b'COMMUNITY| LEGAL SECTOR| 2021SUSTAINABILITY INSIGHTCHARITABLE GIVINGNot for profit organisations create almost four percent of Australias domestic product and facilitate contributions equivalent to 330,000 full time employees undertaking 600 million hours of community service. While some charities generate revenue though commercial type operations almost all are reliant on charitable giving for delivery of their programs. The demand for critical services provided by these not-for-profit organisations and charities is significant and growing. The bushfire crisis and the 2021 floods affected hundreds of thousands of Australians who lost homes, livelihoods, and businesses and suffered both physical and mental injury. Sector research from Our Community has shown that, as the pandemic continued, organisations providing family violence, homelessness, food relief and childcare services had been particularly hard hit by increased demand. As charities were stretched by responding to this high demand, the COVID pandemic surged making it even more difficult and costly for themto meet the existing demands and providing new needs for their services. During this time many charities began to report a significant reduction in revenue and had difficulty in planning and making future commitments. Following many years of steady growth, the levels of giving in Australia peaked after the bushfires in early 2020 and revenues dipped quickly following uncertainty and disruption caused after the emergence of COVID across the world. While COVID did stimulate some donations, it also prevented significant engagement and fundraising from occurring in many of the traditional areas. 2020 and 2021 have proven to be two of the most difficult years for Australias Not for Profit (NFP) sector.The devastating impact of years of drought, bushfires and Covid-19 have led to what has been referred to as a trilogy of terror threatening the Australian community sector, which is facing increased demand for services, a reduction in donations and a catastrophic collapse in volunteering.The early forecasts and data for levels of donations during COVID-19 were worrying with annual giving falling four percent to December 2020. Various categories of NFPs faired differently with the levels of giving to health and international aid improving while small reductions were experienced in environment/animals and religious causes. The largest falls were experienced in arts, education and social services. A 2021 report from JBWere indicates that the reductions experienced in in mass market donations have been offset by high net worth giving and corporate community investment which both grew strongly during 2020. The rebuilding process is ongoing and will take significant resources and effort from the Australian charity sector over many yearsThe types of fundraising activities that often form large portions of charitable income, including events, collection drives, commerce, and workplace giving have all been restricted by COVID and will 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 capacity and security of the charitable sector is concerning.In response to changing demand for services and revenue opportunities charities have been adjusting 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 reviewed how to better 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.FORMAL PROGRAM INITIATIVESCharitableFoundationParticipation inexternal eventsWorkplace givingprogramsMatched givingInternal appeals& collectionsCorporate donations0% 20% 40% 60% 80% 100%Number of firmsYes 92% No 8% Average number of initiatives per firm: 456'