philanthropyOz Blog

Philanthropy Australia Holiday Closure

Philanthropy Australia’s Melbourne and Sydney offices will both be closed for the holiday break from 5 PM, Wednesday 22 December until 9 AM, Monday 10 January 2011.

We wish a happy and safe holiday season to all our Members and friends, and look forward to a productive and philanthropic 2011.

New Events

Philanthropy Australia events are currently being scheduled; Members will be notified of dates in the new year.

Our last general Events Calendar update for 2010 includes quite a few international gatherings:

• Council on Foundations 2011 Family Philanthropy Conference (23-25 January, USA)
• Best Practice in Grants Management Conference 2011 (24-25 February, Melbourne)
• United Nations Economic & Social Council: Partnering with the Philanthropic Community to Promote Education for All (28 February, USA)
• 4th World Congress of Muslim Philanthropists (23-24 March, Morocco)
• Jewish Funders Network International Conference (27-29 March, USA)
• Council on Foundations 2011 Annual Conference (10-12 April, USA)
• International Funders for Indigenous Peoples 10th Annual Conference (25-27 May, USA)
• Future Summit 2011 (30-31 May, Melbourne)
• UPDATED: Communities in Control Conference (30-31 May, Melbourne)
• UPDATED: Connecting Up 2011 Conference (1-3 June, Melbourne)
• Council on Foundations 2011 Fall Conference for Community Foundations (19-21 September, USA)

Further information on these events is available on the Events Calendar.

If you have any events relevant to Australian grantmakers coming up in 2011, please let us know by submitting it on our website here.

Public Ancillary Funds - final submission

Philanthropy Australia has sent a submission to Treasury in response to the Discussion Paper, ‘Improving the Integrity of Public Ancillary Funds’, now available for download from: http://www.philanthropy.org.au/pdfs/advocacy/PA_PuAF-Response-15Dec2010_FINAL.pdf

Thank you to those Members who participated in discussions and assisted us with preparing our submission. We strongly encourage any Members and other interested parties who may be affected by the proposed changes to make their own submissions to Treasury, with particular reference to how any changes may affect their own Public Ancillary Fund. The closing date for submissions is Friday, 17 December 2010.

Submissions can be made to:
Manager
Philanthropy and Exemptions Unit
Personal and Retirement Income Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: pafreforms@treasury.gov.au

You can read the Assistant Treasurer’s press release at: http://assistant.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/013.htm&pageID=003&min=brs&Year=&DocType=

You can download the Discussion Paper at http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1907

Public Ancillary Funds - draft submission available

Philanthropy Australia’s draft submission in response to the Discussion Paper, ‘Improving the Integrity of Public Ancillary Funds’, is now available for download from: http://www.philanthropy.org.au/pdfs/advocacy/PA_PuAF-Response-10Dec2010_DRAFT.pdf

Please note that this is a draft only, and while it is expected that this is very close to the final document, there may be some minor changes before final submission. We strongly encourage any Members and other interested parties who may be affected by the proposed changes to make their own submissions to Treasury, with particular reference to how any changes may affect their own Public Ancillary Fund. The closing date for submissions is Friday, 17 December 2010.

Submissions can be made to:
Manager
Philanthropy and Exemptions Unit
Personal and Retirement Income Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: pafreforms@treasury.gov.au

You can read the Assistant Treasurer’s press release at: http://assistant.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2010/013.htm&pageID=003&min=brs&Year=&DocType=

You can download the Discussion Paper at http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1907

US considers removing charity tax deductions

The chairmen of US President Obama’s National Commission on Fiscal Responsibilty and Reform has proposed the removal of the tax deduction for charitable donations, suggesting that it be replaced with a 12% tax credit. The tax credit would only be available for amounts beyond 2 percent of the taxpayer’s adjusted gross income and would be nonrefundable, meaning only people who owed income tax could claim it.

For more information: http://philanthropy.com/article/Key-Panel-Seeks-to-Revamp/125583/

UK review of giving

A new independent review into the state of philanthropy in the UK has been launched in London. The Philanthropy Review will be chaired by Thomas Hughes-Hallett, Chief Executive of Marie Curie Cancer Care, and will examine giving at every level, as well as existing and potential initiatives to encourage philanthropy.

The review is being supported by a number of foundations and organisations including the Bill and Melinda Gates Foundation; the Esmée Fairbairn Foundation; NCVO; New Philanthropy Capital, the Institute of Philanthropy; JP Morgan; the Pears Foundation, and domestic abuse charity CAADA.

The review will shortly publish a Green Paper for consultation. For more information see: http://www.philanthropyreview.co.uk/

Community Foundation Global Status Report 2010 launched

The 2010 Community Foundation Global Status Report is the sixth in a series of reports on the development of community foundations around the world, and the first web-based version of this signature report. It was commissioned and funded by Worldwide Initiatives for Grantmaker Support (WINGS).

Found at http://www.wings-community-foundation-report.com/gsr_2010/gsr_home/home.cfm, the Report tracks the growth and development of community foundations worldwide and is an important guide to increasing philanthropic activity in countries across the globe.

Globally, the number of community foundations has almost doubled over the past ten years from 905 in 2000 to 1,680 in 2010, with spectacular growth in community philanthropy across Europe in particular.

An Introductory Guide to Grantmaking launched

Philanthropy Australia is pleased to announce the launch of An Introductory Guide to Grantmaking.

This free downloadable Guide is written expressly for people who are new to grantmaking and will be involved directly with the process of assessing applications and making grants. It provides an overview of areas such as the role of grantmakers, working practices and cycles, assessing applications and communication tools. Information on further resources is also provided.

Download the Introductory Guide to Grantmaking here (PDF, 4.2MB)

The Introductory Guide to Grantmaking has been generously funded by the Westpac Foundation.

ATO warning: Gift deductions for donation of pharmaceuticals to charities operating overseas

The ATO has released a Taxpayer Alert urging donor caution over arrangements promoting a tax deduction for gifts of pharmaceutical items to charities for use overseas.

Under these arrangements, the taxpayer agrees to purchase pharmaceutical and other items for a DGR and provides cash for a vendor to purchase the pharmaceuticals from a low cost overseas supplier. They are then valued for gifting purposes at a much higher cost. The difference in these amounts is balanced by what appears to be an unsecured, long term, low interest loan facilitated by the promoter of the arrangement and purportedly funded by the vendor. The pharmaceuticals are apparently made available to the charity through an overseas bonded warehouse.

Under this arrangement, the taxpayer claims a deduction for a donation and related costs that is much greater than the actual amount outlaid, e.g. for a cash outlay of $2,100 the taxpayer claims a gift deduction purportedly valued at $20,000.

The ATO is of the opinion that these arrangements are not legitimate and that donors may be putting themselves at risk of penalties and even prosectuion. Anyone who has participated in these arrangements should come forward prior to 31 January 2011 and before they are contacted by the ATO. If they do, they will be entitled to a reduction in any tax penalties.

For more details about how the scheme operates and what the specific ATO concerns might be, see the Taxpayer Alert at: http://law.ato.gov.au/atolaw/view.htm?DocID=TPA/TA20108/NAT/ATO/00001

Legal win for charities engaging in advocacy

In a landmark decision, the High Court has secured the charitable status of activist group Aid/Watch, which had been repealed by the ATO due to its lobbying activities.

Aid/Watch, an independent monitor of Australia’s aid and trade, argued that generating public debate and advocating for policy change, while political activity, is providing a public benefit. Five of the seven High Court judges agreed that public debate on the efficiency of foreign aid directed towards poverty relief was a purpose beneficial to the community.

This is hailed as a significant win for Australian charities who engage in advocacy and lobbying activity.

You can read more at ProBono’s News website, or read the court’s decision at the Australasian Legal Information Institute.