Expert pushes for charities regulator

1 April 2008

A leading accountant in the not-for-profit sector has backed calls for a national regulator to ensure that Australian charities are transparent and accountable.

A CHOICE study released today found accounting systems for charities in Australia are wanting.

The study also concluded that the variety of ways in which charities' overheads are recorded makes it very difficult for donors to realistically compare different charities' cost effectiveness on a like-for-like basis.

This is largely due to the absence of uniform accounting and reporting standards in the sector.

Lisa Bundesen from business and corporate advisory services firm BDO Kendalls said for the regulator to be a success, it needs to provide a framework that allows for charities to decrease their compliance and reporting costs.

“A single regulator for charities is a good idea as long as it provides a framework that allows for a decrease in regulatory, compliance and reporting costs while providing a transparent method for charities to report their financial position,” she said.

“When people donate to charities, it’s like any other investment they make, they should spend some time researching the charity and ask questions before making donations.”

Ms Bundesen said people need to understand that charities, like other organisations, have to spend money to do their job.

“Just like profit-making businesses, charities need to employ staff and they have to compete in a market where there is a skills shortage,” Ms Bundesen said.

“Not only is there a skills shortage but in the current environment wages and salaries are also increasing and charities have to be competitive to attract good staff.”

Ends.

For further information please contact:
Helen Pham of BDO Kendalls on 07 3237 5713 or
Nadia Farha of Three Plus Consulting on 0408 535 993.

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