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: advice@acnc.gov.au

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

twitter.com/acnc_gov_au youtube.com/ACNCvideos