Not-for-Profit Tax Concession Survey 2013

07 March 2013

Anthony Whyte , National Leader, Not-For-Profit
Partner, Audit & Assurance

Meaningful reform for the not-for-profit sector or just another element of uncertainty?

For one month between 8 January 2013 and 8 February 2013 the BDO Not-For-Profit Tax Concession Survey 2013 gave not-for-profit organisations the chance to raise their voice and be heard on an issue of key importance – the Federal Government's Not-for-profit Sector Tax Concession Working Group's discussion paper. Collectively, the respondents conveyed a clear message - there is a resounding lack of confidence in the Government's ability to effectively support the sector if the key tax concessions were to be removed.

The results contained in our report are gathered from the responses of almost 180 survey respondents. Respondents represent charities and non-charities of varying sizes and include both those with Deductible Gift Recipient status and those without. The respondents' participation in this survey demonstrates their desire to provide input into the decision making process and inform the Government's thinking when it comes to taxation reform that goes to the very heart of their operations.

Some of the key findings include:

  • 93.9 per cent of respondents are either not confident or not sure that if any tax concession were removed, compensation through grants from government would ensure they are no worse off
  • 93.6 per cent of respondents said their organisation would be limited to some extent if their organisation did not have income tax exemption
  • 78  per cent of respondents potentially qualify for refunds of franking credits, but only 32 per cent of these respondents have investments that facilitate these refunds
  • 91.8 per cent of respondents believe Fringe Benefits Tax (FBT) concession should continue to be provided to not-for-profit employers
  • 70 per cent of respondents said the FBT concession thresholds should be increased by some degree
  • 69.2 per cent of respondents said if tax deductibility of donations is limited, their organisation's donation base would decrease to some extent.

If you have any questions relating to the BDO Not-For-Profit Tax Concession Survey 2013, please contact your local Not-For-Profit adviser.