By Susan Chenoweth

Yesterday I was interviewed by ABC News WA, about the $5 billion donation of shares in Fortescue Metals Group by Andrew Forrest and his wife Nicola to their Minderoo Foundation – the single biggest charitable donation in Australian history.

Our discussions inevitably led to speculation about whether such a significant donation is motivated by personal gain.

It made me reflect on this cultural cringe that exists in Australia, leading to such scepticism and criticism of philanthropy particularly among Australia’s super-rich. It overshadows a more important conversation about how we can foster a stronger culture of giving, and acknowledging the sheer magnitude of good it can do – particularly when directed into a foundation or ancillary fund structure, where the growth of endowed capital in a tax-exempt environment has the potential to significantly amplify the impact that can be achieved with that capital over the longer term.

Yesterday’s public scrutiny of the Forrest’s donation ironically coincided with the release of the Australian Charities and Not for Profits Commission’s annual analysis of the charity sector, which revealed that Australia is well behind schedule in achieving targets to double giving by 2023.

As a nation, Australia gives at a lower rate than other OECD countries. Research by the Centre for Social Impact found in 2020-21, Australia gives at 0.81 percent of GDP, compared with 2.1 percent in the US, 0.96 percent in the UK and 1.84 percent in New Zealand.

Of course this difference can be partly attributed to differing structural factors and regulatory systems, but there is a genuine need to foster a stronger more supportive culture of giving in Australia, and ensuring our tall poppy syndrome doesn’t act as a deterrent to growing philanthropy that contributes to social change and benefits for all of society.

This article was originally published on The Australian Financial Review.com on June 21st, 2023

The $5 billion donation by Australia’s richest man, iron ore magnate Andrew Forrest, and his wife Nicola to their Minderoo Foundation can only be applauded as an admirable example of flipping personal riches into philanthropy.

Dr Forrest built Fortescue Metals Group into Australia’s third force in the iron ore export industry, which has been Australia’s primary source of wealth creation since the 1960s. Now the Forrests have given away one-fifth of their FMG holding.


Nicola and Andrew Forrest are setting an example for other wealthy Australians to follow. Kate Geraghty

The single biggest charitable donation in Australian history surpasses $3.3 billion that Ramsay Health Care founder Paul Ramsay left to his eponymous foundation on his death in 2014. The Minderoo Foundation is set to jump from second to first place on The Australian Financial Review Magazine’s Philanthropy 50 list of the nation’s top philanthropic funds.

Personal philanthropy helps build a vibrant civil society. Historically, this has been an area where Australia has lagged behind the much bigger culture of giving found among wealthy Americans. Established in 1964, the pioneering philanthropy of the Ian Potter Foundation was one of the notable Australian examples of combining business success with a social purpose.

Now, by devoting such a significant share of their wealth to philanthropic causes, the Forrests are setting an example for other wealthy Australians to follow and further deepening the contribution of business-led prosperity to tackling social challenges.

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