philanthropyOz Blog

New information released for private ancillary funds

The Tax Office has released a suite of new information products to assist organisations seeking deductible gift recipient (DGR) status under the new category for private ancillary funds (PAFs), effective from 1 October 2009. Existing prescribed private funds (PPFs) became PAFs on this date.

This includes a private ancillary funds website that provides information about the new category and the requirements for endorsement. The transitional arrangements for PPFs are also discussed. The webpage provides links to the other products for PAFs, including:

• the PAF model deed
• updated instructions for endorsement as a deductible gift recipient
• the PAF schedule
• the agreement to comply with the PAF guidelines
• the revocation of agreement to comply with the PAF guidelines, and
• the PAF guidelines, which are located on the Federal Register of Legislative Instruments.

The Tax Office is in the process of developing a Frequently Asked Questions webpage to answer questions about PAFs. If your questions are not answered in the above products, the ATO encourages you to email them your questions for possible inclusion in the FAQ.

Email your question by 6 November 2009 to npc-publications@ato.gov.au, putting ‘Private ancillary funds - frequently asked questions’ in the subject line.

Productivity Commission draft Not-For-Profit report Released

The Productivity Commission has released a draft report into the Contribution of the Not-For-Profit Sector. The Commission’s brief was to study the contribution of the not-for-profit sector to Australian society with an emphasis on improving the measurement of the sector’s contributions, and removing obstacles to maximising its contributions to society.

The Draft Report Released yesterday makes a number of recommendations, including:

• the establishment of a ‘one-stop shop’ for Commonwealth-based regulation in the form of a Registrar for Community and Charitable Purpose Organisations.
• building a better knowledge base through a national measurement framework and a Centre for Community Service Effectiveness for the promotion of best practice evaluation
• a streamlined endorsement process for tax status to be administered by the proposed Registrar
• broadening the scope of gift deductibility
• national harmonised fundraising regulation

The draft research report has been released to encourage public discussion and to inform the Commission’s Final Report. Interested parties are invited to read the Draft Report and make written submissions to the Commission by COB Tuesday 24 November 2009.

For more information, download the full draft report or single chapters from the Productivity Commission’s website at: http://www.pc.gov.au/projects/study/not-for-profit/draft

Asia Pacific Breakthrough Summit

Asia Pacific Breakthrough: The Women, Faith and Development Summit to End Global Poverty

When: Tuesday 2nd December – Wednesday 3rd December 2009
Where: Federation Square, Melbourne
About: Asia Pacific Breakthrough: The Women’s, Faith and Development Summit to End Global Poverty is a call to action for women living in poverty. Breakthrough is a global initiative calling for women’s groups, faith communities, development agencies, business and philanthropists to work together to support local and regional action to reach the targets for Millennium Development Goals 3 and 5, women’s equality and maternal health.

You are invited to participate in the first regional Summit in the global movement. Join the dialogue with local and international leaders in Melbourne on December 2nd and 3rd, 2009.

The Breakthrough Summit will:
• Announce new commitments and investments for women and girls
• Highlight the priorities needed to reach the MDGs
• Convene people from across the women, faith and development communities to join a new alliance supporting women and girls.

Space is limited and early registration is essential.

COST: Full Summit, 2nd – 3rd December 2009: $400
Day 1 Only, 2nd December 2009: $250
To register or to review the full program, visit the Breakthrough website, www.breakthrough2009.com.au

PricewaterhouseCoopers Transparency Awards registrations open

Registrations for the 2009 PricewaterhouseCoopers Transparency Awards are now open. As part of PricewaterhouseCoopers’ support for the improvement of transparency and quality of reporting in the not-for-profit sector, PwC has joined with the Institute of Chartered Accountants in Australia and the Centre for Social Impact to launch the 2009 PwC Transparency Awards.

The PricewaterhouseCoopers Transparency Awards give not-for-profit organisations a valuable opportunity to demonstrate that they take the issue of transparency and quality of reporting seriously. The winner and runner-up receive $20,000 and $10,000 respectively towards sending member(s) of their organisation on training and development or study tours.

Participation rates in the 2008 Transparency Awards grew by 22% emphasising the commitment of the sector to transparency in reporting. The overall scores improved by 9% demonstrating the practical application of the feedback received through participation in the Awards.

To be a part of these Awards and receive individual feedback on how to improve your organisation’s reporting, register on-line at www.pwc.com.au/foundation/transparency-awards.htm by 5pm Friday 30 October 2009. For further information please contact Anita Burer on 03 8603 6798.

Education Affinity Group - Expressions of Interest

The possible establishment of an Education Affinity Group (EAG) has been mooted by a couple of our Members, including the Myer Foundation. We are therefore seeking expressions of interest from other Members of Philanthropy Australia in establishing an Education Affinity Group.

The establishment of an EAG is totally dependant on whether this area is of interest to PA members. Are Philanthropy Australia Members interested in the possibility of a new group which would focus on education of 0-25 year olds? Are Members interested in the establishment of such a group and would you be keen to participate in it in the future?

If there is sufficient interest, we can convene the first meeting where chairing and resourcing can be discussed as well as terms of reference and meetings structure.

We would like our Full Members to indicate interest by the end of October to Bruce Argyle at b.argyle@philanthropy.org.au

Resources to help victims of recent international disasters

The Australian Taxation Office has released an information sheet for people seeking to make donations to help victims of the recent typhoons in the Philippines and Vietnam, the tsunami in Samoa, American Samoa and Tonga, and the earthquakes in Indonesia. The ATO advises that rather than setting up a new organisation to collect money, it will be quicker and simpler for donors to operate through existing approved funds.

More information is available from the bulletin on the Nonprofit News Service section of the ATO’s website.

Several of Philanthropy Australia’s Associate Members are accepting donations for victims of the disasters.

The Australian Red Cross is running appeals for each disaster-affected region:

• Typhoon Ketsana Appeal 2009 (Philippines and Viet Nam)
• Indonesia Earthquake 2009
• Pacific Tsunami (Samoa and Tonga)

Save the Children Australia is also accepting donations for the affected regions.

World Vision Australia is also accepting donations for emergency relief.

New Event & Position Vacant

This coming Monday we are pleased to be co-hosting a light lunch with Jon Huggett:

• Jon Huggett – Philanthropic investing and trends in the global market, co-hosted by Macquarie Group Foundation (12 October, Melbourne, Members Only)

And there is a great opportunity at the Koorie Heritage Trust:

• Philanthropy Manager, Koorie Heritage Trust Inc (Melbourne, Applications close 23 October)

For more information please see the Events Calendar and Positions Vacant page.

Private Ancillary Fund Guidelines Released: New regulatory regime commences

The final Guidelines for Private Ancillary Funds have been released. The Guidelines can be downloaded from: http://www.comlaw.gov.au/comlaw/Legislation/LegislativeInstrument1.nsf/0/46B098606729DA20CA25763C00058CD6?OpenDocument&VIEWCAT=item&COUNT=999&START=1

There is also an explanatory statement which provides some explanation and clarification on the Guidelines, which we recommend that Members and interested parties read. It can be accessed by clicking on the tab reading “ES/SuppMaterial” at the above link.

The final Guidelines contain several differences to the draft version, including abolition of the requirement for PAFs to prepare and maintain a distribution strategy. Both the Guidelines and the Explanatory Statement include much of the clarification which Philanthropy Australia had requested in its response to the Draft Guidelines.

The new regulatory regime governing Private Ancillary Funds (PAFs) commences today, 1 October 2009. The ATO has advised Philanthropy Australia that they will be contacting existing PPFs to advise them of the changes and of the steps they will need to take to transition from a PPF to a PAF. They expect the transition period to take some months and are developing materials to help existing PPFs with the transition process.