Charities and the need to meet governance standards

In the 2020 Federal Budget, eagle-eyed charities and advisers may have noticed that the Federal Government has allocated $2.9 million over three financial years to the Australian Charities and Not-for-Profits Commission (“ACNC”) to conduct risk reviews of charities. The ACNC has confirmed that it will use this funding to “undertake field-based compliance reviews to assess …

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The importance of good governance in your NFP to obtaining and retaining tax concessions

The ramifications of poor governance are regularly evidenced in the public domain and can lead to a loss of public trust and confidence and in extreme situations threaten the viability of an organisation. Every non-profit (NFP) organisation benefits from good governance and its contribution to an organisation gaining and retaining the confidence and trust of …

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Member Q&A – NFP Membership fees converted to donations and tax considerations

Question We are a not-for-profit membership based organisation. As a result of COVID-19 we have not been able to deliver our usual services to members and are considering refunding fees and, if so, how we treat membership fees already levied and paid. We understand it is possible for the member to be offered the opportunity …

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Eligibility – NFPs and viability

The ATO has released an article reminding not-for-profit entities that it is not just for profit businesses that need to review their viability in the current economic climate and provided a useful tool to assist such a review.   Prior to the announcement of the JobKeeper and JobSeeker scheme extensions, there was palpable concern about …

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Eligibility Q&A – When a charity receives investment income that includes dividends, can it claim a refund of franking credits?

Question Where a NFP charity receives investment income that includes dividends can it claim a refund of franking credits that are included on the dividend statements and if so how? If the charity wholly or partially owns a company that undertakes commercial activities and pays a dividend to the charity do the same rules apply? …

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Payments to volunteers at your NFP or charity: What to keep in mind

Volunteers play an important and necessary role within the not-for-profit (NFP) and charitable sector. Involving volunteers can add value and support your organisation in many ways including engaging a more diverse range of skills, experience and knowledge, building better relationships within the community and delivering services or projects in a more cost-effective manner. Most organisations …

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Eligibility – The NSW Rural Fire Services Case – Donor expectations not met?

Electronic media reports of the recent NSW Supreme Court decision guiding the NSW Rural Fire Service & Brigades Donation Fund on the application of $51m in bushfire donations have been confusingly brief. At least some donors will be disappointed. The decision has implications for both charities and their donors. The January 2020 bushfires led to …

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