Social Impact Archives | The Giving Advisory

Effective Altruism: What It Means for Everyday Donors

Giving to charity is often driven by a desire to help others. But with thousands of organisations addressing different social and environmental challenges, deciding where to donate can be difficult. Effective altruism offers one approach to this decision. It encourages donors to use evidence and careful reasoning to understand how their contributions can create the greatest positive impact.

For everyday donors, effective altruism does not necessarily mean giving more. Instead, it can mean making more informed decisions about where and how to give.

What is effective altruism, and how does it influence charitable giving?

Effective altruism is a philosophy that focuses on using evidence and reasoning to determine how individuals can do the most good. In charitable giving, this means looking beyond the intention to help and considering the outcomes a donation can achieve.

Traditional giving may be influenced by personal experiences, proximity or emotional connections to a cause. These factors can be meaningful. However, an effective altruism approach also asks questions such as: What problem is the charity addressing? How effective is its approach? How much additional impact could another donation create?

This approach has contributed to a growing interest in evidence-based giving and evidence-based philanthropy. Donors can consider research, impact evaluations and other available evidence when assessing charities and their programs.

Effective altruism is therefore not simply about donating to the largest charity or the most popular cause. It is about considering the relationship between resources, interventions and outcomes. This can help donors think more strategically about effective charitable giving, while still allowing personal values to guide the causes they support.

How can everyday donors use effective altruism to make their donations more impactful?

Everyday donors can apply the principles of effective altruism without making philanthropy complicated. A useful starting point is to identify the causes that matter most to you and then consider how your donation could contribute to meaningful change.

One option is to research charities before donating. Look for information about their programs, objectives and results. Consider whether the organisation measures its outcomes and explains how it uses donations.

Donors can also consider cost-effectiveness. A relatively small donation may have a significant impact when directed towards an intervention that is well researched and efficient. This is one reason high-impact giving focuses on the outcomes achieved rather than simply the amount donated.

However, impact is not the only consideration. Donors may value local communities, environmental causes, medical research, education or other areas for personal reasons. Effective giving can work alongside these values. The goal is to make giving more informed and purposeful, rather than removing the personal element from philanthropy.

For donors with more substantial philanthropic resources, this approach can form part of a broader giving strategy. A philanthropic adviser can help individuals consider their objectives, values and desired social impact when developing a structured approach to giving. This may include direct donations, structured giving vehicles such as Public Giving Funds or Private Giving Funds, or other forms of strategic philanthropy.

How can donors evaluate charities and determine where their donations will have the greatest impact?

Evaluating a charity requires looking at more than its reputation. Donors should consider several factors when assessing potential organisations.

Start with the problem. Consider the scale of the issue and the people or communities affected. A significant problem may offer greater opportunities for meaningful intervention.

Examine the organisation’s approach. Look for evidence that the charity’s programs are addressing the problem effectively. Information about research, evaluations and measurable outcomes can help donors understand the potential charitable impact of their contribution.

Consider cost-effectiveness. Ask what additional impact could be achieved with another dollar. Two charities may work towards similar goals but achieve different outcomes with the resources available to them.

Look at transparency. Financial reporting, governance information and clear explanations of programs can help donors understand how an organisation operates and uses its resources.

Consider additional funding needs. A charity may have strong programs but limited opportunities to use additional donations effectively. Donors can ask whether further funding will enable the organisation to expand an effective program or address an unmet need.

These considerations can help donors make more informed choices. They also highlight why there is no single list of universally “best” charities. The right choice depends on the donor’s values, objectives and understanding of potential impact.

How The Giving Advisory Can Help

Effective altruism provides a useful framework for thinking about charitable giving. By combining personal values with evidence and careful consideration of outcomes, donors can take a more purposeful approach to philanthropy.

At The Giving Advisory, we understand that initiating and maintaining conversations about giving in the family can sometimes be challenging. Our services team is here to help guide your family through the process of family philanthropy, whether you’re starting a donor advised fund, planning your first charitable contribution, or seeking advice on how to align your giving with your family’s values.

If you want to learn more about how to engage your family in giving and create a lasting philanthropic legacy, contact us today. We’re here to help you reach your philanthropic goals and make a positive impact together.

This information is general advice only and does not take into account your objectives, financial situation and needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your needs, objectives and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice.

Brad Seeto

Workplace Giving Programs: How They Work in Australia

Workplace Giving Programs offer employees a simple way to support charities and make a difference through their workplace. They allow employees to make regular donations, often through payroll, while employers can create a culture of giving and support causes that align with their values.

For businesses looking to strengthen their social impact, workplace giving can be an effective part of a broader corporate philanthropy strategy. It can also provide employees with an accessible way to contribute to charitable causes.

But how do Workplace Giving Programs work in Australia? From payroll deductions to tax considerations, understanding the structure of workplace giving can help employers and employees make informed decisions.

What is a workplace giving program and how does it work in Australia?

A workplace giving program is an arrangement that allows employees to make regular donations to eligible charities through their employer. Employees can usually choose a charity from a list of participating organisations and nominate an amount to donate from each pay.

The employer then facilitates the donation. For example, an employee might choose to donate $20 from each fortnightly pay. The employer deducts the nominated amount and transfers it to the selected charity.

This makes charitable giving through work simple and consistent. Rather than making a separate donation each month, employees can build giving into their regular pay cycle.

Workplace giving programs can take different forms. Some focus on employee donations, while others include employer contributions or donation matching. Businesses may also combine workplace giving with volunteering, fundraising and other workplace charity initiatives.

A successful workplace giving program should be easy for employees to understand and participate in. Employers can work with charities or workplace giving providers to establish the program, communicate its purpose and manage donations.

Employers should also ensure that participating organisations remain eligible to receive tax-deductible donations. The Australian Taxation Office (ATO) states that workplace giving programs generally involve donations to organisations with Deductible Gift Recipient (DGR) status.

What are the tax benefits of workplace giving for employees and employers?

Tax is an important consideration when establishing workplace giving schemes.

For employees, donations made through an eligible workplace giving arrangement can generally be claimed as a tax deduction. The ATO specifically recognises donations made through an employer’s payroll system as workplace giving.

For regular workplace donations, an employer may also choose to adjust the amount of PAYG withholding from an employee’s pay to account for the donation. This can allow the employee to receive the tax benefit throughout the year rather than waiting until they lodge their tax return.

However, workplace giving does not reduce an employee’s gross income for purposes such as calculating superannuation guarantee payments. It is also important to distinguish workplace giving from salary sacrifice arrangements, as different tax rules can apply.

For employers, the tax treatment will depend on how the program is structured and who makes the donation. Businesses should keep appropriate records and ensure that donations are made to eligible organisations.

Because tax outcomes can vary depending on the arrangement, employers should obtain professional advice before implementing a workplace giving program. The ATO provides specific guidance for both employees and employers.

What are the benefits of workplace giving programs for businesses, employees and charities?

Workplace giving Australia offers benefits beyond the financial value of donations. When designed well, employee giving programs can create value for businesses, employees and charities.

For businesses, workplace giving can form part of a broader corporate social responsibility or corporate philanthropy strategy. It provides a practical way for employees to participate in the organisation’s social impact goals. A strong program can also help businesses build a workplace culture that reflects their values.

Workplace giving programs can support employee engagement by giving employees opportunities to contribute to causes that matter to them. This can be particularly valuable when employees are involved in selecting charities or deciding which causes the business supports.

For employees, workplace giving provides a convenient way to donate. Payroll-based donations can make giving regular and manageable. Employees can support charities without needing to remember to make individual payments, while eligible donations may also provide tax benefits.

For charities, workplace giving can provide a reliable source of funding. Regular employee donations can help charities plan their programs and build longer-term relationships with supporters. Workplace charity programs can also introduce charities to new audiences and create opportunities for employee volunteering or fundraising.

For businesses seeking a more strategic approach to philanthropy, workplace giving can sit alongside other forms of corporate giving Australia. Depending on the organisation’s objectives, this could include direct charitable donations, volunteering, fundraising, impact partnerships or establishing Public Giving Funds or Private Giving Funds.

The most effective workplace giving programs are not simply about encouraging employees to donate. They connect giving with the organisation’s broader purpose and create meaningful opportunities for employees to participate in social impact.

How The Giving Advisory Can Help

Workplace Giving Programs provide a practical way for Australian businesses and their employees to support charitable organisations. Through payroll-based donations, employees can make regular contributions while employers can create opportunities for employee participation and strengthen their social impact.

The benefits extend across the giving ecosystem. Employees gain a convenient way to support causes they care about, businesses can strengthen their culture and corporate philanthropy, and charities can develop a more consistent source of funding.

Brad Seeto

Giving Circles in Australia: How They Work

Philanthropy is evolving in Australia, with more people looking for meaningful and collaborative ways to support the causes they care about. One model that has gained significant momentum in recent years is the giving circle. By bringing together a group of people with shared values and a common interest in creating positive change, giving circles offer an accessible and engaging approach to charitable giving.

Unlike traditional donations made by individual donors, collective giving allows participants to pool their resources, knowledge, and networks to achieve a greater impact. Whether formed among friends, families, work colleagues, women’s networks, or community groups, giving circles are helping to democratise giving and make philanthropy more accessible to more Australians.

So, how do giving circles work, and why are giving circles growing in Australia? Understanding the structure and benefits of this collaborative model can help donors determine whether it aligns with their philanthropic goals.

What Is a Giving Circle?

A giving circle is a form of collective giving where a group of people pool money and decide together how those funds will be distributed to charities, organisations, or community initiatives.

At its core, a giving circle is about combining resources to create greater impact. Individually, members may only be able to donate modest amounts. However, when people pool their contributions, they can raise funds that support larger projects, provide grant funds, or help organisations address important social issues.

Giving circle members typically share common interests, values, or charitable priorities. Some circles focus on education, environmental sustainability, health, or social change, while others support local community initiatives. Many giving circles in Australia are also established around workplace philanthropy, corporate social responsibility programs, or groups of like-minded people who want to become more involved in giving.

Beyond financial contributions, giving circles often provide valuable learning opportunities. Participants engage in research, due diligence, site visits, and discussions about potential grant recipients. This allows members to develop a deeper understanding of community needs and the outcomes their contributions can achieve.

For many participants, the experience extends beyond writing a cheque. It becomes an opportunity to engage with philanthropy, build awareness, and contribute knowledge and expertise alongside financial support.

How Giving Circles Are Structured

There is no single model for how giving circles are structured. The flexibility of the concept is one reason for its growing popularity across Australia, including regions such as New South Wales and Western Australia.

Some giving circles operate informally among friends, families, or work colleagues who meet regularly to discuss charitable causes and determine where funds should be directed. Others are administered through a community foundation, donor advised fund, or other philanthropic structure that provides governance and administrative support.

Typically, members contribute a predetermined amount each year or make ongoing donations into a shared fund. The pooled funds are then allocated through an agreed decision making process. This may involve reviewing grant applications, conducting research, meeting with charities, or undertaking site visits to better understand community needs.

Many circles establish a mission and focus area from the outset. This helps guide discussions and ensures members remain aligned around shared values and philanthropic objectives. Some groups concentrate on local initiatives, while others support national or international beneficiaries.

Workplace-based circles may also involve employees who wish to contribute alongside their employer’s corporate social responsibility initiatives. In some cases, participants may provide pro bono services, mentorship, or professional expertise in addition to financial support.

Regardless of their structure, successful giving circles encourage participation, collaboration, and thoughtful decision-making. By involving members throughout the process, they create a stronger connection between donors and the organisations they support.

Some giving circles are administered through a community foundation, donor advised fund, or other philanthropic structure. For families ready to take giving further, a Private Ancillary Fund provides a more structured and tax-effective vehicle for long-term philanthropy.

How Contributions Work

One of the most appealing aspects of giving circles is their simplicity. Members contribute a financial gift to a shared pool, which is then collectively distributed to selected charities or grant recipients.

The amount contributed can vary significantly depending on the group. Some circles require modest annual donations, making participation accessible to a broad range of donors. Others involve larger contributions that allow the group to provide substantial grants and support game-changing initiatives.

Once funds have been collected, members typically review opportunities, discuss potential beneficiaries, and assess the likely impact of each proposal. Due diligence often forms an important part of the process, helping participants understand how organisations operate and how donated money will be used.

Many giving circles hold regular meetings, educational events, and presentations from charities seeking support. These interactions help members gain insight into pressing community issues and evaluate the effectiveness of various programs.

The collective nature of the model means every participant has a voice. Rather than a single donor making decisions, members work together to determine where funds will have the greatest impact. This collaborative approach often leads to stronger engagement and a deeper appreciation of philanthropy.

How The Giving Advisory Can Help

Giving circles are transforming the way Australians approach charitable giving. By enabling people to pool resources, share knowledge, and participate in collective decision-making, they provide a powerful and accessible pathway into philanthropy.

As more donors seek meaningful ways to support their communities, giving circles continue to grow across Australia. Their ability to combine financial contributions with education, engagement, and collaboration makes them an increasingly attractive option for individuals, families, employees, and community groups.

Brad Seeto

Why High Net Worth Families Use Structured Giving

For many affluent families, philanthropy is about more than making one-off donations. It is an opportunity to create a lasting impact, strengthen family values, and support charitable causes in a meaningful and sustainable way. As wealth grows, so too does the desire to establish a thoughtful giving strategy that aligns with long-term goals and priorities.

This is why high net worth families increasingly turn to structured giving Australia solutions. Structured giving involves using dedicated vehicles and frameworks to manage charitable giving over time, rather than relying solely on direct donations. Whether through private ancillary funds (PAFs), public ancillary funds, giving circles, or a sub fund within a larger charitable structure, these structured giving vehicles provide a strategic approach to philanthropy that can benefit both families and the communities they support.

But what are the benefits of structured giving? Beyond supporting charitable organisations, structured giving enhances family engagement, enables effective intergenerational wealth planning, and can improve tax efficiency. These advantages make structured giving an important consideration for families seeking to create a meaningful philanthropic journey.

Preserving Family Values Across Generations

One of the most significant reasons why high net worth families use structured giving is to preserve family values across generations. Wealth can be transferred relatively easily, but passing on a sense of purpose, generosity, and social responsibility often requires greater intention.

Structured giving creates a dedicated vehicle through which families can engage in philanthropy together. Family members can participate in discussions about favourite causes, charitable organisations, and social issues they wish to address. This collaborative process encourages diverse voices and helps younger generations understand the importance of giving back.

Private ancillary funds PAFs and public ancillary funds are particularly effective in fostering family involvement. Through planned contributions and regular grant-making, families can establish a shared purpose that extends beyond financial assets. Rather than viewing wealth solely as a source of personal benefit, future generations learn how it can be used to make a lasting difference in the world. To see how these structures compare side by side, read our guide on comparing Private Ancillary Funds to other charitable giving options in Australia.

Research shows that involving younger generations in charitable decision-making can strengthen family relationships and improve engagement with future giving initiatives. Structured giving provides a framework for these conversations, helping families create a long-term legacy of philanthropy that reflects their values and aspirations.

Supporting Intergenerational Wealth Planning

Structured giving also plays a valuable role in intergenerational wealth planning. Many families seek ways to transfer wealth while maintaining family unity and encouraging responsible stewardship of assets.

A well-designed giving strategy can become an important component of a broader financial plan. Rather than treating charitable giving as a separate activity, structured giving integrates philanthropy into long-term wealth management and intergenerational wealth transfer objectives.

For example, a family may establish a private ancillary fund with an initial donation and continue making planned contributions over time. The funds remain invested and can generate returns, allowing the family to provide ongoing support to charitable causes while maintaining a dedicated pool of capital for future distributions.

Alternatively, a public ancillary fund or sub fund can offer a more accessible option for families who prefer not to manage their own charitable structure. These structured giving vehicles allow many donors to contribute to charitable causes while benefiting from professional administration and governance.

Unlike crowd funding or corporate cash donations that may focus on immediate needs, structured giving supports larger scale and long term impact initiatives. It allows families to respond to changing community needs while maintaining a clear charitable vision. This flexibility can be particularly valuable as financial situations evolve and family priorities change over time.

By integrating philanthropy into intergenerational wealth planning, families can create enduring charitable legacies while reinforcing the principles that underpin their success.

Enhancing Tax Efficiency

Another key benefit of structured giving is enhancing tax efficiency. While philanthropy is often deeply personal, many families appreciate the opportunity to maximise the effectiveness of their charitable contributions.

When donations are made to organisations that hold deductible gift recipient status, donors may be eligible for a tax deduction. Structured giving vehicles such as private ancillary funds and public ancillary funds can provide a tax effective way to manage charitable giving while supporting eligible charities.

For example, a family may make a substantial contribution in a year when taxable income is particularly high, potentially generating a significant tax deduction. The funds can then be distributed to charitable organisations over time, allowing for a more strategic and considered approach to grant-making.

Structured giving enhances flexibility by separating the timing of the donation from the timing of charitable distributions. This enables families to align their philanthropy with their broader financial and business objectives while continuing to provide critical support to charities and communities.

It is important to note that every family’s circumstances are different. Decisions regarding structured giving, financial products, and ancillary funds should be considered in light of a family’s financial situation and objectives. Professional advice and a Financial Services Guide should always be reviewed where applicable. Any information provided should be considered general advice only and not a substitute for personalised guidance.

Structured giving offers far more than a mechanism for charitable donations. It provides families with a strategic approach to philanthropy that supports long term impact, strengthens family values, and contributes to effective intergenerational wealth planning.

How The Giving Advisory Can Help

Whether through private ancillary funds, public ancillary funds, or other forms of structured giving, these vehicles help donors create a meaningful and sustainable giving journey. By enabling planned contributions, supporting charitable organisations, and enhancing tax efficiency, structured giving allows families to transform generosity into lasting impact.

As more Australians seek purposeful ways to use their wealth, structured giving continues to play an important role in helping families support communities, address social issues, and create positive change for future generations.

Brad Seeto

The Power of Micro-Philanthropy

Philanthropy has long been associated with large donations from wealthy individuals or corporations, but times are changing. Today, a new wave of giving is emerging—one where individuals from all walks of life can make a meaningful impact without having to write big checks. This is the power of micro-philanthropy, a movement that is democratizing the act of giving and reshaping the way we think about donations. In this blog, we will explore what micro-philanthropy is, how micro-donations work, and why this model is so effective in supporting charitable organisations around the world.

For individuals and families who wish to complement everyday micro-giving with a structured long-term strategy, establishing a Private Ancillary Fund (currently known as giving funds) can provide a flexible and tax-effective framework for strategic philanthropy in Australia.

What Is Micro-Philanthropy?

At its core, micro-philanthropy refers to the practice of making small, frequent donations (often through online platforms or apps) that collectively create a substantial impact for charitable causes. Unlike traditional philanthropy, which often involves large sums of money, micro-philanthropy allows anyone, regardless of their financial status, to contribute to important causes.

These micro-donations are typically modest in size, ranging from a few cents to a few dollars. However, when pooled together, they have the potential to make a real difference. This form of giving is powered by the idea that small acts of generosity, when multiplied by a large number of people, can generate significant change. It’s a model that is particularly well-suited to today’s digital landscape, where people can donate to charities with just a few taps on their smartphones.

The beauty of micro-philanthropy is that it removes the barriers that often prevent people from donating. You don’t have to be wealthy or famous to make a difference. Whether it’s giving up your daily coffee to donate a couple of dollars or contributing a small percentage of your online purchases to a charity, micro-philanthropy opens up the opportunity for everyone to get involved in the act of giving.

Micro-Donations: Small Contributions, Big Impact

One of the key drivers behind the rise of micro-philanthropy is the concept of micro-donations. These are tiny contributions, usually under $10, that are typically made through digital platforms such as crowdfunding sites, charity apps, or subscription-based donation services.

While the individual donation might seem insignificant, the cumulative effect of millions of small donations can be extraordinary. For example, apps like RoundUp, which allow users to round up their daily purchases to the nearest dollar and donate the difference, have raised millions for charitable causes worldwide. Other platforms, such as GoFundMe or Patreon, enable individuals to donate directly to specific campaigns or causes that resonate with them, making it easier for people to support the causes they care about.

In addition to making giving more accessible, micro-donations also foster a sense of community and participation. Donors feel empowered because they know their small contributions, when combined with others, are part of something larger than themselves. This sense of collective impact is what drives many people to continue donating over time, helping to sustain charitable organisations in the long run.

Democratising Giving: Empowering Everyone to Donate to Charities

One of the most profound changes micro-philanthropy has brought about is the democratization of giving. Traditionally, large-scale charitable donations were mostly limited to the wealthy, and fundraising efforts often focused on attracting high-profile donors. But micro-philanthropy has flipped that model on its head.

With micro-donations, anyone can contribute to a cause, regardless of their income. Whether you’re a student, a retiree, or someone just starting their career, micro-philanthropy enables you to participate in charitable giving. It encourages people to give what they can, when they can, making it easier for everyone to support their favorite charities.

By making the process of donating more inclusive, micro-philanthropy has also helped to spread awareness about a wider range of causes. Charitable organisations of all sizes—from local community initiatives to global humanitarian efforts—can benefit from this approach. The result is a more diverse and equitable distribution of charitable profit, where the voices and needs of many different causes are heard.

Furthermore, micro-philanthropy is helping to reshape the way charitable organisations approach fundraising. Instead of relying solely on a few major donors, charities can now tap into a larger pool of smaller, more frequent donors. This allows them to create more sustainable revenue streams, ensuring their long-term viability and expanding their reach.

A New Era of Giving

The rise of micro-philanthropy has brought a refreshing change to the world of charitable giving. It has shown that even the smallest contributions can have a big impact when combined with the generosity of others. Whether through micro-donations or simply donating to charities in a way that fits your budget, micro-philanthropy has made it easier for everyone to get involved in supporting causes that matter to them.

In this new era of giving, micro-philanthropy has truly levelled the playing field, enabling individuals from all walks of life to play an active role in creating positive change. By empowering people to give in a way that is both manageable and meaningful, we are witnessing a shift toward a more inclusive, democratic form of philanthropy—one that has the potential to make a lasting difference in the world.

So, if you’re looking to donate to charities, remember that every little bit counts. Your small contribution could be the spark that helps create meaningful change.

How The Giving Advisory Can Help

Brad Seeto