[PPT] - Office for the Community Sector (OCS) Office for the Community PowerPoint Presentation

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John Unkovich Principal Legal Policy Adviser Consumer Affairs Victoria

Office for the Community Sector (OCS) Office for the Community Sector (OCS)

Presentation to the FMPPCP Member Agency Forum

Jen McKinley Office for the Community Sector September 2011

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The Not The Not-

for

for-

Profit (NFP) sector in Victoria

Profit (NFP) sector in Victoria

More than 120,000 NFP sector organisations operate in

Victoria, including sports, arts, welfare groups, community service providers and more.

Over 37,000 are incorporated associations
In Victoria the government invests $2.2billion in this sector
The NFP industry value was one and a half times that of the

agricultural sector (2006-2007)

80% of Australia’s philanthropic trusts are in Victoria
More than 40% of Victorians volunteer in NFP organisations

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Focus of the Office for the Community Focus of the Office for the Community Sector (OCS) Sector (OCS)

Reducing the burden of red tape
Building sector capability
Diversifying the resource base

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How does the OCS engage How does the OCS engage with

with engage the NFP sector

engage the NFP sector

OCS OCS

Reference Groups Reference Groups Working Groups Working Groups Surveys Surveys Summit Summit Development of resources Development of resources Grants Grants Pilots/Trials Pilots/Trials Communications Tools Communications Tools Building on what’s been done and showcasing the good practice of the sector Building on what’s been done and showcasing the good practice of the sector

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The OCS & reducing the burden of red tape The OCS & reducing the burden of red tape

Standard Chart of Accounts (SCOA)
Common Funding Agreement (CFA)
Better Information for NFP organisations on Regulatory

Requirements (BIRR) Portal

Associations Incorporation Act 1981 (AIA)

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National NFP Reforms National NFP Reforms -

Setting the Scene

Setting the Scene

2001: Inquiry into the definition of charities and related
rganisations
August 2008: Inquiry into the Disclosure Regimes for Charities

and Not-for-Profit organisations

2009: Productivity Commission – Draft Report of the Study into

the Contribution of the Not-for-Profit Sector

National Regulator proposed
Victorian Government response to the Draft Report co-
rdinated by the OCS
January 2010: Productivity Commission - Final Report on the

Contribution of the Not-for-Profit Sector

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National NFP Reforms National NFP Reforms -

Setting the Scene

Setting the Scene

January 2011: Scoping study for a national not-for-profit

regulator – Consultation paper released by Treasury

OCS prepared the Victorian Government response
Early 2011: Commonwealth Government established:
A national Office for the Not-for-Profit Sector
Not-for-Profit Sector Reform Council
May 2011: Commonwealth Budget announcements:
Australian Charities and Not-for-Profits Commission (ACNC) -

to commence operation from 1 July 2012

Negotiations with states and territories on national regulation

and a new National Regulator for the sector

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Australian Charities and Not Australian Charities and Not-

for

for-

Profits

Profits Commission (ACNC) Commission (ACNC)

Allocated $54 million over four years with an initial focus
n reducing the regulatory burden imposed by the

Commonwealth:

Determining Charitable status – public benevolent institution, and
ther NFP status for all Commonwealth purposes – a definition of

‘charity’ applicable across all Commonwealth agencies from 1 July 3013

Providing education and support to the NFP sector
Implementing a ‘report-once use-often’ general reporting for charities
Establishing a public information portal by July 2013

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Australian Charities and Not Australian Charities and Not-

for

for-

Profits

Profits Commission Commission

Ms Susan Pascoe, formerly a Commissioner with the Victorian State

Services Authority has been appointed as Chair of the Implementation taskforce for the ACNC

Mr Robert Fitzgerald AM (Chair of the Productivity Commission

Study into the contribution of the NFP Sector) has been appointed Chair of the Advisory Board established to assist the ACNC

The Commonwealth has committed to consulting with the States

and Territories to arrive at a definition of charitable status.

The ACNC will report directly to Parliament via the Assistant

Treasurer

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Australian Charities and Not Australian Charities and Not-

for

for-

Profits

Profits Commission (ACNC) Commission (ACNC)

Taskforce is working with ATO to establish ACNC on 1 July

2012 From that date the Commission will be responsible for the registration of Australian Charities for all Commonwealth purposes.

The four main priority areas that the taskforce is working:

– Developing a general reporting framework (financial & governance). Taskforce is working across levels of Government - Commonwealth and States & Territories – Setting up an Information portal from 1 July 2012 that will provide both a vehicle for online reporting and a searchable database and ‘one stop shop’ gateway for NFP organisations – Communication – Taking a phased approach to engaging with the NFP sector and other key players over the coming year – online information briefings, roundtables on key topics and formal consultation processes – Education – Designing an approach to information, education and advice

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National Regulation National Regulation

Negotiation with the States and Territories on

national regulation for the charitable (NFP) sector and a new National Regulator for the sector

Commonwealth will focus on getting burden

reduction at the Commonwealth level in-hand initially

Use of Council of Australian Governments

(COAG) processes

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Commonwealth Office for the Not Commonwealth Office for the Not-

for

for-

Profit Sector

Profit Sector

Sits within Prime Minister and Cabinet and reports to the Minister

for Social Inclusion:

Co-ordination role across Government for NFP Sector reform
Reducing red tape for Commonwealth Government funded NFPs
Leads on Volunteering, Social Inclusion and the National Compact and

non-financial reporting

Supports the Not-for-Profit Sector Reform Council which has a

number of working groups including:

National Compact Working Group
Reducing red-tape Working Group
Harmonisation Working Group
Tax reform Working Group

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Other projects Other projects

Grants Funding template project - being led by

the Department of Finance

Measurement of the economic benefit of the

NFP Sector being undertaken by the ABS

Early work on Tax concessions, Companies

Limited by Guarantee and charities definition – Australian Taxation Office (ATO)

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Council of Australian Governments (COAG) Council of Australian Governments (COAG)

Commonwealth has proposed that a new NFP Working

Group that will report to COAG through the Standing Council for Federal Financial Relations be established

This new NFP Working Group would be responsible for

progressing national NFP regulatory reform:

Adoption of a consistent definition of ‘charity and charitable

activities

Adoption of standardised general reporting for NFPs
Input to reviews on companies limited by guarantee and

governance obligations appropriate for NFPs

Harmonisation – fundraising regulation and working with children

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Australian Charities and Not Australian Charities and Not-

for

for-

Profits

Profits Commission (ACNC) Commission (ACNC)

The expected benefits for NFPs from the new regulation

approach includes:

– Registration by an independent ACNC establishes the bona fides of an NFP (“ a registered charity”) – Opportunity for promotion of NFP activities via ACNC website – Widespread access to information for NFP entities, donors, government and the public – Tiered reporting requirements (proportionate regulatory approach) – Education and support from the ACNC to meet accountability and reporting obligations – Increased public access to information to promote community confidence in the sector – Development of accurate, verifiable and comprehensive information on the sector that can properly inform future policy. – Ultimately, streamlined regulatory requirements through “one stop shop” and “report once, use often” capability on the portal (as state and territories jurisdictions and agencies come on board)