australian charities and not- for profits commission – the six month report card missions...
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Australian Charities and Not-for Profits Commission – the six month report card
Missions Interlink16 July 2013Murray Baird Assistant Commissioner General CounselAustralian Charities and Not-for Profits Commission
An Australian Charities Commission
a new independent statutory agency, the Australian Charities and Not‑for‑profits Commission (ACNC) Federal Budget May 2011
Charity sector: Who is in?
• Welfare and disability;• (Non Government) Schools, Universities etc;• Churches, Religious organisations• Conservation, Arts, Childcare, Community
infrastructure
Charities Commission
What will ACNC Do?Registration
Information
Compliance
Education and guidance
Guidance
Assistance
Investigation
Graduated Sanctions
Deregistration
The Vital Signs• 1 million hits on website;
• 52 guides and fact sheets;
• 57,000 charities from ATO;
• 740 new charities;
• 11.4 days to register a charity;
• 14,500 calls answered;
• 6,900 written queries answered
• 4,000 face to face presentations and consultation attendees;
• 119 complaints about charities
What does a charity need to do?
• Keep records;• Report annually;• Notify changes.
Ducks in a row
Governance Standards
A set of principle based minimum governance standards;
Charities must comply to be registered
Ensure a minimum level of accountability
Basic Religious charities are exempt
PRESENTATION TITLE | DATE
Basic Religious Charities• A Registered charity• For advancement of religion• Not in another category (such as education or
welfare)• Not incorporated under Association or Corporations
Acts• Not a deductible gift recipient (except operating a
DGR with annual revenue of less than $250K)• Not part of a reporting group;• Not receiving more than $100k in government grants.
Members, Donors, Volunteers, Public
Confidence that the Charity is acting openly, accountably and transparently
For its stated purpose
In an effective and efficient manner
Sunlight is said to be one of the best
Sunlight is said to be one of the best disinfectants.. Louis Brandeis
Why?
Five Governance Standards
• Purposes and character of an NFP entity
• Accountability to members
• Compliance with Australian laws
• Suitability of responsible entities
• Duties of responsible entities
External Conduct Standards
• Confidence that funds sent outside Australia are reaching legitimate beneficiaries, used for legitimate purposes and are not contributing to terrorist or criminal activities
• Consultation and scrutiny
“In Australia” – the current position
• S.50-52 ITAA 1997
• If you are a charity or a religious institution
• Has a physical presence in Australia and to that extent incurs its expenditure and pursues its objectives principally in Australia;
• Is an overseas aid fund
• Is a prescribed institution that has a physical presence in Australia but incurs its expenditure and pursues its objectives principally outside Australia.
• Gifts and government grants disregarded.
Word Investments
• Where does Word pursue its objectives?• It does so by donating funds in Australia to
organisations which will use those funds probably outside Australia for a charitable purpose
• “inconsistent with the ATO interpretation and with clear policy intent”
• EM “In Australia”Bill 2012
New Law
• Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012
• Income tax exempt entities must operate and pursue their objectives principally in Australia unless they are DGR or prescribed.
• Follow the money.
• Current prescribed entities will be grandfathered.
• Substitute operates and pursues for expenditure.
• DGRs “solely in Australia” unless overseas aid funds.
Finding out more: www.acnc.gov.au
Providing you with access to information is a priority for us
• Weekly Commissioner Column (sent to 6,193 subscribers)
• Media alerts and releases and newsflashes
• Aboriginal Liaison officers
• podcasts and videos – coming soon
• Phone: 13 ACNC (13 22 62) 8 am to 8 pm AEDST
• Email: [email protected]
• Social media: facebook.com/acnc.gov.au
twitter.com/acnc_gov_au youtube.com/ACNCvideos