Mark Fowler is a director at Neumann & Turnour Lawyers. In this interivew with the ACL's Katherine Spackman he dicusses changes to the charity sector through the establishment of a charities commission and other reform. There is a MR: ACL says NFP reform must account for diverse nature of sector
MEDIA RELEASE
For release: Sunday, January 13, 2013
The Australian Christian Lobby said today that any changes to the tax treatment of churches and charities, must acknowledge the diverse nature of the sector and particularly the effect on the charitable activities of smaller churches and organisations caused any increased administrative overheads.
The ACL agreed with the Community Council of Australia’s concern to see that the FBT entitlements not be abused and its desire to see DGR status more easily available over time to all charities.
However it is concerned that due to the administrative overheads of compliance for DGRs, that churches be given the choice of opting into DGR or retaining their basic religious charity status with only income tax exemption, but less overheads.
“At the lower end of the charities sector are thousands of church congregations who channel a large part of the high proportion of giving religious people make nationally,” said Mr Wallace. “While DGR status should be an option, churches must also be able to elect to remain income tax exempt as basic religious charities to simplify the administrative burden for their transfer function and that of their own direct charity work.”
US studies have identified religious giving as providing as much as 75% of donations received by even secular organisations and in Australia religious giving is the highest proportion nationally at one third of total giving. It is estimated that Christians provide a very significant proportion of private giving to overseas aid through churches and Christian organisations.
For release: Sunday, January 13, 2013
The Australian Christian Lobby said today that any changes to the tax treatment of churches and charities, must acknowledge the diverse nature of the sector and particularly the effect on the charitable activities of smaller churches and organisations caused any increased administrative overheads.
The ACL agreed with the Community Council of Australia’s concern to see that the FBT entitlements not be abused and its desire to see DGR status more easily available over time to all charities.
However it is concerned that due to the administrative overheads of compliance for DGRs, that churches be given the choice of opting into DGR or retaining their basic religious charity status with only income tax exemption, but less overheads.
“At the lower end of the charities sector are thousands of church congregations who channel a large part of the high proportion of giving religious people make nationally,” said Mr Wallace. “While DGR status should be an option, churches must also be able to elect to remain income tax exempt as basic religious charities to simplify the administrative burden for their transfer function and that of their own direct charity work.”
US studies have identified religious giving as providing as much as 75% of donations received by even secular organisations and in Australia religious giving is the highest proportion nationally at one third of total giving. It is estimated that Christians provide a very significant proportion of private giving to overseas aid through churches and Christian organisations.
National Others Week: 29 October to 4 November
Global Care Australia, the social justice and relief arm of Christian Outreach Centre (COC), is launching the first annual National Others Week (NOW) as part of a campaign aimed at developing a greater awareness of, and appreciation for, the people around us in our community.NOW will run from October 29 to November 4, and will encourage Australians to focus on other people rather than themselves for seven days.
According to Global Care, dedicating one week a year to reminding people to care for others, is a “compassionate and humane answer to the violence, materialism and selfishness of our society.”
The Hon Kevin Andrews MP, Shadow Minister for Families, Housing and Human Services, launched NOW in a ceremony at Parliament House in Canberra last Thursday, which was also attended by ACL’s Chief-of-Staff Lyle Shelton.
“Global Care’s motto is ‘mates helping mates’, and during this very special week, I want to encourage people everywhere to look beyond their own four walls, and just ‘be there’ for someone else – to be a ‘mate’ to them,” Mr Andrews said.
Change to tax law could mean less money to world’s poor
MEDIA RELEASE
Friday, August 24, 2012
The Australian Christian Lobby welcomes the introduction of legislation to establish the new Australian Charities and Not-for-profits Commission (ACNC) but is concerned about the impact of some provisions in the bill for churches and other not-for-profit organisations.
Assistant Treasurer David Bradbury introduced draft legislation to establish the ACNC and also to amend special conditions for tax exemption.
The Special Conditions bill will establish a new “in Australia” test, which will require that an organisation must operate principally in Australia to retain tax exempt status. This means that organisations which operate overseas or direct funds to overseas operations risk losing tax exempt status, which in turn means less money going to the world’s poor.
ACL Managing Director Jim Wallace says that the bill is alarming for charities and not-for-profit organisations.
“There is concern that charitable organisations providing overseas aid may be significantly impacted by this bill,” he said.
“Further, there will be less incentive for businesses or individuals to make charitable donations if they are not tax deductible.”
“Charities and not-for-profits make enormous contributions, not only in Australian society, but where it is most needed in other parts of the world,” he said.
“It is essential that in a wealthy country like Australia, charities can continue to operate efficiently and people are encouraged to give generously to help those in need.”
Friday, August 24, 2012
The Australian Christian Lobby welcomes the introduction of legislation to establish the new Australian Charities and Not-for-profits Commission (ACNC) but is concerned about the impact of some provisions in the bill for churches and other not-for-profit organisations.
Assistant Treasurer David Bradbury introduced draft legislation to establish the ACNC and also to amend special conditions for tax exemption.
The Special Conditions bill will establish a new “in Australia” test, which will require that an organisation must operate principally in Australia to retain tax exempt status. This means that organisations which operate overseas or direct funds to overseas operations risk losing tax exempt status, which in turn means less money going to the world’s poor.
ACL Managing Director Jim Wallace says that the bill is alarming for charities and not-for-profit organisations.
“There is concern that charitable organisations providing overseas aid may be significantly impacted by this bill,” he said.
“Further, there will be less incentive for businesses or individuals to make charitable donations if they are not tax deductible.”
“Charities and not-for-profits make enormous contributions, not only in Australian society, but where it is most needed in other parts of the world,” he said.
“It is essential that in a wealthy country like Australia, charities can continue to operate efficiently and people are encouraged to give generously to help those in need.”
MR: ACL concerned Qld budget cuts are hitting the most vulnerable
MEDIA RELEASE
Friday, 24 August, 2012
The Australian Christian Lobby has expressed concern that some frontline services to Queensland’s most vulnerable people are being affected by the Government’s budget cuts.
ACL Queensland Director Wendy Francis said ACL understood the need for the Government to balance its budget, but was concerned some of the cuts were going too far.
Ms Francis had spoken to a number of charities working with the disadvantaged.
“While the community and not-for-profit sector does need to play its part in helping reduce the deficit, it is hard to understand why cuts of relatively small amounts of money are being made to not-for-profits working at the coal-face with the disadvantaged,” Ms Francis said.
“They have proven track-records of effective assistance to our most needy,” she said.
In Ipswich alone, two Salvation Army community development programs have already been axed, and many trainees are now at risk of being forced out of their courses.
Other programs likely to be affected by the funding cuts include the Pacific Islanders program in Goodna catering to disadvantaged young people, and the Logan-based Participants in Prosperity program for ex-offenders.
Friday, 24 August, 2012
The Australian Christian Lobby has expressed concern that some frontline services to Queensland’s most vulnerable people are being affected by the Government’s budget cuts.
ACL Queensland Director Wendy Francis said ACL understood the need for the Government to balance its budget, but was concerned some of the cuts were going too far.
Ms Francis had spoken to a number of charities working with the disadvantaged.
“While the community and not-for-profit sector does need to play its part in helping reduce the deficit, it is hard to understand why cuts of relatively small amounts of money are being made to not-for-profits working at the coal-face with the disadvantaged,” Ms Francis said.
“They have proven track-records of effective assistance to our most needy,” she said.
In Ipswich alone, two Salvation Army community development programs have already been axed, and many trainees are now at risk of being forced out of their courses.
Other programs likely to be affected by the funding cuts include the Pacific Islanders program in Goodna catering to disadvantaged young people, and the Logan-based Participants in Prosperity program for ex-offenders.