Fundraising Institute Australia (FIA) has argued for a reduction in the burden of red tape for charities in a in a new proposal recently submitted to Treasury.
The proposal is in response to a Treasury discussion paper on Deductible Gift Registration (DGR) status reform.
FIA argued that annual reporting to the Australian Charities and Non-Profit Commission (ACNC) would simplify the current reporting system for DGRs of multiple categories and registers and also ensure that charities with DGR status are operating lawfully.
Chief Executive of FIA, Rob Edwards said, “Streamlined registration is a much needed reform for charities with DGR status. The ACNC could act as a ‘one stop shop’ in this process with charities reporting once a year as part of the annual information statement.
“Such a move will reduce the current burden on DGR charities of multiple reporting to government agencies,” he said.
However, FIA does not support other measures proposed in the discussion paper which add to charities’ administrative burden such as a requirement to report on advocacy, a mandatory percentage spend to be imposed on environmental organisations and sanctions for non-compliance.
“Charities operate in a continuously changing social and economic environment and must be able to contribute to public debate through advocating on issues that are important to their mission,” said Edwards.
“‘Moves which will either add to their administrative burden or mandate where they should invest their money will be onerous and restrictive.
“Ultimately, more red tape and more reporting requirements means charities will be spending more time filling out forms and complying with regulation than delivering on their promise to donors.”
“We welcome the opportunity to take part in the discussion about DGR reform and look forward to working with Treasury and ACNC on this important issue,” he said.