philanthropyOz Blog

ABS Not-for-profit Sector Draft Information Development Plan

The Australian Bureau of Statistics (ABS) has the published a Draft Information Development Plan for the Not-for-Profit Sector. This publication outlines the ABS’ response to recommendation 5.1 of the 2010 Productivity Commission Report on the contribution of the non-profit sector to Australia’s economy and wellbeing.

The Productivity Commission made several recommendations to effect the collection and dissemination of data relevant to the non-profit sector, and also recommended that the ABS was best suited to draw up an information development plan that addressed statistical information needs for the non-profit sector, a measurement framework, the availability of statistical information, and avenues of future data development.

This Draft Information Development Plan is released to help guide discussion of the statistical needs and priorities for the sector and also to draw attention to the statistical potential of information held in government administrative systems.

Comments can be made on this publication, which should be addressed to Derick Cullen (d.cullen@abs.gov.au), Director, Macroeconomics Research Section Australian Bureau of Statistics.

» Download the Draft Information Development Plan for the Not-for-Profit Sector document here

Community Council for Australia welcomes Labor announcement

The Community Council for Australia (CCA) has welcomed the Australian Labor Party’s announcement that it would establish an Office for the Not-For-Profit Sector and, if elected, would implement other recommendations from the Productivity Commission’s report which was released in February. CCA chair and CEO of World Vision, Reverend Tim Costello, said “This was a key recommendation of the Productivity Commission and will play an important role in having consistency across the nation and across government. This is the first time that the sector has had a single reference point within Government.”

For more information see the CCA media release on Philanthropy Australia’s website.

Towards a Manifesto for a Thriving Not for Profit Sector

“Just as Governments depend on a thriving Not for Profit Sector for community well-being, so the Sector depends on Government for policy, regulation and funding support.”

Pro Bono Australia are urging the not-for-profit sector to take advantage of this election period to send a clear message to Julia Gillard, Tony Abbott and Bob Brown about how the Australian Government can improve and strengthen its support for the not-for-profit sector. To this end they have developed a short survey for you to express your opinion.

The survey, developed in collaboration with the Centre for Social Impact, is based on the recent Productivity Commission report on the Contribution of the Not for Profit Sector. It asks which Productivity Commission recommendations you would like the next Government to implement and, for some, how you would like them implemented. It includes questions about sector wages, funding, and regulatory burdens.

The deadline for completing the survey is 3 August 2010. Find and fill out the survey on the Pro Bono Australia website.

What’s the right relationship between philanthropy and government?

In a recent survey, Grantcraft shared reflections from eight foundation leaders in the United states on this question - What is the right relationship between philanthropy and government? - and then asked its readers to weigh in. Over 1,500 people responded, including many stakeholders in philanthropy, nonprofits, and government. This brief and very accessible survey report makes fascinating reading - much of it applicable to Australia too.

GrantCraft’s guide Working with Government: Guidance for Grantmakers, will be published in July 2010.

Read the survey report at http://www.grantcraft.org/pdfs/survey_government.pdf

New Indigenous Fund Structure suggested

A new Treasury consultation paper has outlined three suggested approaches to tax reform in the area of native title, one of which is a proposed new kind of income tax exempt vehicle, referred to as an Indigenous Community Fund. The potential new vehicle would be established under legislation as a tax-exempt way of managing payments received under native title agreements. It is suggested that such a vehicle might be a suitable alternative to a charitable trust and could overcome some of the limitations of charitable trusts, enabling it to (for example) limit benefits to a specified group of native title holders, or to fund activities associated with establishing a business.

This consultation paper also discusses how existing deductible gift recipient (DGR) categories could be better adapted to reflect the needs of Indigenous communities, including whether a new general DGR category that includes organisations that carry out activities across multiple DGR categories should be created.

Treasury is inviting comment on the consultation paper. The closing date for submissions is Friday 2 July 2010.

Further information and the consultation paper itself available at: http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1809

Standard Chart of Accounts formally approved by all Australian Governments

The Standard Chart of Accounts (SCOA) for not-for-profit reporting developed by Queensland University of Technology was this week formally approved by all Australian Governments for implementation by 1 July 2010.

The 19-20 April 2010 Council of Australian Governments (COAG) meeting in Canberra made the following decision:

“COAG also agreed to additional reforms for the not-for-profit sector, including an implementation plan and governance structure to develop a nationally consistent approach to fundraising regulation, and the adoption of a standard chart of accounts where possible by 1 July 2010. This will further reduce the regulatory burden and improve public confidence in the not-for-profit sector. ” (page 14)

The full document is here: http://www.coag.gov.au/coag_meeting_outcomes/2010-04-19/docs/Communique_20_April_2010.pdf

A full set of resources for the SCOA is available on the QUT Wiki at: https://wiki.qut.edu.au/display/CPNS/Standard+Chart+of+Accounts

2007-08 Taxation Statistics released: new figures on giving

The ATO has released Taxation Statistics 2007-08. The chapter on Charities and Deductible Gifts reveals some interesting growth figures in the sector:

• Individuals claimed $2,346 million in deductible gifts in the 07/08 financial year, an increase of 24.5% on the previous year
• Private Ancillary Funds (then Prescribed Private Funds) had $1.8 billion under management at the end of 2008 financial year
• At end October 2009 there were 52,775 tax concession charities and 26,549 active deductible gift recipients in Australia

Necessitous circumstances funds update

The Australian Taxation Office has updated its information page on Necessitous circumstances funds. Necessitous circumstances funds are tax deductible public funds maintained to provide relief for persons in Australia who are in necessitous circumstances. “Necessitous circumstances” refers specifically to financial necessity rather than being in need generally.

The updated webpage includes a description of the requirements to be endorsed as a necessitous circumstances fund, a checklist and information on deductible gifts.

More information: Necessitous circumstances funds.

Final Productivity Commission Report Available

The Productivity Commission’s final report into the Contribution of the Not-for-Profit Sector has been released and is now available for viewing or download from the Productivity Commission’s website.

The report recommends wide-ranging reforms to remove unncessary burdens and costs faced by the not-for-profit sector as well as to improve its accountability. The recommendations include:

• Establishment of a Registrar for Community and Charitable Purpose Organisations to act as a ‘one-stop shop’ for Commonwealth-based regulation
• Establishment of an Office for Sector Engagement to drive reform and policy development at the Commonwealth level
• Creation of a national measurement framework and a Centre for Community Service Effectiveness to act as a clearinghouse to promote best practice evaluation
• a more coherent endorsement process for tax status, to be administered by the proposed Registrar, and a new definition of charity
• broadening the scope of gift deductibility, promoting planned giving and national harmonisation of fundraising regulation

For more information see the Productivity Commission’s website.

Final PAF Trust Deed Available

The final version of the Model Trust Deed for Private Ancillary Funds (PAFs) is now available for download from the ATO’s PAF webpage at http://www.ato.gov.au/nonprofit/content.asp?doc=/content/00215720.htm&page=4&H4