Australian International Development Network Sector Report on Australian International Development Philanthropy & Impact Investing 15 May 2020 Table of Contents Table of Contents ................................................................................................................................. 1 Executive Summary ............................................................................................................................. 4 International philanthropy ................................................................................................................... 4 International impact investment .......................................................................................................... 5 Key findings ............................................................................................................................................ 6 Recommendations ................................................................................................................................. 8 Background and Methodology .......................................................................................................... 11 Australian International Development Network .................................................................................... 11 This project ........................................................................................................................................... 11 Scope of work ................................................................................................................................... 11 Project methodology ......................................................................................................................... 12 PART 1 – Australia’s international philanthropy sector ................................................................. 13 Introduction ........................................................................................................................................... 13 Defining international philanthropy ................................................................................................... 13 Key actors in Australia’s international philanthropy sector ................................................................... 13 Membership organisations ............................................................................................................... 13 Government agencies ...................................................................................................................... 15 Australian market participants in international philanthropy ................................................................. 16 Contributors ...................................................................................................................................... 16 Recipients ......................................................................................................................................... 17 PART 2 – Estimating the quantum of annual international philanthropy flows ........................... 18 Introduction ........................................................................................................................................... 18 “Top down” approach ........................................................................................................................... 18 JBWere’s The Support Report ......................................................................................................... 18 Giving Australia 2016 ....................................................................................................................... 24 Hudson Institute’s The Index of Global Philanthropy and Remittances 2016 .................................. 28 Philanthropy Australia ...................................................................................................................... 28 Philanthropy 50 ................................................................................................................................ 29 Australian Taxation Office data ........................................................................................................ 30 Giving Large 2019 report .................................................................................................................. 30 “Bottom up” approach ........................................................................................................................... 31 Australian Charities and Not-For-Profit Commission ........................................................................ 31 Analysis of Annual Reports of 10 largest “international activities” charities ..................................... 38 ACFID’s State of the Sector Report ................................................................................................. 40 ACFID’s 2019 Annual Statistical Survey .......................................................................................... 42 JBWere’s The Cause Report ............................................................................................................ 43 PART 3 – Australia’s international impact investment sector ....................................................... 47 Introduction ........................................................................................................................................... 47 Defining and measuring impact investment ..................................................................................... 47 The emergence of impact investment in Australia ........................................................................... 47 Key actors in Australia’s international impact investment sector .......................................................... 48 Non-government actors and activities .............................................................................................. 48 Department of Foreign Affairs (DFAT) ............................................................................................. 50 Australian market participants in impact investment abroad ................................................................ 55 Impact activities ................................................................................................................................ 55 Intermediaries ................................................................................................................................... 57 Investment managers ....................................................................................................................... 61 Non-Australian market activity in Australia ....................................................................................... 63 Impact Investors ............................................................................................................................... 65 PART 4 – Estimating the quantum of annual international impact investing ............................... 72 Introduction ........................................................................................................................................... 72 Impact Investing Australia’s 2016 Benchmarking Impact report ...................................................... 73 Responsible Investment Association Australasia’s 2018 Benchmarking Impact report ................... 74 Impact Investing Australia’s 2016 Investor Report ........................................................................... 75 Global Impact Investing Network’s annual reports ........................................................................... 77 PART 5 – Discussion and recommendations .................................................................................. 79 International philanthropy ..................................................................................................................... 79 Data .................................................................................................................................................. 79 Enhancing the role of Australian foundations in the intentional development space ....................... 79 International reporting and collaborative frameworks ....................................................................... 80 International impact investment ............................................................................................................ 80 Data .................................................................................................................................................. 80 Definitional issues ............................................................................................................................ 83 Ecosystem-building .......................................................................................................................... 83 Philanthropic innovation to unlock flexible capital ............................................................................ 84 Impact Capital Australia ................................................................................................................... 84 Appendix A – Global private philanthropy for development .......................................................... 86 Appendix B – Philanthropy Australia’s Directory of Funders ........................................................ 93 Appendix C – Philanthropy Australia’s Foundation Maps ..........................................................