Kent Wilson’s Post

CPA Australia in partnership with University of Melbourne, is pleased to invite you to this year's Annual Research Lecture. The passage of the Australian Charities and Not-for-profits Commission Act 2012 (Cth) establishing a national independent regulator heralded a new era for the Australian not-for-profit (NFP) sector. The Australian Charities and Not-for-profits Commission (ACNC) was borne amidst political contention which existed until March 2016. The ACNC introduced new national reporting requirements for registered charities but with a unique twist – to promote red tape reduction. Mel Yates, acting Assistant Commissioner, Australian Charities and Not-for-profits Commission will outline: What has been achieved in more than a decade since the ACNC was established Challenges that remain The role accountants and assurance providers have played to date What is on the horizon, opportunities and implications for professionals in research and practice The ACNC Charity Register contains hundreds of thousands of annual lodgements from registered charities and tens of thousands of financial reports. In the current environment where regulatory reform continues and societal expectations change, what do the achievements to date mean in the context of change? Has this made a difference to trust and confidence in charities or is it simply more red tape? What is coming next that accountants can prepare for?

CPA Australia in partnership with University of Melbourne, is pleased to invite you to this year's Annual Research Lecture. The passage of the Australian Charities and Not-for-profits Commission Act 2012 (Cth) establishing a national independent regulator heralded a new era for the Australian not-for-profit (NFP) sector. The Australian Charities and Not-for-profits Commission (ACNC) was borne amidst political contention which existed until March 2016. The ACNC introduced new national reporting requirements for registered charities but with a unique twist – to promote red tape reduction. Mel Yates, acting Assistant Commissioner, Australian Charities and Not-for-profits Commission will outline: What has been achieved in more than a decade since the ACNC was established Challenges that remain The role accountants and assurance providers have played to date What is on the horizon, opportunities and implications for professionals in research and practice The ACNC Charity Register contains hundreds of thousands of annual lodgements from registered charities and tens of thousands of financial reports. In the current environment where regulatory reform continues and societal expectations change, what do the achievements to date mean in the context of change? Has this made a difference to trust and confidence in charities or is it simply more red tape? What is coming next that accountants can prepare for?

We look forward to seeing you at this exciting event! CPA Australia in partnership with University of Melbourne, is pleased to invite you to this year's Annual Research Lecture. The passage of the Australian Charities and Not-for-profits Commission Act 2012 (Cth) establishing a national independent regulator heralded a new era for the Australian not-for-profit (NFP) sector. The Australian Charities and Not-for-profits Commission (ACNC) was borne amidst political contention which existed until March 2016. The ACNC introduced new national reporting requirements for registered charities but with a unique twist – to promote red tape reduction. Mel Yates, acting Assistant Commissioner, Australian Charities and Not-for-profits Commission will outline: What has been achieved in more than a decade since the ACNC was established Challenges that remain The role accountants and assurance providers have played to date What is on the horizon, opportunities and implications for professionals in research and practice The ACNC Charity Register contains hundreds of thousands of annual lodgements from registered charities and tens of thousands of financial reports. In the current environment where regulatory reform continues and societal expectations change, what do the achievements to date mean in the context of change? Has this made a difference to trust and confidence in charities or is it simply more red tape? What is coming next that accountants can prepare for?

Charity Commission inquiries: behind the headlines. How far are charities' commercial decisions the business of their regulator? In recent years the Commission has seemed more confident in its criticism of trustee commercial decisions, appealing in its inquiry reports to a standard of "sound judgment". This was worrying because if sound judgment was the right test, what did it mean? Did it mean the Commission could say with the benefit of hindsight, what it thought was or was not sound? Where even did "sound judgment" come from? Actually, it seems to come from the Commission's own guidance glossing the "duty of prudence" a rather narrow duty that told the Victorian trustee how exciting their investment portfolio could be. It isn't a phrase found in the law. In a recent inquiry report, the Commission seems to have put the rigor of its analysis back on track, talking about established trustee decision-making standards, like taking advice and being sufficiently informed, acting with reasonable care and skill. The duty of prudence still seems to be in the analysis, but as a much more meaningful and accurately rendered duty to avoid exposing charity assets to undue risk.

OSCR is concerned at dominant behaviour in charities: https://lnkd.in/eAt4qX-H and so having a healthy Board culture that welcomes debate and challenge is key not just to an effective Board but also in setting the leadership culture for your charity as a whole

#AnnualReturn #NFPs #Reminder ⚠️ From the 2023-24 income year, non-charitable not-for-profits (NFP) with an active ABN must lodge an annual return. There are three steps to completing the return: 1. Organisation Details 2. Income Tax Self-Assessment 3. Summary & Declaration - full details from the latest ATO update are attached. 🔵 HOW IS NON-COMPLIANCE DEALT WITH? If a not-for-profit doesn't submit their NFP self-review return, they may become ineligible for an income tax exemption and penalties may apply. 🔵 WHAT IS THE LODGEMENT PERIOD? The lodgments are required to be made from the 2023–24 income year onward, between 1 July & 31 October 2024. A fresh return must be lodged each income year after that. NFPs with an approved substituted accounting period (SAP) for income tax will use their SAP to lodge their NFP self-review return. 🔵 WHO DOES *NOT* NEED TO REPORT? ◼️ Charities: A government entity or a charity registered with the Australian Charities and Not-for-profits Commission (ACNC) are not required to lodge an NFP self-review return. Charities already lodge an annual information statement to the #ACNC each year. ◼️ Taxable NFPs: Similarly taxable not-for-profits are not required to lodge, as they already lodge an income tax return or notify us of a return not necessary each year. --------- If you need legal advice about a new or existing charitable or not-for-profit organisation, we can help. Email our team for an initial consultation: legal@littlecfo.com #Charities #NFPconstitutions #CharitablePurposes #TaxConcessionCharity #DGR #charity #nonprofit #lawyers --------- Source: ATO website – 'Reporting Requirements To Self Assess Income Tax Exemption' QC73184, last updated 2 May 2024, <https://lnkd.in/gCXGBk_r>.

Last Friday, the Edinburgh Integration Joint Board (EIJB) announced their proposal to end their grant funding of £4.5 million to 64 charities across Edinburgh. This proposal not only recommends cancelling these vital services, but calls for a decision tomorrow. By doing so, existing contracts can be cancelled two months early, clawing back £700k of funding for vital projects and services already promised for this year. We at Empty Kitchens Full Hearts are dismayed at the pending cuts recommended by the EIJB. These cuts will have dramatic impacts on the lives of some of Edinburgh's most vulnerable people and the communities they live in. Some charities will find it very difficult to survive the sheer scale and timing of these cuts, having had no prior warning. We are particularly concerned about the impact these cuts will have on the services and organisations which we ourselves refer people to and have seen change lives. These are our friends, colleagues and neighbours, and we will stick by them. We second the following proposals outlined by Debbie McCulloch and the R2 development group:  - The funding for this year (24/25) is guaranteed and runs the full length of the contract. - That the 25/ 26 grants are not cut in entirety and that we (R2) can be part of a conversation regarding how we may be able to assist in making savings. - That there is recognition that if these “savings” are to go through, we are shoring up future impacts. We also ask that you please sign the petition linked here, before 2.30pm today: https://lnkd.in/eRDXdQZn

Important update from FOS and something for CMCs to consider. Take a look at the article below for more details:

As 21% of not-for-profit directors are now compensated, understanding the legal implications is crucial. In this article, Darren Fittler, Elizabeth Lathlean and Darrell Lao Bagang explore various legal considerations and opportunities associated with remunerating charity and not-for-profit directors. https://lnkd.in/eMCjyPik

Ground control to Captain Tom, commencing countdown, engines on… Quick initial thoughts following from the Charity Commission’s long-awaited inquiry into the Captain Tom Foundation. • Is it really necessary for new charities to be set up, in memory of someone? There are 170,000 registered charities out there doing great work - surely at least one would be a good fit and deserving of your support? • If the decision is made to proceed, take your protein pills and put your helmet on. If there is any prospect of family members receiving any benefit from its operation, then ensure any such benefit would be properly authorised in accordance with the charity’s governing document and through proper management of possible conflicts of interest. • Recruit truly “independent” trustees to provide vital constructive challenge to the board, keeping the charity on its toes. • Finally, check ignition and may God’s love be with you…You’ve really made the grade. #GroundControlToCaptainTom