Ask ACNC Rockhampton
Presented by
David Locke| Assistant Commissioner | ACNC
23 September 2014
Overview
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Policy context for the ACNC
Not-for-profit sector in Australia
Charities in and around Rockhampton
ACNC – our role, functions and work
Charity obligations
Benefits of charity regulation
Future landscape
Policy context for the ACNC
• Government intention to abolish ACNC
– Archive charity register
– Implement self-reporting/return to ATO
• Senate voting intentions unclear
• ACNC continues to pursue dual role:
– Administer the ACNC and Charities Act
– Support transition planning to the ATO
Size and scope of the NFP sector
• 600 000 not-for-profits
• 60 000 charities
• 4% of GDP ($58 billion)
• 6% growth per annum
• Over 1 million employees: 10% of Australia’s workforce
• Over 6 million volunteers
Charities based in the Rockhampton area
156 registered
charities in
Rockhampton
How long have
Rockhampton
charities operated?
Top beneficiaries
1 year or less
Economic/social
Youth
Emergency relief
General community
Education
Aged care
Children
Culture/arts
2-5 years
5-10 years
10-25 years
25-50 years
Over 50 years
Aboriginal/TSI
46%
Aged persons
Operate overseas
Operate
nationally
2
1%
7%
11%
32%
22%
27%
4
Rely only on
volunteers
Rockhampton
charities by size
73%
15%
12%
ACNC: our functions
• Registration
• Reporting and compliance
• Charity register and data sharing
• Advice, guidance and education,
research and policy
ACNC: objectives & the executive team
Objectives under the ACNC Act:
• Maintain, protect and enhance
public trust and confidence in
the NFP sector
• Support a sustainable, robust,
vibrant, independent and
innovative NFP sector
• Contribute to red tape
reduction
Commissioner Susan Pascoe, AM, and Assistant
Commissioners Murray Baird & David Locke
ACNC: our regulatory approach
Assumption of honesty, but will act
quickly in case of serious misconduct or
gross negligence, to protect the
reputation and good work of the sector.
Deregistration
Graduated sanctions
Investigation
Assistance
Guidance
Obligations of registered charities
• Maintain ongoing entitlement to
registration
• Notify the ACNC of certain changes
• Keep records
• Report each year
• Comply with governance standards
Notifying the ACNC of changes
Tell us if there is a change to your charity’s:
• name
• address for service
• responsible persons (board members), or
• governing documents.
Tell us if you think your charity may be
otherwise not be meeting its obligations.
Reporting: Annual Information Statements
• Good record-keeping helps with reporting
to the ACNC
• Annual Information Statements are due
within six months of end of reporting
period
• Financial reports (from 2014) required
only for medium and large charities
2014 Annual Information Statement
• 2013 information is pre-populated
• Annual Financial Reports:
– voluntary for small charities
– reviewed or audited for medium charities
– audited for large charities
• Governing documents and responsible
persons
• Fixes some common reporting errors from
2013
2014 Annual Information Statement
• 19 questions (17 mandatory)
• Basic non-financial information
• Includes information such as:
– charity size
– beneficiaries
– charitable purpose – staff numbers
– activities
– volunteer contribution
Summary of requirements
Size/
Category
Annual
Revenue
2014
Annual
Information
Statement (nonfinancial
questions)
2014
Annual
Information
Statement
(financial
questions)
Small
< $250,000
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9 items
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Medium
$250,000 <$1,000,000
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12 items
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audit or
review
Large
$1,000,000 and
above
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15 items
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audit
Basic Religious
Charities
N/A
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Nil
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Annual
financial
reports
audit/
review
Benefits of charity regulation
• Badge of credibility for registered charities
• Access to commonwealth tax and other benefits
• Visibility on the charity register
• Use of the online ACNC Charity Portal
• Timely advice, guidance and education
• Over time, reduced red tape for charities
Benefits of charity regulation (cont.)
• Regulatory oversight:
– can take action against charities acting
improperly
– support and protect the good reputation of
the sector and charities acting properly
• ACNC can share information and research
based on quality data
• Use of ACNC Register promotes:
– accountability and transparency of sector
– trust and confidence
ACNC Register: the story so far
Over 3 800 charities
registered by ACNC
since Dec 2012
Main charitable purposes:
• Advancing education (34.4%)
• Advancing religion (23.6%)
• Social or public welfare
(19.6%)
• Public benevolent
institution (15.8%)
Charities registered in 2013–14
Open data and the Charity Passport
• ACNC Register data (and soon 2013 AIS
data) published on data.gov.au
• Established Charity Passport
– secure sharing of Register data with
authorised government agencies (Charity
Passport Partners)
– potential to significantly reduce
duplicative reporting to government
Reducing regulatory burden
• Report-once, use-often: Charity Passport
• Harmonisation of reporting agreed in principle
by SA and ACT for fundraising and incorporated
associations
• Consulted with the sector to ensure reporting
requirements are proportionate (tiered to size)
• Accepting financial reports lodged under 20
different systems as satisfying 2014 AIS
requirements
• Responsibility for NSCOA
Advice and guidance: the story so far
8,752 subscribers to
email updates
Ensuring compliance with ACNC Act
Looking ahead…
• The ACNC must continue to administer the
ACNC Act until a change is made to the
legislation
• The ACNC is working to ensure charities can
understand and meet their obligations
• The Australian Government is consulting on:
– The repeal of the ACNC (Department of Social
Services options paper – submissions by 24 August)
– The Centre for Social Impact study on the proposed
Centre for Excellence
Keep in contact with the ACNC
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Commissioners Column and email updates
Web guidance, podcasts, video content
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