Final report on NFP Regulator released
Treasury has released the Final Report - Scoping Study for a National Not-for-Profit Regulator. This report details the results of the sector consultation into the scope of the national not-for-profit (NFP) regulator (previously mentioned here) and contains recommendations on the regulator’s form and scope. The report recommends that these findings form the blueprint to implement the national NFP regulator.
Some of the pertinent recommendations are:
- The definition of charity should be based on the 2001 Charities Definition Inquiry and take into account the recommendations of the 2010 Senate Inquiry and the findings of recent judicial decisions such as Aid/Watch Incorporated vs Commissioner of Taxation
- Further consultation with the sector is needed on the definition of charity
- The regulator should provide educational materials for the sector, including “how to” guidance materials, phone assistance, referral services for organisations needing external advice, and ongoing consultation with the sector
- The regulator should establish a public information portal on NFPs which could include information such as governing documents, income and expenditure, annual reports, sphere of operations, etc
- The regulator will initally focus on determining the status of charities including PBIs, with this focus gradually extending to include all other NFP entities
- As supervision of charitable trusts is currently undertaken at a state level by the State Attorneys-General, any reform of their regulation will need to be progressed through the Council of Australian Governments (COAG) agenda and further consultation may be necessary
Philanthropy Australia will continue to pursue an active role in the process of further consultation and will keep Members and blog readers informed.
The final report can be downloaded from the Treasury website.
Jul. 04, 2011