ABN: 76 141 705 599 | Suite 303, 100 Pacific Highway, NorthSydney, 2060

Strategic Directions and Business Plan Summary- April 2010

Background

A group of like-minded CEOs in the Not-for-Profit (NFP) Sector have agreed to create a new umbrella organisation to work collaboratively on common issues facing the NFP sector. Initially these organisations include HammondCare, Mission Australia, Philanthropy Australia, Social Ventures Australia, The Benevolent Society, The Smith Family and World Vision Australia.

The organisation will focus on bringing together organisations in the Not-for-Profit (NFP) Sector to work on threats and opportunities facing the NFP sector, and to lead by being an effective voice on common and shared issues affecting the contribution, performance and viability of Not-for-Profit organisations in Australia.

The Company will operate as a Membership organisation; a Company limited by Guarantee under the name of Community Council of Australia and will focus on efficiency and co-operation in the achievement of the following objectives:

1. Pursue and promote all or any purposes which are now or may be deemed by law to be charitable or otherwise for the benefit of the community.

2. Promote and organise efficiency and co-operation in the achievement of the above purposes by:

engaging the leadership of Australia in examining Australia’s societal challenges and in developing more effective solutions and enhancing co-operation and engagement between business, government and other sectors of society
initiating, undertaking or co-ordinating research which contributes to the improved management, accountability and effectiveness of not for profit organisations, and improves public policies and legislation which further these purposes
enhancing the recognition of, and promote support for, the work of the individual organisations and the NFP sector as a whole by the Australian community and its governments
providing a national leadership forum for the exchange of information, research and knowledge in relation to issues affecting the NFP sector and undertake collaborative work on issues of common interest
encouraging charitable, voluntary, philanthropic, and community endeavours through the NFP sector and to promote the public benefit and contribution of these endeavours
developing policies and initiating programs to identify and meet the infrastructure and other needs of the NFP sector
promoting the development of policies, advice and information to help inform decision makers in respect of issues affecting the NFP sector

3. To act as trustee and to perform and discharge the duties and functions incidental thereto where this is incidental or conducive to the attainment of these objects,

4. To do such other things as are incidental or conducive to the attainment of these objects, and

5. To do all or any of the things authorised by the Corporations Act.

This initiative and approach was adopted after several attempts over 15 months to bring together various groups within the Charities and NFP sector; the concept and model has evolved since late 2008 over several iterations based on discussions with various stakeholders and interested parties since.

Seed funding, in kind resources and leadership was provided by the initiating organisations to enable the creation, stakeholder engagement and initial communication of the CCA in March 2010. There were three events, in Sydney, Canberra and Melbourne with potential members and other interested supporting organisations to outline the intent, objectives and plans for CCA.

Strategic Imperatives – critical issues for CCA in 2010

2010 is acritical year; Productivity Commission, Henry Tax Review and an election. It is a year of enormous change facing all stakeholders in the NFP sector, and an opportunity to adapt to those changes and shape the future.

There is need for a collective approach to this and an organisation that can bring together all stakeholders in discussion to resolve the issues and deal with the change management required. A hub for not-for-profit organisations and their common issues - CCA is that hub.

This can only be done in a collaborative way using the strength and diversity of the NFP sector;researching, analysing and producing evidence based platforms and outcomes in partnership with all stakeholders to provide societal benefit to Australians.

The creation of Community Council for Australia demonstrates the strategic intent and imperatives in engaging with the issues facing the NFP sector. The members of CCA began as they mean to continue, with constructive contributions to the work that needs to be done, and focusing on conducting research and facilitating evidence-based discussion. Understanding not only the size but also the variety and sophistication of the community sector will increase our understanding of its contribution to the health and wellbeing of Australians and the causes they hold dear.

CCA is of course not the only body serving the NFP sector; but CCA believes a new way is needed to lead the co-ordination of research, analysis, debate, collaboration and engagement with NFPs and Government in the spirit of the 2010 Compact between the Government and the NFP sector on all the issues raised in the Productivity Commission Report as well as what may come out of the Henry Tax Review; presenting a credible voice for policymakers and the public to turn to for advice on the community sector. CCA is not meant to be is a replacement for other organisations or peak bodies that represent clusters of interest within the NFP sector; but will collaborate, share ideas, resources, data and information to enhance and complement the work done by these organisations.

CCA welcomes the Productivity Commission Recommendations released in early 2010. Importantly with regard to the question of how the Government and community sector engage, CCA strongly supports the establishment of a specific Office for Community Sector Engagement to oversee implementation of government, bureaucracy and sector reforms. This is a critical new entry point to government and this Office should sit in the Department of Prime Minister & Cabinet, at the centre of Government, to give it the necessary cross-departmental charter for reform and action.

CCA does not underestimate the enormous challenge for Government, the organisations in the NFP sector, and other stakeholders of the Productivity Commission recommendations. The Productivity Commission Report provides a way forward with thoughtful recommendations: the Community Council for Australia expects Government to take them seriously, and its response will be a key test of how the Compact will work. This will be a test of Government’s intentionality.

The NFP sector is on the threshold of a new era, and CCA provides a hub for common high level issues including, where it is good for the NFP sector, supporting the implementation of recommendations from the Productivity Commission report, the Henry Tax review, the COAG agenda for a better model of Federalism, and engagement of the NFP sector by Federal, State and Local Governments.

CCA aspires to engage organisations across Key Areas of the NFP sector - based on the International Classification of Non-Profit Organisations (ICNPO) including Culture and Recreation; Development and Housing; Education; Environment; Health; International; Philanthropic intermediaries and voluntarism promotion; Religion; and Social Services.

CCA has a sector-led focus on key issues impacting the NFP environment; it will be Member-driven, Evidence-driven, and Outcomes-driven; work to the objectives that include intent to:

be inclusive right across the NFP sector, with large and small organisations, and the Peak Bodies in the NFP sector, using a consultative process

be driven by a member-endorsed plan and structure (including Governance) that embraces the broadest possible representation including from the areas of Culture and Recreation, Education, Environment, Health, International (overseas aid), Philanthropy, Voluntarism, Religion and Social Services

research and prepare submissions, positions, and produce agreed responses on significant issues such as regulation, taxation and other current and pressing common issues for the NFP sector, taking both a proactive and reactive approach

provide thought leadership, a coherent and balanced voice for the NFP sector and broad representation on important sector-wide issues.

Mission Statement

The mission of (CCA) is to be a hub and a coherent voice for common and shared issues;providing demonstrable actions and outcomes for the NFP sector.

We will –

•Provide thought and action leadership

•Influence and shape policy and sector agendas

•Inform, educate, and assist organisations in the NFP sector to deal with change and embrace the future and remain sustainable

•Partner effectively Private and Public sectors

Strategy Overview

Framework and Guiding Principles

CCA is a member-based, independent, non-partisan organisation dedicated to enhancing the extraordinary work and effort undertaken by the NFP sector in Australia. CCA is an attempt by the NFP sector in all its diversity to come together as one body. It will be driven by 3 key principles:

  • To be Member-driven
  • To be Evidence-driven
  • To be Outcomes-driven

Member-driven means CCA will:

1.Act as the coherent voice of NFPs delivering benefits to Society and Communities;be seen as an active, credible and authoritative advocate for the coherent interests of member organisations and the NFP community

2.Provide national and balanced leadership on matters affecting Australian society and community;through well-researched policies and positions endorsed by members

3.Develop effective means for member consultation; to drive outcomes and benefits for members and the sector

Be clearly recognised as HUB for member organisations, their issues and aspirations; reflecting the diversity of the Non-for-Profit communities across all clustered, functional and geographical areas.

Evidence-driven means CCA will:

1.Develop well researched and evidence-based policy and positions on key issues affecting the NFP community;

2.Be the hub for information and issues for NFPs and collectively develop policies, position papers and reports benefiting members and the NFP communities they serve

3.Use our resources and the strength of the member network to provide policy services and representation consistent with the changing circumstances of NFPs, large and small.

Outcomes driven means CCA will:

1.Be proactive in identifying and responding to emerging issues affecting members and the NFP communities in which they operate

2.Respond efficiently and effectively to regulation, legislation, environmental and sectoral reform as it impacts on members, their needs and their organisations

3.Adopt internal processes and build capacities that are supportive of the delivery of these objectives.

Strategic Objectives

  1. Increase Reach and Relevance through collaboration and member-driven initiatives
  2. Build Evidence-based Platforms assisting the sustainability of NFPs
  3. Increase Policy and Advocacy Influence to effect good outcomes for NFP communities

These objectives will be underpinned by enhanced service provision and response to the needs of member organisations in the NFP sector.

Increase Reach and Relevance – Member Engagement, collaboration, support and Relevant Representation

To increase the Reach and Relevance of the organisation, the following outcomes and initiatives will be implemented

•Focus on providing a collective approach to addressing the issues in the NFP sector

•Be a hub for data, information, knowledge, issues and activities of members

Increase Policy and Advocacy Influence– Effective thought leadership and advocacy based on excellence in Policy Development, positioning, and submissions

In order to provide significant influence through our Policy platforms to be relevant to our stakeholders, we will implement the following outcomes and initiatives

•Produce research and reports in response to the changing environment and the reform agenda

•On an ongoing basis, identify the real needs of the CEOs and organisations in the NFP sector to create policy outcomes and platforms to fulfil those needs

Build Evidence-based Platforms and Capacity - Research, Review, and Recommend - reforms and improvements

•Utilise shared learnings and market intelligence to identify the needs of NFP organisations and address opportunities

•Create ‘Business Partnering’ opportunities to fund CCA, particularly operations and research

•Collaborate with Universities, Institutes, Centres, and other relevant stakeholders to jointly produce position papers, policies and capacity-building for beneficial outcomes to members

KeyAreas of Policy Focus

Be relevant by taking a leadership position in researching and responding to:

  • Taxation environment (2010 Henry Review of taxation);
  1. Deductible Gift Recipient review
  2. Fringe Benefits Tax review
  3. Tax-exempt status review
  4. Tax concession Charitable status
  • Reform environment - the outputs from the Productivity Commission and the impact on the NFP sector;
  • National and State government agendas - the COAG agenda, including in particular regulatory reform impacting on or relevant to the NFP sector or parts of the NFP sector;

Additionally take a leadership position on

  1. Education of the Australian public about the not-for-profit sector
  2. Education of the not-for-profit sector about itself
  3. Broad Policy and Regulatory Reform
  4. Financial sustainability of NFPs serving communities and society

Specifically focus on actions or outcomes designed to position the organisation to:

•Deal with legislation specifically introduced that is detrimental to the NFP sector

•Respond to government regulation and legislation as it impacts on the NFP sector

•Be an active supporter of attempts to reform relationships between all stakeholders including different levels of Government and including the COAG reform agenda

•Continue to argue for sensible tax structures for the NFP sector

•Embed principles of collaboration across all relevant stakeholders

•Remove structural disincentives to the NFP sector

•Provide additional support for programs and capability-building

•Support establishment of and dialogue with an Office of the Community Sector Engagement and a National registrar of Not-for-Profit organisations

•Support the establishment and dialogue with the National Compact support a rational solution for carbon trading with minimum impact on the NFP sector and assist organisations within the NFP sector deal with the transition

•Broaden research and analysis of the NFP sector to consider wider community, economic and social impacts

Business Plan Overview & Key Business Initiatives Summary

Deal with regulation or legislation specifically introduced that is detrimental to the NFP sector as a result of Productivity Commission or Henry Tax Reviews

Produce evidence-based submissions and positions of members by way of quarterly research projects

Host a quarterly “Coherent Voice” Event to engage and educate stakeholders; a quarterly stakeholder forums to advance discussions, issues resolution and solutions that benefit members and the wider NFP sector

Produce media statements for Public Affairs and respond to media

Develop a framework to reform relationships between all stakeholders including different levels of Government and including the COAG agenda

Develop a program to embed principles of collaboration across all relevant stakeholders including clusters and Peak bodies within the NFP sector

Broaden research and analysis of the NFP sector to consider wider community, economic and social impacts

Argue for better Government framework and Bureaucracy to engage sector stakeholders through an Office of the Community Sector Engagement

Develop a Knowledge Hub to bring together data, information, knowledge, issues and opportunities to benefit members

Develop Policy Framework, positions and papers to support Advocacy

CCA’s themes for 2010

  1. The enormous challenges provided by the Productivity Report and the term for reference of the Henry Tax review
  2. to organisations in the NFP Sector
  3. to Government
  4. and the Bureaucracy
  5. The Change management and transition process
  1. What the NFP sector expects of the Government and Bureaucracy in response

Initial focus and Priorities

1.AREAS OF FOCUS FOR 2010 – the Productivity Commission’s Report

a) REGULATION

The NFP sector is disparate with complex rules and regulations and layers of legislation and bureaucracy is prohibitive.

The current regulatory framework for the NFP sector is complex, lacks coherence, sufficient transparency, and is costly to NFPs. The Bureaucracy designing and supporting same need to be responsive and adaptive, in addressing cross- jurisdictional and agency issues and abnormalities at Federal & State levels, duplicity and inefficiencies

b) EFFECTIVENESS AND EFFICIENCY

Lack of data and measurement in the NFP sector undermines the level of performance and understanding in the NFP sector and among the wider community - education of the NFP sector and the Community is something CCA intends to address in its Charter

We support greater social innovation and the business planning capabilities of NFPs, and greater need and incentives for collaboration. Support needs to be strengthened by Government either through the funding of new or the expansion of existing programs

Reform is needed to improve knowledge information and reporting in the NFP sector, not only simplifying it but streamlining it across agencies and jurisdictions. Management and cultural change in Government. & Bureaucracy

c) WORKFORCE

The Government needs to respond to the increasing workforce pressures and long-term planning is required to address future workforce needs in the NFP sector - less than full cost funding of many services has resulted in substantial wage gaps for NFP – challenges in retaining staff. Changes n demographics, strong economic growth and tax changes may all further exacerbate this problem

IIAREAS OF FOCUS FOR 2010 – the Henry Tax Review and Report

a)Framework for compliance, standardisation and reporting (root and branch review)

b)Properly implement Standard Chart of Accounts for NFPs

c)DGR status situation is dysfunctional and needs urgent attention including rationalisation. It is a complex area that needs to be addressed by the Henry Tax Review. The outcomes of the Review and the implications of DGR, FBT, and other concessional tax changes are of concern to all.