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![]() AusGovInfo 14th Oct 2019
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Shining A Spotlight On The Finances Of Religious Charities
![]() Religious charities receive millions in Commonwealth grants, but not all of them are required to disclose their finances to the regulators.
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Australia's not-for-profit sector sports over 600,000 organisations. These organisations are exempt from paying tax and the public knows very little about the majority of them.
In fact, due to secrecy provisions contained within the Taxation Administration Act, the ATO is not allowed to release any information on individual organisations, even just to tell the public which organisations are operating as Authorised Research Institutes (like the IPA).
Unfortunately we are unable to provide a list of organisations that are endorsed as Deductible Gift Recipients (DGRs) by the ATO under the Approved Research Institution (ARI) category. The reason for this is that unless a specific exception applies, taxation officers are prohibited from disclosing information about the affairs of organisations that is not publicly available (see Division 355 of Schedule 1 of the Tax Administration Act 1953).
Charities that are registered with the ACNC and are endorsed by the ATO as income tax exempt do not have an obligation to report for income tax purposes. A charity that is income tax exempt is still required to: be registered for goods and services tax (GST) if their GST turnover is $150,000 or more; withhold pay as you go withholding tax on behalf of their employees; and pay fringe benefits tax to the extent to which they are not eligible for certain fringe benefits tax concessions (ATO spoksperson).
In 2013 the charities regulator was established with the intent to improve transparency in the not-for-profit sector, focusing on charities, but with the legislative authority to govern the entire sector. Of the 600,000 not-for-profits, only the 50-60 thousand of these that are registered charities are required to report their finances annually for online publication by the Australian Charities and Not-for-Profit Commission.
Of these 50+ thousand charities, over 14,000 are religious charities but a loop-hole introduced to the ACNC legislation at the behest of the religious lobby means that over half of these religious charties are excused from reporting financially to either the ATO or the ACNC.
In 2017 over 8,000 charities self-assessed themselves as Basic Religious Charities which means we know very little about their finances.
If a charity self-reports as a Basic Religious Charity, it does not have to:
- answer the financial information questions in the ACNC Annual Information Statement regardless of its size;
- submit annual financial reports to the ACNC (even if it is a medium or large charity); or
- comply with ACNC Governance Standards.
Chief among the reasons put forward for why religious charities should not have to report financially to the charities regulator (as do all secular charities) is that religious organisations are often small, unincorporated organisations suriving on the contributions of their membership.
Contrary to the picture painted by the organisations who lobbied for these exemptions, there are large charities (with a revenue of over $1 million annually) who are self assessed as Basic Religious Charities and who are managing significant amounts of money.
At least one of these charitable investment funds is a Basic Religious Charity, which means that despite managing 'approximately $100m', the organisation is not required to report their finances to the charities regulator.
The Corporation Of The Synod Of The Diocese Of Brisbane is a Basic Religious Charity which means it does not have to report finances to the ACNC. Since Jan 2018 it has received 61 grants from the Commonwealth government alone. This does not include grants from other state or local governments or tenders from all three levels of government.
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$473,984 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$2,124,866 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$9,195,346 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,100 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,278,212 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$24,704,399 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$73,037,320 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$989,511 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$16,469,872 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$26,451,385 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,323,261 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$15,844,001 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,339,264 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$5,077,421 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$45,013 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$17,526,551 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$412,670 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$14,950,027 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$6,053,831 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$375,393 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$15,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$7,700 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$9,105,461 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$81,684 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$60,446 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$81,684 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$12,411,327 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$5,142,610 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$19,800 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$4,557 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$30,800 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$897,429 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$494,931 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$11,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$212,113 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$96,152 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,787,520 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$19,250 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$4,653 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$11,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$2,750 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$338,230 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$2,750 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$2,220,823 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$5,103,063 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$4,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$10,232,103 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$18,333 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,002,235 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,100,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$1,185 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$4,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$3,950 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$2,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$2,627 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$3,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$3,300 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$11,000 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$3,099 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$10,969 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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$52,800 | THE CORPORATION OF THE SYNOD OF THE DIOCESE OF BRISBANE |
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The Melbourne Anglican Trust Corporation (aka) Anglican Financial Services is yet another Basic Religious Charity in receipt of Commonwealth Grants, which means it does not have to report finances to the ACNC. Since Jan 2018 it has received 17 grants from the Commonwealth government alone. This does not include grants from other state or local governments or tenders from all three levels of government.
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$3,300 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$11,000 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$4,400 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$8,800 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$424,622 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$20,900 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$117,354 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$13,750 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$11,000 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$13,200 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$10,000 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$26,840 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$1,500 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$11,000 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$8,800 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$11,000 | MELBOURNE ANGLICAN TRUST CORPORATION |
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$11,000 | MELBOURNE ANGLICAN TRUST CORPORATION |
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There are criteria that a charity must meet to be a Basic Religious Charity: the charity cannot be registered with any other subtype of charity (for example, could not also be registered with the subtype of advancing education); it is not a body corporate registered under the Corporations Act 2001 (including an Australian Registered Body), an Indigenous corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006, a corporation registered under the Companies Act 1985 of Norfolk Island, or an incorporated association in any state or territory; it is not endorsed as a DGR itself (but it can be endorsed to operate DGR funds, institutions or authorities as long as their total revenue is less than $250 000 for the particular financial year) the ACNC has not allowed it to report as part of a group, and; it has not received more than $100 000 in government grants in the current financial year or either of the previous two financial years.
Each year the ACNC has noted that religious charities had wrongly self-assessed themselves as BRCs. For example, in 2014 they identified 464 charities that were incorporated or had another sub-type (and so ineligible to be a BRC). In 2015, 354 charities were identified as being incorporated and in 2016, 371 charities were identified as having misclassified themselves as BRCs (Anne O'Connell, 2019).
Normally, an organisation that offers a "financial product" is required by Chapter 7 of the Corporations Act 2001 (Cth) to obtain an Australian Financial Services Licence (AFSL), unless an exemption applies. By an instrument in 2002 under the Corporations Act,[1] Australian Securities and Investments Commission (ASIC) granted certain AFSL exemptions to CIFs including: exemptions from the application of the debenture, managed investment scheme and fundraising provisions of the Corporations Act, and exemption from the requirement to hold an AFSL, if the only financial products issued were debentures or managed investment schemes.Wikipedia
In Australia, taking deposits from the public is classified as a banking activity and is highly regulated under the Banking Act 1959 (Cth). However, the Australian Prudential Regulation Authority (APRA) has since 2003 exempted from certain requirements of the Banking Act entities formed for religious and charitable purposes, called Religious Charitable Development Funds (RCDFs), that take deposits (termed “investments”) from the public, subject to a number of conditions. There are currently about 60 RCDFs registered with APRA that have been granted an exemption. Between them, these funds have more than $7 billion in retail deposits. Wikipedia
The Anglican Investment & Development Fund, Diocese of Canberra and Goulburn (AIDF) celebrates its 50th Anniversary in 2017. The fund was established in 1967 by a small group of dedicated finance professional lay parishioners, along with the support of Bishop Warren and a $1,000 loan. Today the AIDF has grown to hold approximately $100m in total assets and offers a variety of products and services. Funds invested with the AIDF are used to provide loans to parishes and other diocesan agencies, including schools, for building or other capital works projects. The fund also makes housing, car and personal loans to clergy and other persons employed by the Diocese. Website