Where are we up to in charity regulation? Susan Pascoe AM: Commissioner, Australian Charities and Not-for-profits Commission (ACNC) Better Boards Conference, Adelaide, 2 August 2014

Overview Policy Context NFP Sector in Australia ACNC key functions ACNC charity regulation and Board obligations Benefits of registration and regulatory oversight

Policy Context Government intention to abolish ACNC, archive charity register, implement self reporting and return registration and regulatory oversight to ATO Senate voting intentions unclear ACNC continuing to pursue dual role:- administer the ACNC Act and Charities Act and retain charity regulator as viable agency, and support transition planning for transfer of functions to ATO.

Scope of the NFP sector Estimated 600,000 not-for- profit (NFP) groups About 60,000 charities (welfare, education, religion and other recognised charities) 4% of GDP/ $58 billion* Averaging 6% growth p.a* More than one million employees* – 9% of Australia’s employees More than 6 million volunteers Sourced from ABS Satellite Accounts

Registration Register, Charity Passport, research & data-sharing Reporting & Compliance Advice, guidance & education, research & policy The ACNC: our functions

The ACNC: Objects and Executive Team Maintain, protect and enhance public trust and confidence in NFP sector Support sustainable, robust, vibrant, independent and innovative NFP sector Contribute to red tape reduction

Regulatory obligations of charities Ongoing obligations maintain ongoing entitlement to registration as a charity notify ACNC of significant changes:- Charity name and address for service change to responsible persons (board, committee members or trustees) changes to governing documents significant non-compliance keep records submit Annual Information Statement to ACNC comply with governance standards NB: Size affects obligations

Publications ACNC Support for Boards Advice Services

2014 Annual Information Statement 2013 info will be pre-populated in 2014 statement Annual Financial Report required for the first time from medium and large charities – voluntary for small charities – reviewed or audited for medium charities – audited for large charities To ensure integrity of Register, will ask for governing documents and responsible person information Fixes some common reporting errors from 2013 (such as definition of ‘basic religious charity’)

Summary of requirements Size/ Category Annual Revenue 2014 Annual Information Statement (non- financial questions) 2014 Annual Information Statement (financial questions) Annual financial reports audit/ review Small< $250,000 9 items  Medium $250,000 - <$1,000, items audit or review Large $1,000,000 and above 15 items audit Basic Religious Charities N/A Nil  2014 Annual Information Statement

Incorporated associations reports lodged with the state/territory government under the relevant Act (except WA) Co-operatives reports lodged with the state/territory government under the relevant Act Any other unincorporated entity or trust conducting fundraising or charitable collections reports lodged with the state/territory government under the relevant Act (except NT and TAS) Companies limited by guarantee – lodge financial reports prepared under the Corporations Act to the ACNC. What to lodge first For 2014 to avoid duplication you may submit a copy of your financial report prepared for your state/territory regulator directly with the ACNC 2014 Annual Financial Report

Guidance Assistance Investigation Graduated Sanctions Deregistration

Charity regulation: Benefits for charities Badge of credibility as a registered charity Access to Cth tax concessions and other benefits Visibility through Charity Register = single point of contact (one stop shop) for public, donors, funders etc Online ACNC Charity Portal to provide info in real time and store core information Over time, reduced red tape through streamlined regulatory requirements and Charity Passport (enabling report once, use often with core charity information such as Annual Information Statement, charity documents, registration history, charitable purpose history, responsible persons, ACNC enforcement outcomes )

Charity regulation: Benefits cont. Use Register to find out information about other charities Through Register, increased accountability and transparency of sector – greater trust & confidence Dissemination of info and research about sector ( EY & Curtin research) Regulatory oversight – take action against charities doing wrong thing – maintaining trust and confidence for benefit of other charities and the community Timely advice, guidance & education

4.4 million ACNC Register: story so far

Finding out more: Commissioner Column (almost 9,000 subscribers) Web guidance, podcasts and videos #AskACNC coming to a location near you over August Phone: 13 ACNC ( ) 9am to 6pm AEDST Social media: facebook.com/acnc.gov.au twitter.com/acnc_gov_au youtube.com/ACNCvideos