Good360
MEDIA, JOBS & RESOURCES for the COMMON GOOD
News  |  Fundraising

New Regulatory Framework for Public Ancillary Funds


Thursday, 14th July 2011 at 3:18 pm
Staff Reporter
A commonly used financial structure for philanthropic organisations – Public Ancillary Funds – will be reformed to improve their governance and accountability, according to the Gillard Government.

Thursday, 14th July 2011
at 3:18 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
New Regulatory Framework for Public Ancillary Funds
Thursday, 14th July 2011 at 3:18 pm

A commonly used financial structure for philanthropic organisations – Public Ancillary Funds – will be reformed to improve their governance and accountability, according to the Gillard Government.

Assistant Treasurer Bill Shorten has released an exposure draft of legislation and draft guidelines for a new regulatory framework for public ancillary funds for public consultation.

Approximately 1,600 Public Ancillary Funds in Australia solicit tax deductible donations from the public to distribute to deductible gift recipients (DGRs) and are a commonly used structure for community philanthropy.

Bill Shorten says these reforms have been much anticipated by the sector and hopes the changes that will bring the standards of accountability and governance of Public Ancillary Funds in line with Private Ancillary Funds.

Under the reforms the Treasurer will have the power to make legislative guidelines to establish and maintain Public Ancillary Funds.

The changes also give the Commissioner of Taxation the power to impose administrative penalties on trustees who fail to comply with the guidelines and to remove or suspend trustees of non-complying funds.

This function may later move to the new Australian Charities and Not for Profit Commission once it is up and running.

The legislation also defers the previously announced start date of 1 July 2011 until 1 January 2012. Trustees of existing funds will be given a choice whether apply the minimum distribution requirements in the new guidelines immediately or wait until 1 July 2012.

Shorten says the Government has taken on board stakeholders' views as part of the initial consultation process and they have made some changes to the guidelines to take account of the differences with Private Ancillary Funds.

The guidelines will require funds to distribute four per cent of their net assets each year and will also allow new funds four years to build an appropriate level of funding before they are legally required to make a distribution.

Shorten says a minimum distribution rate of four per cent was set after looking closely at the average costs and returns of both Private Ancillary Funds and public ancillary funds and the changes recognise the higher costs faced by many Funds.

The Deputy Prime Minister's Special Adviser on Corporate Philanthropy and the Not for Profit Sector, Michael Danby, says philanthropy is an important part of Australia's culture so it is important for these reforms to improve accountability and trust in the sector.

Consultation on the exposure draft closes on Monday 1 August 2011 and closes on Wednesday 31 August 2011 for the draft guidelines.




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

Labor vows to protect NDIS funds into the future

Luke Michael

Friday, 3rd May 2019 at 5:25 pm

Labor urged to broaden living wage policy

Luke Michael

Tuesday, 26th March 2019 at 5:13 pm

Is your non-profit suffering from regulatory fatigue?

Oliver May

Thursday, 21st March 2019 at 8:32 am

Calls for stricter charity approval process

Maggie Coggan

Monday, 18th March 2019 at 3:58 pm

POPULAR

Is this the Australia we want?

Maggie Coggan

Tuesday, 7th May 2019 at 8:33 am

Labor gives charities the spotlight in final days of election campaign

Maggie Coggan

Wednesday, 8th May 2019 at 4:57 pm

Guide dogs business venture set to shake up traditional charity model

Maggie Coggan

Monday, 13th May 2019 at 4:11 pm

Community Sector Banking
pba inverse logo
Subscribe Twitter Facebook

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

You have Successfully Subscribed!