There’s a good deal of activity in the area of not‐for‐profit law reform. The Government has some seven inquiries in train, including some heavy hitters, and hundreds of detailed submissions on the need for change are up at the Productivity Commission site and the Senate Inquiry site. There is again pressure for change to some of the more irritating aspects of not‐for‐profit regulation in this country.

The push is not just coming from within Government.

Changemakers Australia (CmA), a national organisation headed by Jill Reichstein and Sarah Stegley which aims to
support the growth of social change philanthropy in Australia, has set up the Charity Law Reform Project to bring about change in Australian tax laws so that not‐for‐profit (NFP) organisations that engage in advocacy for public policy reform can still qualify as charities, access a range of taxation concessions, and access philanthropic funding.

As we all know, current law – and current Tax Office practice – restricts social change philanthropy.

"It is critical that the work of NFP organisations that provide direct relief for those in need is complemented by activities that address the underlying causes of social ills such as poverty, inequality, abuse of human rights, and environmental degradation,” CmA says.

The project has developed a set of recommendations on the kind of tax reform that’s needed. Like almost every other agency that’s looked at the issue, CmA calls for the definition of charity to be written into the law rather than left to a chain of judge‐made precedents stretching back to 1604.

“The definition of ‘charity’ needs to be modernised,” CmA says. “The definition of a charitable purpose should clearly include the advancement of that purpose. The definition of ‘advancement’ should in turn include prevention and promotion, as well as policy development and advocacy – including that aimed at changing a law or public policy.” These ideas have been put forward in the past – most recently through the Charities Definition Inquiry in 2001 – but have got nowhere.

That’s why community groups should be applauding CmA’s project to keep the momentum going from our side. “The next stage in the project is to engage with other stakeholders interested in this area of reform with a view to forming an alliance,” CmA says. “The project will research charitable law reform that has taken place in the USA, the UK, Canada and NZ over the past decade. A position paper outlining the proposed strategy for reform will be prepared in consultation with stakeholders and will then be the focus of a Forum.”

You can sign up as a member here.

Courtesy of ourcommunity.com.au