitability are also likely to adversely impact on donations from the community and business.The longer outlook for the charitable sector is concerning. In response to changing demand for services and revenue opportunities charities have been responding in various ways.Philanthropy Australia surveyed 101 grant-makers about the impacts of COVID on their plans and experiences. It found that eighty-eight percent of respondents had considered how they will support their partners with seventy-two percent increasing flexibility, forty-eight percent untying restricted funding, forty-two percent increasing financial grant support and thirty two percent establishing dedicated COVID-19 grant programs.Australian businesses facilitate two streams of philanthropy: charitable giving and workplace giving, or in many cases a combination of both. Corporate Giving The 2016 Giving Australia Report. Found large businesses of over 200 employees gave $9 billion through donations of money, goods and services ($2.5 million on average). These financial contributions went to fund education and research ($3 billion), health ($1 billion) and social services ($990 million). Businesses see this giving as being strategic and a source of competitive advantage by boosting employee engagement, social licence, and stakeholder engagement.Corporate community partnerships are becoming more sophisticated and widespread as the size and importance of firms giving programs grow. Law firms continue to package their legal pro bono, non-legal volunteering and financial support into structured and longer-term partnerships that deliver on their community and social development objectives. In 2016 these community partnerships accounted for sixty-nine percent of the total value of business giving across larger Australian businesses. Workplace GivingWorkplace giving includes a wide range of activities including volunteering and general fundraising as well as payroll giving. The 2016 Giving Australia Report showed that eighty-five percent of reporting businesses facilitated payroll giving, fifty-six percent provided donation matching programs, and forty-six percent had a formal workplace volunteering program. Payroll giving allows employees to make regular donations from their pre-tax pay and receive the tax benefit straight away. It has become an important component of giving within large business. Since 2002, payroll giving has raised more than a quarter of a billion dollars in new funding for charities and ATO data from FY17 shows 173,500 FORMAL PROGRAM INITIATIVESParticipation inexternal eventsCharitableFoundationMatched givingWorkplace givingprogramsInternal appeals& collectionsCorporate donations0% 20% 40% 60% 80% 100%Number of firmsYes 94% No 6% Average number of initiatives per firm: 444'