The Australian Tax Office (ATO) has released a new guide, Income tax exemption and sporting clubs. The guide is for office bearers and advisers of non-profit clubs to use when self-assessing if they are exempt from income tax as a society, association or club established for the encouragement of a game or sport.
The guide is available from the ATO website only.
You can use the guide to determine if your society, association or club is established for the encouragement of a game or sport. The guide includes summaries of three Federal Court cases and three Administrative Appeal Tribunal decisions to help clubs that conduct extensive non-sporting activities (in addition to their sporting activities) determine their income tax status.
Where you are satisfied that your club is exempt from income tax, you do not need to seek approval from The ATO.
This situation may vary in the future of your club or organisation depending on your growth andthe type of activities you undertake in the future.
Download a copy of the document to help you work out or confirm your status.
Wednesday, 23 March 2011
Wednesday, 23 February 2011
22 Fundraising Ideas for Not-for-Profit Organisations
I found this clip on YouTube and thought that it had some great ideas for fundraising, especially for smaller organisations.
It goes for around 10 minutes but it is well worth watching. You may already be doing some of these things but all it takes is one new idea to lift your fundraising to the next level.
It goes for around 10 minutes but it is well worth watching. You may already be doing some of these things but all it takes is one new idea to lift your fundraising to the next level.
Friday, 28 January 2011
Interview with a Volunteer Treasurer.
Volunteer treasurer roles are always demanding, no matter how small the organisation is. We spoke to the volunteer Treasurer of a local kindergarten about the role and found that the frustrations and responsibilities were just as difficult to manage.
What frustrations have you found as Treasurer?
• Often it can be hard to find and space to work with minimal distractions when I come in because other people also need to use the office space or equipment. Alternative work spaces in the kindergarten complex can also get quite busy and noisy especially because I work while the children are having their sessions.
• Invoices and receipts are not always in the correct files and I get annoyed when I have to hunt for them. There are too many people handling too much paperwork and not everyone knows what they are doing with it.
• We use the paper cheque system here and I find it slow and frustrating, especially when trying to catch up with the Director when I need cheques signed so that I can post them out.
• We don’t have a petty cash system for the staff to use so they pay for small items themselves and furnish me with a receipt. I then have to write cheques for small amounts to reimburse them.
What changes would you make if you could?
• If I had the choice I would change from the paper cheque system to online bank transfers because it is cheaper and easier. There seems to be a lot of double handling with the cheque system.
• I would like to have petty cash on hand for the staff to use. That brings its own problems, of course, but it will still be cheaper in the long run.
• I would like to be able to pick up the files I need at a set time each week and process them in my home office. If we used the online model I could work at any place at any time and probably be far more productive.
• A simple online system would be easier to manage. All the committee members would be able to see at a glance what was going on although I don't think they should be allowed to alter it. That responsibility should stay with the Treasurer.
What frustrations have you found as Treasurer?
• Often it can be hard to find and space to work with minimal distractions when I come in because other people also need to use the office space or equipment. Alternative work spaces in the kindergarten complex can also get quite busy and noisy especially because I work while the children are having their sessions.
• Invoices and receipts are not always in the correct files and I get annoyed when I have to hunt for them. There are too many people handling too much paperwork and not everyone knows what they are doing with it.
• We use the paper cheque system here and I find it slow and frustrating, especially when trying to catch up with the Director when I need cheques signed so that I can post them out.
• We don’t have a petty cash system for the staff to use so they pay for small items themselves and furnish me with a receipt. I then have to write cheques for small amounts to reimburse them.
What changes would you make if you could?
• If I had the choice I would change from the paper cheque system to online bank transfers because it is cheaper and easier. There seems to be a lot of double handling with the cheque system.
• I would like to have petty cash on hand for the staff to use. That brings its own problems, of course, but it will still be cheaper in the long run.
• I would like to be able to pick up the files I need at a set time each week and process them in my home office. If we used the online model I could work at any place at any time and probably be far more productive.
• A simple online system would be easier to manage. All the committee members would be able to see at a glance what was going on although I don't think they should be allowed to alter it. That responsibility should stay with the Treasurer.
I look at the issues confronting this treasurer and see the solution in front of me. Admin Bandit software will overcome most of the issues that treasurers have to deal with and will produce your reports for you on demand. At 25c per day even the smallest NFP can afford the software. In fact, for 25c per day you can't afford to be without it.
Wednesday, 22 December 2010
Westpac and Organisational Mentoring.
The Organisational Mentoring Program is designed to support and encourage Not For Profit (NFP) management officers and staff through skills transfer and coaching from Westpac staff.
Westpac are understandably proud of their upcoming 200 year anniversary, and are keen to share their knowledge of business sustainability with close to fifty NFPs, Indigenous organisations and social enterprises throughout Australia that they have already included in this program.
Westpac hopes that the general skill development that their program offers will have a positive influence on the wider community.
Our Governor General, Quentin Bryce, was at the launch of The Organisational Mentoring Program and she applauded the bank's move to help develop the leadership, HR processes and work culture of the organisations they have taken under their wing.
Leading on from Westpac's successful pilot of The Organisational Mentoring Program in 2008 with the Juvenile Diabetes Research Foundation (JDRF) they have further developed their innovative skills transfer initiatives.
This mentoring model is seen as an opportunity for Westpac employees to develop leadership and coaching practices while helping to influence improvement and business sustainability through an exchange of management tools and methods for ongoing business improvement.
Not only do the mentors offer skill development in financial sectors, but they coach in better workplace practices, engaging employee commitment and reducing the sometimes high levels of employee turnover.
We hope that this scheme broadens even further, allowing many more Not For Profit groups to benefit from the intitiative.
Well done Westpac.
Thursday, 25 November 2010
Engaging Younger Generations on NFP boards
In the article, Why Don’t More Members of Gens X and Y Join Boards? Emily Heard outlines some of the reasons why younger people are hesitant to join boards. They include a reluctance of older generations to involve the younger and the general tendency of people to recruit others like themselves.
So how do you overcome this and engage younger people on NFP boards?
• Appoint a youth co-ordinator to take responsibility for young members to engage and recruit them at a volunteer level.
• Use marketing strategies to ‘speak to youth’. Review your advertising and target publications specifically for youth such as street presses, music magazines, FM radio, internet etc.
• Let your existing members and supporters know you are actively seeking youth involvement and use them to spread the word and find people they know might be interested.
• Set up a mentoring program so that all members (young and older) can exchange knowledge and ideas.
• Adapt NFP organisation rules and procedures to accommodate younger people and instigate extra training programs.
• Give a clear outline of what is expected so they know their duties and how they can fit into the organisation.
Considering Gen Y is the second largest generational demographic (behind the Baby Boomers) it is clear there is a definite lack of age diversity on NFP boards. The benefits of attracting younger people to NFP boards are numerous and it is important the next generation of leaders are recruited now.
* BoardSource: Nonprofit Governance Index 2007
Wednesday, 27 October 2010
I'm on a committee
Saw this funny poem in the Heart Support - Australia newsletter and thought you might enjoy it too.
Oh, give me some pity, I’m on a committee.
Which means that from morning to night,
We attend, and amend, and contend, and defend,
Without a conclusion in sight.
We confer and concur, we defer and demur,
And reiterate all of our thoughts.
We revise the agenda with frequent addenda,
And consider a load of reports.
We compose and propose, we suppose and oppose,
And the points of procedure are fun!
But though various notions are brought up as motions
There’s terribly little gets done.
We resolve and absolve, but we never dissolve,
Since it’s out of the question for us.
What a shattering pity to end our committee,
Where else could we make such a fuss?
Is this your experience of being on a committee. :-)
Oh, give me some pity, I’m on a committee.
Which means that from morning to night,
We attend, and amend, and contend, and defend,
Without a conclusion in sight.
We confer and concur, we defer and demur,
And reiterate all of our thoughts.
We revise the agenda with frequent addenda,
And consider a load of reports.
We compose and propose, we suppose and oppose,
And the points of procedure are fun!
But though various notions are brought up as motions
There’s terribly little gets done.
We resolve and absolve, but we never dissolve,
Since it’s out of the question for us.
What a shattering pity to end our committee,
Where else could we make such a fuss?
Is this your experience of being on a committee. :-)
Why Good Financial Management is Essential
Not-for-profit refers to the fact that no individual will gain from the profits earned by an organisation, but any well run organisation should be achieving some level of profit so it can meet the needs of its members or beneficiaries and to stay solvent.
Good financial management of an NFP is as important as it is for any other organisation or company. They require sound budgeting, receipting and invoicing and cash flow practices and should be audited at least annually to maintain the accuracy of all financial records.
NFP is still a business so it is important to know the financial position at any time. How else will you know which activities are profitable and which are costing you money? The Board of Management is responsible for the financial health of the organisation and if it is mismanaged, its members are often liable. Do you really want to risk your personal assets?
Members of the NFP and other members of the community that have supported their cause need to be able to see how their money has been used and the financial records need to be open to question and accessible at all times to all members. Technically, anyone who is a member can walk in and ask to see the books when they feel like it. Your books must be maintained to professional standards.
Financial management of an NFP organisation is a responsibility that is taken on by usually one or a small group of people but no matter what your role, it is important that you have a basic understanding of accounting processes so that you know that everything is being done properly.
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