Where are we up to in charity regulation?

Susan Pascoe AM: Commissioner, Australian Charities and Not-for-profits Commission (ACNC)

Better Boards Conference, Adelaide, 2 August 2014

Overview

• Policy Context

• NFP Sector in Australia

• ACNC key functions

• ACNC charity regulation and Board obligations

• Benefits of registration and regulatory oversight

Policy Context

• Government intention to abolish ACNC, archive charity register, implement self reporting and return registration and regulatory oversight to ATO

• Senate voting intentions unclear• ACNC continuing to pursue dual role:-

administer the ACNC Act and Charities Act and retain charity regulator as viable agency, and support transition planning for transfer of functions to ATO.

Scope of the NFP sector

• Estimated 600,000 not-for-profit (NFP) groups

• About 60,000 charities (welfare, education, religion and other recognised charities)

• 4% of GDP/ $58 billion*

• Averaging 6% growth p.a*

• More than one million employees* – 9% of Australia’s employees

• More than 6 million volunteersSourced from 2012-13 ABS Satellite Accounts

Registration

Register, Charity Passport, research & data-sharing

Reporting & Compliance

Advice, guidance & education, research & policy

The ACNC: our functions

The ACNC: Objects and Executive Team

• Maintain, protect and enhance public trust and confidence in NFP sector

• Support sustainable, robust, vibrant, independent and innovative NFP sector

• Contribute to red tape reduction

Regulatory obligations of charities

Ongoing obligations

•maintain ongoing entitlement to registration as a charity

•notify ACNC of significant changes:-• Charity name and address for service• change to responsible persons (board, committee members or

trustees)• changes to governing documents• significant non-compliance

•keep records

•submit Annual Information Statement to ACNC

•comply with governance standards

NB: Size affects obligations

2014 Annual Information Statement

• 2013 info will be pre-populated in 2014 statement

• Annual Financial Report required for the first time from medium and large charities– voluntary for small charities

– reviewed or audited for medium charities

– audited for large charities

• To ensure integrity of Register, will ask for governing documents and responsible person information

• Fixes some common reporting errors from 2013 (such as definition of ‘basic religious charity’)

Summary of requirementsSize/

CategoryAnnual

Revenue 2014

Annual Information Statement

(non-financial

questions)

2014 Annual

Information Statement(financial

questions)

Annual financial reports

audit/review

Small < $250,000 9 items

Medium$250,000 -

<$1,000,000 12 items audit or

review

Large$1,000,000 and above

15 items audit

Basic Religious Charities

N/A Nil

2014 Annual Information Statement

Guidance

Assistance

Investigation

Graduated Sanctions

Deregistration

Charity regulation: Benefits for charities

• Badge of credibility as a registered charity

• Access to Cth tax concessions and other benefits

• Visibility through Charity Register = single point of contact (one stop shop) for public, donors, funders etc

• Online ACNC Charity Portal to provide info in real time and store core information

• Over time, reduced red tape through streamlined regulatory requirements and Charity Passport (enabling report once, use often with core charity information such as Annual Information Statement, charity documents, registration history, charitable purpose history, responsible persons, ACNC enforcement outcomes)

Charity regulation: Benefits cont.

• Use Register to find out information about other charities

• Through Register, increased accountability and transparency of sector – greater trust & confidence

• Dissemination of info and research about sector ( EY & Curtin research)

• Regulatory oversight – take action against charities doing wrong thing – maintaining trust and confidence for benefit of other charities and the community

• Timely advice, guidance & education

4.4 million

ACNC Register: story so far

Finding out more: www.acnc.gov.au

• Commissioner Column (almost 9,000 subscribers)

• Web guidance, podcasts and videos

• #AskACNC coming to a location near you over August

• Phone: 13 ACNC (13 22 62) 9am to 6pm AEDST

• Email: advice@acnc.gov.au

• Social media: facebook.com/acnc.gov.au

twitter.com/acnc_gov_au youtube.com/ACNCvideos