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CASE Statement in Response to Productivity Commission and Schools

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WASHINGTON, D.C. – December 8, 2023 – CASE today released the following statement in response to the Inquiry on Philanthropy interim report released by the Productivity Commission, the Australian Government's independent research and advisory body.

The Productivity Commission, the Australian Government’s independent research and advisory body, is currently conducting an Inquiry on Philanthropy, with the goal of making recommendations on how the government can double philanthropy by 2030. In May 2023, CASE submitted comments and recommendations(link is external) to the Inquiry. On 30 November, the Commission released its interim report(link is external) and requested additional public comment.

The following is a statement from CASE President and CEO Sue Cunningham:

As the global association for professionals in educational advancement, CASE was pleased to submit recommendations to the Productivity Commission on how the Australian Government could meet its ambitious goal of doubling philanthropy by 2030. One of our recommendations was to liberalise fundraising rules for schools, and we urged the Commission to recommend that all primary and secondary education schools in Australia automatically receive Deductible Gift Recipient (DGR) status.

In its interim report released on 30 November, we were surprised to see the Commission instead recommend that DGR status be withdrawn from school building funds, stating donations to non – government schools provide private benefits to donors and do not benefit the wider community.

CASE disagrees with the Commission’s recommendation. The schools sector in Australia forefronts its work in engaging with the broader community in myriad ways. Primary and secondary schools play a vital role in educating Australians and in providing access, equity, and opportunity. A number of schools also make their buildings available for community use. The Commission’s recommendation would make Australia an outlier in its treatment of donations to primary and secondary schools compared to most economies with philanthropic cultures around the world. Furthermore, this is out of line with global best practice.

CASE’s Global Reporting Standards provide a framework in which organisations can build philanthropic engagement while at the same time providing guardrails for undue influence or private benefit for individual donors. The definition of educational philanthropy specifically states that donors should receive no private benefit from their contributions. The Standards support schools in ensuring that philanthropy is truly an act of giving back in support of society and the broader community.

Donations by supporters to schools, including parents and alumni, help fund scholarships, capital projects, and libraries – key priorities that are not typically covered by either government funding or school fees. The fruits of these generous donations are enjoyed by the entire school, and often by the broader community.

Instead of eliminating DGR status for school building funds, the Commission could recommend policies to help all schools raise more private funds, particularly at a time when government funding has been declining and in alignment with the government’s goal of doubling philanthropy by 2030.

We urge the Commission to reconsider its recommendation. CASE welcomes the opportunity to engage further with the Commission, and we stand ready to assist with additional information and data drawn from both Australia and comparative data from around the globe. CASE will also look forward to submitting comments on the full set of recommendations outlined in the interim report by the 9 February 2024 deadline. We are grateful for this opportunity.

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