1. Ask ACNC Melbourne Presented by Susan Pascoe AM | Commissioner | ACNC 1 September 2014

2. Overview Policy context for the ACNC Not-for-profit sector in Australia Charities in and around Melbourne ACNC – our role, functions and work Charity obligations Benefits of charity regulation Future landscape

3. Policy context for the ACNC Government intention to abolish ACNC –Archive charity register –Implement self-reporting/return to ATO Senate voting intentions unclear ACNC continues to pursue dual role: –Administer the ACNC and Charities Act –Support transition planning to the ATO

4. Size and scope of the NFP sector 600 000 not-for-profits 60 000 charities 4% of GDP ($58 billion) 6% growth per annum Over 1 million employees: 10% of Australia’s workforce Over 6 million volunteers

5. Charities based in the Melbourne area 36% Rely only on volunteers Operate nationally Operate overseas 474 559 9,920 registered charities in Melbourne Melbourne charities by size 65% 19% 16% Education Economic/social Religious Emergency relief Culture/arts Top beneficiaries General community Children Youth Aged persons Women How long have Melbourne charities operated? 1 year or less 2% 2-5 years 9% 5-10 years 15% 10-25 years 28% 25-50 years 27% Over 50 years 19%

6. ACNC: our functions Registration Reporting and compliance Charity register and data sharing Advice, guidance and education, research and policy

7. ACNC: objectives & the executive team Objectives under the ACNC Act: Maintain, protect and enhance public trust and confidence in the NFP sector Support a sustainable, robust, vibrant, independent and innovative NFP sector Contribute to red tape reduction Commissioner Susan Pascoe, AM, and Assistant Commissioners Murray Baird & David Locke

8. ACNC: our role and how we work Commissioner is a statutory office-holder who administers the ACNC Act and Charities Act ACNC Advisory Board provides advice Consult with ACNC Professional and Sector User Groups All policies and procedures published: acnc.gov.au

9. ACNC: our regulatory approach Assumption of honesty, but will act quickly in case of serious misconduct or gross negligence, to protect the reputation and good work of the sector.

10. Guidance Assistance Investigation Graduated sanctions Deregistration

11. Obligations of registered charities Maintain ongoing entitlement to registration Notify the ACNC of certain changes Keep records Report each year Comply with governance standards

12. Notifying the ACNC of changes Tell us if there is a change to your charity’s: name address for service responsible persons (board members), or governing documents. Tell us if you think your charity may be otherwise not be meeting its obligations.

13. Reporting: Annual Information Statements Good record-keeping helps with reporting to the ACNC Annual Information Statements are due within six months of end of reporting period Financial reports (from 2014) required only for medium and large charities

14. 2014 Annual Information Statement 2013 information is pre-populated Annual Financial Reports: –voluntary for small charities –reviewed or audited for medium charities –audited for large charities Governing documents and responsible persons Fixes some common reporting errors from 2013

15. 2014 Annual Information Statement 19 questions (17 mandatory) Basic non-financial information Includes information such as: –charity size –charitable purpose –activities –beneficiaries –staff numbers –volunteer contribution

16. 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 - <$1,000,000 12 items audit or review Large $1,000,000 and above 15 items audit Basic Religious Charities N/A Nil 

17. Benefits of charity regulation Badge of credibility for registered charities Access to commonwealth tax and other benefits Visibility on the charity register Use of the online ACNC Charity Portal Timely advice, guidance and education Over time, reduced red tape for charities

18. Benefits of charity regulation (cont.) Regulatory oversight: –can take action against charities acting improperly –support and protect the good reputation of the sector and charities acting properly ACNC can share information and research based on quality data Use of ACNC Register promotes: –accountability and transparency of sector –trust and confidence

20. ACNC Register: the story so far Main charitable purposes: Advancing education (34.4%) Advancing religion (23.6%) Social or public welfare (19.6%) Public benevolent institution (15.8%) Over 3 800 charities registered by ACNC since Dec 2012

21. Charities registered in 2013–14

22. Open data and the Charity Passport ACNC Register data (and soon 2013 AIS data) published on data.gov.au Established Charity Passport –secure sharing of Register data with authorised government agencies (Charity Passport Partners) –potential to significantly reduce duplicative reporting to government

23. Reducing regulatory burden Report-once, use-often: Charity Passport Harmonisation of reporting agreed in principle by SA and ACT for fundraising and incorporated associations Consulted with the sector to ensure reporting requirements are proportionate (tiered to size) Accepting financial reports lodged under 20 different systems as satisfying 2014 AIS requirements Responsibility for NSCOA

24. 8,752 subscribers to email updates Advice and guidance: the story so far

25. Ensuring compliance with ACNC Act

26. Looking ahead… The ACNC must continue to administer the ACNC Act until a change is made to the legislation The ACNC is working to ensure charities can understand and meet their obligations The Australian Government is consulting on: –The repeal of the ACNC (Department of Social Services options paper – submissions by 24 August) –The Centre for Social Impact study on the proposed Centre for Excellence

27. Keep in contact with the ACNC Commissioners Column and email updates Web guidance, podcasts, video content 13 ACNC (13 22 62) 9.00 am – 6.00 pm AEDST advice@acnc.gov.au facebook.com/acnc.gov.au @acnc_gov_au youtube.com/ACNCvideos

28. Thank you for coming to Ask ACNC