Federal Government Assistant Treasurer David Bradbury has released a revised exposure draft that standardises the term ‘not-for-profit’ throughout tax laws.

The exposure draft standardises the definition of ‘not-for-profit’ across the federal tax legislation and legislation relating to regulations by the Australian Charities and Not-For-Profits Commission.

In the exposure draft, a ‘not-for-profit’ entity is defined as an entity that:

• Is not carried on for the profit or gain of its owners or members, neither while it is operating nor upon winding up.
• Under an Australian law, foreign law or the entity’s governing rules, is prohibited from distributing, and does not distribute, its profits or assets to its owners or members (whether in money, property or other benefits), neither while it is operating nor upon winding up (unless the distribution is made to another not-for-profit entity with a similar purpose or is genuine compensation for services provided to, or reasonable expenses incurred on behalf of, the entity).

Consultation on the revised exposure draft is open until 11 May 2012.

Copies of the exposure draft and explanatory material can be found on the Treasury website.

Source: Third Sector

As charities in the US and UK take on the new kid on the social media block, Pinterest, only a handful of Australian Not for Profits are jumping on the bandwagon.

Jackie Hanafie looks at at how Pinterest fits into the Australian charity social media scene.

In January 2012, global internet marketing research company, comScore, reported the pin-board style photo sharing website had 11.7 million unique US visitors, making it the fastest site ever to break through the 10 million unique visitor mark.

According to AppAppeal.com, 1.8 per cent of Pinterest users come from Australia compared with 45.3 per cent in the US.

But while business is booming for people wanting to share recipes and ‘nice things for the home’ on Pinterest, it’s left the Not for Profit sector in Australia wondering where it fits in.

World Vision Australia’s social media manager Joy Toose said that while it’s relatively easy for charities to identify where they fit in established platforms like Facebook and Twitter, as new platforms emerge it’s challenging to determine whether to invest the resources to try and make it work.

Toose said that while the charity doesn’t have a Pinterest presence at the moment, it is something they will be looking into over the next few months.

One of Australia’s largest advocacy organisations, Amnesty International, established itself on Pinterest a few months ago.

Amnesty’s online editor Tom Ganderton says that the recent reports showing soaring traffic to Pinterest encouraged the organisation to forge a presence.

“Some might consider Pinterest a strange choice for Not for Profits because it’s more about products. But from past experience we’ve found that it’s valuable to forge a presence in new territory rather than wait for it to get big and then jump on the bandwagon,“ he said.

Ganderton says that Amnesty’s Pinterest page is still in its early stages and that their team is initially using it to explore and see where they have traction.

He says that the content getting traction at the moment is the beautifully designed content or content that has an interesting point to make.

“Infographics also do really well,” Ganderton said. “And because they can be quite long, Pinterest is good because there’s no limit to how long posts can be on the page.”

“It also has a strong mobile platform – the mobile apps are well designed. For Amnesty, mobile engagement is growing rapidly, we’re getting more and more visitors via mobile so Pinterest in that sense will work very well.

“I think Pinterest will be useful in new and interesting ways, particularly the collaboration aspect of pin boards and what that could look like between contributors.

“Eventually collaborating on shared boards, building campaigns etc which is part of what Amnesty is all about,” Ganderton said.

SocialMediaNews.com.au’s April 2012 statistics revealed that the number of Pinterest users in Australia is 470,000 compared with 10,988,140 Facebook users, and 1,800,000 Twitter users. However it overtook MySpace, which currently has 460,000 users.

US social media trainer and founder of technology blog for Not for Profits, Nonprofit Tech 2.0, Heather Mansfield said: “When Mashable first started buzzing about Pinterest in December 2011, I took a quick look at the site and thought to myself, “Shopping, crafters, and foodies. Not relevant to the vast majority of nonprofits and (whew!) not another site I need to pay attention to.”

Now she says, she is “completely addicted” to pinning boards for social good on Pinterest.

But Australian digital expert and consultant to the Not for Profit sector Prarthana Bhatia cautioned against jumping on the Pinterest bandwagon without a good social media strategy.

“It is easy for charities to hastily jump onto the Pinterest bandwagon just to ensure a presence across every ‘good’ social network,” Bhatia said.

“The reality is that even though Pinterest does offer a great opportunity for charities to offer a window into their field work to the donor or prospective donor, an organisation needs to think through what the purpose of Pinterest is.

“That is, where does it sit in the online communication cycle? How will its content strategy be differentiated from other social channels such as Twitter? How will they manage Pinterest? And so forth.

“If this doesn’t happen, then it’s simply another charity sticking the same sad images on yet another social media network… and no one is going to listen or care.”

For Tom Ganderton though, he says that while it can be overwhelming because there’s so many social media platforms available in the long run it’s valuable to establish social networks.

“Pinterest is all about showing what our story is rather than telling, and that’s what’s new and different about Pinterest as opposed to other social media channels like Facebook and Twitter,” he said.

Source: Pro Bono

This time of the year can be challenging for any organisation with the lead up to the end of the financial year, working on budget submissions as well as keeping up with the everyday operational requirements to run a successful organisation.

At Matrix on Board we understand these challenges and have developed a series of one day workshops and information dinner sessions for non-profit organisations in Victoria. Below is a snapshot of what each session will cover, if you want to know more head to our ‘News and Events’ webpage http://www.mob.com.au/news-and-events/

Understanding Financial Reports Workshop

Unlocking the power of financial information to empower Non Profit decision-makers.

This workshop is designed specifically for Non Profit organisations, and uses an accessible (an sometimes humorous) approach to ensure all participants gain new knowledge and skills about how to use financial information more effectively.

The session comes with a ‘money back guarantee’ that participants will leave knowing how to read a Balance Sheet!

The Board Table – A dinner series for Non Profit Board Members, Melbourne

The Melbourne Board Table dinner series is designed for up to 12 Non Profit Board members to enjoy a meal and share ideas following an entertaining presentation on these topics…

• ‘Evaluating Board Performance’
• ‘Essential Financial Reports’
• ‘The iPad in the Boardroom’

Our very own Igor Likhorovitch, Client Manager Financial Management Services NSW, recently visited a client in Narrandera and was surprised by some of the signs he came across when ordering some lunch.

It is heartening to know that there’s still an element of trust out there in the retail world.

Igor is working with a client to better understand their financial managment requirements and provide guidance on the use of the Cloud Accounting product.

If you’d like to know more about Cloud Accounting check out our webpage for more information:
http://www.mob.com.au/services/financial-management/financial-management-services/cloud-accounting/

The ATO has provided a first look at the revised exposure draft legislation on tax concession entities released from the Assistant Treasurer.

Following public consultation from 4 July and 12 August 2011, changes have been made to the exposure draft legislation which will ensure that:

• “income tax exempt entities generally must be operated principally in Australia and for the broad benefit of the Australian community”
• “deductible gift recipients generally must be operated solely in Australia and for the broad benefit of the Australian community.”

To make a comment or to find out more information on the exposure draft or explanatory materials go to; http://www.ato.gov.au/content/00317776.htm

The ATO supports forums that provide information on issues affecting businesses.

To get details on dates and forums download the calendar from the ATO website here.

Fringe Benefits Tax (FBT) is payable on benefits provided to an employee in respect of their employment. Providing fringe benefits as part of a salary packaging arrangement can be a cost-effective offer for non-profit employers, and a ‘value-add’ for employees. The most common fringe benefits offered in the non-profit sector are:

• Expense payments
• Motor vehicles
• Car parking
• Living Away from Home Allowances
• Remote area payments (housing loan, rent, fuel)
• Meals/entertainment

Fringe benefits are taxed at 46.5% (the highest marginal tax rate) – this is where non-profit employers have an advantage if they are FBT Exempt or FBT Rebatable (it’s not applicable to all non-profits, you can quickly find out your organisation’s status by visiting www.abr.gov.au).

What are these non-profit employer advantages you ask? There are two types of entitlement:

1. FBT Exempt. This endorsement applies to Public Benevolent Institutions (PBI), Health Promotion Charities (HPC) and Hospitals (public and private). PBIs and HPCs have a $30,000 capping threshold and need to be endorsed by the ATO to access this exemption; public and non-profit hospital and public ambulance services do not need to be endorsed and have a capping threshold of $17,000 per FBT year.
2. FBT Rebate. This endorsement applies to a charity with a charitable institution, rebatable employer or Religious Institution status. A capping threshold of $30,000 applies, and organisations must be endorsed by the ATO to access this entitlement.

Be aware that the FBT liability rests with the employer, not the employee – so if an individual exceeds their ‘cap’ and incurs an FBT liability, it is the employer the ATO will be looking to for payment. This doesn’t stop employers having an arrangement by which employees bear the cost of the FBT, but it is something you’ll need to sort out when offering salary sacrifice arrangements.

If you offer fringe benefits to staff, you will need to lodge a return each year by 21 May for the FBT year 1 April-31 March (unless your FBT liability is nil). To prepare for lodging the FBT return, Matrix recommends that you:

1. Prepare an FBT Reconciliation. The FBT capping threshold applies to each individual employee, so it’s important to check the total value of fringe benefits provided to each person for the year.
2. Check your record keeping. To prepare an accurate FBT Return, it is important to ensure that all fringe benefits have been recognised and you have all the necessary supporting documents.
3. Obtain declarations for the “otherwise deductible” costs paid for by the organisation. Examples are living away from home allowance (LAFHA) and work-related education. Otherwise deductible expenses are those that employees would be able to claim back as work related expenses in their tax return.

Frequently Asked Questions

How do I know if we have captured all the information and included all the benefits paid for each employee?

Prepare a checklist of all the possible FBT items and tick all the benefits that are provided to your employees. Prepare a list of employee names with the total benefit provided. Make sure it is cross checked (by an Accountant preferably) to all the fringe benefits sections of the accounts.

Do we need to do anything if we have made sure throughout the year that our payments are within the capping threshold?

You don’t need to lodge an FBT Return. However, if you have paid FBT in the previous year, you will need to complete an FBT-Notice of Non Lodgement.

What do we do if we exceed the threshold on some employees but are under on others? Can we reallocate the benefit from one employee to another?

No, the FBT threshold applies per employee. If the threshold is exceeded on a particular employee, FBT is payable. You need to manage your FBT throughout the year to make sure that no employee is over the threshold.

The ATO provides plenty of information on tax concessions available to non-profits including information on endorsement requirements and a comprehensive annual guide to completing the FBT return. Visit www.ato.gov.au/nonprofit for information and resources.

Reserve and take your free online tour of BoardEffect throughout May 2012 and you could win a brand-new iPad 3 (“the new iPad”), valued at A$539 (RRP).

Our brief online tours are a great way for your key staff and board members to see first-hand the advantages of E-governance.

We’ll spend 20-30 minutes reviewing the portal’s key functionality and giving you the opportunity to ask questions.

Click here to reserve your free online tour.

BoardEffect is the leading board portal solution for nonprofit leadership worldwide, used by more than 22,000 board members and users at over 400 nonprofit organisations around the globe. Accessible via your favourite web-browser and via a free iPad app, BoardEffect streamlines board work and reduces risk by providing directors easy access to important information.

In partnership with BoardEffect Inc., the market leader in E-Governance, Matrix on Board has an agreement in place to deliver the BoardEffect technology platform to Australian nonprofits, allowing for a more locally relevant and supported board portal experience.

Terms & Conditions – Promotion commences on Tuesday 1 May 2012. Online tour of BoardEffect board portal must be registered for and conducted by 5:00pm on Thursday 31 May 2012. Registrations received after this date will not be eligible for this offer. Offer not valid in conjunction with any other promotion and not available to existing Australian BoardEffect Subscribers. Prize winner will be randomly selected via barrel draw by an independent scrutineer (Quantum Partners – Suite 1, Level 1, 95-97 Grafton Street, Bondi Junction NSW 2022) at 10:00am on Friday 1 June 2012 and winner will be notified via email and announced via Matrix on Board website (http://www.mob.com.au/mob-blog/) at 10:00am on Monday 4 June 2012. Prize winner will be awarded within 6-weeks after the close of the promotion. In the event of an unclaimed prize, where every reasonable effort has been made to contact the prize winner, the prize will be retained for a period of 3-months after the draw. At that time, if the prize remains unclaimed, permission will be sought from Office of Liquor, Gaming & Racing to conduct a redraw. Promotion operated by Matrix on Board Pty Limited (62 097 186 797) and authorised under NSW Permit Number LTPS/12/03621.

With the iPad leading as the hot new gadget of choice for corporate directors, non-profit boards are starting to take notice.

Non-profits are beginning to provide iPads for board members to use during board meetings in lieu of paper packets in an effort to improve efficiency and reduce the time and cost of preparing board materials. The use of iPads in the boardroom coincides with the emerging trend of e-governance — the strategic use of Web-based board portals to enhance governance.

Board portals are designed to streamline the creation and delivery of board information securely over the Internet. The latest estimate, provided by consulting firm KPMG in a June 2011 report, is that half of organisations now use a Web-based board portal to facilitate board communication and information, with another 30 percent planning to roll out a board portal within the year.

With the use of board portals having reached critical mass, many organisations are seeking the best delivery vehicle for the electronic meeting package. The iPad has risen as the clear winner, with every major board portal vendor — including BoardEffect, Directors Desk, BoardVantage, and Diligent Boardbooks — releasing iPad applications to ensure their systems are supported on the popular device.

Click here to read the full article.

Source: BoardEffect

Ever wondered what your followers really think about your tweets? Learn how to send the perfect message into the twittersphere for your association.

Understanding the ins and outs of Twitter, or ‘the twittersphere’ as it’s also known, can be mind-boggling. If it isn’t difficult enough getting your head around what hashtags are and who to follow, you also have the more daunting task of working out what to tweet and how to phrase it.

Twitter is often described as ‘the SMS of the Internet’ and sending a tweet on behalf of your not-for-profit (NFP) out to over 300 million Twitter users can be daunting. Your tweets need to resonate with your followers, attract new followers (to hopefully convert to members) and avoid anything that might cause people to unfollow you or think poorly of your organisation. In other words, knowing how to use the 140 characters of a tweet involves more than just correct punctuation and grammar.

Twitter is a common choice for NFPs embracing social networking and online marketing. However using Twitter and using it effectively are very different. Here are things that every NFP should know to be an effective Twitter user.

Tweets followers like

New research, titled Who Gives a Tweet: Evaluating Microblog Content Value, conducted on 43,000 responses to tweets found that tweets that offer useful information are most valued. For example, an effective tweet for an association could be a policy update or a recent development on an issue relevant to its members. Industry associations tweets should cover industry news and information that will be useful to its followers.

The research found that ‘informative’ was the most common value of a tweet that people liked.

Focus on your niche

Twitter is increasingly being used as a real-time news feed that users can customise according to their interests. The people who follow you on Twitter are interested in your NFP because they are interested in the industry or case you represent. They expect you to deliver timely updates in relation to this niche, and this is what you must deliver.

Avoid personal information

Although you may have control over your NFP Twitter account it doesn’t give you free rein to tweet whatever you like. Remember that you are representing your NFP, and perhaps even an industry and its workers. No matter how delicious your lunch is or what a great day you’re having keep it to yourself. Not only is it unprofessional to tweet about your personal life but Twitter users rank it number one for the most annoying content.

Have personality

People want to be educated but they also want to be entertained. Tweets that are light hearted and fun, in addition to being informative, have been shown to elicit the best responses. One way to do this is by adding an opinion or extra fact before retweeting or tweeting about something that others have already covered. ‘Boring’ tweets are the main disappointment of 35,000 Twitter users, so don’t let your NFP fall into this statistic.

Don’t be afraid to be self-promotional

Twitter users have a similar reaction to tweets that contain useful information, regardless of whether or not the tweet was self-promotional. Therefore a healthy mix of informative and promotional tweets is in your NFP’s interest.

Keep it short

Twitter limits tweets to 140 characters, but followers still appreciate conciseness. The shorter your tweet the more likely it will be read.

Don’t overuse Twitter lingo

Too many #hashtags, @mentions and abbreviations makes tweets hard to read, so make sure the ones you do use are carefully selected and serve a purpose.

Please explain

Never tweet a website or image without providing an explanation about what it is or giving followers a reason to click on it.

Be objective

If there is a new regulation that your NFP doesn’t approve of be careful how to phrase it. Research shows complaints are disliked and seen as whiney by Twitter users. Achieving the perfect tone in 140 characters can be a challenge, however ‘Fears new policy will….’ or ‘Controversial new industry laws may…’ is a tactful and professional way of communicating your concerns. Remember, your NFP may attract many different professionals and individuals who may not feel the same way as you, and you don’t want to turn away potential members or donors.

Source: Third Sector