Impact 25 Winners
MEDIA, JOBS & RESOURCES for the COMMON GOOD
NEWS  |  Finance, Philanthropy, Politics

Changes to Public Ancillary Funds


Monday, 22nd November 2010 at 11:24 am
Staff Reporter
The Federal Government has released a Discussion Paper for public consultation on improving the integrity of public ancillary funds.

Monday, 22nd November 2010
at 11:24 am
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Changes to Public Ancillary Funds
Monday, 22nd November 2010 at 11:24 am

The Federal Government has released a Discussion Paper for public consultation on improving the integrity of public ancillary funds which aims to increase public confidence in the philanthropic sector.

A public ancillary fund is an ancillary fund to which the public can make tax deductible donations, for the purpose of disbursing funds to a range of non-ancillary or ‘doing’ deductible gift recipients.

These funds are generally used as vehicles for community fund raising.

In the 2010-11 Budget, the Government announced changes to improve the accountability of public ancillary funds and give Australians more certainty that their donations are being used wisely.

The Assistant Treasurer, Bill Shorten says the changes will provide trustees of public ancillary funds with greater certainty as to their philanthropic obligations and provide donors and the charitable sector with greater confidence that donations are being used effectively.

The proposed changes introduce a new regulatory framework similar to that introduced on 1 October 2009 for private ancillary funds.

The new rules will apply to public ancillary funds as from 1 July 2011.

Bill Shorten says public ancillary funds have a duty to distribute these donations as efficiently as possible to the many worthy charities seeking valuable public support.

Shorten says that in 2007-08, Australians provided over $2.3 billion in tax deductible donations to various charities around Australia, some of which passed through around 1,500 public ancillary funds, including groups like the Australian Koala Foundation, Comic Relief Australia and various workplace charity funds.


He says he has no doubt the vast majority of the charities involved do their best, but this proposed new regulatory framework will give donors more confidence their donations are being distributed properly.

The discussion paper outlines the Government's views on the essential characteristics of a new framework for public ancillary funds. It proposes several changes to the current regulatory system, including the introduction of legislative guidelines.

As outlined in the discussion paper, these guidelines will allow for regular valuation of assets, will clarify investment and distribution rules and will contain a system of administrative penalties for small breaches instead of the harsh 'all or nothing' penalty system that currently applies.

As well it recommends

  • providing legislative guidelines to, among other things, clarify the current administrative requirements including the amount of compulsory distributions;
  • imposing new requirements such as the regular valuation of assets at market rates, the preparation of accounts and financial statements, audit requirements and investment rules;
  • improving disclosure requirements; and
  • giving the ATO greater regulatory powers.

The Assistant Treasurer has encouraged interested parties to provide their comments on the paper by 17 December 2010.

Address written submissions to:
Manager
Philanthropy and Exemptions Unit
Personal and Retirement Income Division
The Treasury
Langton Crescent
PARKES ACT 2600
Email: pafreforms@treasury.gov.au
For enquiries, please call Robyn Vincent on (02) 6263 2758.

The Discussion paper can be downloaded HERE
 




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

Write a Reply or Comment

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



YOU MAY ALSO LIKE

What Does $87M of Giving Look Like?

Jodi Kennedy

Tuesday, 19th March 2019 at 7:30 am

Retirees Go Back to Nature With Their Savings

Maggie Coggan

Wednesday, 13th March 2019 at 5:22 pm

Giving Philanthropy Back to the People

Maggie Coggan

Monday, 11th March 2019 at 8:30 am

As Donors and as Causes, Women are Taking the Lead in Philanthropy

Kate Pew Wolters

Thursday, 7th March 2019 at 8:02 am

POPULAR

Tech Giant Launches Foundation to Tackle Indigenous Disadvantage

Luke Michael

Tuesday, 5th March 2019 at 5:09 pm

Cafe Roasted for ‘Appalling’ Sign Mocking Disability Abuse

Luke Michael

Thursday, 7th March 2019 at 5:18 pm

Concerns Raised Over Government’s Domestic Violence Plan

Luke Michael

Wednesday, 6th March 2019 at 5:23 pm

The NDIS is Not Medicare

Fran Connelley

Tuesday, 5th March 2019 at 8:31 am

Impact 25 Winners
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!