Close Search
 
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  | 

Not for Profit Sector Needs Reform - New Study


1 March 2004 at 12:03 pm
Staff Reporter
The regulatory framework behind Australia’s Not for Profit sector is riddled with inconsistencies and is undermining an economically valuable sector, according to a new University of Melbourne study.

Staff Reporter | 1 March 2004 at 12:03 pm


0 Comments


 Print
Not for Profit Sector Needs Reform - New Study
1 March 2004 at 12:03 pm

The regulatory framework behind Australia’s Not for Profit sector is riddled with inconsistencies and is undermining an economically valuable sector, according to a new University of Melbourne study.

In a first of its kind, the study by University of Melbourne’s Centre for Corporate Law and Securities Regulation researcher Susan Woodward, surveyed over 1700 NFP companies.

The final research report (A Better Framework: reforming not-for-profit regulation) makes recommendations designed to achieve a balance between the needs of the sector and the broad public interest in NFP accountability.

Recent ABS figures confirm that NFPs play a vital role in our society, with the sector adding more to Australia’s GDP than the mining industry. In economic terms alone Australians give more than $2.8 billion annually to NFP organisations.

But Susan Woodward says the underlying health of the sector is at risk.

She says the regulatory framework that underpins the sector is complex and riddled with inconsistencies and it’s time for some preventative medicine.

Woodward says that to meet both the needs of the sector and the needs of its stakeholders, the relevant laws and regulatory bodies needed to be fair, consistent and clear in order to promote NFPs that are transparent, accountable and credible.

She says if the regulatory fundamentals are sound, then growth and innovation are more likely to occur.

Ms Woodward says the legal structures in the NFP sector are more varied and complex than in the business sector, and she has proposed several reform recommendations, the principal one being the need for a single, Commonwealth regulatory regime.

Other recommendations include:
– ASIC becoming the new regulator for all incorporated NFPs (associations and companies), at least until any sector specific regulator is introduced establishing a specialist NFP unit within ASIC
– developing a plain language guide and replaceable rules for NFPs
– establishing an independent NFP advisory body to provide assistance to NFPs with a range of legal, taxation, training and dispute resolution issues.

Ms Woodward says if important reforms are to take place, the sector itself will need to lobby for change, and government (State and Federal) will need to be committed to streamlining and reforming NFP regulation.

She concludes saying that getting the underlying regulatory framework right, accountability and confidence in the sector generally will be improved, leaving Not for Profit organisations more time to concentrate on the important services they provide to the community.

If you would like an electronic copy of the report’s executive summary and recommendations just send us an e-mail with NFP’s Companies Report in the subject line to probono@probonoaustralia.com.au.



PB Careers
Get your biweekly dose of news, opinion and analysis to keep you up to date with what’s happening and why it matters for you, sent every Tuesday and Thursday morning.

Got a story to share?

Got a news tip or article idea for Pro Bono News? Or perhaps you would like to write an article and join a growing community of sector leaders sharing their thoughts and analysis with Pro Bono News readers? Get in touch at news@probonoaustralia.com.au or download our contributor guidelines.

Advertisement

CFRE

Tags : study,

 Print

Get more stories like this

FREE SOCIAL
SECTOR NEWS

Your email address will not be published. Required fields are marked *



YOU MAY ALSO LIKE

Charity partnership set to preserve Aussie wildlife

Luke Michael

Saturday, 19th September 2020 at 8:00 am

Podcast: Three questions to get you off the busy treadmill

Luke Michael

Friday, 18th September 2020 at 2:50 pm

COVID-19 leaves community sector ‘approaching crisis point’

Luke Michael

Friday, 18th September 2020 at 10:10 am

Now or never – Time to fix fundraising

David Crosbie

Thursday, 17th September 2020 at 8:48 am

pba inverse logo
Subscribe Twitter Facebook
×

We need your help.

Since the outbreak of COVID-19, Pro Bono Australia has seen a devastating fall in advertising and less people posting on our job board, which is how we fund our free news service. You can show us that you value the work we do by making a contribution.

 Make a contribution 

You have Successfully Subscribed!