The Price of Liberty is Eternal Vigilance
Administration Seminar
ASC
Coffs Harbour
Mr John Boyle
Business Services Manager
Presentation Overview
1.
2.
3.
4.
5.
6.
ATO Deed of Agreement
Compliance review
Donations
Mortality Payments
Budgets
Australian Charities and Not for Profit
Commission
7. Questions
How will the Deed of Agreement
effect sub-Branches
• All RSL sub-Branches and their subsidiaries will need to be
compliant with the Constitution of RSL NSW & both Federal
and State Acts.
• An RSL Audit team consisting of CFO, Miss Annette Mulliner
OAM, Julian Waetford and myself will be conducting audits
of RSL sub-Branch’s and their subsidiaries.
• These audits will cover not only financial information but all
activities of the RSL sub-Branch or subsidiary.
• It is planned that the audit team will visit at least 50 RSL subBranches per year not counting call backs.
Where can RSL sub-Branches
Donate
• All Donations must meet the ATO’s
requirement that it be for the
PREDOMINANT PURPOSE that the
League holds its Charity Status.
• The Aims and Objects of The Returned
and Services League of Australia (New
South Wales Branch)
Where can RSL sub-Branches
Donate
• New By Law 21 of the RSL NSW
Constitution sets out general
considerations for sub-Branches and
subsidiaries as to Donation Policy.
• State Branch and sub-Branches are
required to administer RSL affairs and
preserve and protect RSL funds and
property in compliance with the terms of
the Constitution. (ATO Deed)
Where can RSL sub-Branches
Donate (cont.)
• Sub-Branch Trustees and Management
Committees have an obligation to ensure
proper accountability of all members’
funds. The application of those funds must
be made in accordance with the
Constitution, By-Laws and Regulations in
furthering the objects of the League.
(ATO Deed and the reason why RSL NSW
& its sub-Branches have Charitable status)
‘Bona fide’ donation
The words “bona fide” means “in good faith”.
When referring to distributions or donations
and interpreted in accordance with the
Constitution, a reference to “bona fide”
means that any distributions and donations
in respect of Trust funds made pursuant to
the Constitution need to be made in good
faith.
Donation Tiers
Due to the ATO Deed’s requirement that
Donations must meet the Predominant
Purpose for which RSL NSW and its subBranches are a charity, RSL NSW State
Council has determined the approved
donations and the percentage maximum and
minimum sub-Branches are allowed to
donate to each tier.
Donation Tier 1
TIER
1
%
50%
Min
ORGANISATION/CHARITY
COMMENT
Recognised RSL Charities, as per Annex C RSL Family
Chapter 5 Property and Finance Regulation
Other RSL Bona fide Charities, as per the
Annex C Chapter 5 Property and Finance
Regulation
RSL Youth Clubs
RSL Day Clubs
RSL Women’s Auxiliaries
Other RSL sub-Branches
Other RSL subsidiaries
Predominant
Purpose
Donation Tier 2
TIER
2
%
25% Max
ORGANISATION/ COMMENT
CHARITY
Memorials: new,
repairs, restoration
Schools:
Scholarships,
educational material,
books, visitation to
sites military history
Cadet Units
Defence Reserve
Units
ADF
War
Museums/Kokoda
Track
Donation Tier 3
TIER
3
%
20% Max
ORGANISATION/
CHARITY
Support provided
to
Commemorative
Services e.g. St
Johns
Ambulance, Red
Cross
Local
Community
Charities that
meet the aims &
objects of the
League
COMMENT
Donation Tier 4
TIER
4
%
5% Max
ORGANISATION/
CHARITY
Other ESOs
Everyman
War Widows
COMMENT
Donation Tiers (cont.)
• To enable sub-Branches clarity for
example: Whereby a sub-Branch donates
as per the By-Law a total of $10,000.00 in
donations, a minimum of $5,000.00 must
be donated to Tier 1 charities with the
remainder being divided into the other tiers
as per the maximums allowed.
• The above percentages apply to all RSL
sub-Branches.
Percentage of Income to be
Donated
• The term income for these purposes
means the net income after reasonable
expenses have been deducted from the
sub-Branch’s gross income.
• In determining the percentage of income a
sub-Branch may donate as per the By-Law
the following table below applies.
Percentage of Income to be
Donated
Income under $5,000
No restrictions on donations
Over $5,000 but under $50,000
30% of income to be donated
Over $50,000
40% of income to be donated
Mortality Payments
• The Constitution provides that one of the
objects of the League and RSL NSW is “to
provide for the sick and wounded and
needy among those who have served, and
their dependants, including pensions,
welfare & benevolent fund, medical
attention, homes and suitable
employment”.
• Mortality Payments fall into this category.
Mortality Payments (cont)
• All recipients of these payments must be
‘bona fide’ recipients.
• All payments must be for necessitous
circumstances.
• No Cash payments are to be made.
• No payments direct to estates, all
payments are to be made to providers. i.e.
Funeral Directors etc.
Mortality Payments (cont.)
The conditions described in the
previous slide on Mortality
Payments meet the
requirements of the ATO and
Australian Charities and Not-forProfit Commission (ACNC).
Budgets
• It is condition of the ATO Deed and
the ACNC that all charitable
organisations prepare an annual
budget for their overall activities.
• RSL NSW requires that all RSL subBranches to submit a budget to RSL
NSW State Council.
Why do a Budget
• Informed decisions can be made on the
viability of the organisation and the extent to
which it can afford to implement and maintain
certain programs and activities.
• The financial reports prepared by the
treasurer during the course of the year can
incorporate a comparative column to show
how the organisation is travelling in relation to
its budget with actual income and
expenditure. Comparisons of actual income
and expenditure for previous years can also
form part of the report. (Good Governance)
Why do a Budget (cont.)
• Adjustments can be made to programs during
the course of the year where there is a
shortfall in estimated income, or estimates of
anticipated income have been exceeded.
• The same applies to actual expenditure,
which could exceed levels allocated in the
budget (need to be curtailed or financed from
another part of the budget) or conversely,
Expenditure in certain areas might be running
well within budget and decisions made on
what to do with any surplus
Why do a Budget (cont.)
• Budgets can serve as important
performance indicators
• A cash flow budget will allow the
organisation to plan financial
commitments it must meet at a given point
in time and plan to maximise investment
opportunities for funds surplus to needs.
Budget Template
• RSL NSW provides a sample Budget
Template to all RSL sub-Branches.
• Three ways of getting this template:
• Download from RSL NSW web site
• Ask the Business Services Department of
RSL NSW
• Copy in the Property & Finance Regulation
Chapter 3 Annex E
Australian Charities and Not-forProfit Commission
ACNC legislation was passed by the Australian Parliament late
2012. Its role will be to:
* Register charities;
* Establish and maintain an up to date, public searchable register
of charities;
* Establish a one stop shop for charities;
* Provide a ‘report once, use often’ service for charities;
* Provide information and guidance for the sector;
* Promote public trust and confidence in the sector; and
* Monitor compliance and investigate regulatory breaches.
THANK YOU
The Price of Liberty is Eternal Vigilance