For Impact is HLB Mann Judd’s regular newsletter for the not for profit community.
In Issue 28 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
- Changes to NFP exemption
While charities represent about a third of all not-for-profits, most NFPs don’t have a charitable purpose but may still self-assess as tax exempt. They are organisations formed to serve a specific aim, many meeting the requirements for special tax treatment.
- New rules for meetings and documents give flexibility
Thousands of Australia’s registered charities will enjoy greater flexibility when staging meetings – as well as signing and executing documents – through recent amendments to federal legislation.
- Super guarantees for all
As part of the 2021–22 Federal Budget, the government announced that it will remove a $450 a month threshold to expand coverage of super guarantee to eligible employees regardless of their pay.
- Updating charities' work
Charities may now update on their Australian Charities and Not-for-profits Commission portals at any time details about their programs.
- Health check aims to improve boards
A new online health check aims to improve the boards of charitable organisations.
Financial Reporting Insights
- Charity thresholds change
Thresholds for determining a charity’s size are changing, and thousands of charities will see their reporting obligations reduced.
- Proposed amendments to NFP revenue standards
The Australian Accounting Standards Board’s exposure draft 318 is proposing amendments to illustrative examples for income of Not-for-Profit entities in AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of Not-for-Profit Entities.
- New reporting guidelines announced
The federal government and the Fundraising Institute Australia (FIA) have announced new guidelines for the reporting of charitable fundraising during natural disasters.
- Reports wages underpayment released
A senate committee released on 30 March a 182-page report on what it calls ‘shameful’ underpayments along with recommendations.
Deductible Gift Recipients & Audits
- Treasury seeks feedback on new DGR category
Federal Treasury is seeking feedback from stakeholders on implementing a new DGR category about pastoral-care services.
Public Ancillary Funds
- PAF guidelines amended
The Public Ancillary Fund Guidelines 2022 came into effect on 25 February, which sets the minimum standards for the governance and conduct of a public ancillary fund and its trustee.