Over 40 separate organisations signed an open letter submitted to Prime Minister Tony Abbott to “make it very clear” that most charities across Australia value the Australian Charities and Not-for-profits Commission (ACNC) and “want to see it continue its impressive work”.
“The launch of the ACNC in 2012 was a major step forward in creating a regulatory environment that works for the not-for-profit (NFP) sector rather than against it,” stated the letter.
The letter outlined the ACNC’s achievements so far, including building a strong positive reputation by establishing the first public national register of charities; registering more than 2,600 new charities; responding to over 70,000 requests for information from charities and the broader community; investigating and resolving over 200 complaints against charities; and monitoring the extent of red tape and level of public trust and confidence in Australian charities.
“The ACNC has done what few new regulators achieve – gained widespread support across the sector it is regulating,” the letter pointed out.
The signatories further stated in the letter that the Federal Government’s plans to return the role of determining charitable status to the Australian Taxation Office (ATO) would “[recreate] a conflict of interest”, and that this approach would be “an unfortunate policy” that would increase red tape and bureaucracy while reducing services to the sector and public.
Signatories include well-known Australian charities such as the RSPCA, Save the Children, St John Ambulance Australia, Volunteering Australia and Lifeline.
Community Council for Australia CEO David Crosbie said that charities were “deeply alarmed” at the prospect of returning to the “old days” in which the ATO regulated charities. He claimed that the ATO “has no meaningful expertise in this field” and likened the move to “putting the fox in charge of the hen house”.
“It is a failed model from the past. It will not work,” said Crosbie. “It also means you don’t have an independent dedicated regulator strengthening the massive NFP and building public trust.”
“It is just as concerning that there is absolutely no plan relating to what will replace the charities commission,” added Crosbie. “What lies behind the Government’s thinking? It certainly seems this is about satisfying a small minority that oppose transparency across charities.”