How to manage governance and compliance with the new NFP regime. Anne Robinson Solicitor Director Prolegis Lawyers, Sydney. Outline. Introduction Reform Timeline ACNC role and impact Governance Standards Definition of Charity Tax Concession Charity (TCC) Deductible Gift Recipient (DGR)
Solicitor DirectorProlegis Lawyers, Sydney
ACNC role and impact
Definition of Charity
Tax Concession Charity (TCC)
Deductible Gift Recipient (DGR)
The whole landscape for charities/NFPs is changing. What are the implications for you:
Changes already made
New ACNC: roles of ACNC? regime
Eventually, all NFPs
ACNC Act framework for principle-based minimum standards to apply to all registered entities
Effect of the standards is to enable trigger for sanction regime
Consultation still on ‘turning off’ of Corporations Act provisions ss.180-183 etc
‘registered entity’= charity registered with ACNC (initially)
‘responsible entity’ = individual directors/trustees/trustee corporation responsible for decision-making/management/compliance
Different regimes and standards for:
Definition of Charity powers
Four heads of charity:
What hasn’t changed… powers
Requirement to self-assess entitlement to endorsements for TCC, ITEF and DGR
What has changed?
Further transparency with ACNC public portal
Annual Information Statement (AIS)
Tax Concession Charity (TCC) powers
Requirements for TCC endorsement:
What changes are coming?
The fund must be applied for the purposes for which it is established.
Additional 3 tests for a charitable fund:
Other requirements for ITEF
Donations to a DGR is tax deductible.
More than 40 different categories of DGR set out in the Income Tax Assessment Act (Cth) 1997.
Requirements for endorsement as a DGR differ depending on which DGR category you are applying (e.g. taxation rulings, guidelines, ministerial approval).
Compliance how to… powers
Develop and maintain a compliance manual for recording self-reviews
Report to the board annually on compliance outcomes
Maintain checklist of governance standards compliance for on-going reference
Prolegis Lawyers, Sydney