Australia: NFP reform is here - are you ready?

Last Updated: 9 October 2013
Article by Joe Shannon

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:

  • Insight into the depth and breadth of the reform changes, including requirements, reporting changes and definitions.
  • Comprehensive understanding of what elements of the reforms affect your organisation.
  • A tangible action plan of what elements need to be addressed.
  • Detailed knowledge of the statutory obligations and financial reporting requirements.
  • The backing of Moore Stephens' team to show you how to implement the required changes.

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:

  • You will receive tailored, sector-specific support: we're not-for-profit industry specialists with an unsurpassed level of expertise to share.
  • Our track record is exemplary: you're in reliable, trustworthy hands as we know what works and how to get the best performance out of your NFP.
  • You will have access to a wealth of practical knowledge: we've dealt with the challenges you face, first hand, and have successfully helped many NFP clients deal with the new regulatory, governance, compliance and accountability requirements.
  • You are supported by a strong national network of expertise: regardless of your location.

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.

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