Australian charities make up a significant sector of Australia’s society and economy, managing net assets of over $180 billion and generating $134 billion total income.
They provide essential social, cultural, community, education, health and other charitable services, employing 1.2 million people and an estimated 3 million volunteers to do so.
Accountability for the assets these charities control and the services they perform is clearly important. The efficient functioning of the sector also matters: many charities deliver services using taxpayer and donor funds, and any unnecessary red-tape diverts funds from those services.
Yet it has been apparent for many years that the financial reporting framework governing the charitable sector is in need of reform. Charities complain of unnecessary complexity, inconsistent & uncertain requirements and financial reports that are not focused on the needs of their stakeholders.
To view the full AASB report, click here.