Community & Associations Newsletter – September 2016
Published on September 12, 2016 by Josephine Heesh
Welcome to the September edition of the Community and Associations Newsletter
In this edition our team report on:
- ACNC update
- Evidence before the UK House of Lords Select Committee on Charities
- Royal Commission into the Detention of Children in the Northern Territory: terms of reference
- Protecting the income of a charitable trust
- Pokémon’s run-in with the law
The Carroll & O’Dea Community & Associations Team
ACNC Update
Federal Shadow Ministry for Charities
The Leader of the Federal Opposition recently announced the creation of a new shadow ministry – the Shadow Ministry for Charities and Not-for-profits.
In his first press release as the Shadow Minister for Charities and Not-for-profits, Andrew Leigh stated that he was “looking forward to working with Australia’s charity sector” in his new role “to boost social capital and civic engagement”.
In an interview with Pro Bono Australia following his appointment, Minister Leigh said that “Labor would take a holistic approach to working with the sector” by differentiating itself from the Coalition by acknowledging that “social service charities are just one of the many kinds of charities.” Minister Leigh also said that Federal Labor would “work with state and territories to encourage them to cede powers to the charity commission and also make sure that the charities commission has the resources it needs to really service the sector.”
ACNC guide on Charity administration costs
On 10 August the ACNC issued a new guide titled “FAQS: Charites and administration costs”. In the Guide, which is targeted at both charity donors and the public at large, the Commission acknowledges that “it is entirely reasonable” for charity donors “to want to ensure that each dollar” that they “give will be used well”, however, the Commission understands that “properly assessing and comparing charity administration costs is difficult to do and can be misleading”.
The Commission intends the guide to give donors and the public a greater understanding of the nature and necessity of administration costs, while also “correct[ing]” some “common misconceptions” about the issue.
In the press release announcing the guide, ACNC Commissioner, Susan Pascoe AM, stated that “The ACNC believes that there should be a dedicated accounting standard that applies to the not-for-profit sector with clear guidelines that set out how charities report different income and expenses” as is the case in other countries.
A common charity definition?
On 27 August the ACNC released a discussion paper titled “A common charity definition?”, which proposes that all state and territory jurisdictions adopt a universal definition of charity.
So far, South Australia and Tasmania and, it is hoped, soon, the ACT, have agreed to use the definition of charity contained in the Charities Act 2013 (Cth). The goal of a universal definition is to reduce duplication for charities needing to deal with the ACNC and also state regulators, especially in relation to state grants and state taxes. Different use of the definition for state revenues remain a challenge.
The discussion paper can be accessed here.
House of Lords select committee on charities
On 25 May 2016 the UK House of Lords appointed twelve of its members to a Select Committee created “to consider issues related to sustaining the charity sector and the challenges of charity governance”. The announcement follows concerted criticism of the UK Charity Commission, particularly in relation to its efficiency, and the UK charitable sector itself, following a recent report released by the regulator showing that “Public trust and confidence in charities has fallen to the lowest recorded level since monitoring began in 2005”.
Royal Commission into the detention of children in the Northern Territory
The appointment of commissioners and the drafting of the terms of reference has now been finalised for the Royal Commission into the Detention of Children in the Northern Territory. Following the withdrawal of Hon. Brian Ross Martin (AO), the Commission is to be now headed by Hon. Margaret White (AO) and Mick Gooda. Margaret White is a former Justice of Appeals of the Queensland Court of Appeal. Her Honour was the first female to be appointed to the Queensland Supreme Court in 1992. Mick Gooda is the Australian Human Rights Commission’s Aboriginal and Torres Strait Islander Social Justice Commissioner. He is a member of the Gangulu people in Central Australia, and former officer of the Aboriginal and Torres Strait Islander Commission.
Losing interest? Protection for your charitable trust income
Charities may find themselves the beneficiary of a very welcome gift under a Will, and for those charities with limited fundraising capacity, these gifts are life blood. The receipt of such a gift, however, may not be without its challenges, particularly when the gift is to be held for the charity on trust.
Don’t Pokémon Go too far!
Pokemon Go has taken the world by storm. But how far would you go to earn points, virtual lollies and stardust?
Despite the makers’ recommendation that pokers “approach Pokemon with caution and remember to look up from their phones to avoid tripping or running into something”, there has been no shortage of injuries sustained by pokers.
Then there are the brushes with the law – playing whilst driving, abandoning vehicles to hunt for Pokemon (a massive problem in Times Square) and entering unauthorised property and buildings.
In Sydney, pokers have been known to enter the law courts where the activity amounts to a contravention of section 9 of the Court Security Act 2005 and carries a $22,000 fine or imprisonment for 12 months (or both).
It is yet to be reported whether the prized Pikachu is hiding at Long Bay Correctional Centre but let’s hope no pokers get to find out!
