The dynamics of charitable giving in Australia are undergoing a profound transformation, with nearly one in five Australians now making their first-ever donation through the crowdfunding platform GoFundMe. This shift comes as the proportion of people contributing tax-deductible donations to traditional charities has fallen significantly, from 35% in 2013 to 28% in 2023. The rise of digital platforms is reshaping how Australians respond to crises and support causes, raising important questions about equity and impact in the philanthropic landscape.
The Rise of Digital Giving in Times of Crisis
In the aftermath of tragic events, such as the Bondi beach terror attack, crowdfunding has emerged as a powerful tool for mobilising support. Within hours, donations poured in from around the globe, with GoFundMe campaigns raising over $3 million for hero Ahmed al-Ahmed and $1 million for the family of 10-year-old victim Matilda. Similarly, during the recent devastating bushfires in Victoria, numerous campaigns sprang up to aid families in rebuilding their lives. This digital evolution of the traditional "passing the hat" method has exponentially amplified the public's instinct to help, offering a tangible way to combat feelings of helplessness during mass catastrophes.
How Crowdfunding Platforms Operate
Since its launch in Australia in 2015, GoFundMe has facilitated over $1.1 billion in donations from Australians, part of a global total exceeding $40 billion since 2010. Unlike registered charities, GoFundMe operates as a for-profit company, charging transaction fees and encouraging optional tips from donors to maintain its secure, user-friendly service. The platform reports that 40% of Generation Z Australians make their inaugural charitable donation through its site, highlighting a generational shift towards digital philanthropy. However, this trend coincides with a decline in tax-deductible donations, which are typically reserved for conventional charities, signalling a broader change in giving behaviours.
Wildly Diverging Outcomes and Ethical Concerns
Crowdfunding platforms host a vast array of appeals, from medical expenses and legal defences to vet bills and travel costs. While some campaigns, like those for high-profile tragedies, resonate widely and succeed, others struggle to gain traction. Analysis indicates that only about 17% of U.S. GoFundMe campaigns for healthcare and emergency costs meet their fundraising goals, underscoring the unpredictable nature of this system. Dr Matthew Wade, a sociology and ethics researcher at La Trobe University, notes that this leads to "wildly diverging outcomes," where success often depends on factors like social media visibility and compelling storytelling, rather than uniform need.
This disparity raises ethical questions, as individuals must often sacrifice privacy and appeal publicly for support, placing them in vulnerable positions. Moreover, platforms like GoFundMe wield significant power in deciding which campaigns are promoted or removed, effectively arbitrating which causes are deemed acceptable. Allegations have surfaced, such as claims that GoFundMe blocked aid to Gaza, though the company denies these accusations. In contrast, campaigns for figures like Renee Nicole Good, shot in Minneapolis, have raised substantial sums, illustrating how symbolic status can drive donations while others affected by similar events receive little.
Impact on the Charity Sector and State Responsibilities
The proliferation of crowdfunding has sparked debates about its role in areas traditionally covered by government support. For instance, former MP Peter Dutton faced criticism for using GoFundMe to aid flood victims instead of leveraging state resources. Professor Wendy Scaife, a philanthropy expert at Queensland University of Technology, describes crowdfunding as a "mixed blessing" for charities. On one hand, it can generate additional revenue, with about 5% of GoFundMe funds in Australia going to registered charities, and offers a scalable fundraising tool. On the other hand, it risks diverting donations away from established organisations that possess the expertise to allocate resources effectively, such as during natural disasters where grassroots groups may lack capacity to manage large influxes of cash.
Building a Culture of Giving in the Digital Age
Despite concerns, crowdfunding may foster a broader culture of philanthropy. GoFundMe suggests that 40% of users become "more charitable" after their first donation, potentially acting as a gateway to increased altruism. Krystian Seibert of Philanthropy Australia acknowledges the complexity but notes that multiple donation avenues can encourage habitual giving. However, philosopher Peter Singer, a proponent of effective altruism, urges donors to balance compassion with rationality. He advocates for evidence-based giving to maximise impact, recommending that individuals in wealthy countries donate at least 10% of their income to highly effective charities, compared to the current Australian average of 0.73%.
While overall charitable donations in Australia are rising, driven by corporate and wealthy contributions, the shift towards crowdfunding highlights a need for thoughtful engagement. As the dynamics of giving continue to evolve, Australians are navigating a landscape where digital platforms offer immediacy and connection, yet traditional charities provide proven impact and stability. This ongoing transformation invites reflection on how best to support those in need while ensuring fairness and effectiveness in an increasingly interconnected world.
