Today, on World Day of Social Justice, we are excited to bring you our first newsletter for the year. This international day highlights the importance of promoting efforts to address critical issues such as poverty, exclusion and inequality. In honour of this significant day, our feature article delves into the recently updated deductible gift recipient (DGR) category, now known as ‘developing country relief funds or organisations’.
In addition, we provide important updates and reminders within the charity and not-for-profit (NFP) sector, including insights from the Australian Charities and Not-for-profits Commission (ACNC) and the Australian Accounting Standards Board (AASB).
Research and resources
Deductible gift recipient update - developing country relief funds or organisations
In the current international climate of uncertainty surrounding some sources of international aid funding, it is important for Australian organisations to understand the different opportunities available for DGR endorsement when undertaking development work.
The DGR category previously known as ‘overseas aid funds’ has existed in a new form for just over a year now. This category, which previously required overseas aid organisations to first gain approval from the Department of Foreign Affairs and Trade under the Overseas Aid Gift Deduction Scheme, now features a new name, updated eligibility requirements and a revised application process.
In this month’s feature article, we explore the DGR category 'developing country relief funds or organisations'. We also consider synergies between this DGR category and the DGR category of public benevolent institution.
Click here to read our article ‘Deductible gift recipient update – developing country relief funds or organisations'.
Public consultation on AASB’s proposed changes to the NFP Financial Reporting Framework
The Australian Accounting Standards Board (AASB) is seeking feedback on several proposed changes to the Not-For-Profit Financial Reporting Framework. These changes are designed to enhance the clarity and consistency of financial reporting within the NFP sector. The key proposals include:
Removing the self-assessment component from the ‘Reporting Entity’ concept which means all NFP entities will be required to prepare general purpose financial statements if they are required to prepare financial statements in accordance with Australian Accounting Standards.
Introducing a new Tier 3 accounting standard for smaller NFP private sector entities, including charities, incorporated associations, trusts and co-operatives.
This is relevant to anyone involved in the preparation, review, or approval of financial statements for NFPs. It may also be relevant to donors, grant providers and others who are interested in the financial statements of NFPs.
Consultation closes next Friday 28 February 2025 and more information can be accessed here: AASB - simplifying Australia’s not-for-profit financial reporting framework.
ACNC Public Consultation on draft Decision Impact Statement and updates to the Commissioner Interpretation Statement on PBIs
Following the recent judgment of the Full Court of the Federal Court regarding Equality Australia’s eligibility to be registered as a public benevolent institution (PBI), the ACNC is inviting public comment on the following documents:
Draft Decision Impact Statement: Equality Australia Ltd, which outlines the implications of the court’s decision and its impact on the registration of PBIs.
Draft update to the Commissioner’s Interpretation Statement: Public Benevolent Institutions, which aims to clarify the ACNC’s interpretation and application of the criteria for PBI registration in light of the recent judgment.
The consultation period is open until Thursday 20 March 2025. Stakeholders, including charities, legal advisors and other interested parties, are encouraged to review the draft documents and provide their feedback.
You can access the draft documents and find further information regarding the public consultation here: ACNC - public consultation on public benevolent institution documents.
ACNC published enforceable undertaking
On 20 December 2024, the ACNC published details of an enforceable undertaking from Hillsong College Limited (ABN 84 617 111 592) (Hillsong College) following its investigation into the Hillsong Church charities, which commenced in March 2023.
An enforceable undertaking is a written agreement by a charity to take steps to meet its obligations under the ACNC Act and Regulations. This agreement is enforceable by a court.
The ACNC is also considering the use of compliance agreements for other Hillsong Church charities. A compliance agreement is an action plan the charity voluntarily agrees to support improvements to its governance and compliance with its obligations under the law.
The actions Hillsong College must take are set out in the details published in the ACNC Register.
Upcoming events and webinars
Webinar – Not-for-profit & charities law: legislation, governance & compliance
This half-day webinar includes a one hour presentation from our very own Darren Fittler, together with Spiro Papadolias, G+T Banking and Projects Partner. They will be discussing the essential guide to accessing and leveraging debt for impact.
Date: Wednesday 26 February 2025
Time: 9am to 1:15pm AEDT
Format: Online via Zoom
For legal practioners: Earn 4 CPD Units in Substantive Law by attending the webinar
Registration: Click this link to register
Discount code: We are delighted to offer our regular readers a special discount for 30% off. Please use promotion code 252SPK30 when purchasing your tickets.
Darren and Spiro will discuss the types and use of debt in the charity compliance context. They will also show how debt is used in practice, specifically in the charity sphere e.g., community housing projects.
Don’t miss this opportunity to gain valuable insights and practical knowledge on leveraging debt for impactful projects.
Event - Impact100 Sydney campaign launch 2025
The Impact100 Sydney campaign launch is dedicated to exploring Sydney's most pressing social challenges and discussing how collective giving can drive meaningful change. This event aims to set the social sector's agenda for the year ahead.
Date: Thursday 27 March 2025
Time: 6pm to 8pm AEDT
Venue: Gilbert + Tobin, L35, Tower Two International Towers, 200 Barangaroo Avenue, Barangaroo NSW 2000
Tickets: $20 (all proceeds will support Impact100 Sydney's mission)
Registration: Click this link to register for the event.
The event will feature a panel of stakeholders who will be tackling the big questions regarding Sydney’s most pressing social challenges. Our very own Elizabeth Lathlean will be hosting the event.
Webinar (recording) – Charity establishment, registration & compliance - what you need to know
Better Boards recently hosted an insightful webinar featuring Elizabeth Lathlean, alongside Dan Saunders, Senior Associate at Russell Kennedy. The session delved into essential foundational concepts NFP and charity directors and leaders must understand, including an overview of the legal and regulatory obligations placed on registered charities, key responsibilities and duties of directors within the NFP and charity sectors and upcoming changes in the sector and their potential impact on legal and regulatory compliance.
The event was expertly facilitated by Aaron Goldsworthy, Senior Consultant at Australian Strategic Services.
Date: This webinar concluded on 7 February 2025 but the recording of the webinar and a PDF copy of the slide deck and accompanying materials are accessible for up to one month from the webinar date.
Access fee: $79
Registration: Click this link to access the webinar recording.
Did you know?
According to the ACNC, around 10% of Australia's registered charities operate overseas and the scope of their overseas operations varies. Some might send money or goods overseas to support projects or programs, while some might directly undertake work 'on the ground' in another country. Others may work in partnership with an overseas-based charity or organisation, supply staff or volunteers to overseas efforts, or even advocate on overseas issues.