philanthropyOz Blog

Report on Philanthropy in the ACT available

A review of philanthropy in the Australian Capital Territory is now available online. The report, commissioned by the ACT Department of Disability, Housing & Community Services, details the nature and extent of philanthropic giving in the ACT, with the aim of identifying its adequacy, trends, impediments and opportunities for growth. Philanthropy Australia was consulted as part of the research of this report, as were several of our Members. The ACT Government’s response to the report is also available.

This review of ACT philanthropy is one of very few state and territory based studies in Australia - as far as we can ascertain, the only other is the Queensland Community Foundation’s 2005 review Philanthropy’s Future in the Smart State.

Download A Review of Philanthropy in the Australian Capital Territory directly from the DHCS website here.

Test case - definition of charity

Today’s Australian Financial Review reports that the Australian Taxation Office has lost a test case on the definition of charity, a decision which has the potential to significantly widen the range of organisations which might qualify for endorsement as a tax concession charity. The Victorian Women Lawyers’ Association has succeeded in being classified as a tax exempt charity despite its being a membership organisation and engaging in some advocacy activities, both of which are often barriers to endorsement as a charity.

Federal Court judge Robert French stated that “The political purposes limitation is not well defined and is more difficult of application today having regard to the change in social conditions since 1917 and the involvement of legislatures in areas unthought of at that time”.

You can read the full judgement in Victorian Women Lawyers’ Association Inc v. Commissioner of Taxation [2008] FCA 983 (27 June 2008) online at the Austlii website.

Inquiry into the Disclosure regimes for charities and not-for-profit organisations

A Senate inquiry is now underway into the disclosure regimes and models of regulation for charities and not-for-profit organisations.

On 18 June 2008, the Senate referred the Disclosure regimes for Charities and not-for-profit organisations to the Senate Standing Committee on Economics for report by the last sitting day of November 2008. The inquiry will examine:

1. the relevance and appropriateness of current disclosure regimes for charities and all other not-for-profit organisations;

2. models of regulation and legal forms that would improve governance and management of charities and not-for-profit organisations and cater for emerging social enterprises, and;

3. other measures that can be taken by government and the not-for-profit sector to assist the sector to improve governance, standards, accountability and transparency in its use of public and government funds.

Submissions that reflect the issues and solutions that best meet the needs of the sector are encouraged. Submissions will close on 29 August 2008.

To find out more about the Inquiry into the Disclosure regimes for Charities and not-for-profit organisations, and how you can make a submission, visit the Parliament of Australia Senate website.

Fringe benefits protection for charitable sector employees

The Rudd Government will move urgent amendments in the Senate this week to protect employees in the charitable and not-for-profit sectors from losing up to $100 a fortnight because of the previous government’s changes to fringe benefit tax arrangements due to come into effect on 1 July 2008.

The Government’s amendments will restore the use of the net reportable fringe benefit in income definitions for Family Assistance, ensuring that staff in not-for-profit organisations will not suffer a loss of family tax or child care benefits after 1 July 2008 if their circumstances have not otherwise changed. The measures had enormous potential impact on the not-for-profit sector as many not-for-profit organisations compensate for lower wages by providing salary packages boosted by fringe benefits.

Further information available from the Press Release on Treasurer Wayne Swan’s website.

Office for the Community Sector Director Announced

The Department for Planning and Community Development has appointed the Director of Victoria’s new Office for the Community Sector, which will be responsible for leading, coordinating and implementing the policy priorities affecting the not-for-profit sector across Victoria.

The new Director is Lynne Wannan AM, one of Victoria’s most influential education and child care advocates.

The Office for the Community Sector will be established as part of the Victorian Government’s $13.87 million action plan to ensure the long-term sustainability of the not-for-profit sector. The Office for the Community Sector will be dedicated to supporting community organisations, helping them to manage new challenges such as population ageing, changing work patterns and rapid population growth.

The Victorian Government’s Action Plan: Strengthening Community Organisations was in response to extensive consultation and two reviews commissioned by the Victorian Government – the Stronger Community Organisations Project, led by Professor Alan Fels, AO; and the Review of Not-for-Profit Regulation, led by the State Services Authority.

The action plan features 25 actions to reduce red tape, build the capacity of sector workforce and strengthen the long term sustainability of community organisations.

For more information about the Office for the Community Sector contact 03 9208 3102.