The ACNC Commissioner has just released the ACNC’s Interpretation Statement on Public Benevolent Institutions. The Interpretation Statement provides guidance on the ACNC’s interpretation of the law pertaining to Public Benevolent Institutions (PBI) and insight into how the ACNC and its staff will assess a charitable organisation’s entitlement for endorsement as a PBI. The Interpretation
Privacy Act Amendments to Regulate Businesses and Government Agencies
Businesses including Not-for-Profit entities should review their privacy policies and procedures to ensure that they comply with the new Australian privacy principles before they commence on 14 March 2014.
The Privacy Amendment (Enhancing Privacy Protection) Act 2012 is the most significant privacy reform since the Privacy Act was introduced over 25 years ago. The new privacy principles will regulate the handling of personal information by businesses and Australian government agencies.Continue Reading Privacy Act Amendments to Regulate Businesses and Government Agencies
New Government Brings Uncertainty to the Not-For-Profit and Charity Sector
Following the Coalition’s election win in September, the Government has continued its rhetoric that it will dismantle the Australian Charities and Not For Profits Commission (ACNC) and move all regulatory functions to the Australian Taxation Office (ATO).
With the ACNC still in its infancy, this has brought great uncertainty to the NFP and charity sectors. Minister Andrews indicated in mid-October that the Government would begin consultations with the sector to discuss the Government’s transition plans, with any implementation unlikely to be in place before the end of 2014.
On balance, it is our view that the ACNC is likely to survive due to the complexity in unwinding the legislation connected with it and the political uncertainty around passing the necessary amendments. In our view it is likely that some of the current, and what some in the sector would consider more onerous, obligations upon charities administered by the ACNC may be relaxed where legislative approval is not required or can be negotiated.Continue Reading New Government Brings Uncertainty to the Not-For-Profit and Charity Sector
Update: Local Councils, Church, Charities and Not-For-Profit Groups to vote on settlement proposal relating to failed investment bank, Lehman Brothers
Summary – Update: Local Councils, Church, Charities and Not-For-Profit Groups who purchased complex financial products from Lehman Brothers are set to vote on a settlement proposal to get up to half their money back from liquidators of the failed investment bank.
You may recall we posted a blog article in October 2012 titled “Lehman Brothers class action – a win for NFPs” regarding the representative proceedings or ‘class action’ filed on behalf of 75 Councils, Charities, Church and other Not-For-Profit groups who collectively lost over $200million when they purchased toxic securities sold by a subsidiary of Lehman Brothers called Grange Securities (Grange) prior to 2008.
After a long running legal battle the Federal Court held last October that Grange had breached its fiduciary duty to 3 Councils who filed proceedings as representative plaintiffs on behalf of 72 other Councils, charities, Church and other Not-For-Profit groups. By filing representative proceedings the Court may resolve issues of fact and law involving the applicants and the respondent that are common to claims that other group members have against the same respondent.Continue Reading Update: Local Councils, Church, Charities and Not-For-Profit Groups to vote on settlement proposal relating to failed investment bank, Lehman Brothers
Results are in!!!
Makinson & d’Apice 2012 NFP Survey Results
ACNC Still a Hot Topic
The new Not-For-Profit regulator, the Australian Charities and Not-For-Profits Commission (ACNC), remains a hot topic across the sector. With ramifications for every charity, community cause, and religious organisation, as well as the economy and the wider community, the new regulator has been on many people’s minds.
To gauge stakeholders’ views and provide a platform for NFPs and community organisations from across Australia to have their say on the ACNC and other issues affecting the sector, Makinson & d’Apice commissioned unbiased, independent research – and the results are now in!
Makinson & d’Apice Partner, Bill d’Apice, said “This was a big investment again this year on our part for the benefit of the NFP sector.”Continue Reading Results are in!!!
ACNC Commences Operation
Summary – The Australian Charities and Not-For-Profits Commission (ACNC) legislation has received royal assent and the ACNC has commenced operation.
Today the Governor General assented to the Australian Charities and Not-For-Profits Commission Act 2012 and the Australian Charities and Not-For-Profits Commission (Consequential and Transitional) Act 2012 (ACNC Acts).
Who is regulated by the legislation?
Although the title of the legislation extends to charities and Not-For-Profits, at this stage the ACNC Acts only cover “charities”, with the possibility for Not-For-Profits (who are not charities) being regulated under the ACNC Acts at a later stage.Continue Reading ACNC Commences Operation
Lehman Brothers class action – a win for NFPs
Summary – Federal Court rules Lehman Brothers Australia is financially liable for misleading clients including Church and Not-For-Profit Groups to purchase complex financial products.
In Wingecarribee Shire Council v Lehman Brothers Australia Ltd (in Liq) [2012] FCA 1028, the Federal Court of Australia has held that Lehman Bros Australia Ltd (In Liq), which was formerly called Grange Securities Ltd (Grange), is liable to compensate the 3 plaintiff Councils for losses incurred as a result of investing in highly complex investment products called collateralised debt obligations (products).
In this matter the 3 Councils led representative proceedings or a ‘class action’ on behalf of 72 other Councils, charities, Church and Not-For-Profit groups who collectively lost over $200million when the products purchased from Grange prior to 2008 either plummeted in value or were completely wiped out during the global financial crisis (GFC). While only the claims of the 3 Councils were tested by the Court in these proceedings, as these are representative proceedings the Court can resolve issues of fact and law involving the representative applicants and the respondent that are common to claims that other group members have against the same respondent. Continue Reading Lehman Brothers class action – a win for NFPs
ACNC Bills: Inquiry Report issued
Summary – The House Standing Committee on Economics has presented its Report on the Exposure Draft of the Australian Charities and Not-For-Profits Commission Exposure Draft Bills.
On 15 August 2012, after completing its Inquiry, the House of Representatives Standing Committee on Economics issued its report entitled “Report on the Exposure Draft of the Australian Charities and Not-For-Profits Commission Bills 2012”.
Subject to other recommendations in its report, the Committee recommended that the House of Representatives pass the Australian Charities and Not-For-Profits Bill 2012 (ACNC Bill) and the Australian Charities and Not-For-Profits Commission (Consequential and Transitional) Bill 2012.Continue Reading ACNC Bills: Inquiry Report issued
Draft Australian Charities and Not-For-Profits Commission Bill
Summary – The draft Australian Charities and Not-For-Profits Commission (ACNC) Bill has been released.
The Assistant Treasurer, the Hon David Bradbury MP, has referred the draft ACNC legislation to the House of Representatives’ Standing Committee on Economics for an inquiry.
The Minister released the Exposure Draft of the legislation and explanatory materials on 6 July 2012.
The House Standing Committee on Economics has now invited interested persons and organisations to make submissions addressing the terms of reference by Friday, 20 July 2012.Continue Reading Draft Australian Charities and Not-For-Profits Commission Bill
Trust Funds for Charitable Purposes – the High Court Rules
Summary – The High Court handed down its decision in Commissioner of Taxation v Bargwanna on 29 March 2012 ruling that trust funds in a charitable trust must be applied for the purpose of the charitable trust, and not just “substantially” or “on the whole”.
On 29 March, the High Court handed down its decision in the long running case of Commissioner of Taxation v Bargwanna allowing the appeal by the Commissioner of Taxation.
Mr and Mrs Bargwanna were the trustees of the “Kalos Metron Charitable Trust”. Between 2003 and 2007, the trustees distributed a total of $293,914.55 to numerous charitable cases.Continue Reading Trust Funds for Charitable Purposes – the High Court Rules