Dear Subscribers

This week has been a busy week in Canberra, and we have been closely following Parliamentary developments in anticipation of the passing of two key pieces of the Federal Government's not-for-profit reform agenda.

On Thursday, the statutory definition of "charity" contained in the Charities Bill was passed by Parliament. This definition will mean that there is a codified definition that will be applied by the Australian Charities and Not-for-profits Commission (ACNC) when assessing whether or not an organisation is a charity, removing the need to rely on 400 years of case law to determine charitable status. While the ACNC will assess whether or not an organisation is a charity, access to charitable tax concession will still be determined by the Australian Taxation Office. The definition will commence in January 2014.

The Governance Standards for registered charities also made their way through Parliament (after a motion to disallow was lifted). These Governance Standards come into effect today, 1 July 2013, and provide a governance framework for charities registered with the ACNC. In this period of transition, we encourage all registered charities to continue to take a "best practice" approach to governance, which will ensure that they meet the requirements of both the Governance Standards, and any other laws that apply to them.

PilchConnect supports all efforts to simplify the regulation of charities and not-for-profits, and we hope these developments continue to progress, regardless of which party is in Government later this year. In particular, PilchConnect encourages State Governments to continue to collaborate with the ACNC on the regulation of charities so that it can fulfil its mandate as a one-stop-shop regulator for the benefit of the sector.

You can read a joint statement signed by PilchConnect urging the Parliament to pass the Charities Bill here. Further, you can read the ACNC's outline of its approach to the Governance Standards here.

Yours Sincerely
Nathan MacDonald
Acting Director, PilchConnect

July Seminar - Managing employee conflict in the not-for-profit workplace

Like any type of organisation, not-for-profits are not immune from the possibility of workplace conflict and misconduct. Your people are your greatest asset - but also a source of risk - so it's vital that your organisation understands its responsibilities and its rights in this important area.

This practical seminar will take a risk management perspective. What are the warning signs of workplace conflict and misconduct, and how can these be managed before they become a big problem? What policies and procedures should your organisation have in place? What other proactive steps can you implement to minimise the risk that problems will escalate? If conflict or potential misconduct does occur, what response options are recommended?

Our speakers are experienced practitioners in this area and will help guide you through the legal and practical issues involved.

Details of the seminar are as follows:

Date: Wednesday 17 July 2024
Time: 9.30 - 12.30 (registrations open 09:15am)
Venue: Lander & Rogers, Level 12 Bourke Place 600 Bourke Street Melbourne

To register for this seminar, please visit our website: 

August Seminar - Tax basics - what exemptions and concessions is your organisation entitled to?

Tax is a word to strike fear into many hearts! Understanding the various tax concessions and exemptions available to not-for-profits is not always easy.

This popular seminar will provide a back-to-basics overview of the tax regime applying to not-for-profit community organisations. Topics will include:

• What tax exemptions and concessions might your organisation be entitled to, and what is the process for applying for them? This will include consideration of the exemptions and concessions available to charities that are registered with the ACNC and the requirements for registration and endorsement as a deductible gift recipient.
• What are the roles of the ACNC and the ATO?
• Once we've obtained an exemption or concession, or been endorsed as a DGR, what are the ongoing requirements?
• What role does the new statutory definition of 'charity' have in accessing charitable tax concessions?

Details of the seminar are as follows:

Date: Tuesday 20 August 2013
Time: 9:30am - 12:30pm (registrations open at 9:15am)
Venue: Ashurst, Level 26, 181 William Street, Melbourne

To register for this seminar, please visit our website:

Changing your rules to comply with the Associations Incorporation Reform Act

PilchConnect's Rules Review Project offers training, information and advice to help Victorian incorporated associations update their rules to reflect a new legal framework that commenced in November 2012. 

After a sell-out seminar earlier this year, the PilchConnect rules review training workshop is back. This practically-focused seminar will provide organisations with information and checklists to understand the changes that have occurred and the process involved in writing or updating their own Rules to meet the requirements of the AIR Act.

We would encourage groups to call us on 8636 4448 and discuss their needs if they are unsure whether they should enrol to attend this session.

For further information about the Rules Review Project, and to access the Rules Review Resources, go to the Rules Review Project page.

Details of the training are as follows:

Date: Tuesday 1 October 2024
Time: 9.30 - 12.30 (registrations open 09:15am)
Venue:  Lionel Murphy Centre, 360 Queen Street, Melbourne

To register for this workshop, please visit our website:

Charities Bill

The Charities Bill 2013 (Cth) (Charities Bill) was passed by Federal Parliament on 27 June 2013.

In Parliamentary debate, PILCH Executive Director, Fiona McLeay, was quoted in support of the Charities Bill as saying that 'currently small, volunteer led organisations have the unenviable task of trying to comply with laws that are unclear and sometimes inconsistent. By transferring 400 years of case law into one Plain English statute, the bill will make life easier for hard working individuals, serving the community.'

Labor Senator Kate Lundy maintained that 'having a definition of charity set out in legislation will provide greater clarity and certainty for charities, the public and regulators in determining whether an entity is charitable.'

The statutory definition of charity is slated to come into effect on 1 January 2014. 

To read  the Charities Bill, go to:

Personal Property Securities Register

The Personal Property Securities Register (PPS Register) is a new system for lenders, suppliers of some goods, hirers of equipment and others to record and protect the interests they have in assets that are physically held by someone else (like a borrower, purchaser or hirer of goods).

The PPS Register can be hard to understand (even for lawyers) but if your organisation has any valuable equipment (like computer equipment, vehicles, or medical equipment) it is very important to consider whether your interest should be registered on the PPS Register.

The Personal Property Securities Act came into effect on 30 January 2012, and replaced a number of State and Commonwealth registers (such as the ASIC register of charges over assets of companies and State based registers of finance owing on cars).

The PilchConnect information sheet on the PPS Register is designed to help you understand the basics about the PPS Register, and steps your organisation may need to take to ensure its interests are properly registered and protected. You should seek expert advice in this specialist area if required.

The Fair Work System

The Fair Work System covers most employers and employees in Australia. We have a new comprehensive suite of information sheets about the Fair Work System established under the Fair Work Act 2009 ('FW Act').  Resources include:

• National Employment Standards
• Modern awards and enterprise agreements 
• General Protections for employees and contractors under the Fair Work Act, and
• Unions. 

To read this information go to:

Changing your organisation's structure

This information sheet assists organisations to consider options for changing legal structure, and weigh up whether the legal costs and administrative burden of changing structure is worthwhile.  It has been updated to clarify that when a group is converting from an incorporated association to a company limited by guarantee, they can elect to retain their existing ABN (but need to follow a process to do so).  

To download this resource go to www.pilch.org.au/changingstructure/.

Incorporated Association or Company Limited by Guarantee?

For many Victorian not-for-profit organisations, the decision about which incorporated structure to choose often comes down to whether the organisation should be an incorporated association or a company limited by guarantee. This information sheet has been substantially updated to reflect the changes in the relative benefits and limitations of both structures after changes to laws for Victorian incorporated associations and the introduction of the Australian Charities and Not-for-profit Commission.

To download this resource go to www.pilch.org.au/legalstructure/.

Giving notice about changes to your rules or constitution

Changes to your rules need to be approved by members. For many organisations (including incorporated associations and companies limited by guarantee), this requires a special resolution (or several) - where at least 75% of members present (including through proxies where applicable) and eligible to vote, need to vote in favour of making the change/s.

Organisations should give at least 21 days' notice to all their members ahead of the meeting where the vote/s about changing rules will be held. The notice needs to meet certain requirements, and also should provide sufficient explanation of the proposed changes so that members can understand the changes and their effects.

TIP! Explanatory documents and tables of changes can be good ways to explain the changes to members. It's a good idea to explain what each change is and how it will affect the organisation, and also explain why the change is being proposed. These documents should be provided with the notice of meeting.

TIP! You can give members the new rules with proposed changes shown in tracking - but it's a good idea to do more than this and explain the reasons for and effect of the changes.

TIP! If you are making lots of changes to the rules, it can be easier to put a "new" set of rules to a vote - this only requires one resolution to be voted on. However, if some of the changes are controversial (and may not be passed), it can be better to separate out the controversial changes (into separate resolutions). If you are putting one resolution to your members to adopt a new set of rules, you still need to set out the changes and the effect of the changes.

For more information see our fact sheets:

• Changing your rules (for general guidance)
• Step by step guide to updating rules for incorporated associations (for Victorian incorporated associations)

PilchConnect, on behalf of Volunteering Victoria, presents:

Risk management and insurance

Does your organisation have a risk management plan? 

Risk is the possibility that something will go wrong, resulting in loss, damage or injury to your organisation's assets, or limit its ability to achieve its purpose. Community organisations face a range of legal risks while carrying out their activities. Through practical examples and activities, this session explores:

• your organisation's potential legal liabilities
• how to manage legal risk
• what protections are available
• key types of insurance for community organisations, and
• how to implement a ‘good governance' approach to risk management

Details of the seminar are as follows:

Date: 30 July 2024
Time: 10am – 1pm, Tuesday 30 July
Venue: City of Melbourne Bowls Club, Flagstaff Gardens/Dudley Street

To register for this seminar, please visit Volunteering Victoria's website:

PilchConnect in conjunction with the Victoria Council of Social Services (VCOSS) and the Australian Charities and Not-for-profits Commission presents:

The Associations Incorporation Reform Act 2012 – a legal update

• 1 August 2024 in Sale - click here to register, and
• 6 August 2013 in Bendigo - click here to register.

PilchConnect's Kate Fazio presented at the Arts Law Consortium on recent changes to not-for-profit and charity law affecting Victorian organisations.

Kate Fazio, Manger of Legal Information at PilchConnect 
speaking at the Arts Law Consortium Annual Conference

Queensland University of Technology (QUT) have developed accounting standards for not-for-profit organisations, called the National Standard Chart of Accounts (NSCOA).  QUT have given the rights to the NSCOA to the Australian Charities and Not-for-profits Commission (ACNC), so that all Australian charities and Not for Profit organisations will have access to the standardised set of accounting guidelines.

For more information go to: 

The ACNC have developed new resources on preventing fraud for charities - a guide and top tips.

These resources are designed to help organisation's protect their charities from fraud and other financial crime. They aim to highlight some areas where charities can be vulnerable to fraud and provide some practical steps that they can take to reduce and manage these risks.

For more information go to: 

PilchConnect welcomes Liz Morgan back to the team as a Senior Training Lawyer.  Liz was one of the original PilchConnect team members, and her depth of understanding of the not-for-profit sector and the law affecting not-for-profit organisations is a great asset to the team.  Liz will be delivering training to groups across Victoria. 

For more information about our fee for service training, go to:

PilchConnect is a specialist legal service that provides legal help to not-for-profit community organisations.

The service provides free and low cost legal information, training, advice and legal referrals for Victorian not-for-profit community organisations. We also undertake law reform and advocacy work about the wide range of legal issues that affect the not-for-profit sector.

To find out more about our legal services, visit our website below:

PilchConnect - Legal help for community groups.

View our staff profiles here.

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