For Impact is HLB Mann Judd’s regular newsletter for the not-for-profit community.

In Issue 22 we address NFP governance updates, compliance, ACNC activities, financial reporting insights, fundraising and deductible gift recipients & audits.

A summary of the key points:

NFP Governance updates

Key points include:

  • COVID-governance report released
    State and territory NFP regulators have issued a statement about the enforcement approach they will take in the light of COVID-19.
  • New guidance on reporting COVID-19 impacts
    The Australian Institute of Company Directors, Chartered Accountants Australia and New Zealand and CPA Australia have joined to publish guidance on the disclosure and reporting of COVID-19 impacts.

Financial Reporting insights

Key points include:

  • Wage underpayment FAQs
    Wages underpayment has become a pressing issue in the Australian economy. Several large businesses have admitted to having (often inadvertently) underpaid staff.
  • AASB answers government- support intricacies
    Governments are supporting businesses significantly affected by the pandemic.
  • FAQ on NFPs’ concessionary loans
    A new AASB staff FAQ focuses on accounting for concessionary loans, investigating the interaction between AASB 1058 Income of Not-for-Profit Entities and AASB 9 Financial Instruments.

ACNC news

Key points include:

  • Charity register improvements
    Charities have the opportunity to showcase their work to donors, supporters and the broader public with the release of 2020 annual-information statements.
  • ACNC focuses on DGR reforms
    Reviewing deductible-gift-recipient reforms is a notable focus of the ACNC’s 2020-21 corporate plan.
  • Red tape reduced
    An ACNC objective is to ‘promote the reduction of unnecessary regulatory obligations on the Australian not-for-profit sector’.

Government updates

Key points include:

  • Fundraising reforms to aid VIC charities
    The Victorian government has passed Consumer Legislation Amendment Act 2019, which made important changes from 31 August to the state’s Fundraising Act 1998.
  • Queensland co-operatives legislation revised
    Queensland has adopted the Co-operatives National Law (CNL), replacing counterpart legislation that had existed since 1997.
  • Major fundraising reforms cut WA red tape
    Major reforms by the ACNC are lifting the red-tape burden on Western Australian charities