CSB
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  Finance, Philanthropy, Politics

Federal Budget – New NFP Regulatory Framework


Wednesday, 12th May 2010 at 9:56 am
Staff Reporter
Federal Budget delivers a new regulatory framework to further improve transparency in the Charitable sector.

Wednesday, 12th May 2010
at 9:56 am
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Federal Budget – New NFP Regulatory Framework
Wednesday, 12th May 2010 at 9:56 am

The Rudd Government will introduce a new regulatory framework to improve the integrity of public ancillary funds which it says will boost confidence in the philanthropic sector.

Assistant Treasurer, Senator Nick Sherry says the Government is committed to the continuing growth of the philanthropic sector and to supporting community-based charitable initiatives.

But he says alongside a strong philanthropic sector must come proper accountability, particularly when it comes to organisations benefitting from taxpayer funded incentives.

In 2008 the Government introduced a new regime for private ancillary funds and a new regulatory framework is aimed at ensuring public ancillary funds meet similar minimum standards.

Many community and fundraising foundations are set up as public ancillary funds and hold deductible gift recipient (DGR) status, meaning all donations made to the funds are tax deductible.

These funds then distribute the money gathered from public donations to other charitable organisations that also have DGR status. In the case of private ancillary funds, businesses, families and individuals establish a charitable trust of their own with DGR status.

Senator Sherry says the new framework for public ancillary funds will provide trustees with greater certainty as to their obligations and provide donors and the charitable sector with greater confidence that donations are being used effectively.

The proposed regulatory framework would take effect from 1 July 2011 and will include legislative guidelines similar to those introduced for private ancillary funds from 1 October 2009.

Senator Sherry says the legislative guidelines will allow for regular valuation of assets, will clarify investment and distribution rules and will contain a system of administrative penalties.

He says he consulted comprehensively on the private ancillary funds reforms and he's confident that compliance and governance outcomes were improved for philanthropy in Australia.

The Government will consult on the public ancillary fund changes through the release of a policy discussion paper. Details of the new regulatory framework will be finalised following consultation.




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

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

ACOSS Says Government Faces ‘Choice’ to Either Fund Services or Cut Taxes

Luke Michael

Tuesday, 13th February 2018 at 2:50 pm

UCA Funds Management Hosts NFP Budget Overview

Contributor

Wednesday, 17th May 2017 at 5:15 pm

State Budget Versus Federal Budget: A Tale of Two Cities

Rachel McFadden

Tuesday, 16th May 2017 at 4:07 pm

Plebiscite ‘Back from the Dead?’

Lina Caneva

Thursday, 11th May 2017 at 8:51 am

POPULAR

Animal Shelter Loses Charity Status

Wendy Williams

Wednesday, 11th April 2018 at 5:20 pm

NFP Real Estate Agency to Drive Sydney’s Affordable Housing Supply

Wendy Williams

Wednesday, 11th April 2018 at 5:34 pm

NDIS Urged to Implement Portable Training System for Workers

Luke Michael

Tuesday, 17th April 2018 at 8:31 am

Write a Reply or Comment

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


Salary Survey 2018
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!