A team effort: Establishing and communicating good policy at your sporting club
Incorporated sporting clubs and associations have distinct obligations to fulfil as a legal entity. Committee members, directors, coaches and volunteers each have a role to play in the team and it is vital that all involved understand the different policies that are applicable to the club and its members. Here are just two policy considerations for ensuring “good play” in your local sporting organisation.
Amendments to Private and Public Ancillary Fund Guidelines
The Private Ancillary Fund and Public Ancillary Fund Amendment Guidelines 2015 (amending guidelines) propose to amend the currentPrivate Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011 (together, the Guidelines), with the changes to apply from 1 July 2016. The Guidelines set minimum standards for the governance and conduct of ancillary funds and their trustees, breach of which can result in a revocation of charitable and/or concessional tax status. Therefore, trustees of ancillary funds need to familiarise themselves with these changes.
Charity case law update – Study and Prevention of Psychological Diseases Foundation v Commission for Taxation
The Federal Court has dismissed an appeal by Study and Prevention of Psychological Diseases Foundation (SPED) against an earlier finding of the Administrative Appeals Tribunal confirming a decision of the Commissioner of Taxation to revoke SPED’s endorsement for federal tax concessions as a health promotion charity.
Shane Warne Foundation under investigation
The financial practices of The Shane Warne Foundation are under investigation by Consumer Affairs Victoria.
The Foundation is listed on the Australian Charities and Not-for-profits Commission register as a public ancillary fund that is a deductible gift recipient entitled to GST and FBT concessions and is exempt from income tax. Established in 2003, the Foundation has the charity subtype of advancing social or public welfare, lists its beneficiaries as youth with chronic illness and disabilities. It has revenue of $250,000 to $999,999 per year putting it in the medium sized charity category.
ACNC revokes charitable status of 169 organisations
The Australian Charities and Not-for-profit Commission (ACNC) has revoked the charitable status of 169 organisations for failing to comply with their reporting obligations for two or more consecutive years. This means that these organisations will lose access to all Commonwealth tax concessions, such as exemption from income tax, to which they were previously entitled.
Good news for charities – ABR and ACNC to data share
The Australian Charities and Not-for-profits Commission and the Australian Business Register (ABR) have signed an agreement to transfer information between the ABR and the Charities Register. This means there will now be continuous data sharing between the registers and inconsistencies between them will be reduced.
ACNC calls for comment on their Regulatory Approach Statement
Charities have been invited to comment on the exposure draft of the “Commissioner’s Interpretation Statement on Withholding or Removing Commercially Sensitive Information from the ACNC Register” (Exposure Draft).
Charity has status revoked by ACNC
On the 11th of September 2015, the Queensland based organisation Adult Stem Cell Foundation Australia Limited (ASCFAL) had its charity registration revoked by the Australian Charities and Not-for-profit Commission (ACNC) after a review into its operations and activities was conducted by the ACNC. This means it will no longer be eligible for charity tax concessions, such as exemption from income taxes, deductible gift recipient status and fringe benefits tax concessions.
Charities financial reports show significant errors
Thousands of charities are being contacted by the Australian Charities and Not-for-profits Commission (ACNC) due to significant errors in their financial reporting. The ACNC have highlighted that significant errors have been located in many charities’ 2014 Annual Information Statements or Annual Financial Reports.
Charities must ensure contact details are current
More than 300 charities are at risk of losing their charity status because they have failed to provide up-to-date contact details to the Australian Charities and Not-for-profits Commission (ACNC). All charities on the ACNC register are required to notify the ACNC of changes to their organisation.
5,000 ACNC Charities receive a ‘red mark’ for failing to submit reporting
The Australian Charities and Not-for-profits Commission (ACNC) has given a ‘red mark’ to more than 5,000 charities that have failed to submit their 2014 Annual Information Statements (AIS) due for most charities in January 2015. The red mark appears as an exclamation alert on the charity’s listing on the charity register.
Good news for corporate volunteers
Volunteering Australia, the national peak body for volunteering, has released a new definition of volunteering after a 2 year review. The new definition is ‘time willingly given for the common good without financial gain’.
ACNC CHARITIES - LODGE YOUR AIS PRIOR TO 30 JUNE
The deadline for lodging your Australian Charities and Not-for-profits Commission (ACNC) registered charity’s Annual Information Statement (AIS) is 30 June, unless you have applied to the ACNC to have a different reporting period. If charities fail to submit their AIS for two consecutive years, they will have their charity status revoked.
Doing good is good business
Whilst not a conventional topic for a lawyer’s article, I thought I would use this article as an opportunity to share Harwood Andrews’ recent certification as a B Corp and hopefully encourage other businesses in the Geelong and the Surf Coast region to do the same.
1 July deadline for public ancillary funds to comply with guidelines draws near
The transitional period for trustees of public ancillary funds to amend their fund’s governing rules to comply with the public ancillary fund guidelines closes on 1 July 2015. Public ancillary funds and their trustees must comply with these guidelines if the funds are to remain endorsed as deductible gift recipients.
As well as the fund losing entitlement to DGR endorsement, failure to comply with the guidelines could lead to the trustee incurring administrative penalties.
Funding to ACNC to continue until 2019
In budget papers released on 12 May the Federal Government has confirmed funding to the Australian Charities and Not-for-profits Commission (ACNC) will continue until 2019. However, the charity regulator will see a modest reduction in its funding from $14.8 million in the next financial year to $13.2 million in 2018-19.
Changes for private ancillary funds in the pipeline
In a recent speech to the Community Council for Australia forum, Assistant Treasurer Josh Frydenberg flagged that the Abbott Government plan to make changes to the way in which private ancillary funds can distribute their assets and wind-up
A further 6,000 charities face deregistration by the ACNC
The Australian Charities and Not for Profits Commission have issued a final warning to 6,000 charities that face deregistration for failing to lodge their AIS for two consecutive years. If deregistered, these charities will lose their entitlement to tax concessions
ACNC revokes registration of 1380 double defaulters
1380 charities, including 170 Victorian charities, will no longer be eligible for tax concessions as the Australian Charities and Not-for-profits Commission (ACNC) has revoked their registration. These charities have been deregistered due to failure to lodge their Annual Information Statement (AIS) for two consecutive years.