Introduction and potential impacts
The introduction of the Australian Charities and Not-for-Profits Commission (ACNC) and related legislation is the most significant overhaul of the not-for-profit (NFP) sector since Federation. This, along with funding reforms such as Disability Care Australia and the National Plan for School Improvement, means that NFPs and in particular charities have significant change to deal with.
The ACNC commenced on 3rd December 2012, with the financial, governance and other reporting requirements taking effect from 1st July 2013. Whilst there are many potential benefits, non-compliance with the conditions can also have significant negative impacts including:
- Loss of charity status.
- Loss of tax concessions.
- Loss of government funding.
In addition, the statutory definition of a Charity becomes effective 1st January 2014.
What you need to do from the 1st of July 2013
- Understand the reform changes.
- Understand how ACNC can affect you.
- Beware of the risks.
- Know how to take full advantage of the benefits.
- Ensure you know what is required to be compliant.
- Prepare the skills and resources to become compliant.
How we will help you
Our Readiness Review is the culmination of months of preparatory work and provides a comprehensive approach to assessing the potential exposure your organisation has to the ACNC. This includes tax reforms, as well as financial reporting and governance requirements.
Members of the Moore Stephens Australia Not-for-Profit Industry Group have extensive experience and expertise in providing financial, governance and tax advice to not-for-profits. We have followed the creation of the ACNC and the wider reforms very closely and have made regular submissions on behalf of our NFP clients to the various NFP related discussion papers and legislation that have been released over the last few years.
With this deep understanding of the sector behind us, we have developed a Not-for-Profit Readiness Review program which is designed to assist NFPs to identify and manage risks that will arise as a result of the ACNC and other NFP reforms.
The Readiness Review will equip NFPs affected by the recent changes with:
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Readiness Review Process
Step 1: Engagement
Meet with your team to confirm the approach and prepare engagement letter for signing.
Step 2: Research
Undertake appropriate searches including ABR, ACNC register and ASIC for all relevant information and provide you with the initial list of information required.
Step 3: Review
Meet with your team and conduct the review using the Readiness Review model.
Step 4: Report
Draft the Not-for-Profit Readiness Review Report and discuss with your team.
Step 5: Finalisation
Finalise report with your team and meet with the board to deliver findings.
Coordination and Control
Overall coordination is the responsibility of your relationship partner, who maintains an involvement throughout the Readiness Review by monitoring progress and informing you of any unexpected deviations from the planned timetable.
Through every step of the Not-for-Profit Reform Process you'll be supported by a proven team of not-for-profit specialists who will become your trusted business partner. We will give you absolute peace of mind and the confidence to get back to what you do best. What's more:
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This publication is issued by Moore Stephens Australia Pty Limited ACN 062 181 846 (Moore Stephens Australia) exclusively for the general information of clients and staff of Moore Stephens Australia and the clients and staff of all affiliated independent accounting firms (and their related service entities) licensed to operate under the name Moore Stephens within Australia (Australian Member). The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Moore Stephens Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication. Copyright © 2011 Moore Stephens Australia Pty Limited. All rights reserved.