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Media Release: Time for governments to respect charities!

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Media Release: Time for governments to respect charities!

‘There have been decades of discussions about the relationship between governments and not-for-profit organisations.  The time has come for all governments to respect charities, to free them up from unnecessary red tape and compliance, and to enable them to do what they do best – support the communities they serve.  Civil society is at its best when the voice of the not-for-profit sector can be heard loud and clear.  The removal of gag clauses is a critical part of the reform process, and one charities and not-for-profits will strongly welcome,’ according to Rev Tim Costello, Chair of the Community Council for Australia (CCA) and CEO of World Vision. 

Rev Costello was speaking in support of today’s announcement that the Federal government will legislate to ensure the removal of gag clauses from all Commonwealth contracts with charities and not-for-profit organisations.  He was joined in his support for the measure by leaders across the not-for-profit sector.

 According to David Crosbie, CEO of CCA,‘Feudal lords treated their serfs better than the way some governments treat the not-for-profit organisations they contract to deliver vital services.  The recent behavior of the Queensland government in imposing gag clauses on health organisations is reprehensible.  The imposition of conditions limiting the capacity of not-for-profits to fulfill their primary mission of trying to achieve positive change in their communities is indefensible. The removal of gag clauses from all Commonwealth contracts is one good measure of the relationship between governments and the not-for-profit sector.  It is a measure we would expect all governments and all political parties to endorse.’

Others to offer their support included Heather Neil from the RSPCA and Dr Stephen Judd from Hammond Care, who both emphasized the importance of an independent not-for-profit sector.

The not-for-profit sector currently employs around one million Australians and turns over almost $100 billion annually making it one of the most economically significant sectors in Australia.

The new federal government initiative to ban gag clauses reinforces the National Compact agreement signed by the Federal government and leading not-for-profit organisations.  It also partly addresses growing concerns about the introduction of gag clauses in Queensland. 

According to Mr Crosbie, ‘No-one is sure exactly what the Queensland government ‘no advocacy’ clauses will mean for a community health center that supports the push for better mental health services, an aboriginal health service backing their community to achieve restrictions around alcohol sales, or any group trying to change things for the better for their clients and their communities.  CCA strongly rejects this form of government contractual control over the independent operations of not-for-profit organisations.’

Contact:  David Crosbie (CEO) 0419 624 420        

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Media Release: Time for action on charities!

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Media Release: Time for action on charities!

‘After decades of discussion, the time has come for real reform for the charitable sector,’ according to Rev Tim Costello, Chair of the Community Council for Australia (CCA) and CEO of World Vision. 

‘We have waited a long time to have an independent regulator dedicated to serving the interests of the not-for-profit sector.  Many charities are drowning in a sea of compliance, duplication and red tape that provides very limited benefit to anyone.  The sooner we can make real progress in reducing this wasted effort, the more time and effort charities can devote to doing what they do best – making a real difference for our communities.’

David Crosbie, CEO of CCA said ‘The Economics Committee has generally made some very positive suggestions that will improve the proposed new regulator for the sector, and there is no case for delaying the establishment Bills further.  The Australian Taxation Office is currently the default gateway to charitable status, a situation that many groups, including the Productivity Commission, have said is unacceptable.  The not-for-profit sector is too important economically (employing over 1 million Australians) and socially not to benefit from this proposed reform.’

Rev Tim Costello and Mr Crosbie were speaking after the tabling in Parliament today of the House of Representatives Economics Committee Report into the Bills to establish the Australian Charities and Not-for-profit Commission (ACNC). 

CCA have previously highlighted that at present in Australia, every time a charity interacts with funders and regulators – whether it is a local council concession on rates, a state government approval for fundraising or an Australian Taxation Office concession – they have to prove they are a charity and establish their bona fides.   The proposed new ACNC will establish a charities passport which is being developed to cut through much of this red tape.   Once established, the ACNC will have to report to Parliament and to the not-for-profit sector who will be closely monitoring the work of the ACNC. 

Rev Costello said, ‘for an organisation like World Vision, it is often difficult to explain to people overseas that we do not have a ‘charities registration number’, that Australia does not have a charities regulator, and that copies of letters from the ATO are our way of proving that we are a genuine charity.’

CCA has consistently argued that while the ACNC is not a silver bullet solution to all problems besetting the charities sector, it is a fundamental reform that over time will enable not-for-profit organisations to focus more of their resources on serving their communities and less on wasteful duplication, red tape and compliance.

The revised Bills to establish the ACNC are expected in the Parliament within the next two weeks.

The report can be read in full at: http://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=economics/nonprofit/report.htm

Contact:          David Crosbie (CEO)                                      0419 624 420

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The ACNC – Are we there yet?

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Media Release: The ACNC - Are we there yet?

On Friday July 6, 2012 the Assistant Treasurer the Hon. David Bradbury MP and the Minister for Social Inclusion the Hon. Mark Butler MP released the second exposure draft of the legislation to establish the first independent regulator for the charity and not-for-profit sector in Australia, the Australian Charities and Not-for-profits Commission (ACNC). With the legislation referred to the House of Representatives Standing Committee on Economics for inquiry, over 65 submissions received and two days of public hearings now complete, CCA’s CEO David Crosbie comments on the journey so far…

It has been a long time coming – the independent regulator for the NFP sector is almost here – but it has been a rather potholed journey.

The first time we got sidetracked was the battle to have the regulator operate independently from the ATO. And what a battle that was.  It took all the skills of our CCA Chair and many key leaders across our sector to finally win not only a commitment to independence but also a significant new budget allocation.  The then Assistant Treasurer Bill Shorten told me it had been quite a tough battle both through Cabinet and the Expenditure Review Committee process.

Next came a discussion paper from Treasury which could be described in many terms, but certainly not as re-assuring or supportive of the sector.  Some wanted to turn around and go back, but of course the idea of going back to the dog’s breakfast of regulations and compliance driven by Treasury gatekeeping soon had people facing the front again.  Many submissions, discussions and consultations later, the first Exposure Draft Bills were provided to CCA for comment, and comment we did as some of the provisions seemed, at best, to be ill conceived.

While the initial documents from Treasury made the journey unbearable, the newly established ACNC Task Force consultations and Implementation Reports gave us the cushioning we needed to keep going.  In fact, I would urge anyone concerned about the way the ACNC will operate to take the time to look at the Implementation Report, something many people who gave evidence to the latest Economics Committee Inquiry had not bothered to do.

Over the last couple of weeks the Bills to establish the ACNC have been the subject of much discussion, submissions and public hearings.  At times I think some people have confused enabling legislation (as outlined in the Bills) with operating guidelines (as outlined in the Implementation Report).  Despite some of the scaremongering, we need to remember that all regulators operate within a framework of actions, not just laws (we would live in a very different world if black letter law drove all our behavior – but that is another discussion.)

CCA raised a number of concerns and areas where we thought the Bills could be improved, but also pushed that the ACNC was a long overdue reform that could drive real reductions in red-tape and positive changes in the relationship between governments and the sector.

We now await the report from the Inquiry Committee and the next version of the ACNC establishment bills – both of which are expected in the next couple of weeks. CCA has been assured by the Minister’s office, Treasury officials and the Chair of the Economics Committee that our concerns are being taken on board and we will find comfort in both the recommendations of the Committee and the final bills to be introduced into parliament.

I feel like a kid squashed between my brothers in the back of my parent’s car, having spent most of our long and uncomfortable journey negotiating the rules that will apply when we finally arrive at the beach.  I can hardly wait to make a splash …

If you have any questions or would like more information about the ACNC bills, the inquiry or what to expect going forward, please contact CCA.

YOU CAN:

Read CCA’s Submission to the Inquiry
Read the Hansard Transcripts from the public hearings

Read David Crosbie’s latest opinion piece on the ACNC in Pro Bono News
Subscribe to ACNC updates via the ACNC Taskforce website

The ACNC – Are we there yet? Read More »

New not-for-profit regulator almost here, 9 December 2011

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Media Release: New not-for-profit regulator almost here, 9 December 2011

The Community Council for Australia (CCA) today welcomed the release of draft legislation to establish the Australian Charities and Not-for-profit Commission as a ‘long overdue reform for Australian not-for-profit organisations.’   

According to David Crosbie, CEO of the Community Council for Australia, ‘We need to free up our charities and community groups to do their invaluable work rather than having to battle with red tape and multiple reporting requirements.  This new legislation is critical in establishing a central national regulator for the sector rather than relying on individual government bureaucracies around the country.  We need smarter legislation, smarter regulation and smarter support of our charities and community groups.’ 

Mr Crosbie was speaking after the Assistant Treasurer Bill Shorten today released the first exposure draft legislation to establish the ACNC and called for submissions from the not-for-profit sector about the role of the ACNC.

Mr Crosbie said,‘We are talking about sports groups, arts and cultural groups, welfare, health, church groups, housing, employment and education.  This sector employs over 900.000 people (second only to retailing), contributes over $43 billion to our economy (8% of Australia’s GDP), and makes an invaluable contribution to our community life.  How we regulate and support this sector should be one of the highest priorities for all governments.’

Mr Crosbie also welcomed the discussion about how the governance of not-for-profit sector organisations might best be monitored by the new regulator.  ‘Most NFPs have a very close relationship with their community and the people they serve.  This special relationship needs to be reflected in any discussions about governance and accountability rather than just adopting a corporate model.  We have to get this issue right if the not-for-profit sector is to fulfil its potential across our communities.’

CCA has encouraged all community organisations to be aware of the proposed role of the new regulator and to ensure the ACNC is of benefit to them and to the communities they serve. 

Mr Crosbie said, ‘This is a period of significant reform for the not-for-profit sector with a number of consultations underway, but if we want the new regulator to work for the sector we need to take the opportunities being provided by government to have a say in its role and how it will operate.’

Contact:        David Crosbie (CEO)                      0419 624420

New not-for-profit regulator almost here, 9 December 2011 Read More »

Media Release: Invest in not-for-profits, invest for good

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Media Release: Invest in not-for-profits, invest for good

The Community Council for Australia (CCA) welcomes the Senate Economics Committee report: ‘Investing in good: the development of a capital market for the not-for-profit sector in Australia’ tabled in the Parliament today. 

CEO of CCA David Crosbie said, ‘this report is about creating additional investment in not-for-profits, charities and communities.  We are talking about sports groups, arts and cultural groups, welfare, health, church groups, housing, employment and education.  This sector employs over 900.000 people (second only to retailing), contributes over $43 billion to our economy (8% of Australia’s GDP), and makes an invaluable contribution to our community life.  How we fund and support this sector should be one of the highest priorities for all governments.’

The key recommendation from the Senate Report is to establish a Social Finance Taskforce to act as a catalyst in developing a capital market for not-for-profit organisations and to establish new policies that support increased investment in the sector.  The report notes that it will take the efforts of all sectors – public, private and not-for-profits to bring about sustainable change.  The report calls for a strengthening of relationships between the not-for-profit and investment sectors, the promotion of social investment products through intermediaries, and education campaigns to raise awareness of the opportunities and benefits of new social investment for all sectors.

CCA has been actively working with many stakeholders from the sector during the Senate Inquiry and has identified strong support for the establishment of a high level Taskforce to provide policy direction and raise the profile of social investment options in Australia.  A similar approach has had a positive impact in the UK, Israel and Canada.

‘Social impact investing and using various financial market mechanisms to boost access to capital for NFPs is a global trend which Australia has yet to fully embrace.  Without new finance options, it is unlikely the NFP sector will be able to maintain the growth rates of over 7% it has experienced in the last decade,’ said Mr Crosbie.

CCA calls on governments to build on their existing commitments to NFP sector reform and implement the report’s recommendations, including fully resourcing a new Taskforce.

‘We desperately need fresh thinking to understand the sector’s needs and develop new income streams that enable not-for-profit organisations to do more of what they do best – build flourishing communities.  The Senate is to be commended for providing a watershed report in developing new capital markets for the not-for-profit sector.  Now we have to act on its recommendations,’ CEO David Crosbie said.

Contact:        David Crosbie (CEO)                   0419 624420

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Transcript Radio National Breakfast with Fran Kelly 3 November 2011

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Transcript Radio National Breakfast with Fran Kelly 3 November 2011

Transcript of Interview – 3 November 2011

Radio National –Breakfast Program

Fran Kelly:  There are 60,000 charitable organisations in Australia from sporting, arts, housing, welfare and Church bodies but they are finding it pretty tough and are actually living hand to mouth, that’s according to the umbrella group representing the sector, the Community Council for Australia or CCA. A Senate report into the finance for the not-for-profit sector is due over the next few weeks and CCA says it’s critical that the sector gets access to capital to invest in itself. The number one priority they say is a new Better Australia Bank with $500 million of start-up funding. CCA has even identified where that money can come from.  David Crosbie is CEO of Community Council for Australia. David, good morning, welcome again to Breakfast.

David Crosbie: Good morning Fran

Fran Kelly: Thousands of Australian charities are regularly losing money, 20% are looking at merging in order to survive, 80% are looking for new sources of funding, these are recent statistics. What’s going on in this not-for-profit sector?

David Crosbie: It’s actually an interesting development in the not-for-profit sector over recent years, it’s actually getting bigger and bigger, it’s now a $43 billion sector, it is bigger than tourism or agriculture and it employs as many people as the manufacturing sector, so it is really only second to retailing in terms of its employment. So it is getting bigger but the problem is most of the money that comes into the not-for-profit sector is for new programs and services and not-for-profits aren’t investing in themselves as organisations and it makes it very difficult to plan for the future and have a sense if the organisation itself growing stronger.

Fran Kelly: There’s a fair git of money flowing from government, the Howard Government rearranged all the job placement programs, all that money’s going there and more and more services that were once provided by government are now being provided by the charitable sector so there is a sense their coffers are more inflated than ever.

David Crosbie: Well that is exactly right…

Fran Kelly:…so that’s the bigger charities I guess?

David Crosbie: Governments around the world are doing that. In fact in the US during the global financial crisis one of the very few industries that continued to employ more and more people with employment growing by at least 2% a year was the not-for-profit sector so it is a very resilient sector in the sense of bringing in new money. But what happens when you bring in new money it often comes with new obligations and sometimes the way governments contract it comes with more obligations than you have the money to meet and when you want to start doing things like improve computer systems, create new facilities, or train staff, develop a strategic alliance or even consider a merger, you need to invest in those things and where do you get the money from. It’s actually very difficult for not-for-profits.

Fran Kelly: So what’s happening within these groups at the moment, they don’t have the money and there’s pretty fierce accountability of this money too so everyone gets to look at what these groups spend on the delivery of what they are promising so they have to account for every dollar. What’s life like inside these organisations is it pretty skimpy?

David Crosbie: At one level you never felt richer because you have more programs and services, but at another level you’ve never felt poorer because your capacity to support the people using those services and to develop your own investments or income streams is non-existent.

Fran Kelly: So you’ve got an idea, and it’s called a Better Australia Bank – what does this mean and what would a bank like that do?

David Crosbie: Well we want to create an option for not-for-profits to invest in themselves to become stronger as organisations, for instance for a drug treatment agency to build more treatment beds so it can generate more income, or an aged care facility to build a special dementia ward as a way to generate additional income, and it’s very difficult for these types of organisations to access capital to be able to invest in themselves or create an income stream. Often they only have one or two year funding from government, they can’t guarantee finances for the next ten years and it makes them a higher risk in the commercial banking world. What we’d like to see is that there is a bank that is dedicated to investing in not-for-profits and encouraging not-for-profits to invest in themselves so they can become stronger as organisations. They can create their own income streams and be able to repay loans but build capacity as part of that process.

Fran Kelly: You’ve even got an idea about how this is funded, obviously money is tight. Who can provide the money for this start up bank?

David Crosbie: What we’d like to see is follow the lead from the United Kingdom. What they have done is identify monies which are lying dormant in bank accounts, superannuation funds and insurance funds for more than 20 years and they are using that to underwrite establishment of what they are calling a ‘Big Society Bank’, which is really a not-for-profit bank. We believe that bank would become self-sustaining so not-for-profits could repay the loans. It’s not a way of providing new grants but it’s a way of providing new investment. In Australia we know there’s over half a billion dollars that has been there for more than 20 years, rather than leave them languishing we should put them to good use. 

Fran Kelly: Sounds like a good idea. Thank you David for joining us.

David Crosbie: Thanks Fran 

Transcript Radio National Breakfast with Fran Kelly 3 November 2011 Read More »

Media Release: Charities to take a 400 year step forward!

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Media Release: Charities to take a 400 year step forward!

It may be a century or three too late for many community organisations who have not been able to be classified as charities, but the Gillard government is finally doing what no Australia government has been prepared to do – define what it is to be a 21st century charitable organisation in Australia. 

According to David Crosbie, CEO of the Community Council for Australia, ‘The current situation is confusing and untenable.  To set up a charity, you have to satisfy the Australian Taxation Office that you comply with laws first drafted over 400 years ago and continuously refined by case law.  If you are denied charitable status by the ATO and want to challenge the ruling, you can end up in a court battle against a very well-resourced government department, a risk few charities can afford to take.  The not-for-profit sector desperately needs a clearly set out, modern and relevant definition of charity rather than relying on the ATO to interpret common law from 400 years ago.’

In 1601 the Statute of Elizabeth enacted by the English Parliament set out a Preamble to the Statute of Charitable Uses.  This common law currently defines whether an organisation can claim to be a charity and what purposes it may pursue.  The four ‘heads of charity’ defined in 1891 – addressing poverty, advancing education, advancing religion, and other benefits to the community – were expanded in 2004 to include child care, self-help groups and religious orders.  There have been numerous other refinements and legal precedents, but the reliance on court cases to define charity has long been identified as a barrier to organisations seeking to gain charitable status.

Chair of the CCA Board of Directors and CEO of World Vision Rev Tim Costello said‘this is a good example of the government being prepared to tackle a difficult and important issue.  It may not get a lot of public attention and discussion, but this reform is fundamental, not just for the 60,000 Australian charities, but also the broader not-for-profit sector and our communities.’

Many reviews of the not-for-profit sector have called for a statutory definition of charity to be passed by the Commonwealth parliament.  The most recent attempt to achieve a statutory definition of charity through parliament was in 2003, but the then Howard government refusal to include advocacy as one of the roles of charities led to controversy and the attempt was abandoned.  A discussion paper prepared by the Treasury and released today by Assistant Treasurer Bill Shorten invites all interested groups to have a say in the new statutory definition of charity (copies available at http://www.ato.gov.au/nonprofit/default.aspx). 

Mr Crosbie said, ‘the good news is that advocacy and other contentious areas of the definition of charity have not been ruled out by the current government and some groups, like peak bodies, advocacy groups, and some prevention agencies may be eligible to be charities for the first time.’ 

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Media Release: CCA welcomes Labor commitment to NFP Sector

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Media Release: CCA welcomes Labor commitment to NFP Sector

“We welcome the commitment of Labor to establish an Office for the Not-for-Profit Sector,” CCA Chair and World Vision CEO, Reverend Tim Costello, said. 

“This was a key recommendation of the Productivity Commission and will play an important role in having consistency across the nation and across government. This is the first time that the sector has had a single reference point within Government.”

CCA also welcomed the proposal to harmonise the tangle of complex state and federal regulations.

“Not-for-profits spend too much filling in forms to a host of government regulators”, said Dr Stephen Judd, CCA Director and CEO of HammondCare. “The commitment to slash red-tape and move towards a national ‘one stop shop’ regulator for the sector is going to make a huge difference not just for the NFPs but for the Australians who interact with them,” Dr. Judd said.

“The commitment to locate the Office for the Not-for-Profit Sector within the Department of Prime Minister and Cabinet is an acknowledgement that the Not-for-Profit Sector is a key contributor to a prosperous economy and cohesive community in Australia,” CCA Deputy Chair and CEO of The Smith Family, Elaine Henry said. “It recognises that the lifeblood of a $43 billion sector depends not only on reducing red tape but also on embedding collaborative social innovation to inform policy and solve our seemingly intractable problems. We look forward to working with the Government to deliver on these historic reforms.”

“This is a significant announcement for the Not-for-Profit sector and the Community Council for Australia also calls on the Coalition to commit to the sector reforms recommended by the Productivity Commission”, said Toby Hall, CCA Director and CEO of Mission Australia .

http://www.alp.org.au/federal-government/news/strengthening-the-non-profit-sector/

 For access to ALP release click on link below

PDF icon CCA Media Release_ Final_9 August.pdf

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Media Release: Long overdue – real reform for community organisations

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Media Release: Long overdue - real reform for community organisations

‘Community organisations are tired of jumping through bureaucratic hoops that provide no useful information and serve no useful purpose.  Despite the fact that the not-for profit sector contributes $43 billion to Australia’s economy, the needs of the sector have largely been ignored by governments in the past,’ according to David Crosbie, CEO of the Community Council of Australia.

Mr Crosbie was speaking following the release of the Scoping Study for a national not-for-profit regulator by Assistant Treasurer Bill Shorten and Minister for Social Inclusion Tanya Plibersek.  The scoping study outlines some of the issues for Australia’s 600,000 not for profit organisations and seeks input from the sector on the role of a ‘one stop shop’ government regulator.

Mr Crosbie welcomed the scoping study and the opportunity for the sector to have input.  “It is particularly pleasing that this report builds on previous reports from the Productivity Commission, the Senate Economics Committee, and international developments in the area.  We do not want to reinvent the wheel here.  This report provides a good basis for moving forward.’

Mr Toby Hall, CEO of Mission Australia and Director of CCA commended the Assistant Treasurer and Minister for Social Inclusion for taking a lead on not-for profit reform.  ‘We need to create a regulatory environment that works for community organisations not against them.  There have been many reports over the years calling for change, but the not-for-profit sector has not had many champions in Cabinet.  Government and the not-for-profit sector need to seize this opportunity to develop smarter regulation, reduce red tape and improve transparency for not-for profits.’

Dr Stephen Judd, CEO of Hammond Care and a Director of CCA also welcomed the report.  ‘The compliance costs imposed on health and aged care providers have very limited benefit for governments, the community or most importantly, the people we serve, our clients and their families.  Government should allow us to achieve rather than continuously impose more onerous compliance costs.  We welcome this opportunity to have input.’

Heather Neil, CEO of RSPCA Australia and member of CCA said, ‘I am pleased this scoping study recognizes the not-for-profit sector encompasses a very broad range of organisations that make an invaluable contribution to Australian community life.  If we strengthen not-for profit organisations and make their jobs easier, governments and the whole community will benefit.’

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Media Release: Yes – community groups can now access flood and cyclone relief!

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Media Release: Yes - community groups can now access flood and cyclone relief!

‘The organisations Australians rely on in times of crisis will now be able to get government assistance to repair and re-establish their own organisations as well as support the communities around them,’ according to David Crosbie, CEO of the Community Council for Australia.

Until yesterday, disaster recovery grants and concessional loan programs put in place to support Queensland small business and primary producers had excluded not-for profit organisations. 

David Crosbie said CCA was pleased with yesterday’s announcements from Premier Bligh and Federal Treasurer Swan that the Queensland and Commonwealth governments had been able to respond to community concerns and ensure commonsense prevailed.  He also commended the community organisations that had raised the issue and ensured it was addressed.

‘What this means in practice is that sports clubs; welfare organisations; art and cultural groups; recreation, education and employment groups; environment and animal welfare groups; housing organisations; support groups for carers and people who suffer a variety of health and other problems, and many other vital community organisations, will all be able to receive some assistance if their own properties are damaged or they need help to become operational again,’ he said.

CCA had previously argued that even if rebuilding local economies is the main priority for disaster recovery grants, not-for-profits should be eligible.  The NFP sector contributes over $43 billion to the national economy and employs almost 900,000 people.  This makes the NFP sector bigger than the tourism, communications or agriculture sectors.

Mr Crosbie said, ‘there are still major issues about the role of not-for-profits in the planning and delivery of disaster recovery services, but hopefully, we will never again see not-for-profits excluded from eligibility for assistance in times of crisis.’

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