Submission to the Productivity Commission’s Review of Philanthropy

SVA’s submission to Productivity Commission’s Review draws on our long history in the sector to outline our views on the most effective ways to grow philanthropy in Australia.

Drawing on Social Ventures Australia’s 20-year history as an intermediary between Not for Profits, Philanthropists and Governments, this submission to the Productivity Commissions Review of Philanthropy details SVA’s unique viewpoint as an expert in the social purpose sector. The unique mix of projects and initiatives, including training professionals and philanthropists in the importance of Social Returns on Investments and Impact Investing, is drawn on to provide context and best practice case studies for the Commission.

• The submission details opportunities to increase philanthropic giving, with details on effective and efficient use of donations and the importance of supporting Not for Profits to raise capital.
• Current barriers to philanthropic giving are explored, including complexities in measuring and comparing effectiveness of Not for Profits. The submission encourages the Government to avoid ‘comparing charity effectiveness’ and instead focus on supporting charities to assess their own impact and highlight examples of good practice. The example of Shared Outcomes Frameworks, used in SVA projects around Disability Housing and the Homelessness sector in South Australia, is used to illustrate the importance of agreed sets of outcomes between governments, communities and not for profits.
• Three key recommendations are made for Governments seeking to leverage maximum value from philanthropic giving: Funding the full cost of services it purchases; Minimising the use of problematic funding structures such as short-term contracts; and valuing the expertise that charities bring to discussions about Government policies and programs.
• On the last recommendation around valuing charity expertise, the submission highlights how charity advocacy is actively discouraged by ‘gag clauses’ in government contracts and other legal restrictions on advocacy.