The narrow legal interpretation of PBI, and outmoded notion of charity and community benefit in Australia has produced a situation where hospitals, universities, and arts institutions have greater access to tax deductions, and thus to gifts and donations, than do many innovative community and welfare services.
A major policy support government could extend to the Australian not for profit sector is to recognise the importance of more contemporary forms of community benefit, including prevention, economic development and advocacy, and ensure this is reflected in policy and law.
The British and Canadian Models
In the United Kingdom, there is now a compact between government and not for profits which takes the important step of acknowledging the role of not for profits in policy development.
The Compact on Relations between Government and the Voluntary and Community Sector in England, outlines a shared vision. It recognises that "whenever Government legislates or regulates, it can have an impact on their [the community sector"s] work, positive or negative. The Compact will help to make that impact positive." This mechanism to allow a constant evaluation of the impact of broader government policies and action on the sector as a whole is an important step forward.
The English compact highlights the distinct but complementary roles of government and not for profit sector. On this point, it is important to establish a framework to ensure that government does not offload services onto the not for profit sector, as can and does happen under the aegis of "downsizing" and "de-institutionalisation." Even the increasing practice of government contracting its services out to non-government organisations can have negative and positive impacts on both those who deliver the services and those who receive them. Government must commit to a genuine dialogue with the community sector to evaluate these services. The tendering process is a point where a positive―greater efficiency and responsiveness―or a negative―government pitting organisations against each other and using the power of funding to silence opposition―can result.
On that point, it is worth noting that the English Compact commits to a guarantee of independence and right to advocate, regardless of funding. This is a vital condition on which to build a genuine relationship between the sectors. The guidelines for consistency and transparency in funding should provide for greater certainty for all concerned, and also help develop good practice across the sector.
The National Council for Voluntary Associations has also been established in the UK, with well-structured policies of Board membership and terms of office. This too is a useful model. Australia has a number of peak bodies within the community sector, including ACOSS, the peak body of the welfare sector, which is seen by some to be synonymous with the community sector. There is no equivalent to the British National Council as yet.
