John Peacock, CEO of Associations Forum, has written 10 tips for Association finances.  Avoid using the term "not-for-profit". Tell staff as much, or more, about the finances as the Board. Always start with the balance sheet. Use activity-based costing. Prepare accurate and modern financial statements. Manage the funds as if they were your own. Allocate staff costs to specific projects, not overhead. Have a Finance…

On 11 May 2021, as part of the 2021–22 federal Budget, the Australian Government announced reforms to the administration of not-for-profit (NFP) entities that self-assess as income tax exempt. The measure is designed to enhance trust and confidence in the sector by ensuring only eligible NFPs access income tax exemptions, and that NFP and for-profit entities operate on a level playing field. From 1 July 2023, NFPs with an active Australian business number (ABN) will be required to lodge…

Providing a work car to your employees can be a great incentive. If you provide a car to an employee for their private use, you may need to pay fringe benefits tax (FBT).   You make a car available for private use by an employee on any day that the car is either: actually used for private purposes by an employee available for the private use of the employee. A car is considered available for your employee's private use when it is: used to…

Sample Terms of Reference for a Finance, Audit and Risk Committee are available to members of Associations Forum. Please contact Kathy Nguyen at kathy@associations.net.au to request a copy. Contents1 Introduction1.1 Importance of the Committee1.2 Treasurer or no Treasurer2 Duties and Responsibilities2.1 Internal financial management, reporting and monitoring2.2 Internal Controls to prevent…