NFP board remuneration
Chartered Accountants Australia and New Zealand has released Remunerating Not-for-profit Directors, which covers key factors NFPs should consider in determining whether those charged with governance should be paid.
The paper includes a checklist highlighting aspects to be considered when contemplating the move.
Among factors are an entity’s constitution, funding constraints, potential tax implications, and key agreements. An analysis of the pros and cons of remunerating boards is outlined.
The case for remunerating boards centres on a need to attract skilled and diverse people and recognise their time and effort.
The argument for not remunerating them is focused on reducing potential liability risks associated with being a director.
Paying directors might also be seen as contrary to the spirit of the sector. Many believe that all of an NFP’s resources should go to furthering the organisation’s purpose.
Australian states and territories have their own rules for regulating fundraising activities, a frustrating situation.
The laws are complicated and fail to cover fundraising activities using online platforms. A donation made online is not necessarily received in the same state or territory where it was made. This means fundraisers must ensure that they comply with the laws of states and territories where funds are raised and to which money is transferred.
Public companies, among others, were required to have a whistleblower policy by 1 January 2020
This is a reminder to act if your policy is not yet up and running and made available to officers and employees.
Large charities that are companies limited by guarantee are required to have a whistleblower protection policy that meets requirements set out in the Corporations Act.
Small and medium-sized charities that are companies limited by guarantee don’t need a policy but are required to manage whistleblowing in line with the act.