What is the real intent behind plans to abolish Australia's charity regulator?

This government does not like campaigning and advocacy organisations, and the removal of the ACNC as an independent regulator simply exposes those organisations to attack.  

Greg Ogle

Excellent piece by Greg Ogle,  Independence of Charities Under Threat,  on the real intent behind Abbott Governments plans to repeal the national charity regulation body — the 18-month old Australian Charities and Not-for-Profit Commission (ACNC)- and hand back the regulation of charities to the Australian Tax Office. 

Ogle argues that repeal of the ACNC paves the way for a return to the political attacks of the Howard Government years (1996-2007), particularly attacks on environmental and campaigning groups involved in public advocacy, direct action and activism.

The Australian Charities and Not-For-Profits Commission (ACNC) was set up less than 18 months ago by the Federal Labor government to regulate the charitable sector. The governing legislation for the ACNC ensured the independence of charities and their right to advocate for charitable causes.

The objects of the Act that established the ACNC committed to ensuring a “robust, vibrant, independent and innovative” charity sector. The legislative provision ensured that the governance standards required to be met by charities did not constrain advocacy. 

In essence, the legislation gave charities some protection for pursuing advocacy and activist campaigns that challenge Government policy or corporate malfeasance.

Ogle reminds us of the Howard Government's direct attack of advocacy and campaigning by charities and NGOS: 

Under the Howard government, the tax office was used to attack and pressure charities who were advocated for policies the government didn’t like. This was at a time of recurring public and parliamentary attacks on those charities by senior Liberal politicians like George Brandis, Brett Mason and Eric Abetz, echoed by industry groups and right wing think tanks. The pressure meant that between 2004 and 2007 The Wilderness Society, for instance, faced at least 20 different public calls for them to be stripped of their charity status. They passed the three Tax Office audits of their “political” activity, but other groups like AidWatch had long court battles to secure their tax charity status.

In a separate article, Andrews leads fight to abolish Charities Commission, Mike Seccombe shows how the campaign to abolish the ACNC was driven by the self interest of the financial services sector (who administer charitable trusts) and influential parts of the Catholic Church, who are concerned about revealing financial details of the Church. 

Seccombe notes how Cardinal Pell, former Head of the Catholic Church in Australia and confidant of Prime Minister Abbott and Minister Andrews, made it clear that he opposed the ACNC.

Although there were some initial concerns among charities about the likelihood of increased compliance and regulatory costs, the majority of the charity sector now support the ACNC. Seccombe describes the campaign waged by the powerful financial services industry to abolish the ACNC

While the financial services industry claimed they are concerned about the cost of complying with its financial disclosure requirements, Seccombe shows that their real concern is the likelihood of scrutiny by the ACNC of their  administration of charitable trusts, that would reveal the grossly excessive fees they take for looking after the bequests of philanthropists.

Seccombe quotes Tim Costello CEO of World Vision Australia and Chair of the Community Council of Australia: 

“It’s pretty apparent there are only two main groups that are strongly opposed. The trustees, who handle dead people’s money, are a major source of opposition because they don’t want transparency about what they charge. The other is the Catholics".

Ogle refutes the Minister's claim that the abolition of the ACNC is designed to reduce red tape, by highlighting  other ways that the Federal Government could reduce red tape, but refuses to do so.

 Ogle gets to the heart of the matter:

This government does not like campaigning and advocacy organisations, and the removal of the ACNC as an independent regulator simply exposes those organisations to attack.

Spot on!!! 

Why demands for greater accountability and stronger governance should be challenged

Very good advice from Helmut Anheier who calls on not-for-profits to resist and lobby against demands  by legislators, politicians, academic think tanks and corporate leaders for greater not- for- profit accountability.

This is a critical issue here in Australia where Governments of all political persuasions and corporate and business leaders demand greater not- for- profit accountability and exhort the sector to "rise to the accountability challenge".

Of course their demand for greater not- for- profit accountability is wholly incompatible with their commitment to reduce accountability and regulation of politicians and political parties, and corporations and business.

Anheier argues (here) that the continual focus on accountability and governance produces undermines the reasons why not- for- profits exist.

Charity leaders must lobby against ever greater accountability requirements, delegates were told at Acevo’s annual conference today.

Speaking at the event in London today, Helmut Anheier, professor of sociology and dean at the Hertie School of Governance in Berlin, said he was concerned about the growing expectation for the voluntary sector to become more accountable.

"Why I’m concerned is that continual emphasis on good governance and accountability will ultimately put non-profits on the defensive, making it very difficult for them to meet these expectations, unless we take a proactive solution and steps in that direction," he said.

Anheier, who was Centennial Professor at the London School of Economics between 2001 and 2009, said the debate about the need for charities to be more accountable stretched back almost 20 years, but was now getting louder.

"It is the ‘audit society’, general institutionalisation, the suggestion that more and more mechanisms are needed to reassure us that things are okay," he said. "This is merged with ideas of good governance, which are now the prime directives for voluntary organisations."

He said that putting emphasis on accountability undermined the reasons non-profit organisations exist.

Innovation in accountability should be encouraged in the charity sector, he said. He advocated demonstrating the academic Jonathan Koppell’s "five dimensions of accountability": transparency, legitimacy, controllability, responsibility and responsiveness.

"It should be acknowledged that full accountability is beyond what non-profits can and should do," said Anheier. "New forms of self-regulation and smart reporting should be encouraged.

"Lobby against new directives for ever great accountability requirements – let’s not overdo it."