Understanding Deductible Gift Recipient (DGR) tax concession status

Tax is a word that strikes fear into many hearts! And understanding the various tax concessions available to not-for-profits is not always easy. Come along to our informative seminar to learn the basics about applying for and maintaining Deductible Gift Recipient (DGR) status as a not-for-profit organisation. This popular seminar will address frequently asked questions, including:

• What are the basic features and benefits of DGR?
• What are the main categories of DGR?
• What should our organisation know before applying for DGR?
• What does applying for DGR involve?
• How do we maintain our status as a DGR once it is granted?

Details of the seminar are as follows:

         Date: Tuesday 08 November 2024
         Time: 09:30 - 12:30 ( registrations open at 09:15am)
         Venue: Blake Dawson, Level 26, 181 William Street, Melbourne
         Fee: $40 (inc GST) per person
         Refreshments: Light refreshments will be provided for morning tea.

This seminar is generously hosted by Blake Dawson Lawyers. To register, or for further information, follow the link below:

PilchConnect is pleased to release the Deloitte Access Economic report on the economic contribution of the PilchConnect program, which estimates the economic contribution of PilchConnect's work in 2010-11 to be approximately $4.3 million.

This involved a direct contribution from program delivery of around $1 million, comprising about $300,000 from in-house functions (for example, the provision of training and telephone advice) and approximately $670,000 arising from brokering private sector legal advice provided on a pro bono basis. This contribution does not include the considerable economic value of policy and law reform activity undertaken by PilchConnect.

The service operates with a small team of lawyers and in 2010-211 cost less than $600,000.

Importantly, the report found that the reach of the PilchConnect program extends far beyond its direct economic contribution. It is the spillover impacts - generated as operational improvements to the NFP sector flow through to end clients and the wider community - which are the most fundamental dimension of the PilchConnect program. It is this effect which is the ‘efficiency dividend' of the program.

It was estimated that approximately 3,500 additional client services will be provided over the next three years as a result of efficiency gains in NFP organisations assisted by PilchConnect in 2010-11.

As noted in the Financial Review today, "the research commissioned by PilchConnect was the first attempt to put a dollar value on the free legal service by measuring the worth of the legal advice offered and savings from the reduced strain on health care and social services"

At PilchConnect, we appreciate the essential part that NFP organisations play in our community - whether by providing community services to people at risk of social exclusion or advocating for social change, the work of NFPs affect the lives of everyone. By helping NFPs with their legal and regulatory issues, we aim to ‘help the helpers' and support NFPs to get on with what they do best - furthering their missions and providing vital services to those in need. More information regarding the work of PilchConnect and how we can help your organisation is available here.

We would like to thank those who provided funding for PilchConnect in 2010-11, namely the Legal Services Board Grants Program, the Office of the Community Sector (Department of Planning and Community Development), and PILCH members.

The Deloitte Access Economic report on the economic contribution of the PilchConnect program is available, below.

Board Members: Roles, Responsibilities, Liabilities and Protections

Final Seminars for 2011!

Throughout the year, PilchConnect and the VCOSS Clearinghouse have worked together to run governance training for individuals involved in not-for-profit organisations throughout Victoria. This month, we will be running our final sessions for the year of the seminar entitled 'Board Members: Roles, Responsibilities, Liabilities and Protections' in Beaufort and Melbourne CBD.

This training is suitable for new or existing not-for-profit board/committee of management members that are seeking a refresher on the roles and legal responsibilities that come with helping to run an effective community organisation in Victoria. Attendees will work in small groups on practical, hypothetical scenarios which are common to many community organisations. We encourage multiple board members to attend this seminar.

Details of the sessions are as follows:

Beaufort
Date: Tuesday, 11 October 2024
Time: 9.30am to 12.30pm
Location: Beaufort Community Development Centre, Cnr Lawrence & Pratt Streets, Beaufort    
Cost: $25.00 (incl. GST) for VCOSS members and staff, volunteers and members of community organisations in the Pyrenees Shire, $50.00 (incl. GST) for all other attendees.
Refreshments: Light refreshments will be provided for morning tea.

Melbourne
Date: Tuesday, 25 October 2011
Time: 9.30am to 12.30pm
Location: VCOSS Boardroom, Level 8, 128 Exhibition Street, Melbourne
Costs: $50.00 (incl. GST)
Refreshments: Light refreshments will be provided for morning tea.

To register, follow the link below to the VCOSS Clearinghouse website:

2011 is proving to be a year of significant reform in the not-for-profit space, with the Federal Government announcing in the 2011-12 Budget a range of measures, including the establishment of the Australian Charities and Not-for-profit Commission (the ACNC), the introduction of a statutory definition of charity by 2013 and a number of tax reforms aimed at better targeting of NFP tax concessions.

At the recent Australian Charity Lawyers Association Annual National Conference, the Assistance Treasurer, Minister Bill Shorten, discussed the Government's reform agenda and provided an update on the status of the reforms.

A full version of the Ministers Address can be found here, however key points included the following:

• The Government will shortly release a discussion paper that seeks community views on the introduction of a statutory definition of charity.
• The Government will continue to consult with the sector on the best way to implement proposed reforms to better target tax concessions, including whether there are any 'unintended consequences' and what guidance will be required. You can read PilchConnect's submission to the Treasury Consultation Paper regarding the Better Targeting of NFP Tax Concessions on our webportal.
• Treasury has been instructed to issue a revised exposure draft relating to the ‘in Australia' requirement later this year. You can read PilchConnect's submission and concerns in relation to the original exposure draft on our webportal.

The ACNC Taskforce, headed by Interim Commissioner Susan Pascoe AM, has been operational for over two months, and preparations are well underway for establishing the ACNC's staff, infrastructure, and processes to enable the Commission to be operational by 1 July 2012.

Ms. Pascoe also spoke at the Conference, and announced that the ACNC will be based in Melbourne. She said that the Taskforce has started consulting with key stakeholders on the general framework, public information portal and education strategy for the ACNC, and will soon begin public consultations on these issues. She said consultations will be undertaken via a range of forums, including a Youtube briefing on the establishment of the ACNC, scheduled for release on 19 October.

PilchConnect will continue to notify readers of this e-bulletin of proposed briefings and consultations as the details become available. For quicker up-dates, follow us on twitter or facebook.

Often, it can be easy to forget why these reforms are so important. A recent article published in The Age highlights the need for the ACNC as a ‘one-stop-shop' for public access to information on charities.

Responding to the article in a letter to the editor, PilchConnect Manager, Sue Woodward, notes that this will only happen if all states and territories give the ACNC the power to register and enforce public fundraising by charities. It is critical that the public has the ability to freely search online information about a charity's legal structure, activities, fundraising status, tax concessions, directors and financial reports. This information should be publicly available in Australia, as it is in the UK, NZ and Singapore.

You can read The Age article and Sue Woodward's response by following the links below:

 The Age Letters Page (scroll down to see Sue Woodward's letter to the editor)

Victorian Equal Opportunity & Human Rights Commission - Fact Sheets & FAQs

On 1 August 2011, new legislation came in to force bringing with it new protections for volunteers against sexual harassment. Changes to the Equal Opportunity Act 2010 have practical implications for those organisations that engage volunteers and it is important that your organisation is aware of its responsibilities under the new Act.

The Victorian Equal Opportunity & Human Rights Commission (VEOHRC) recently released a range of valuable resources to help organisations understand and comply with their obligations under the new Act in relation to the areas of sexual harassment and discrimination.

As highlighted by the VEOHRC in the new fact sheets, "compliance with equal opportunity laws is consistent with volunteer management and best practice. It can assist with volunteer recruitment and retention. Like paid staff, volunteers who feel they are treated fairly and equally are more likely to commit to your organisation. Importantly, it can also help manage legal risk by reducing the likelihood of complaints and discrimination, sexual harassment and victimisation."

This fact sheets and frequently asked questions are available on the VEOHRC website, below:

New ATO self-governance checklist for NFP organisations.

The Australian Tax Office (ATO) has recently released the Self-governance checklist for not-for-profit organisations, designed to help organisations review their nfp status and tax obligations.

To assist in identifying and managing tax and superannuation compliance risks, the ATO recommends that the checklist is completed on an annual basis or whenever there is a major change in an organisation's structure or operation.

The self governance checklist is available for free download at the ATO website, below:

Are your NFP organisation's Rules up-to-date?

Are you sure that your incorporated association is using the correct version of its Rules and has a current Statement of Purpose? Quite often, incorporated associations believe they have successfully changed their Rules (or Statement of Purpose) by passing a special resolution, only to discover later that the changes were never lodged with, or approved by, the Registrar of Incorporated Associations at Consumer Affairs Victoria (CAV).

Victorian law allows incorporated associations to change their Rules by passing a special resolution. It is important that the legal requirements for a special resolution are complied with, otherwise the resolution will be invalid and the desired changes will not take effect. The following are the statutory requirements for a valid special resolution for an incorporated association:

• a special resolution can only be passed at a general meeting of members. This can either be the annual general meeting (AGM) or a special general meeting. A special resolution cannot be passed at a committee or board meeting, or by a resolution without meeting;
• at least 21 days notice of the general meeting must be given to all members; 
• the notice should state the text of the proposed special resolution;
• the notice must specify the intention to propose the resolution as a special resolution; and
• the special resolution will only be passed at the general meeting if at least 75% of those members who vote on the resolution, vote in favour. This includes members who are not actually present themselves but whose 'proxies' cast votes on their behalf. It excludes those members who abstain from voting.

But it is important to note that the changes do not take effect until they have been sent to, and approved by, CAV. All changes to your Rules need to be sent to CAV together with an Application for Alteration of Rules or Purpose and a fee (currently $73.30).

Remember - Rule changes that have not been approved by CAV are not effective!

If you want to be certain that your association has the most current version of its Rules and Statement of Purpose (as approved by CAV) you can request a copy by contacting CAV.

Further information on how to validly change your Rules can be found on the PilchConnect webportal, below: 

PilchConnect is a specialist legal service which has been set up to provide legal help to Victorian, 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.

If you would like to subscribe or unsubscribe to this e-bulletin please email  connect@pilch.org.au. If you would like to contribute to, or provide feedback about this e-bulletin, please email
 connect@pilch.org.au.

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To find out more about the legal services we provide, see:

Have you missed an earlier edition of PilchConnect's e-bulletin and want to get up-to-date? All of our previous newsletters are available on the PilchConnect website at the link below, including this month's edition!