What's in the July 2022 update?
- Governance Health Check: Register now before places are filled
- Submissions: Queensland fundraising law reform
- Law and policy updates: ACNC’s template constitution for a company limited by guarantee, possible delay to start of Victoria’s new social services regulatory scheme, and social and community services industry wage increase
- Updated resources: Social enterprises guide, guide to running a charitable company limited by guarantee, and Victorian guide to occupational health and safety
- Upcoming webinars:
- Starting a not-for-profit organisation – Tuesday 9 August, 12.45-2pm (AEST)
- Creating positive auspicing relationships – Tuesday 23 August, 12.45-2pm (AEST)
- Starting a social enterprise – Tuesday 6 September, 12.45-2pm (AEST)
- Mastering meetings – Tuesday 20 September, 12.45-2pm (AEST)
- Training: Governing a not-for-profit organisation
- News from our sector: ACNC consultation on Commissioner Interpretation Statements, ATO contacting DGRs not registered as a charity, and what to do if you receive a review letter from the ACNC
Delivering services in NSW? Register for a free Governance Health Check before places are filled!
Not sure if your constitution is legally compliant? Unclear about your organisation's reporting requirements? We can help.
We know how daunting it can be to work out whether your organisation is staying legally compliant. Governance laws are complex and fast-changing, and the language can be confusing.
Register for a free and confidential Governance Health Checks for eligible organisations. Our lawyers will assess your governance structures, and you'll get one-on-one support and easy-to-understand tips on areas that need improvement.
Your organisation may be eligible if it is a not-for-profit or Aboriginal Community Controlled Organisation that is small-to-medium-sized with a revenue of under $5 million, and delivering services to people in the health and social services sector in New South Wales.
Submissions
Queensland fundraising law reform
The Queensland government recently introduced a new bill to make it easier for registered charities to get permission to fundraise in Queensland. Our submission to the Legal Affairs and Safety Committee’s inquiry into the Casino Control and Other Legislation Amendment Bill 2022 welcomed these changes and recommended that:
- the Queensland Office of Fair Trading recognise the annual reports provided to the Australian Charities and Not-for-profit Commission (ACNC) as satisfying reporting requirements under fundraising law, and
- Queensland cooperate with other states to replace inconsistent fundraising laws with a set of nationally consistent principles that regulate how fundraising should be carried out.
We also appeared at the Committee’s public hearing to answer questions about our submission and speak to how these changes must fit into the broader reforms to #FixFundraising for not-for-profits and charities across Australia.
Law and policy updates
Exercise caution when using the ACNC’s template constitution for a company limited by guarantee
The Australian Charities and Not-for-Profit Commission (ACNC) recently updated its template constitution for a company limited by guarantee. After concerns voiced by the legal sector (including Justice Connect), the ACNC has agreed to remove the revised template and revert to the previous version of the template constitution. We are hopeful that the ACNC will consult with the sector about any future changes to the template.
When the ACNC reverts to the previous version of the template, organisations who adopt the template may need to make amendments to comply with recent changes to the Corporations Act 2009 (Cth). If this is the case, we will produce example clauses to help assure organisations their template constitution is up to date and compliant with the law. We will report any developments in our August update.
If you have any questions, apply for free legal advice and we’ll determine if your organisation is eligible for help from our lawyers.
Possible delay to start of the new Victorian social services regulatory scheme
The Victorian Government has introduced a bill to Parliament proposing amendments to delay the start of the Social Services regulatory scheme for 12 months, until 1 July 2024. If the bill is passed, all social services would come into the scope of the new regulatory scheme at the same time.
The delay is a welcome result of a Social Services Regulation Taskforce meeting, including Sue Woodward AM, Chief Advisor of Not-for-profit Law, and others across the sector.
Social and community services industry wage increase
The Fair Work Commission announced a 5.2% increase to the National Minimum Wage and a 4.6% increase to award minimum wages in June 2022, following the Fair Work Commission Annual Wage Review 2021-2022. From 1 July 2022 the National Minimum Wage increased by 5.2% or $40, for workers without an award wage. Find out more about your orgaisation’s responsibilities in our resources on the Fair Work system, including a fact sheet and flowchart on modern awards.
New and updated resources
How to structure and set up your organisation
How to run your organisation
Updates to our guide include an amendment to our note on director identification numbers, charity sizes, meetings using technology, and the updated ACNC template constitution clause numbers.
Work health and safety
Upcoming webinars
Starting a not-for-profit organisation
Tuesday 9 August, 12.45 - 2pm (AEST)
This free introductory webinar will help you understand the legal basics of setting up and getting started. We’ll take you through how to set up and register your organisation, which legal structure is best for you, and whether you should incorporate.
Creating positive auspicing relationships
Tuesday 23 August, 12.45 - 2pm (AEST)
Auspicing can be a great way for community groups to trial a new project or program, hold a one-off event, or access funding or insurance, but it's important to understand the legal implications and responsibilities of all the parties involved.
Starting a social enterprise
Tuesday 6 September, 12.45 - 2pm (AEST)
Are you thinking of setting up or growing a social enterprise? It’s important to understand what’s involved from a legal standpoint. Our experienced lawyers can fill you in on the top five things to consider when starting a social enterprise.
Mastering meetings
Tuesday 20 September, 12.45 - 2pm (AEST)
In this interactive and practical webinar, our lawyers will take you through the why, what, when and how of meetings, and walk you through the key legal obligations that your not-for-profit organisation may need to consider.
Training
Need a governance refresh this new financial year?
Whether you’re a new board member or you’ve been doing it for a while, there is always more to learn about your legal responsibilities. In our popular training session on Governing a Not-for-profit Organisation, we unpack the A-Z of governance.
Here’s what some of our participants have said about our training:
- ’The training was fantastic – it was really well facilitated, really simply presented for the community with great interaction.’
- ’I gained a greater understanding of some of the more complex areas of governance such as conflict of interest.’
- ’I am a new board member and now have a clearer picture of my responsibilities.’
Contact us today to book training for your board or committee.
News from our sector
ACNC consulting on Commissioner Interpretation Statements
The ACNC is consulting on two of its key Commissioner Interpretation Statements: Public Benevolent Institutions and Health Promotion Charities. Not-for-profit Law is working with the Law Council of Australia Charities and Not-for-profits Committee on providing feedback. Comments on the Statements are open until 30 August 2022.
ATO contacting DGRs not registered as a charity
The Australian Tax Office (ATO) is contacting deductible gift recipients (DGRs) that are not already registered as a charity to discuss updated requirements for DGR endorsement. Organisations can take this opportunity to update their authorised contact details, advise of any changes to their circumstances, and review what the changes mean for their DGR endorsement.
From 14 December 2021, DGR endorsement required a fund, authority or institution to be a registered charity, an Australian government agency, or operated by one of the above. Transitional arrangements for these changes expire on 14 December 2022. Read our DGR resources to help you understand your DGR status requirements.
Reminder: What to do if you receive a review letter from the ACNC?
The ACNC is continuing to review charities with deductible gift recipient (DGR) status, focusing on those in the Public Benevolent Institution (PBI) category. They are doing this to make sure charities with PBI tax concessions are still entitled to these benefits. The ACNC is starting with PBIs that were registered before 3 December 2012 and are not Indigenous corporations regulated by the Office of the Registrar of Indigenous Corporations (ORIC).
If the ACNC reviews your charity, you may receive a letter requesting information on your organisation. If you receive a letter, you can apply for free legal advice from our lawyers before you respond.
Even if your DGR status isn’t reviewed, it’s a good idea to do your own assessment to make sure your organisation is still eligible for this tax status. We have plain language resources to help you understand your DGR status requirements, and our on-demand webinar ‘Understanding Deductible Gift Recipient Status’ takes you through retaining your status.
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