Doing more good: #CharitiesForImpact demands reform
Released: 11/4/23
Today, Charities For Impact has written an open letter to the Productivity Commission calling for changes to donation laws to empower Australia’s impact-focused charities.
The full letter is available at www.charitiesforimpact.org.au
#CharitiesForImpact is a group of not-for-profit organisations working to change the face of charity in Australia with evidence and impact. It wants to see the philanthropic sector achieve more good, in Australia and globally, and thinks the Productivity Commission has a once-in-a-generation chance to tell the government how.
Labor made an election commitment to double charitable giving by 2030. Dr Jim Chalmers MP and Dr Andrew Leigh MP asked the Productivity Commission to inquire into philanthropy, focusing on what policy changes could deliver Labor’s promise. The Productivity Commission’s inquiry into opportunities to grow philanthropic giving in Australia is open for submissions until 5 May 2023.
Greg Sadler, the spokesperson for #CharitiesForImpact, said Australian charity regulation has not kept pace with the expectations of the Australian community,
“Australian charity law is out of step with the values of today's Australians,
“Community groups across the country have been getting together to talk about the potential for generational reform and the potential to align the law with the topics they’re most passionate about
“The ability to receive tax-deductible donations is almost essential for a charity to be sustainable. But many Australian charities trying to tackle today’s most pressing problems aren’t eligible.
“The rules that define how some charities operate today were set by the High Court in the 1930s and 1940s. Because these rules are so out of date, they actively hamper our work to prevent pandemics, widespread animal cruelty, or nuclear war.
“Australians know suffering is bad, and preventing it is important, but Australian law has not kept up with the best ways to achieve these outcomes.”
ICAN, the International Coalition to Abolish Nuclear Weapons, was founded in Australia to keep humanity safe from nuclear war. Despite being awarded a Nobel Peace Prize for its work, it is not eligible for full charitable status, known as “deductible gift recipient status” (DGR). Most like-minded countries, including NZ, UK and US, don’t have such tight constraints on who can accept tax-deductible donations.
Dr Margaret Beavis, the Chair of ICAN Australia, said, if a charity can found an international organisation and earn a Nobel Peace Prize for its work, but not get full charitable status under Australian law, it’s bad law.
“A nuclear war could kill billions of people globally and the Doomsday Clock is closer to midnight than it has been since the 1950s. ICAN can accept tax-deductible donations to support its work in many other countries, but not in Australia. It’s time for change.”
“Defence charities can only have DGR status if they repair war memorials or provide ‘comfort, recreation or welfare’ to the armed forces’.
“Despite risks of a nuclear showdown over Ukraine, working to prevent a nuclear holocaust doesn’t pass the Tax Office’s test.
Dr Michael Noetel, Chair of Effective Altruism Australia said the problems with charity law aren’t just limited to organisations trying to prevent catastrophic disasters.
“While the Charities Act 2013 lists ‘preventing or relieving the suffering of animals’ as one of 12 recognised charitable purposes, DGR status is only available to animal welfare charities whose main activity is providing short-term direct care or rehabilitation to lost, sick or mistreated animals. The law excludes charities advocating to prevent animals from being harmed in the first place.”
Dr Bidda Jones AM, Co-founder of the Australian Alliance for Animals, said Australian charity law hasn’t got the message that prevention is better than a cure.
“Australians are very concerned about animal suffering, yet charities who focus on high-impact advocacy and education to tackle problems affecting millions of animals are currently excluded from DGR status”
#CharitiesForImpact impact comprises a dozen organisations that collectively employ Australians in most major cities, raise over $10 million per year, and use evidence and reason to implement highly impactful programmes. The organisations focus on reducing the suffering of animals and people, and pursuing systemic change. The group is working to reduce the risk of catastrophic disasters, like nuclear wars or pandemics. These are issues that today’s Australians are passionate about, but outdated legislation makes them hard to pursue. Our open letter sets out key high-level reforms that would bring Australia’s charity laws into the 21st century.
Contact: Greg Sadler
Email: Greg@CharitiesForImpact.org.au
Phone: 0401 534 879
A community event in Sydney discussing how personal submissions to the Productivity Commission could argue in favour of aligning charity law with modern values.
Greg Sadler, the spokesperson for #CharitiesForImpact, talked to a community group about how potential law reforms could support more impactful efforts to mitigate the risk of catastrophic disasters or support animal welfare.