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Media Release – New research: Covid-19 a 200,000 job taker in the charities sector

Media Release - New research: Covid-19 a 200,000 job taker in the charities sector

Australian charities employ 1.3 million people, rely on over 3.5 million volunteers, turn over more than $150 billion each year, and contribute 8% of Australia’s GDP. They are vital to our economy and to our communities. New research shows 200,000 charity jobs are now at risk.

CCA Chair Rev Tim Costello said; “this research confirms charities were doing it tough before COVID-19 and are going to be doing it tough for some time, having to stand down staff, close down services. The projected loss of jobs across the charities sector would have a devastating impact, let alone the loss of all the charitable work that is so vital to so many communities. We are going to need as many charities as possible surviving through this crisis and helping rebuild Australia into the future. Governments could start by getting rid of pointless wasteful fundraising red tape. It would cost nothing and benefit many donors!

Social Ventures Australia (SVA) with the Centre for Social Impact (CSI) released the new research today:

To understand the effects of COVID-19 on the financial viability of charities and identify systemic solutions, SVA modelled the potential impact of the crisis on the financial health of the 16,022 registered charities in Australia with 1.22 million employees (many are run purely by volunteers). SVA modelled a 20% fall in revenue for these charities and found:

88% of charities would immediately be making an operating loss;
17% would be at high risk of closing their doors within six months, even taking reserves into account;
more than 200,000 jobs could be lost as a result of cost-cutting and organisational closures.

CCA CEO David Crosbie said; “Government concessions to charities in JobKeeper eligibility mean thousands of charity jobs have been saved over the past few months, but we now face a situation where the future viability of one in six charities is in doubt. With the downturn in fundraising, closure of events and meetings, closure of volunteer run shops and other services, loss of fees from training, education and other programs, many charities are already struggling to stay open. Some charities had been able to move several of their services on-line, but in many cases this has not been possible. The loss of volunteers has also translated into higher costs at a time when many front-line charities are experiencing higher need.”

The report calls for governments to ensure the resilience and viability of the charity sector through:

a gradual transition of JobKeeper to create a ‘ramp’ not a ‘cliff’ in October
make fundraising and philanthropy simpler by creating nationally consistent fundraising laws and offering incentives to encourage increased philanthropic giving
Create a Charities Transformation Fund to help organisations transition to the ‘new normal’ including operating online, restructuring their organisation and investing in the capability of staff
maintain and, where needed, increase funding for government contracted services
retain JobSeeker at a higher level to reduce service demand on charities and stimulate the economy
support further research to better understand how to build back the charities sector.

View the research report: Will Australian charities be COVID-19 casualties or partners in recovery? A financial health check: charities-covid-19-financial-health-check

Media Release – New research: Covid-19 a 200,000 job taker in the charities sector Read More »

Drawing lines somewhere

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Drawing lines somewhere

Where we draw lines between ‘us’ and ‘them’, included and excluded, as we respond to a crisis like C19 says a lot about who we are, what we value, about our own humanity. The best lines are not about labels and categories, but about need writes CCA CEO David Crosbie.

Drawing lines somewhere, Pro Bono News, 28 May 2020

“At $130 billion we had to draw the line somewhere. This is a massive call on the public purse, and it is a debt that the country will pay for years to come. And at six million people on the JobKeeper program, that’s nearly half the Australian workforce. … bringing the one million ineligible casuals into the JobKeeper scheme would cost an extra $18 billion.” – Federal Treasurer Josh Frydenberg, (The Australian).

When we draw lines around ourselves or on maps, we create borders between people. How we see these borders invariably depends on which side of the line we are standing.

The government drew the COVID-19 support package line at $130 billion and 6 million workers – this was the cited reason many people had to be excluded from JobKeeper and some other support packages. This was the limit, our line.

Turns out the numbers were grossly overestimated, but still the government is not about to extend eligibility.

The decision not to include more people makes it clear that the reluctance of government to extend support to temporary visa holders, casuals and others is not just about the money. The fact is the government could provide a more inclusive JobKeeper package for significantly less than they anticipated and were prepared to pay. There are good economic, social and health reasons to do so.

Many of us know all too well what happens to individuals and their families when they lose their job through no fault of their own and cannot get alternative work or access government support. It is soul destroying. This is the reality for too many people in Australia right now. There is a broad group of people, many temporary visa holders, international students and those who work in short-term casual roles who do not qualify for JobKeeper or JobSeeker. They are on the wrong side of the line.

Charities are doing their best to support these groups, to enable them to eat, have shelter, and assistance to help educate their children. We know many will receive invaluable support, but many will also end up outside of our services, unsupported.

For most of my life, I have worked with people on the wrong side of lines, in prisons, drug treatment services, mental health settings. Some of these people have made mistakes that will haunt them for the rest of their lives, big mistakes, sometimes stupid mistakes fuelled by drugs and alcohol. Many of the people I worked with have survived incredible levels of trauma. Their mistakes were grounded in their experience of injustice, abuse and disadvantage.

I have sometimes been able to help people realise their dreams, and sometimes watched on helplessly as their nightmares were realised. I have spoken at the funerals of too many people I cared about.

The most important lesson I have learned in working with and for the marginalised of our community is that they are us. All of us in our own ways struggle with life. In many ways these struggles are what define us, make us human, make life worth living. And by that definition, those who have struggled more often best reflect our humanity.

When a crisis like COVID-19 hits a community, the response says a lot about who we are, what we value, about our own humanity.

Even for those of us on the right side of the line, the impact of a major shut down can be very challenging.

For those on the wrong side of the line, the “they” who are often not valued for their work and their place in our communities, crisis can be a point of engagement. It can also reinforce their place outside of mainstream Australia. For too many groups in Australia, we have chosen to reinforce their exclusion.

For me, this is the most disappointing aspect of the COVID-19 crisis, the willingness of some to cut people adrift as though they are somehow less worthy or deserving than those of us on the other side of the line.

It is important to acknowledge that governments have generally been prepared to listen to charities and have offered quite strong support for our organisations with concessional access to JobKeeper and other important measures including a greater willingness to facilitate roll-over of government funding.

Every state and territory government has offered some measures in support of temporary visa holders and some other at-risk groups. These measures are to be commended.

At the same time, the federal government has made it very clear that it is not prepared to; “saddle taxpayers with additional debt by extending JobKeeper to areas that had missed out such as universities, foreign visa holders and casual workers with less than 12 months service to an employer.”

And so, the work of many in the charities sector is now defined by a seemingly moveable line that excludes people who are vital members of our communities, our economy and our humanity.

Those of us who know this work also know that the best lines we can draw around programs, services and support are not about labels and categories, but about need. Need driven lines are not straight, they do not rely on labels and categorisations, they wind around us in complex inter-related patterns of disadvantage. Not every temporary visa holder will need assistance, but neither will everyone eligible for assistance. Drawing lines around needs is more complex, requires assessment, flexibility, engagement. It is about where people are, rather than where they are from or what their legal status is.

One of the critical strengths of charities is this capacity to engage with authenticity, beyond labels, and act in response to need. It is an approach, a way of experiencing community that can be confronting and difficult. It can also be demanding for those who sit outside these communities to understand, which is why so many government programs so often get their definitions and classifications of how to draw lines around eligibility so wrong.

The scary thing is that sometimes it is charities enforcing the lines, patrolling the borders of eligibility on behalf of government. Perhaps more charities need to reject some of the less informed approaches about how and when we will be expected to exclude people in need?

As we move forward, the big challenge for many charities is to create a system driven by need not labels, inclusion not exclusion, engagement not dismissal. These core values should inform both our practice and our advocacy. They should also determine where we draw our own lines, our own versions of us and them.

Happy drawing.

Read in Pro Bono News: drawing-lines-somewhere

Drawing lines somewhere Read More »

For the people

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For the people

The past six months have demonstrated that the shortest route to greater trust is pursuing common good, not sectional interests – this is true for charities and government. As we move into a post COVID-19 retraction of government expenditure and an economic recession, the capacity to demonstrate the value charities provide our communities may well be the most critical factor in determining how vulnerable we are CCA CEO writes David Crosbie.

For the people, Pro Bono News, 14 May 2020

Something quite remarkable has happened to governments in the last few months. In many countries, many jurisdictions, governments have been governing in the interests of the broader community. Consequently, public trust in governments around the world has suddenly jumped to record highs.

Six months ago, the chiefs of rural fire services and state premiers were shouldering the load of leadership as Australia faced unprecedented disaster. The extreme bushfires were predicted, and yet Australia was not even close to being adequately prepared. Compounding the sense of frustration was that most people understood climate change was a contributing factor to the bushfire crisis, yet the federal government kept playing word games and obfuscating about their lack of policies and action to meaningfully contribute to a reduction in greenhouse gases.

The size and scale of loss through the bushfires was almost unimaginable. For what seemed like many weeks, millions choked on smoke and many became marooned in devastated communities with a seemingly impotent government struggling to find a way forward.

The prime minister was publicly jeered. People refused to shake his hand. Very few people saw the government as being there for them, particularly those in need of urgent support. While the federal government fought to preserve a budget surplus, it was perceived as pandering to fossil fuel and other business interests.

A survey by the Australian National University found trust in government had reached its lowest level on record, with just one-in-four Australians saying they had confidence in their political leaders and institutions. Professor Ian MacAllister, who led the research said: “In one of the most worrying findings from our study, a little over one-in-10 Australians, 12 per cent, believe the government is run for ‘all the people’. In contrast more than half, 56 per cent, say government is run for a ‘few big interests’.”

And then along came COVID-19, a pandemic threatening the lives of people around the world. The only way to reduce the spread of disease and ensure the least impact on health, wellbeing and the economy was to implement preventative health measures, restrict personal contact and contain any outbreaks.

The story from this point on is about many governments acting to save lives, to prevent major health costs, and to enable the economy to recover once the pandemic was controlled to a manageable level.

In mid-April this year, the Essential Poll found an unprecedented increase in levels of trust in Australian governments. Scott Morrison trailed Anthony Albanese as preferred prime minister in January registering only 36 per cent support, but four months later he had a 50 per cent approval compared to 25 per cent for the opposition leader – a remarkable 28 per cent turnaround in just three months.

The international Edelman Trust Barometer update published last week shows that amid the COVID-19 pandemic, government trust surged 11 points to an all-time high of 65 per cent, making it “the most trusted institution for the first time in our 20 years of study”.

These figures show that when governments act in the interests of their constituency and put in place policies to protect people and enhance their communities, there is an immediate positive response. We want to trust our governments.

Usually we would expect trust in charities to rise during a crisis. Charities are often at the front line of a crisis, and there have been many stories about the good works of charities in helping those in need during the bushfires and pandemic.

However, unlike governments, there has not been a significant rise in the levels of trust in charities over the past six months. The Edelman Trust Barometer found a modest 4 per cent increase, while the Essential report found a similar 5 per cent increase, both positive, but less than the unprecedented rises in other institutions including media, governments, and experts.

I think there are three main reasons for this finding:

Firstly, levels of trust in charities are relatively high and stable. Unlike some other institutions, including governments where levels of trust are more likely to fluctuate, charities have been consistently rated as being worthy of trust by around 50 per cent of the population, with some variations, for the last five years.

Secondly, there has been some negative media in recent times against charities. It is not unusual in Australia or around the world for charities to become a target of post-crisis anger when recovery proves more difficult and time consuming than many think it should be. This has been the case in relation to bushfires in Australia.

Finally, there has been limited positive campaigning to promote the value of charities to communities in a crisis and beyond. Some individual charities have been able to actively promote their work, but most have not, and there is no major overarching campaign.

These recent findings underline how important it is for any government seeking to build trust to be perceived as serving more than the vested interests of the most powerful.

Most of us understand that charities trade in trust. We rely on trust to enable us to engage with our communities, and we ask for trust in seeking income from governments and donors.

The past six months has demonstrated that the shortest route to greater trust is pursuing common good, not sectional interests.

For charities to adopt this approach means looking beyond the promotion of their own programs and services, and identifying how they can and do add value to the broader community.

As we move into a post COVID-19 retraction of government expenditure and an economic recession, the capacity to demonstrate the value charities provide our communities may well be the most critical factor in determining how vulnerable we are.

Read on Pro Bono News: for-the-people

For the people Read More »

The good, the hopeful and the dog’s breakfast

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The good, the hopeful and the dog's breakfast

Australian charities have demonstrated in this crisis that they are effective advocates to governments. Now they need to look beyond governments to better engagement with their communities – and it would be real step backwards if the not-fit-for-purpose in the 21st Century dog’s breakfast of fundraising regulation became the biggest barrier to charities being able to pivot and focus their efforts on stronger local connections and support, writes CCA CEO David Crosbie.

The good, the hopeful and the dog’s breakfast, Pro Bono News, 30 April 2020

Charities have really been doing remarkable work during this COVID-19 crisis. There are so many stories I could share about how all kinds of charities have found ways to support their communities despite incredible challenges.

There is one story I think emerges as central to all the others: how Australian charities have demonstrated in this crisis that they are effective advocates to governments.

Since COVID-19 measures were first put in place by governments, numerous packages have been rolled out enabling many charities to offer increased support to those in need. After initially not being part of government programs to sustain business during the crisis, charities now have access to key concessions that have ensured many charities can not only participate in government support programs but gain significant concessions tailored to better meet their needs.

The success of all the advocacy activities by many charities needs to be acknowledged. CCA has worked with many peak groups from the larger church charities to ACFID, ACOSS, Philanthropy Australia, Pro Bono Australia, Volunteering Australia, Our Community, the Social Impact Investing Taskforce, Centre for Social Impact, Susan Pascoe, Tim Costello, key larger charities, and many others.

There has been a choir of voices, mostly singing variations on the same theme, the need to ensure as many charities as possible can continue to serve their communities through COVID-19 and play a critical role in rebuilding our communities in the months and years to come.

Government has not only heard the voice of the charities sector, it has responded. From Assistant Minister Zed Seselja to the Treasurer Josh Frydenberg and ministers leading line agencies like Social Services, there has been a willingness to try and meet the needs of the sector.

At a central agency level, senior officials within the Treasury and the Australian Taxation Office have not only listened, but actively reached out for input from the charities sector. The level of information exchange between senior officials and leaders in the charities sector over such a short period is unprecedented. I know that many of these officials have been working around the clock – I was still receiving emails late Sunday night about JobKeeper changes that would advantage charities.

It would be remiss of our sector not to acknowledge and thank all involved in achieving these outcomes which will benefit thousands of charities and the communities they serve.

It would also be remiss to suggest everyone is a winner. There are still many left behind as a consequence of COVID-19, including many charities and many vulnerable groups. We can and must do more to support these groups.

One of the actions I believe is needed is a positive campaign around the value of charities to Australian communities, not just in economic terms, but in relation to the role of charities as keepers of values, wellsprings of hope, care and belonging. The theme of how important charities are in a crisis and beyond should have strong resonance with the Australian community.

The second action I think is now more critical than ever is to promote ways for our communities to actively engage with charities. GivingTuesdayNow provides a great vehicle for this kind of activity.

Every Tuesday in May the charities sector will promote a theme to their community starting with next Tuesday where the theme is giving thanks to all those involved in supporting people through COVID-19. This will be followed a week later with the theme of supporting people in your local community, then acknowledging volunteers (aligned with National Volunteer Week), finally making donations to organisations in need.

The charities sector has a lot to be proud about, but it also has a lot of work to do to better engage our communities. If every charity in Australia does something special each Tuesday in May, there is no doubt we will have moved forward with this task, increased fundraising and ensured less charities are likely to close as a consequence of COVID-19.

There is one other immediate task related to GivingTuesdayNow that CCA will be prioritising over the coming week.

As most readers will know, fundraising regulations in Australia are beyond a joke and in need of urgent reform. The dog’s breakfast of state and territory requirements for charities to engage in fundraising are a real obstacle to many charities wanting to start fundraising to help them through the current crisis.

If a small performing arts group that has lost all its performance income wants to run a new online fundraiser to try and keep their core staff employed, it will have to satisfy every fundraising regulator in the country. In practice this means it will have to advertise its fundraising in a local Queensland paper, provide certified documentation like passports and driver’s licenses to Western Australian authorities, satisfy police checks in Victoria, etc etc.

It will take weeks of work and over a month of submitting information before any small charity would be able to satisfy all the requirements and commence their fundraising.

If we want every small charity to have a chance to survive, to participate in important international initiatives like GivingTuesdayNow, we need to put in place a temporary set of nationally agreed rules to cover all fundraising by ACNC registered charities in Australia. This is an easy fix that can quickly be enacted to enable online fundraising by registered charities while maintaining appropriate consumer protections.

As a sector, charities have done well in advocacy to government about responses to COVID-19. Governments have been listening and responding. Now thousands of charities need to look beyond governments to better engagement with their communities.

It would be a real step backwards if governments became the biggest barrier to charities being able to pivot and focus their efforts on stronger local connections and support.

We need our charities now more than ever. The least we can do is stop impeding their efforts to engage and support the communities they serve.

Read in Pro Bono News: the-good-the-hopeful-and-the-dogs-breakfast

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Charities Crisis Cabinet – Open Letter to Australian Governments

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Charities Crisis Cabinet - Open Letter to Australian Governments

AN OPEN LETTER TO AUSTRALIAN GOVERNMENTS FROM THE CHARITIES CRISIS CABINET, 23 April 2020

The Charities Crisis Cabinet has written to the Prime Minister, Premiers and Chief Ministers calling for urgent fundraising reform. Now is the time to support giving with a set of fundraising rules fit for these times.

Dear Prime Minister, Premiers and Chief Ministers

We write on behalf of the Charities Crisis Cabinet (see attached) seeking your assistance in boosting giving by removing regulatory barriers to charitable fundraising in Australia.

We know this is an incredibly challenging time for all governments in Australia and around the world dealing with the Covid-19 pandemic. It is also a challenging time for charities across Australia.

Charities employ more than 1.3 million people, draw on the contributions of over 3.5 million volunteers, turn over around $150 billion annually, and contribute over 8% of Australia’s GDP. Beyond these economic indicators, the work of many charities is at the heart of our communities in good times and bad.

In recent weeks, charitable fundraising across Australia has hit a wall. The final quarter of the financial year is usually the most important for charities in attracting donations, but donations are significantly down. With no face to face fundraising, no events, less volunteers available, and limited consumer confidence, fundraising is not providing the income many charities rely upon to be able to serve their communities.

This is a global situation and there is now a planned global response. Over 60 countries are joining to run a major fundraising campaign called Giving Tuesday Now – to be held on Tuesday the 5^thof May. Many charities in Australia hope to join this international campaign responding to Covid-19.

Unfortunately, government regulations are impeding Australian charities pivoting their fundraising to online activities and revamping their fundraising strategies. Charities engaged in online fundraising are currently required to comply with seven different sets of charitable fundraising regulations across our Federation. Some jurisdictions require police checks, others a public notice in a newspaper, some need verified copies of passports and other forms of ID of Directors and staff, some limit the size of collection boxes, who can open them, etc. Many inquiries, including the recent Senate Select Committee on Charity Fundraising in the 21^stCentury have supported the view that: the time for action to reform fundraising regulation in Australia was more than 20 years ago.

As we approach Giving Tuesday on the 5^thof May, we are respectfully requesting that all States and Territories harmonise COVID-19 fundraising requirements to follow a common set of rules that are appropriate to our current circumstances, including the need to pivot to online fundraising and avoid face to face fundraising.

The attached paper outlines how a nationally agreed set of fundraising rules could be quickly put in place to enable charities across Australia to participate in the upcoming international fundraising campaign. Having a common set of fundraising rules that apply to all charitable fundraising would in no way diminish the responsibility of current regulators, but it would provide a much more efficient and effective one-off compliance exercise for all charities engaging in fundraising. It would also enhance protection for donors, governments and our communities by offering a ‘no wrong door’complaints system that effectively triages complaints to the right compliance authority.

Charities have appreciated the willingness of governments to listen and offer support during this pandemic. We hope this request for government support in temporarily removing outdated regulatory barriers to charitable fundraising and putting in place more appropriate national rules will be also be given due consideration.

Yours sincerely

Rev Tim Costello AO Ms Susan Pascoe AM
Co- Chair, Charities Crisis Cabinet Co- Chair, Charities Crisis Cabinet

Charities Crisis Cabinet: charities-crisis-cabinet

Charities Crisis Cabinet – Open Letter to Australian Governments Read More »

Enabling greater charitable fundraising during COVID-19 crisis

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Enabling greater charitable fundraising during COVID-19 crisis

CHARITIES CRISIS CABINET – POSITION PAPER:

Enabling greater charitable fundraising during COVID-19 crisis, 20 April 2020

Impact of COVID 19 on charitable fundraising

All face-to-face charitable fundraising, major events, door knocking, and sign ups have shut down (statement by Public Fundraising Regulatory Association, see www.pfra.org.au/). All fundraising is (or should be) happening via telecommunications: postal, phone, internet-based.

The most conservative estimate of impact across the charitable sector suggests a drop of 7% in fundraising revenue as a consequence of COVID-19 (JB Were Report April, 2020). Surveys of charities in Australia and internationally suggest more like a 20% reduction (see: Charities Aid Foundation of America COVID-19 Report, March 2020).

For charities to survive, it is important to remove any unnecessary or counterproductive obstacles impeding legitimate non face-to-face fundraising activities by registered ACNC charities.

Regulatory barriers

Fundraising is the biggest red tape burden for the charities sector (ACNC Cutting Red Tape Report, 2016). There is multi-party federal agreement (Select Senate Committee Report, February, 2019), and State and Territory recognition, that regulatory reform is needed to remove barriers to fundraising in Australia.

The current jurisdiction based regime serves as a barrier to legally compliant online fundraising activities – if a charity has a donate button on its website (even if it largely raises money locally) it needs to comply with seven different regimes as well as the Australian Consumer Law (ACL).

With face-to-face fundraising paused, many of the regulatory issues covered at the State and Territory level – street collections, name badges etc. – do not apply, but the need to protect the public against deceptive and misleading conduct (as covered by the ACL) remains.

What needs to be done now?

Introduce core, mandatory COVID 19 charitable fundraising rules that are agreed to by Commonwealth and all States and Territories, with the enforcement of current State and Territory based regimes paused for ACNC registered charities. ACL would not be paused.

The National Code of Conduct for commercial tenancies provides a model for consideration (this is Commonwealth code adopted by each State or Territory and applies for ‘the period during which the Commonwealth JobKeeper program remains operational’).

Ideally there would be minor amendments to the ACL, but these amendments would in no way alter trade and commerce threshold. The amendments would support the new rules by ensuring penalties for any coercion or harassment of donors (currently these remedies are only available if there is a donation and a supply of a good or service).

What role would each regulator play?

The ACNC would continue to:

serve as the primary triage regulator – directing concerns that are beyond its remit to State and Territory regulators (under the new rules and/or the ACL) or to the ACCC (for potential charity scams or significant/national ACL concerns).
focus on registration and reporting, and sharing data with other regulators
ensure the use of donations for charitable purposes and consider any broader governance concerns that might arise out of a charities fundraising activities.

The ACCC’s role would be unchanged. The ACL remains in place and provides an overarching protection for false or misleading representations. There would be no change to how the ACL is enforced – it would continue under the multi-regulator intergovernmental agreement which involves the ACCC and all State and Territory fair trading/consumer affairs regulators.

The States and Territories would continue their role, but with nationally consistent COVID19 rules agreed – taking into account current health requirements:

no face-to-face until permission is given by respective State and Territory regulators
hours during which contact can be made seeking donations (provisions applicable under Telecommunications (Telemarketing and Research Calls) Industry Standard 2017 and Do Not Call Registerwould continue to apply)
how collectors need to identify themselves and explain who they are fundraising for
requirements for signing people onto any ongoing donation plan
general promotion requirements (eg,advertisements must include charity name, link to charity and ACNC website and purpose for which being collected)
receipts
health and safety of collectors (modified given no face-to-face) eg, can’t phone or text unless over 18 years
disclosure: information sheet provided by charity to collectors and available on request
exemptions: eg, raise under $10,000, fundraising from members, or earlychildhood / schools.

How does this approach ensure protection for the donating public?

The public has no wrong door in terms of complaints, but can most easily be directed to the ACNC (which is more logical than a fair trading regulator). The ACNC works as the central triage point which also helps with the collection of data and monitoring of trends/concerns. The ACNC already regularly handles these calls.

Registration and reporting is already in place for ACNC registered charities. There are secure data sharing arrangements in place (or close to being finalised) with all of the State and Territory regulators that would support their compliance work.

Nationally consistent rules that recognise online donation methods will drive improved compliance and donor protection, especially if backed by minor amendments to the ACL.

By supporting the financial sustainability of charities, the public will benefit from more charities being able to survive the crisis; more charities can deliver services and come out of the crisis being able to re-employ staff, re-engage volunteers and rebuild communities.

How does this approach support charities?

Reduces significant red tape and compliance barriers enabling all charities large and small to better pivot away from face-to-face fundraising. They can set up donate buttons/ campaigns via online platforms quickly without having to consider seven different disparate laws. Donations can be encouraged: people who want to donate (eg, money saved on travel, restaurants) can easily be directed to ‘safe options’ including smaller and more local groups using ACNC registered charities as the primary focus.

It will help reduce expected falls in donation levels, especially if combined with other measures such as:

150% tax deduction for donations to DGR entities, and/or
expanding the DGR categories to cover more ACNC registered charities.

Example scenarios

I was rung at 10pm by a fundraiser. Who do I complain to?
No wrong door. ACNC will direct you to the regulator in the State or Territory in which you live to consider breach of the COVID-19 fundraising rules.
I am worried my donation is being used to pay the CEO a big salary. Who do I complain to?
No wrong door. ACNC is the key regulator in this example to consider if there has been a breach of any governance standard or a misuse of charitable funds.
I donated online but I can see from my credit statement that it went to a company not a charity like I thought it would. Who do I complain to?
No wrong door. ACNC can triage – likely to be to ACCC as part of their Scam Watch service.
I want to raise money via an online giving platform for a charity that I know is doing great work during the COVID 19 crisis. What are the rules I need to comply with?
Under the COVID-19 fundraising rules, if you are raising money for ACNC registered charity then make that clear in your ask and link to the charity’s website or ACNC register entry.
If your fundraising is more sophisticated (eg, large scale, involves others/a campaign), then the Australian Consumer Law may apply (as it already does) – the key ACL (and ethical) message is don’t mislead, deceive, harass or coerce anyone into making a donation.
We are an ACNC registered charity wanting to fundraise online. What are the rules?
Unless you are exempt under the COVID-19 fundraising rules, then comply with those rules for the specifics about what, how and when – if you do this then you do not have to comply with any other State or Territory fundraising laws. Your fundraising should also comply with the Australian Consumer Law – the key ACL (and ethical) message is don’t mislead, deceive, harass or coerce anyone into making a donation. There is ACL guidance for charities to help you.

Note: Draft COVID-19 Fundraising Rules could be very quickly drafted drawing on existing rules.

Charities Crisis Cabinet contacts on this issue are:

Sue Woodward (Justice Connect)

David Crosbie (Community Council for Australia), davidc@communitycouncil.com.au

See Charities Crisis Cabinet: charities-crisis-cabinet

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What happens when the economy needs reviving?

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What happens when the economy needs reviving?

Rebuilding the economy will become the major focus of government post COVID-19. It is within this context that charities will increasingly need to demonstrate their value to communities, to Australia, to our economy writes CCA CEO, David Crosbie in Pro Bono News, 16 April 2020.

What happens when the economy needs reviving? Pro Bono News, 16 April, 2020

In recent weeks, I have had numerous discussions with sector leaders about the need to build back better post COVID-19. The focus on what will happen post COVID-19 is commendable, we all need to seize this opportunity to try and make the future better for charities and the communities they serve. But what does that mean? What should we be doing?

This article will discuss post COVID-19, but before doing so, it is important to emphasise that today, and for the next few months, the focus for all of us should primarily be the immediate needs within our communities. While thinking and planning for post COVID-19 is appropriate, we also need to work hard addressing the very real challenges we face now and over the coming months. Already so much has changed, lives have been lost, livelihoods have been lost, opportunities to achieve have been snatched away. Many Australians are now in desperate circumstances and more will join them. Some good charities are going to close, many will have to completely change the way they operate, the services they offer. This pandemic will have an impact for years, perhaps decades to come.

The good news is that behind the tragedy of this pandemic, there have been a few positive developments, some things we can point to that are in some ways better than before.

The economy is taking a back seat to health and well-being at many levels of decision making – at least in the short term.

Evidence now seems to matter. Evidence is informing major policy decision making. Experts are being listened to by governments in a way we have not seen for some time.

The community is much more attuned to social and political issues. The ratings for mainstream news programs and readership of news articles has very significantly increased over the past month. (Nielsen Digital Content Ratings reported an average increase of 57 per cent across the top 10 news sites in March compared to February.)

Governments are working together across jurisdictions in a much more constructive and effective way. The National Cabinet is far from perfect, but it is a real improvement on the previous overtly political and often dysfunctional decision-making processes.

Disparate groups are proactively collaborating on common interests. This includes industry groups, charities, private sector interests, unions, governments, all seeking to work together in ways we have not seen for decades.

Co-operation within government is higher than usual, especially across the previously impenetrable silos of government departments.

Place-based responses have again been recognised as critically important, just as they were through the bushfire crisis and the emerging recovery process. Our neighbours, our local communities, regional supports all become more important in a crisis.

The “we’re all in this together” messaging of governments, leaders, celebrities and the media has in many ways shifted our sense of what is important from the individual to the collective. It has also broken down some stereotypes about who is or is not deserving, although some of these divisions clearly remain (temporary visa holders, etc.).

Regulators in key areas are offering more flexibility – even allowing some collusion between pharmaceutical companies to improve COVID-19 responses.

Government is actively listening to the concerns of the charities sector and responding – in some cases changing critical program eligibility criteria to ensure more charities have access to the support they need.

The obvious benefits of these initiatives have led to questions about maintaining some of these approaches well into the future. Talk about continuation of the National Cabinet beyond the current crisis is just one example.

While there is a lot to be hopeful about in these positive measures, the reality is that many of these initiatives are unlikely to be sustained post COVID-19.

The important question that should frame any post COVID-19 discussion is; what will the government and community priorities be when government debt is higher than ever before, the global economy has stalled, unemployment is running at 10 per cent plus, and government expenditure is far exceeding government revenue?

Recent history post-GFC provides us with an indication of what is likely to happen following a period of generous government emergency spending and new initiatives. Governments tend to cut back expenditure where they can, provide incentives for investment in business and employment, reduce what are seen as non-essential commitments.

This is partly because many governments in Australia and around the world work on the premise that every nation needs a strong economy in order to deliver the kind of society that enables opportunity for all.

The broader arguments will need to be made about the case for stronger and fairer communities where distribution of wealth, access to education, health care, housing, arts and culture are all more equitably distributed. It will mean making the case for investing significantly more in environmental and social infrastructure to protect our future. It will require charities to prosecute the argument that an Australia adopting a key support role in our region and beyond will also be able to more effectively trade and protect its borders.

Eighteen months from now, every charity will need to make the case about their value and effectiveness, because anything less will make charities vulnerable at a time when governments will be under huge pressure to reduce their expenditure, and do more to support business and job creating investment.

These are not new challenges or debates for many in the charities sector. But in a post COVID-19 recession, charities will have to provide even stronger evidence that they are delivering real value to their communities.

There will be positives to come from the current crisis; ideas about health and protection will change, a few national decision-making structures will be reformed, some important systems strengthened, we may even see more investment in collective impact and other place-based initiatives to address unemployment and other issues. We should do all we can to support these positive changes.

At the same time, I see little evidence that the current crisis will provide a sustained shift in very fundamental paradigms about the way governments see their role. I hope I am wrong.

Read on Pro Bono News: what-happens-when-the-economy-needs-reviving

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CCA Media Release – Charities welcome proposed JobKeeper 15% recognition

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Media Release - Charities welcome proposed JobKeeper 15% recognition

CCA is pleased the government has recognised the invaluable work being undertaken by 1.3 million Australian charity workers in proposed changes to the JobKeeper Payment going to Parliament this week.

The Treasurer Josh Frydenberg has tonight announced that; “the JobKeeper legislation we are introducing into Parliament on Wednesday will see charities registered with the Australian Charities and Not-for-profit Commission (ACNC) eligible for JobKeeper Payment if they have a turnover decline of 15% or more. This will apply to all registered charities, including those with a turnover of more the $1 billion.”

CCA Chair Rev Tim Costello said; “this is very welcome news for charities across Australia. Many are already doing it tough, having to stand down staff, close down services. We are very pleased that the government has recognised the special role charities play across Australia. This acknowledgement through concessional access to the JobKeeper Payment means more charities will be able to keep supporting their communities. We are going to need as many charities as possible surviving through this crisis and helping rebuild Australian communities into the future, and these measures will help deliver that outcome.”

CCA CEO David Crosbie said; “thousands of staff have lost jobs in the charities sector over the past month. With the downturn in fundraising, closure of events and meetings, closure of volunteer run shops and other services, loss of fees from training, education and other programs, many charities are struggling to stay open. Some charities had been able to move some of their services on-line, but in many cases this has not been possible. The loss of volunteers has translated into higher costs at a time when many front line charities are experiencing higher need. Being able to access the JobKeeper Payment after demonstrating a 15% loss of turnover will be the difference for thousands of charities and their staff.”

CCA had previously written to the Prime Minister, the Treasurer, and to Assistant Minister for Charities Zed Seselja, calling for greater recognition and inclusion of the charities sector in government support packages. When the first government stimulus package was announced, business was able to access support, but not charities. Since then, the government has extended access to all business support programs to charities. This latest proposal to allow charities access to JobKeeper Payment at a lower threshold indicates the government is aware of the critical role played by charities in holding communities together, particularly in a crisis.

Many groups across the charities sector including ACOSS, Catholic Social Services, and the Australian Council for International Development have also written to the Prime Minister and Treasurer about the need for charities to receive targeted support.

File:

Media – JobKeeper 15%.pdf

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Covid-19, charities and charity

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Covid-19, charities and charity

We need to look after each other to look after ourselves. The way we engage with each other in this pandemic can see us grow as individuals and as a community writes CCA CEO David Crosbie in Pro Bono News, 2 April 2020.

Covid-19, charities and charity, Pro Bono News, 2 April 2020

“This is a moment in our shared humanity when we don’t know what happens next, but I suspect that we will need more than just an economic stimulus, we will need a stimulus in civility, in community and in charity that can only be generated from within, as we lament and then renew ourselves together,” – Rev Tim Costello.

We are all being tested in so many ways. Much of what we took for granted is now under question. So much of what we have planned for is no longer relevant.

COVID-19 means charities have lost significant income, fee producing activities are now restricted, thousands of staff have been stood down, many organisations are desperately seeking ways to re-engineer their support to on-line platforms so they can maintain some services.

The charity leaders I speak to are worried the communities they serve may not be able to get the help they need. This is what keeps charity leaders awake at night. There is also the daunting task of standing down staff, closing services, struggling to find a way to continue. Some charities now fear they will not last long enough to have a chance to rebuild, to return to doing their invaluable work.

Then there is the impact on those throughout the world who are already leading precarious lives. What will COVID-19 mean in a refugee camp where running water is scarce, conditions are crowded, and access to intensive medical care almost impossible? What will it mean in countries without the means to bolster health services and offer economic support? History tells us that it is the poor and dispossessed who suffer most in times of pandemics.

And we are only at the beginning of this story. We need to prepare ourselves for more challenges.

Of course, it is not all bad for charities – there have been some positive shifts worth noting.

Governments are now more willing to help than ever before. At CCA we know our letters to the prime minister and the treasurer have made their way to the desks of senior public servants and helped inform policy developments over the past two weeks. CCA has not achieved all the policies we would like to see enacted, but we are being listened to, and government is responding. There are still developed countries around the world where government supported economic stimulus is being offered only to business, not charities. It is pleasing that our governments now acknowledge the role we play and the need to keep as many charities as possible employing people and continuing to serve our communities.

Philanthropists have been prepared to step up and do more to support the charities sector. Some are now offering greater flexibility to the charities they provide grants to, some are giving more in this time of need. I find it uplifting that despite many foundations facing a loss of capital in their investments, there are major philanthropic groups actively looking for opportunities to reduce the negative impact of COVID-19.

A lot of the volunteers working in charities have had to isolate, partly because of their age and partly because of the nature of their work. Their withdrawal has served to highlight how valuable they are. In some cases, the army has been brought in to fulfill the role they previously played. Alongside this increased recognition, there is a growing sense of volunteerism in the way people are prepared to offer their support in their local communities and beyond.

So many people are working at home but reaching out has become the new norm. In my neighbourhood, we are all actively looking out for each other and we are not unusual.

It seems that every 10th post on my Twitter account is about people supporting each other, amusing each other, finding ways to be creative and connected. In fact, the whole tone of our social media commentary seems more positive.

The pursuit of individual gain seems less important as we focus more on collective well-being. It is recognised that we are no longer just an economy, but also an interconnected set of communities.

There have been some notable contrasts in the way people have reacted to the new challenges they face. Some of our international cruisers and jet setters have returned home to Australia to find themselves confined to a five-star hotel room in forced isolation. A few have made it very clear that this is totally unacceptable, a form of torture they should not have to endure. At the same time in Perth, the homeless, now being taken off the streets and located in hotel rooms for their protection and ours, are offering us all a model of what grace looks like. In the words of the Pan Pacific Hotel manager who helped serve meals to the previously homeless guests, they were; “polite, funny, courteous, shy and thankful”. I know which group I would rather serve.

Our work in charities has never been more important.

CCA will continue to offer support and advocacy on behalf of our generous members and the broader charities sector for as long as we have the capacity to do so. We will continue to highlight the invaluable work many charities continue to do and push for more support to enable as many charities as possible to continue building flourishing communities. We will also take the time to listen to our colleagues, many of whom we know are going to be dealing with various forms of shared grief.

All of which brings me to the primary purpose of this article, to reinforce the theme so eloquently outlined by Tim Costello earlier this week, to ask for greater charity.

I am not talking about charitable organisations, important as they are, or philanthropy giving more to charity, which is desirable, but about the way we engage with each other in this pandemic.

We need to look after each other to look after ourselves. If we can all offer a little more patience, compassion, tolerance, more time to rejoice in our privileges and lament our losses, we may still endure some hardships, but we will also grow as individuals and as a community.

Read on Pro Bono News: covid-19-charities-and-charity

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Media Release: The first ‘Charities Crisis Cabinet’ to meet on Tuesday

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Media Release: The first ‘Charities Crisis Cabinet’ to meet on Tuesday

CCA is pleased to announce the establishment of the Charities Crisis Cabinet. The Cabinet will be seeking to enable as many charities as possible to survive through this pandemic and contribute to building flourishing communities after the crisis. It will draw on the broader charities sector to provide advice to governments, business, philanthropists and the community. The first meeting will be held on Tuesday.

Australian charities employ 1.3 million people, rely on over 3.5 million volunteers, and contribute 8% of Australia’s GDP. They are vital to our economy and our communities.

Cabinet Co-Chair Rev Tim Costello said today; ‘Many charities are facing a battle to survive. Fundraising activity is grinding to a halt. Activities that involve bringing people together have ceased. Volunteers and staff are much less available. Opportunity shops, churches, group training, fundraising events and socially based community activities are all shut down. Many charity workers have lost their jobs. As many as 300,000 could find themselves unemployed. These are tough times, but if we want Australia to have a vibrant future we need as many charities as possible to survive.’

Cabinet Co-Chair Susan Pascoe said, ‘I look forward to co-chairing this Cabinet. I hope that by coming together with leaders from across the charities sector, sharing our knowledge and experiences, we will be able to develop strategies to help more charities continue serving their communities.’

David Crosbie, Cabinet Secretary said; ‘The first Charities Crisis Cabinet meeting will be held on Tuesday. We want to hear from charities across Australia about what will assist them to remain operational. We know governments, business and communities want to keep supporting charities. We hope they will draw on the advice of this Cabinet in framing their responses to Covid-19.’

CCA has already written to the Prime Minister and the Treasurer calling for action to support charities including; locking in all existing government funding until 2021, allowing charities the flexibility to respond to their communities by not enforcing narrow contract and performance requirements, ensuring charities can access the same support packages as are being provided to small business, extending tax deductibility for donations to all charities, and increasing the tax offsets for donations for the next six months.

Membership of the Charities Crisis Cabinet is being finalised. Key leaders from the charities sector who have agreed to participate including CEOs from: ACOSS, Philanthropy Australia, Volunteering Australia, Smith Family, Save the Children, OzHarvest, Australian Major Performing Arts Group, Settlement Service International, World Wildlife Fund, Our Community, Pro Bono Australia, Centre for Social Impact, Life Without Barriers, Community Broadcasting Association of Australia, Australian Council for International Development, Justice Connect, etc.

NB. The term “cabinet” comes from the Italian word “cabinetto,” meaning “a small, private room.” A good place to discuss important business without being interrupted. (Oxford Dictionary)

NB. Tim Costello will be seeking feedback and discussing the challenges facing charities as part of ‘Australia at Home’ on Monday, 1.00pm-2.00pm AEDT, free to join: https://www.eventbrite.com.au/e/australia-at-home-lunchtime-briefing-tim-costello-ao-tickets-101251389632?aff=ebdssbonlinesearch

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