Guide to Giving
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  Leadership, Politics, Social Innovation

NFPs Call for Unclaimed Monies Fund


Tuesday, 29th July 2014 at 11:19 am
Staff Reporter
Australia’s "unclaimed monies" should be used to create a capital fund to support investments in the Not for Profit sector, a submission to the Federal Government says.

Tuesday, 29th July 2014
at 11:19 am
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
NFPs Call for Unclaimed Monies Fund
Tuesday, 29th July 2014 at 11:19 am

Australia’s "unclaimed monies" should be used to create a capital fund to support investments in the Not for Profit sector, a submission to the Federal Government says.

Not for Profit peak body, the Community Council for Australia, has made a submission to Government and met with Treasury Officials on the issue in response to the Federal Treasury’s Unclaimed Moneys Discussion Paper released in May.

According to the discussion paper, in the 2012-13 Mid-Year Economic and Fiscal Outlook (MYEFO) the previous Government announced changes to the treatment of unclaimed money in relation to unclaimed bank accounts, unclaimed life insurance money, unclaimed first home saver accounts, lost superannuation and unclaimed company moneys.

The paper sought comments from stakeholders on what changes account holders and industry believe could be made to the unclaimed bank account and life insurance provisions to better balance the benefits of the scheme, with its regulatory cost.

CCA hosted a roundtable discussion for Not for Profit leaders on the issue earlier this year.

“The Australian community wants to see a fair and transparent process in dealing with unclaimed monies from dormant bank and superannuation accounts,” CCA Chief Executive Officer David Crosbie said.   

“While we recognise that unclaimed moneys are a community asset that needs to be preserved and available for anyone claiming their money back, there is nothing to stop some of these funds being used to underwrite real investment in the Not for Profit sector that will benefit the whole community.”

In its submission CCA said: “If we can create an additional capital pool for the Not for Profit sector it will deliver real economic and social benefits for governments and our communities in the longer term.

“The community would support the diversion of unclaimed moneys into a fund that is transparent and achieves real social benefit.

“Unfortunately many banks and other financial institutions have difficulty engaging with or underwriting the Not for Profit sector as risks are not always as easy to identify and quantify.

“In an ideal world, there might be a ‘stock market for good’  where investors interested in achieving various social outcomes and impacts could invest in the broad range of social programs, and organisations delivering better outcomes would be able to attract greater capital and deliver a greater social benefit.

The CCA submission sets out a number of conditions that would need to be in place before any funds could be made available to the sector including:

a.      that the capital is preserved and is available to anyone seeking to claim back their unused moneys;

b.      that the capital is not only preserved but is available to government within a reasonable time;

c.      that any use of the funds should not only be revenue neutral but should also make a small positive return over time;

d.      that the use of any funds is both transparent and accountable;

e.      that there is a real and tangible benefit to the community from any investment made with unclaimed funds.

CCA said the submission also highlighted areas where unclaimed moneys might be invested in the sector such as: capacity building; underwriting mergers and collaborations, supporting the development of fundraising, sponsorship and income producing activities; and underwriting a phase down insurance type product to mediate rapid changes in government funding policies.

Crosbie said CCA was currently seeking a meeting with the Assistant Treasurer to discuss its submission.



Guide to Giving

FEATURED SUPPLIERS


Yes we’re lawyers, but we do a lot more....

Moores

HLB Mann Judd is a specialist Accounting and Advisory firm t...

HLB Mann Judd

NGO Recruitment is Australia’s not-for-profit sector recru...

NGO Recruitment

...


More Suppliers


YOU MAY ALSO LIKE

Susan Pascoe Appointed Head of Newly Formed Community Directors Council

Luke Michael

Friday, 22nd September 2017 at 5:21 pm

Mental Health Groups Call for Same-Sex Marriage to Prevent Suicide

Luke Michael

Thursday, 21st September 2017 at 4:24 pm

NFPs Need Social Media More Than They Know

Alecia Hancock

Thursday, 21st September 2017 at 8:33 am

Social Media ‘Inspires’ Fundraising Globally – New Research

Lina Caneva

Wednesday, 20th September 2017 at 4:03 pm

POPULAR

Moves to Stop Volunteering at Overseas Orphanages

Luke Michael

Wednesday, 13th September 2017 at 1:54 pm

Future Uncertain for Disability Organisations Following Funding Cuts

Wendy Williams

Tuesday, 19th September 2017 at 8:29 am

Majority of NFPs Are Not Believed to be Well-Run, According to New Survey

Luke Michael

Tuesday, 12th September 2017 at 4:14 pm

More Australians Are Giving Time Not Money

Wendy Williams

Monday, 11th September 2017 at 5:07 pm

Write a Reply or Comment

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


Guide to Giving
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!