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ACNC Basics

ACNC Basics. What your charity needs to know about Australia’s new charity regulator. Presented by Rachel Smith | Director, Advice Services | ACNC Lucas Ryan | Guidance, Policy and Education Officer | ACNC April 2013. Introduction. Session objectives understand the role of the ACNC

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ACNC Basics

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  1. ACNC Basics What your charity needs to know about Australia’s new charity regulator Presented byRachel Smith | Director, Advice Services | ACNC Lucas Ryan | Guidance, Policy and Education Officer | ACNC April 2013

  2. Introduction Session objectives understand the role of the ACNC recognise the 5 key things charities need to know about the new laws know how you can get help for your charity

  3. Introduction Session structure Part 1: About the ACNC Part 2: Spotlight on… Part 3: How to get more help for your charity Part 4: Questions - all presenters

  4. ACNC Basics Part 1: About the ACNC

  5. Part 1: About the ACNC Burning questions: Our charity is very small – do we have to provide reports to the ACNC? What is a responsible person or entity? We are a charity - do we have to register ? Why doesn’t our charity appear on the Register? What is a basic religious charity? Does the ACNC Act override state law? What information does the ACNC need about our charity?

  6. Part 1: About the ACNC Quick Quiz How many different laws do you think there are in Australia in which some outcome depends on what the word ‘charity’ or ‘charitable’ means ?

  7. Part 1: About the ACNC Commonwealth = Answer – no. of laws re charity All laws in Aus = ? ? ?

  8. Part 1: About the ACNC Charities only Not-for-profit organisations approx. 600,000 Charities approx. 60,000

  9. Part 1: About the ACNC New roles from 3 Dec 2012

  10. Part 1: About the ACNC New terms registered entity (registered charity) responsible entity (responsible person…those on your governing body) basic religious charity (BRC) small; medium; large - charity size (See Resource Handbook page 5, glossary on website)

  11. Part 1: About the ACNC What is a responsible person (entity) • If incorporated - director of company or committee member of incorporated association • If unincorporated - ‘committee of management’ or those acting in that role (officers) • If trust - trustees • If insolvent - administrators, liquidators etc. ss 205-30, 205-10, 300-5

  12. Part 1: About the ACNC What is ‘charity size’? small charity: annual revenue = less than $250 000 medium charity: annual revenue = $250 000 or more, but less than $1 million large charity: annual revenue = $1 million or more.

  13. Part 1: About the ACNC Objects of ACNC Act to maintain, protect and enhance public trust and confidence in the Australian not-for-profit sector to support and sustain a robust, vibrant, independent and innovative Australian not-for-profit sector to promote the reduction of unnecessary regulatory obligations on the Australian not-for-profit sector

  14. Part 1: About the ACNC Being registered with the ACNC…. Registration is free (automatic for 56,000 charities) Charities must be registered with the ACNC to receive charity tax concessions from the Australian Taxation Office (ATO) and other benefits / concessions Public knows your charity meets ACNC Act requirements Public can find out more about your charity on our free, on-line Register

  15. Part 1: About the ACNC Being registered with the ACNC…. Opt - in: available for some religious charities which previously self-assessed as charitable Opt - out: automatically registered charities can choose not to be registered with ACNC any time up to 2 June 2013 – treated as never have being registered but no tax concessions from 2 Dec 2012 Voluntary revocation: can apply to ACNC Commissioner for voluntary revocation and Commissioner has discretion to allow

  16. Part 1: About the ACNC Functions of ACNC Maintain Register Set up ACNC Register Register new charities Regulatory powers Provide education and guidance to the sector Work to reduce red tape Publish information about the sector

  17. Part 1: About the ACNC What the ACNC is NOT X a substitute for your incorporating regulator the Australian Taxation Office an advocacy body for the sector X X X trying to run your organisation

  18. Part 1: About the ACNC Understanding the idea behind the ACNC: One charity’s story

  19. ACNC Basics Part 2: Spotlight on…

  20. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  21. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  22. Part 2: Spotlight on… Check, provide your charity’s details Check your charity is on the ACNC Register Provide additional details for Register… Provide further information required by ACNC… Form: AB.Confirm your charity’s details (Resource Handbook page 10)

  23. Part 2: Spotlight on…

  24. Part 2: Spotlight on… But not: the date of birth or contact details of responsible persons whether your charity has applied to have information withheld from the register

  25. Part 2: Spotlight on… Substituted accounting period Two processes… Notify us of requirement under Australian law (Question 6 in mailout form) Apply to us at any time (Question 7 in mailout form or ‘Request a SAP’ form) … provide reason (see Commissioner Policy Statement on website)

  26. Part 2: Spotlight on… Withholding information from Register Limited circumstances and overriding public interest test: commercially sensitive and could cause harm false, confusing or misleading offensive could endanger public safety, or circumstances allowed by regulations (see Commissioner Policy Statement on website)

  27. Part 2: Spotlight on… Scenario: XYZ Inc.

  28. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  29. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  30. Part 2: Spotlight on… Maintain charity status continue to pursue charitable purpose continue to be not-for-profit comply with governance standards and external conduct standards (when commence) and… no formal insolvency arrangements comply with ACNC Act requirements (we will cover in Spotlights 4 and 5)

  31. Part 2: Spotlight on… Governance standards(Resources Handbook page 25) Will apply to all … except basic religious charities Core minimum standards in regulations (1 July 2013) Covers 5 main topics: Purposes and NFP nature Accountability to members (if any) Compliance with Australian laws Suitability of responsible persons Duties of those who manage charities What will be required for compliance is tailored to each charity’s circumstance (eg, size, type of activities)

  32. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  33. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  34. Part 2: Spotlight on… Duty to notify ACNC of 4 main changes Change to your charity’s: name address for service governing documents responsible persons Form: 3B. Notification of change of charity’s details

  35. Part 2: Spotlight on… Duty to notify ACNC of 4 main changes Timeframe: small charity = no later than 60 days once aware medium charity = no later than 28 days once aware large charity = no later than 28 days once aware Penalties: Administrative penalties can apply for late notification, failure to notify, or false or misleading statements

  36. Part 2: Spotlight on… Duty to notify ACNC of significant contravention or non-compliance significant contravention of ACNC Act significant non-compliance with governance or external conduct standards (when commence) Form: 3C. Notification of contravention or non-compliance

  37. Part 2: Spotlight on… Duty to notify ACNC of significant contravention or non-compliance Timeframe: all charities = no later than 28 days once aware Penalties: Administrative penalties can apply for late notification, failure to notify, or false or misleading statements

  38. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  39. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  40. Part 2: Spotlight on… Record-keeping and annual reporting to ACNC Record-keeping… - all charities; ongoing obligation; keep for 7 years Annual Information Statement - all charities…. submit to ACNC once a year Annual Financial Reports - medium and large charities only (none for small charities & BRCs) - submit to ACNC once a year - no financial reports required for any charity for first year (2012/13)

  41. Part 2: Spotlight on… Resource Handbook page 19 - 23

  42. Part 2: Spotlight on… Resource Handbook page 23

  43. Part 2: Spotlight on… Timing examples

  44. Part 2: Spotlight on… Example 1: Charity A reports to financial yr 1 July - 30 June When is the latest date the annual information statement (AIS) is due? ??? When is the latest date the financial report is due? ???

  45. Part 2: Spotlight on… Example 2: Charity B reports to calendar yr 1 Jan - 31 Dec When is the latest date the annual information statement (AIS) is due? ??? When is the latest date the financial report is due? ???

  46. Part 2: Spotlight on… If we are reporting to the ACNC, do we still need to report to other regulators?

  47. Generally, charities that are companies now report to the ACNC instead of reporting to ASIC: From 3 Dec 2012 changes to governing rules and responsible persons need to be given to the ACNC From 1 July 2013 directors duties, meeting and financial reporting requirements are replaced by governance standards and financial reports to the ACNC Charities that are companies Resource Handbook page 24

  48. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  49. Part 2: Spotlight on… 1. Check, provide your charity’s details 5. Comply with any directions of ACNC Commissioner 2. Maintain registration – pursue charitable purpose 4. Record-keeping and annual reporting to ACNC 3. Duty to notify if (certain) things change

  50. Part 2: Spotlights Summary

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