A new Australian Charities and Not-for-Profits Commission (ACNC) will begin operation from 1 July 2012 with responsibility for determining the legal status of groups wanting charitable, public benevolent institution, and other NFP benefits.

 

The new Commission, announced in last week’s budget, will also provide education, technical support for the sector, and establish a public information portal by 1 July 2013.

 

From 1 July 2011, the government will set up an Implementation Taskforce to establish the ACNC and to consult with the public, the NFP sector and government agencies on a new reporting framework and public information portal. The head of the Taskforce is expected to be the Commissioner of the ACNC.

 

The Institute of Chartered Accountants has welcomed the initiative, saying it will simplify regulatory requirements while improving accountability and transparency for the not-for-profit sector.

 

Kerry Hicks, Head of Reporting at the Institute, said it was pleasing that the Commission will implement a ‘report-once use-often’ reporting framework to ensure a transparent and effective system of financial reporting.

 

“As priority, we encourage the NFP working group to consult on state and territory legislation to bring about a nationally consistent reporting regime.

 

“By creating a one-stop-shop, the business community, the government and the ultimate beneficiary of NFPs have easy access to information. The efficiencies that will be achieved in this sector are enormous, especially when it enables NFPs to utilise Standard Business Reporting (SBR) technology to report information ‘once’ to various stakeholders,” said Ms Hicks.

 

SBR is an Australian Government initiative to reduce the business-to-government reporting burden, which was developed with input from the Institute and other business groups. 

 

The Institute of Chartered Accountants recently launched Enhancing not-for-profit annual and financial reporting, a publication that provides best practice reporting guidance specifically for NFP entities. More information is at http://www.charteredaccountants.com.au/