Charitable bequests a specific case of gift giving

Over the last 5 years, charities have acknowledged that bequests are a source of income with the potential for enormous growth. As the population ages the number of possible bequest donors will increase. Charities are implementing bequest campaigns to target the older donors, and the need for research is evident...

A taxing definition — a comment on the industry commission's draft proposals for defining community social welfare organisations

The draft report of the Industry Commission's charitable organisations inquiry introduces a new term for nonprofit organisations delivering human services. The new term is "community social welfare organisation" or "CSWO". The report recommends that tax deductibility of donations be extended such organisations. It then hints at making the definition of CSWO a standard criteria for state taxation exemptions. This paper examines the definition of the new term community social welfare organisation and charts its possible consequences if adopted by the federal government. The promise of tax deductibility status to previously shunned organisations is largely illusory. The Commission's aim of simplification through clarification of the definition is flawed and will not reduce the administration costs for the Australian Tax Office (ATO) or organisations.

Taxation of multinational banks : using formulary apportionment to reflect economic reality

The taxation of multinational banks is currently governed by general principles of international tax. However, there are characteristics exclusive to multinational banks that may warrant consideration of a separate taxing regime, as the current system does not produce a result that accurately reflects the economic source of the income or the location of the economic activity. The suggested alternative is unitary taxation using global formulary apportionment.

Australia's adoption of an international tax regime : to engage or not to engage?

On 1 November 2011 the Minister for Financial Services and Superannuation, the Honourable Bill Shorten MP, announced that Australia would be undertaking a reform of the ‘transfer pricing rules in the income tax law and Australia's future tax treaties to bring them into line with international best practice, improving the integrity and efficiency of the tax system.’ Mr Shorten stated that the reason for the reform was that ‘recent court decisions suggest our existing transfer pricing rules may be interpreted in a way that is out-of-kilter with international norms.’ Further, he stated that ‘the Government has asked the Treasury to review how the transfer pricing rules can be improved, including but not limited to how to be more in line with international best practice.’ He urged all interested parties to participate in this consultation process.

"Money pouring out of its ears" : on the taxation of really profitable nonprofit organisations in Australia

Under current law Australia appears to be a tax haven for certain non-governmental institutions. Millions of ordinary business income may go untaxed and the deductibility for donations is unlimited - both are very generous tax measures in an international context. The basic problems of most Australian nonprofit organisations are not taxation; they are just that: nonprofit. Anybody interested in the non-governmental sector should be willing to face the question: What is an equitable tax treatment? The short-term tactic of ducking the question may not be the best or most beneficial long term strategy.

Case study of Queensland state taxation

1. Like the Commonwealth Tax regime, state taxation legislation has now ballooned in size from the good old days when life and tax were relatively simple issues. 2. This case study of Queensland state taxation will examine the following taxes affecting churches and charities in this state: (a) Stamp Duty (b) Land Tax; and (c) Local Authority Rates 3. Each type of tax will be considered in turn. A brief legislative history of the statutory instruments governing these taxes will be given with a closer examination of the present schemes. Relevant judicial pronouncements will be considered and some open discussion of real life examples. 4. It is submitted that the regular donors to our worthy charities and the dedicated weekly churchgoers would have absolutely no idea: (a) that indirectly the value of their donations and weekly offerings are increasingly being eroded by the imposts of Government not only in terms of the amounts of those imposts but the enormous administrative burden of coping with the legislation; (b) of the complexity of the taxation legislation affecting their churches and charities; or (c) that their churches and charities are even paying taxes.

Market orientation in the nonprofit sector

As the nonprofit sector moves into a more competitive environment it is being required by the community to become more efficient and effective. One response is for nonprofit organisations to become market oriented, which is the familiar response in the for-profit sector. Two components of market orientation, that is market segmentation and customer oriented products, fit well within the peculiarities of a nonprofit organisation. This is usually accompanied by the desire to obtain a competitive advantage causes problems for various stakeholders within the organisation. This paper contends that three factors, management, scarcity of resources, and conflict between organisational objectives and market orientation, are major influences on the adoption of a market oriented culture for a nonprofit organisation.

The application of financial ratios in analysing nonprofit organisations

Historically ratios have been used to assess the financial standing of profit organisations. It would be expected the role which such ratios play in analysing nonprofit organisations would be considerably different due to the lack of profit motive. Many traditional ratios are based on profitability as a benchmark. The nonprofit sector plays an important role in society yet to date there has been no research carried out on financial statement analysis for nonprofit organisations in Australia. This paper examines ratios of a group of nonprofit organisations and assesses the applicability of the traditional profit-based ratios to nonprofit organisations. Financial statements of a sample of charities registered in Queensland are analysed. The traditional profitability, liquidity and financial stability ratios are analysed and calculated wherever practicable and compared to the typical benchmarks used in profit analysis.

Public Fundraising Charities in Queensland

A financial study is presented of charities registered under the Queensland Collections Act. These charities are required to register under that Act as they seek donations from the public. The study collected financial information from the audited annual financial statements lodged in 1989 and 1992. The charities were classified into industry classes according to Australian Standard Industry Classification. Data is presented on charity's numerical growth, growth of assets and receipts, lodging of first returns under the Act and defaults in lodging returns. A series of exploratory case studies of greater financial detail are presented to establish possible reasons for the aggregated trends established in the first part of the study. The study concludes by raising three issues, the methodological implications posed by the research, substantive issues about the behaviour of nonprofit organisations and issues for the focus of future research.

THE meaning of effectiveness

As the Industry Commission prepares to engage in its examination of the Australian nonprofit sector as defined in its draft terms of reference, it confronts what it should regard as a fundamental dilemma; the meaning of the construct `effectiveness'. I should at this point state clearly that the potential difficulties are not unique to the task of the Commission, but have instead plagued human service evaluation for many a long year. At the level of human service or welfare practice, a favoured method of resolving the conundrum has been to dismiss it as irrelevant to the human services as it pursues its task of working for human betterment however understood. Such a response highlights a fundamental characteristic of the human services generally, not only in the nonprofit arena: their relative freedom from evaluation. While there are many reasons for this, some of which we will canvass later in this paper, one stems from a lack of clarity about the meaning of effectiveness coupled with a lack of consensus about its purpose.

Canadian Charity Tribunal : a proposal for implementation

This paper is our attempt to focus the ongoing debate in Canada about the federal regulation of charities. More precisely, the paper examines the desirability of having an independent federal body assume some of the key roles which Revenue Canada currently plays in the charity field, as well as offering ideas about that body’s structure and operations.

Brand loyalty in the Australian wine industry

Consumers are increasingly exposed to a wider range of wine brands as the industry is becoming vastly competitive. Using data from Australian wine consumers, the authors empirically test a model of antecedents of wine brand loyalty. The findings of this study show that wine knowledge and wine experience influence wine brand loyalty indirectly through wine brand trust and wine brand satisfaction. In addition, it is demonstrated that consumer satisfaction with a wine brand is the strongest driver of wine brand loyalty.

EducatePlus : 2012 benchmarking survey

In 2012, the fourth bi-annual EducatePlus (formerly known as ADAPE Australasia) benchmarking study was conducted to track educational development in Australia and New Zealand.