Media Release: Charities Commission will continue – a welcome announcement for all Australians

Tim Costello (CCA Chair) and David Crosbie (CCA CEO) have joined many across the charities sector in welcoming today’s announcement from Ministers Porter and O’Dwyer that the government will support the continuation of the Australian Charities and Not-for-profit Commission (ACNC). Previously the government has said it would disband the ACNC.

Tim Costello, Chair of CCA and CEO of World Vision said, ‘this is a very pleasing announcement. The lack of certainty about the future of the ACNC has been a major issue within the sector and across governments. The ACNC and the charities sector will now be able to better plan for their future and devote more time and energy to doing what they do well, serving our communities.’

Cassandra Goldie, ACOSS CEO said, ‘community sector organisations have been asking for this announcement now for several years. It is encouraging that the Turnbull government is listening and have reacted to what the sector has been saying. This decision will benefit all Australian communities through a better regulated and supported charities sector.’

CEO of Philanthropy Australia, Sarah Davies, said that this is a fantastic decision, ‘we commend the Australian Government for the way it has listened to sector voices on this issue, and also acknowledge the important role that the Prime Minister’s Community Business Partnership played in securing this outcome. A well-regulated charities sector is important for funders as well as the wider community, and the ACNC has been working hard to deliver on that objective. We also need better data about philanthropy as well as charities more broadly, and the ACNC is the way were going to get that so it’s great that it’s here to stay.’

David Crosbie said ‘this announcement is about the voice of the charities sector growing louder in recent years, and the government is starting to listen. Ministers Porter, Morrison and O’Dwyer are to be commended for responding to sector concerns and supporting this change in government policy. The ACNC can now get on with better serving the charities sector and the community through its invaluable work; registering and maintaining a national listing of Australian charities, cutting red tape, investigating rogue charities, and ensuring charities can fulfill their purpose.’

Marc Purcell, CEO of the Australian Council for International Development, the peak body for Australia’s international aid agencies said; ‘we welcome the Government’s announcement. It is in the public interest to have a national regulator oversighting the integrity of charities. Secondly it is in the interests of charities to have a dedicated authority supporting the effectiveness of their work to benefit communities.’

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Estate taxes fairest for Australia – 11 Feb 2016

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Estate taxes fairest for Australia - 11 Feb 2016

Tim Costello – the Chair of Community Council for Australia that represents a massive number of charities and not-for-profits – says Scott Morrison should create a death tax.

The ‘estate duty’ tax is something Tim Costello says a huge range of countries including the UK, Germany, Canada, France, Belgium, Italy and many others already use extensively.

He says this would be a much fairer tax than the GST and could create as much as $100 million in new donations going straight to charity whilst providing the Federal Government with at least $5 billion of new much needed revenue.

He says the new tax would only affect the super rich. He says the tax would be a massive boost to the charity sector and would dramatically increase giving. He says in a country that is getting richer and older by the minute, there has never been a better time to create an ‘estate duty’ tax. He also highlights it would help reduce the growing gap between the very rich and poor.

STORY IN FULL: The Federal Government should create an estate duty to give Australia’s super rich many more reasons to bequest money to charities says the Chair of Community Council for Australia (CCA), Tim Costello.

Tim Costello says it is well and truly time for a new estate duty tax (known as a ‘death tax’), to reduce the growing gap between the very rich and poor and to also reduce inherited inequality.

He says these kinds of taxes have been used for years successfully by many countries including the UK, German, Italy, France, Belgium, Canada, the Republic of Ireland and some States in the USA.

Tim Costello highlight at least $100 million in additional donations could be going straight to charity if the Federal Government green lights the idea of ‘estate duties’.

He also points out that over $5 billion of additional much needed money for government revenue would be raised.

CCA CEO, David Crosbie, says Australia is totally out of step with the rest of the world. David Crosbie said, “Inheritance tax in the UK is now at a 35 year high. The so called ‘death duty’ there raises $7 billion for the government. In Belgium, 1.4% of the country’s overall revenue comes straight from a death tax.”

David Crosbie says it is absolutely time for Australia to talk about death and taxes and realise an estate duty is the fairest and the most painless tax to move forward with. He says it would only affect the richest part of the community, after their life is over. Community Council for Australia says this kind of tax is much fairer than an increase in the GST.

Tim Costello said, “It encourages the super rich to give back to the community. We are highlighting that all donations and bequests to charities should be totally exempt from estate duties … so the more you give to charity, the more you help others whilst reducing the tax burden on the estate.”

Community Council for Australia is an independent, non-political member based organisation dedicated to enhancing the work undertaken by charities and not-for-profits across the nation. Membership includes organisations such as Lifeline Australia, Beyondblue, Mission Australia, SANE, Save the Children, the Smith Family, Wesley Mission, World Vision Australia, St. John Ambulance Australia, Charities Aid Foundation and numerous other organisations.

Tim Costello said, “Put simply, if built correctly, this tax could unquestionably help finance social needs in the decades to come. We urge the Federal Treasurer to look at this idea. It is an income option that cannot be ignored. There has never been a stronger case for an inheritance tax.”

“It is estimated that within the next 50 years there will be 9 million Australians aged 65 or older. There will be more wealth to hand down and fewer of us paying income tax. This is a tax that makes total sense in a country getting older and richer.”

ATO figures now suggest around 25,000 Australian families hold assets above $10 million. If just 4% of those families paid 35% in estate duties, it will equate to approximately $5 billion. Tim Costello says the Henry Review supported the idea of inheritance duties because it was a fair progressive tax that could raise 1% of government revenue with no negative impacts on productivity.

David Crosbie says it is extraordinary that at the current time 0.3% of the nation has wealth of over $10 million. He says there are 25,000 families that fit the super rich category and the Federal Government should strongly consider introducing estate duties because it would only impact a small number of very rich Australians.

He highlights the Henry Review has stated that a tax on estates would fit well with Australia’s demographic circumstances over the coming decades. The Henry Tax Review says over the next 20 years the proportion of all household wealth held by older Australians is projected to increase substantially and large asset accumulations will then be passed on to a relatively small number of recipients.

David Crosbie says the former editor of the journal “Taxation”, Mike Truman, says the problem with inheritance tax is that we are not paying enough of it because it is – in principle – a perfect tax. David Crosbie says it is the perfect tax because:

·        it raises significant government income (estimates are around $5 billion).
·        is very fair – only impacts a small number (unlike a GST).
·        reduces inherited inequality and slows down growth in the gap between the very rich and the poor.
·        is collected from people who no longer need it at a time when they are liquidating their assets.
·        has no negative impact on productivity.
·        encourages giving back to the community.
·        will grow over time with more and more ageing wealthy Australians.
·        most OECD countries have some form of death duty on the super-rich.

Estate taxes fairest for Australia – 11 Feb 2016 Read More »

Putting ‘Super’ to Work for Charity

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Putting ‘Super’ to Work for Charity

3 December 2015

Australia needs to adopt a groundbreaking superannuation program that has been operating in France for over a decade, providing billions of dollars for charitable projects, according to Not for Profit sector leaders.

The CEO of the Community Council for Australia (CCA), David Crosbie, said the French 90/10 super program was producing “amazing” results that would be very easy to apply to Australia.

As well, Impact Investing Australia, a Not for Profit organisation established in 2014 to develop the impact investment market in Australia, said it had also looked at the 90/10 rule and its value to Australia.

The French program was established in 2001, giving all French people with superannuation funds the opportunity to have up to 10 per cent of their super invested into organisations that have a strong social impact and a solid financial return.

Crosbie said that while the program started slowly, it suddenly gathered momentum in 2008 once all superannuation products had to provide the option of a solidarity investment, and now the “Solidarity Fund” had grown by 800 per cent in just five years.

He said the super investment in France had not damaged returns and was ultimately a small amount of the overall investment.

“Back in 2008, $700 million of super was being put into projects that helped people in some way. Now it’s an incredible $5.5 billion (based on 2013 figures) and growing,” Crosbie said.

“This is so easy to apply to Australia. A few small changes would allow Australians to put a small percentage of their super into projects that are making a difference and showing a clear financial return. The fact is we are talking about very small commitments that add up to huge money.”

Community Council for Australia said that if just 2 per cent of Australia’s “MySuper” products were invested in projects having a positive social impact (and positive return), then as much as $8.5 billion would be instantly created.

Crosbie said this money would make a huge difference to many people’s lives – and none of the funds would be coming from government.

“Imagine $8.5 billion going into public housing in Australia? That’s not a pipe dream. By adopting this concept, it could happen. At least 50,000 new places in affordable housing could be created in one year,” he said.

He said that $2 trillion was currently invested in super in Australia and $428 billion was being put into “MySuper” products (the 116 approved super products that exist in Australia).

Contributions to all super funds with over four members went up in Australia by over $100 billion in just the past 12 months alone.

“Imagine the vision of charities and Not for Profits being able to serve communities in a bigger way and strengthen those communities,” Crosbie said.

“The Prime Minister and Treasurer have clearly said nothing is off the table. Let’s move now because this is a clear template for a revolution that Australia desperately needs.”

Chair and Co-Founder of Impact Investing Australia , Rosemary Addis, said the French experience showed that, given the choice, people wanted investment options that help create the kind of community they want to retire into as well as providing a retirement income.

“Other countries including the UK are looking at similar measures that drive resources to positive social outcomes,” Addis said.

“It would be a positive step to make investment that’s good for society a choice open to everyone.”

Chair of CCA, Tim Costello, described the concept as “incredible”.

“It’s revolutionary and easy to adapt.This would have an enormous impact for Not for Profits and communities across the nation. It would create billions of dollars of new investment into the sector. It’s very simple too, and it is really simply about providing an option that currently does not exist,” Costello said.

“Our Not for Profit sector would then have increased capacity. More money to invest in innovation. More money to enable economically marginalised people to build equity in property and their communities. More jobs, more money going into education and more money for healthcare.”

Refer external link: http://www.probonoaustralia.com.au/news/2015/12/putting-‘super’-work-charity

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Superannuation – 30 Nov 2015

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Media Release: Superannuation - 30 Nov 2015

Simple revolution for Australian super needed – Community Council for Australia says innovative French program should be adopted to create billions of dollars for projects that have a social impact – and CCA says it is easy to do.

Community Council for Australia (which represents over 600,000 not-for-profits and 60,000 registered charities) calls for the Government to adopt an extraordinary and highly successful French initiative … which has created billions of dollars for not-for-profits carrying out projects that create social impact.

Tim Costello – Chair of CCA – says the revolutionary French superannuation program allows all employees to choose to have a very small percentage of their super contributions put into projects that have a positive social impact (and a solid financial return).

The French program – which started slowly – has grown by a huge 800% in just 5 years. In 2008 it was putting $700 million into projects that have a positive impact on people’s lives … now the money being generated is an enormous $5.5 billion (2013) and growing.

CEO of Community Council for Australia – David Crosbie – says no government money is needed to change the Australian system. He highlights if just 2% of Australian “MySuper” investments were going into social projects with a positive social impact, a massive $8.5 billion will be generated. He says whether the money is put into jobs, social housing, health or many projects that impact on people’s lives, it’s obvious this inspirational French idea is a great move.

David Crosbie highlights Australians now have $430 billion invested in “MySuper” products (up $75 billion in just the past 12 months). There is over $2 trillion invested in the total superannuation pool – the third highest level of super investments in the world. If 2% of total superannuation was invested in social benefit it would amount to $40 billion.

STORY IN FULL: Australia needs to adopt a revolutionary and groundbreaking superannuation program that has now been operating in France for over a decade and has created extraordinary results … and billions of dollars for projects that have a positive social impact (and a worthwhile financial return).

David Crosbie – who heads up Community Council for Australia (CCA) and the Reverend Tim Costello – who Chairs CCA – say the French 90/10 super program is producing amazing results and is very easy to apply to Australia.

The program was established in 2001 … giving all French people with super the opportunity to have up to 10% of their super invested into organisations having a strong social impact and a solid financial return.

David Crosbie highlights whilst the program started slowly, it suddenly gathered incredible momentum in 2008 once all superannuation products had to provide the option of a solidarity investment, and now the so called ‘Solidarity Fund’ has grown a massive 800% in just 5 years. He points out the super investment in France has not damaged returns and is ultimately a small amount of the overall investment.

Put another way, back in 2008 $700 million of super was being put into projects that help people in some way … now it’s an incredible $5.5 billion (2013) and growing.

David Crosbie said, “This is so easy to apply to Australia. A few small changes would allow Australians to put a small percentage of their super into projects that are making a difference and showing a clear financial return. The fact is we are talking about very small commitments that add up to huge money. ”

Community Council for Australia highlights if just 2% of Australia’s “MySuper” products was invested in projects having a positive social impact (and positive return), then a massive $8.5 billion would be instantly created. David Crosbie says this would be money to make a huge difference to many people’s lives – and none of the funds would be coming from government.

David Crosbie said, “Imagine $8.5 billion going into public housing in Australia? That’s not a pipe dream. By adopting this incredible concept, it could happen. At least 50,000 new places in affordable housing could be created in one year.”

David Crosbie highlights $2 trillion is currently invested in super in Australia and $428 billion is being put into “MySuper” products (the 116 approved super products that exist in Australia). Contributions to all super funds with over 4 members went up in Australia by over $100 billion in just the past 12 months alone.

Community Council for Australia represents charities and not-for-profits across the nation. The sector now employs close to 1 million Australians a year … with a turnover of $100 billion annually. It employs 9% of the entire Australian workforce. Australia has 600,000 not-for-profits and 60,000 registered charities.

Tim Costello – Chair of Community Council for Australia – said, “What an incredible idea. It’s revolutionary and easy to adapt. This would have an enormous impact for not-for-profits and communities across the nation. It would create billions of dollars of new investment into the sector. It’s very simple too, and it is really simply about providing an option that currently does not exist.”

“Our not-for-profit sector would then have increased capacity. More money to invest in innovation. More money to enable economically marginalised people to build equity in property and their communities. More jobs, more money going into education and more money for healthcare.”

David Crosbie added, “Imagine the vision of charities and not-for-profits being able to serve communities in a bigger way and strengthen those communities. The Prime Minister and Treasurer have clearly said nothing is off the table. Let’s move now because this is a clear template for a revolution that Australia desperately needs.”

David Crosbie said, “We can unquestionably learn a huge amount from the French when it comes to super. In France individuals and organisations are hooked up around common principles of democratic governance and community involvement.”

“No-one in France foresaw – back in 2001 – that this ‘Solidarity Fund’ concept would grow so huge. In anyone’s language, an 800% increase in just 5 years tells the clear story. It’s a cost effective idea, getting money into projects that need it that show a clear return. Vive la France.”

“The key – as shown in France – is to give employees an option to put some of their super funds into social benefit. Given this option, many employees are happy to invest a small percentage of their super into achieving real benefits for the community. It needs to be an option in every ‘My Super’ fund for this to work.”

Media enquiries to: Ross Woodward on 03 9769 6488

David Crosbie and Tim Costello are available for interviews at different times – on request.

SOME KEY POINTS AT A GLANCE

The French 90/10 rule is a groundbreaking approach to superannuation investment.
The so called ‘Solidarity Fund’ grew slowly when initially launched in 2001.
Employees can choose (it is a choice) to have up to 10% of their super put into projects that have a positive social impact (and are obviously showing a financial return).
The French super program is revolutionary … and has grown at an extraordinary pace in recent years.
In 2008, $700 million was being generated for projects with a social impact … now it’s an amazing $5.5 billion (AUD).
It has grown 800% in five years … and is still growing.
“MySuper” funds are the default funds employers can pay into on behalf of their employees – they are not the total superannuation pool, but represent 116 approved retail superannuation products commonly used by employers for payment of the compulsory super deductions on behalf of employees.
If 2% of the total superannuation pool was invested in social benefit it would amount to $40 billion
Community Council for Australia represents 600,000 not-for-profits and 60,000 registered charities – turning over $100 billion in Australia and employing 9% of our workforce.
CCA CEO David Crosbie says if just 2% of Australia’s My Super investment went into projects that have a social impact (and a solid return) this generates over $8 billion.
None of this money would come from government.
He uses the example of housing pointing out $8 billion would buy 25,000 new affordable homes for 50,000 people who can’t afford accommodation … a great investment of the money (and just 2% of all super).
$428 billion is now invested in ‘My Super’ products in Australia (the 116 approved super products for most employers and employees.
The amount of money going into “MySuper”products has grown by $78 billion in the last 12 months according to David Crosbie.

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Sector reform through charity mergers

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Sector reform through charity mergers - Nov 10 2015

Sector heavyweight David Crosbie urges Australian charities to merge, instead of competing for the same funding, in order to survive.

Hundreds of Australian charities must be dissolved or merged to stop not-for-profits cannibalising each other in the $105 billion a year industry, the sector’s peak body says.

Community Council for Australia (CCA) chief executive David Crosbie says charities are too often clambering for cash to tackle the same problems, creating unnecessary duplication.

Mr Crosbie said on Tuesday there were well in excess of 60,000 registered charities and 600,000 not-for-profits in Australia.

He said the number of new charities surged 10 per cent between 2011 and 2014 and continued to grow but government funding options had diminished and private donations were drying up.

“The more we compete within the sector, the more it highlights division and erodes public trust,” Mr Crosbie said.

“People want to see charities and not-for-profits working for their communities, not just trying to make the most money they can for their own organisations.”

Mr Crosbie was especially critical of federated charities, saying charitable cash was being wasted on duplicated management roles, infrastructure and back office systems.

He said smaller organisations should also consider drawing on the resources of other larger ones to provide back office and other support.

“This is money and effort that would be much better invested providing services at the coalface,” Mr Crosbie said.

The CCA will host a series of forums later this month to investigate folding scores of charities across the country.

CCA chairman Tim Costello, who chairs World Vision, said NGO’s needed to put self-interest aside to help reform the sector, which has an annual turnover of about $105 billion.

“Rather than playing the victim we need to take charge of our own futures and better collaborate and share,” Reverend Costello said.

“We’re not the charity police and this isn’t about big taking over small. But because we’re so fragmented our strength, voice and impact is being diluted.”

AAP.

Refer external link: https://third-sector.com.au/crosbie-calls-for-sector-reform-through-char…

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Media Release: Too many charities? – 30 Oct 2015

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Media Release: Too many charities? - 30 Oct 2015

The Community Council for Australia is launching a series of Forums seeking to reduce the number of charities in Australia. David Crosbie, CEO of CCA, said today that “it is time to ask sector leaders to put self-interest aside and work together rather than competing against each other in the charities and not-for-profit sector.

Charities and NFPs serving the same communities may need to work harder at collaboration and possible mergers, not because it is in their interests, but because it is in the interests of the communities they serve. Large federated organisations must be able to justify the expense of having eight CEOs, eight finance and HR teams, and eight competing fundraising teams. Bigger is not always better, but smaller organisations may need to consider if they may be able to draw on the resources of a same purpose larger organisations to provide back office and other support.”

Rev Tim Costello, CEO of World Vision and Chair of CCA said “these new CCA Forums are about honouring the trust the community gives to charities. All of us need to ensure we are doing everything possible to provide the best possible services in the best possible way. Most people do not care whether it is one kind of organisational structure or another that does the work. They do care whether their money is being used as effectively as possible to address their issue of concern.”

The CCA lead CEO and Board Leader Forums on Collaboration and Mergers have been developed to enable sector leaders to learn from each other rather than relying on external experts. People who have both failed and succeeded in merging charities will be part of the closed discussions.

Mr Crosbie cited the example of the recent merger between Good Beginnings Australia and Save the Children Australia; “here you have two CEOs and two Boards willing to put aside their own personal and professional interests to ensure they better serve the needs of disadvantaged children in Australia. This kind of merger should not only be commended, but should also be replicated across a significant number of organisations.”

There are 600,000 not-for-profit organisations in Australia and over 55,000 charities employing more than 1 million Australians and turning over more than $105 billion annually.

The Collaboration and Mergers Forums will be held in Brisbane, Melbourne, Sydney and Perth over the coming month and are supported by the Myer Foundation, PwC and the Australian Charities and Not-for-profit Commission.

Media Release: Too many charities? – 30 Oct 2015 Read More »

Media Release: ACT government set to undermine all charities – 29 Oct 2015

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Media Release: ACT government set to undermine all charities - 29 Oct 2015

The Community Council for Australia (CCA) has expressed dismay following reports today that the ACT government is intending to develop an ACT specific definition of charities, ignoring all legal and other conventions, and over-riding existing legislation and regulations.

According to David Crosbie, CEO of the Community Council for Australia, ‘the ACT government will alienate the whole charities sector if it proceeds with steps to make up its own definition of charity. We already have a nationally regulated definition of charity, the Australian Charities and Not-for-profit Commission, the rulings of the Australian Taxation Office, and well established guidelines that have evolved from High Court decisions. We do not need new ACT specific regulations imposed on all charities. We have enough red tape and compliance costs.’

Mr Crosbie highlighted that the ACT government had been one of the first governments to support the work of the Australian Charities and Not-for-profit Commission and agree to harmonize its legislation with the national regulator.

‘This proposal is nonsense. Will ACT charities have to satisfy all the national requirements as well as a set of new ones the ACT government are going to impose? Does the ACT government believe its own separate definition of charity is better than the nationally regulated definition which took years to develop and implement, and was based on recommendations of the Productivity Commission and more than five major national inquiries? Does the ACT government reject the High Court definition of charity? Is the ACT government committed to increasing red tape for all charities by imposing a unique set of new requirements? Does the ACT reject the national register of charities and all the work of the Australian Charities and Not-for-profit Commission? Is the ACT government seeking to drive peak bodies out of the ACT by making it more difficult for them to operate here? How absurd!’

Mr Crosbie likened the proposal as a step back into the days prior to Federation; ‘next thing they will be wanting to have an ACT specific rail gauge or tax any business seeking to operate outside the borders of the ACT. The charities sector in the ACT employs thousands of staff and makes a real economic and social contribution to the ACT community. Why strangle it?’

Media Release: ACT government set to undermine all charities – 29 Oct 2015 Read More »

Public Hearing: Senate Inquiry into Department of Social Services human services tendering – 21 April 2015

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Public Hearing: Senate Inquiry into Department of Social Services human services tendering - 21 April 2015

Community Affairs Reference Committee Public Hearing

CCA CEO David Crosbie gives evidence to the Senate Inquiry into the impact on service quality, efficiency and sustainability of recent Commonwealth community service tendering processes by the Department of Social Services

21 April 2015

[15:25] CHAIR: Welcome and thank you for coming. We have your submissions thank you very much and you have all had information on parliamentary privilege and the protection of witnesses in evidence. I invite whoever wants to to make an opening statement—I know some of you have been sitting there for quite a while—and then we will ask you some questions.

Mr Crosbie: I think we all appreciate the opportunity to present evidence and the fact that senators are giving up so much of their time and energy for what we see is a very important inquiry. I know from Senate estimates and from elsewhere that this process is being followed closely by many of the senators who are participating. I want to say from the perspective of the Community Council for Australia that this is not about cuts—that is, not saying that we support the cuts or that we do not support the cuts. We accept that governments have a responsibility to make decisions and that they need to be held to account for those decisions but for us, because we have such a broad group of members, we are really focusing on the process. In terms of the process, when we circulated our submission among our members to get feedback and to finalise the submission, the feedback we got was that many people who did not participate in the DSS grant application process this time had experienced very similar experiences in mental health, in legal aid services, in community education, in some of the arts areas and in other areas.

I think it goes to the heart of the issue about the relationship between governments and the charities and not-for-profit sector. This process has highlighted what could only be called an incredibly dismissive and almost arrogant approach to the sector. It is almost inconceivable that you would talk about trying to make reform in an area, trying to improve services, trying to achieve the kinds of objectives set out by DSS in their submission without actually engaging with the people who work in those areas, as though you have all the knowledge and you have the capacity to make all the decisions about how all those organisations will operate, their budgets, their services, their programs.

None of us in our sector would presume to have that knowledge even within our own fields, let alone across a broad range of fields. It beggars belief for anyone, the idea of 104 DSS people, not only 37 contractors, as I understand, not only sitting there deciding the breadth of programs but also deciding the governance structures, the decision making structures and then checking them off internally to see whether they were happy with themselves and now talking about doing their own gap analysis to see whether they are happy with what gaps they have left. I really think at some point we need to say that it does not work. That structure will not work, it has not worked in the past and it will not work in the future. If you want to sit in an ivory tower and make decisions about who gets funding and what they do it will not work. At a time when we want to strengthen the sector and we want the sector to invest in itself and use its assets better, the one thing that you do not want to do is to undermine our capacity to plan for our future. That is exactly what this program has done. I never thought that I would hark back to the days of the Howard government’s grant-giving processes, but I find myself doing that.

It is unfortunate that Senator Sinodinos is not here, because I do remember under the Howard government that there was a commitment to involve people from the sector in decisions about where government funding went—in areas like alcohol and drugs, mental health and homelessness. Committees and groups were established that had input into where money was spent. I remember John Herron and Arthur Sinodinos, in his role as chief of staff in the Prime Minister’s office, taking a very proactive view that departments alone could not make decisions about the allocation of funding and using it productively. I will end on this note: I do not believe that we can keep on re-inventing failure. If DSS sees this process as in any way successful, we have a very significant problem. I think we need to rethink the whole notion that departments are responsible for administering grants, because the damage that is being done is far greater than any gain through the proposed reform…

Senator MOORE: They are very good. Mr Crosbie, thank you for your submission and the summary of recommendations. Have you had a chance to talk with the department about your recommendations?

Mr Crosbie: No, we have not. I think three of our 10 recommendations were actually from the Productivity Commission. One of the biggest learnings from the Productivity Commission—Robert Fitzgerald and the Productivity Commission did a great job—pointed out to me by Robert was the massive gap in perception between the way departments view their relationship with the sector and the way the sector views its relationships with departments. If you look in Appendix E of the Productivity Commission report, they surveyed government officials—not just in DSS but across the whole range of government agencies—about how they rate their relationship with the charities and not-for-profit sector. Over 70 per cent rate it positively.

When they asked the charities and not-for-profit sector, only 25 per cent rated it positively. There is a fundamental misunderstanding about what departments see as good practice and what charities and not-for-profits see as good practice or good communication. We have seen time and time again from every department, including Treasury, an assumption, when they are communicating to the charities and not-for-profit sector, that they are doing a good job and they are communicating well, when in fact there is no testing of that. I would push that further by saying that we have no avenue for the charities and not-for-profit sector to lodge complaints. There is no relationship ombudsman; there is no closed feedback loop; there is no way people can work through issues constructively.

There is no avenue for these kinds of concerns to be worked through with departmental officials—not in the public domain but in saying: ‘All these people have all these concerns about this process. You guys are doing this. How can we work to resolve this?’ There is no avenue for that to happen. In the past I have addressed in Prime Minister and Cabinet the social secretaries, the heads of the departments that are responsible for all the social services, and each one can talk positively about their relationship with the sector and the things they are doing to build that, but when I talk to the sector it is almost the opposite perception. There is a feeling that they do not have an avenue to talk to departments and there is no way of resolving issues.

See more on the inquiry and transcript here: http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/Grants

Public Hearing: Senate Inquiry into Department of Social Services human services tendering – 21 April 2015 Read More »

Senate Hearing into the ACNC (Repeal) Bill – 23 May 2014

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Senate Hearing into the ACNC (Repeal) Bill - 23 May 2014

23 May 2014

Reflections of the Senate Hearing and likely findings of the Inquiry

‘If the behavior of Senator Bushby and advisers from Minister Andrew’s office are any indication, Mr Crosbie’s suggestion that it is time to put aside the politics of the day and try to achieve good policy is very unlikely to be reflected in the findings of this Committee Inquiry.’ See more here…

CCA CEO David Crosbie’s Opening Statement

‘Thank you to the Senate and the Economics Committee for the opportunity to present – in many ways we have all been here before. In this opening statement I just want to make three observations that really go beyond what is in our written submission.’ See more here…

Senate hearing trascript available here.

More information regarding the inquiry is available here.

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Not just cheap talk – seven Federal budget measures that will strengthen all charities

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Not just cheap talk – seven Federal budget measures that will strengthen all charities

‘The not-for-profit sector is too important to the Australian economy to be neglected in the forthcoming Federal budget. Talk about support for the sector is cheap – real investment that strengthens the sector is what is needed’ says Community Council for Australia CEO, David Crosbie.

Speaking at the release of the CCA pre-budget submission, Mr Crosbie pointed out that the charities and not-for-profit sector is critical to the economy and to all Australian communities.

‘Our sector employs one million Australians and turns over around $1 billion per annum. We are often treated as the ‘third sector’ behind government and business, but it is increasingly important for governments to increase their investment in this sector if we are to build a resilient and productive society for all Australians. In tough times we need more, not less capacity in our not-for-profit sector. Cutting charities hurts us all in the long run.’

The CCA submission outlines a seven point $35 million dollar plan to reduce red tape and improve productivity for the sector over the coming three years. Recommendations include:

providing Deductible Gift Recipient (DGR) status to all registered charities (initial exemption for churches and schools)
establishing a Centre for Excellence in NFP Effectiveness (as recommended by the Productivity Commission) drawing upon expertise from Australia’s best NFP researchers.
establishing a Social Finance Taskforce (as recommended by the Senate Economics References Committee) to identify and promote better access to capital for NFPs.
ensuring an independent process in determining charitable status and in driving government red tape reduction by further supporting and developing the Australian Charities and Not-for-profits Commission (ACNC)
increasing Government commitment to and support of philanthropy by re-establishing the Prime Minister’s Community Business partnership; providing support to allow employers to establish ‘opt out’ systems of workplace giving to NFPs based on a 0.5 per cent salary sacrifice; providing an initial grant totaling $1 million to establish infrastructure that supports direct giving through mobile phone billing; and establishing a NFP bank drawing on dead money accounts to support capacity building in NFP organisations
implementing the recommendations of the Corporations and Markets Advisory Committee (CAMAC) into the administration of Charitable Trusts.
supporting the development of a Future Blueprint for the NFP Sector
supporting the development of an independent, closed feedback loop to monitor and evaluate the health of the relationship between government and NFPs.

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