ConNEXTions 2013NFP Sector reformsAre we there yet?

ACNC Legislation

◦ Federal◦ State

ASIC APRA AASB ATO Government Funding

NFP Reforms - Overview

NFP Reforms - Overview

NFP Reforms – Since 1995

15.5 Million words, 50,000 pages

Gov’t commissioned 3,000 pages reports

NFP Sector – 4,500 responses, 29,000 pagesProf Myles McGregor Lowndes – CMA Conference 2013

NFP Reforms - Overview

ACNC Act Statutory Definition of Charity UBIT Governance Regulations ‘In Australia’ Legislation Non Profit Definition Commonwealth Government Grant

guidelines

NFP Reforms - Overview

Fundraising Legislation harmonisation Tax Concession Working group Accounting Standards Financial Reporting Religious Charitable Development Funds Charitable Fundraisers

NFP Reforms – Overview

Legislation passed – December 2012

Working with the sector to help compliance

Directorate of Red Tape Reduction

Assistant Commissioner – Murray Baird

Governance Standards, External Conduct Standards

ACNC

Charities Act passed in June 2013

Given Assent in June 2013

Gives certainty to ‘Advancing Religion’ as a statutory Head of Charity

Codifies many other purposes as charitable

Statutory Definition of Charity

Delayed for unrelated commercial activities◦ 1 July 2014 if commenced after 10 May 2011◦ 1 July 2015 if commenced before 10 May 2011

Originally to commence1 July 2012 for activities commencing after 10 May 2011

Delay to allow for consultation & engagement Remains a potential concern No definitions

◦ ‘Related’◦ ‘Commercial’

UBIT

5 Governance Standards

Come back tomorrow!

Governance Standards

Marooned before the House of Representatives

Little appetite by Gillard Government

Includes definition of ‘non-profit’

Unclear how relates to External Conduct Standards

In Australia Legislation

Unclear how this will proceed

Plan to separate out the non-profit definition from ‘In Australia’ Legislation

Is pivotal for many parts of the NFP Reform agenda

‘Non Profit’ Definition

Guidelines have been revised

Commencement of ‘Report Once, Use Often’

Information provided to ACNC will be utilised by other Federal Govt Departments

How is this working in practice?

Commonwealth Govt. Grants

Discussion Paper – February 2012

No actions proposed at this stage

A major issue for most National Mission Agencies

Difficult

Fundraising Harmonisation

Discussion paper released early November 2012

Was to report by 31 March 2013

Report received by Government, not yet released. Submissions not yet released.

Tax Reform Working Group

Accounting Standards Board reviewing many Accounting Standards as they relate to Charities

Many apply to Charities – Special purpose accounts vs general purpose accounts

Revenue – A key standard for ACNC Bill

Accounting Standards

ACT & South Australia have transferred reporting for charities to ACNC

More details with Peter Shields tomorrow

Financial Reporting

Religious Charitable Development Funds

Proposal by APRA to restrict investors to corporations and disallow investment by retail (individual) investors

Is a significant issue for major denominational investment funds

RCDF s

ASIC Consultation Paper 207

Plans to disallow organisations from accepting funds from corporations and individuals as a fundraising exercise

Holding funds at low or no interest to invest will no longer be allowed

Charitable Fundraisers

No, but we are on the way.

NFP Reforms

Are we there yet? No but we are on the way.

Not clear when (if) the reform agenda will be complete

Unclear what impact, if any, the new federal Treasurer (Chris Bowen) will have on the reform process

Assistance Treasurer David Bradbury has genuinely listened to sector representatives

NFP Reforms

Federal Election – What impact will it have

Liberal / National Party victory◦ Probable significant changes; downsizing of ACNC,

repeal or amendment of other legislation

Labor Party victory◦ Probably no significant changes

Whatever happens the juggernaut will roll on!!

NFP Reforms