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Charitable organisations in Australia

Industry Commission inquiry report

This report was signed on 16 June 1995 and subsequently released by the Commonwealth Government.

The report contains the findings of the Industry Commission public inquiry on charitable organisations in Australia with reference to the size, scope, efficiency, and effectiveness of the services provided in Australia by charitable organisations, the size and scope of, and funding arrangements for, those services delivered overseas by charitable organisations.

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  • Contents

Cover, Copyright, Signing Page, Contents, Abbreviations, Glossary



1 The role and structure of the sector
1.1 A large and diverse sector
1.2 The community social welfare sector in Australian society
1.3 A mixed economy of welfare
1.4 The development of the sector
1.5 Plurality within the sector
1.6 Resources of the sector
1.7 Availability of information on size and structure
1.8 The structure of the sector
1.9 Organisations by size
1.10 All organisations

2 Participants' perceptions
2.1 Sector's involvement in the Inquiry
2.2 The nature of CSWOs
2.3 Concerns of CSWOs
2.4 The views of Government
2.5 The views of service users
2.6 For-profit service providers
2.7 The local neighbourhood

3 Developments in service delivery
3.1 Introduction
3.2 Building on new knowledge to improve service delivery
3.3 Deinstitutionalisation
3.4 Community development
3.5 The value of client participation
3.6 The growth of self help groups
3.7 Preventative programs
3.8 Advocacy
3.9 Innovation to improve service delivery
3.10 Case management and brokerage
3.11 Governments as initiators and supporters of change in service delivery
3.12 Needs based planning of services
3.13 Consultation between governments and CSWOs

4 Government programs and funding
4.1 Overall funding for the sector and recent trends
4.2 Aged care
4.3 Services to people with a disability
4.4 Care for children at risk
4.5 Community, individual and family support
4.6 Ethnic affairs
4.7 Child care
4.8 Employment
4.9 Health programs
4.10 Peak councils
4.11 Overseas aid
4.12 Review of roles and responsibilities
4.13 The consolidated picture

5 Human resources
5.1 Main features
5.2 Volunteers
5.3 Skills and training
5.4 Industrial relations
5.5 Funding human resource needs

6 Overseas aid organisations
6.1 Introduction
6.2 Size and scope
6.3 Fundraising and commercial activities
6.4 Taxation issues
6.5 Government funding
6.6 Public fundraising
6.7 Future directions
Attachment 6A Ministerial correspondence

7 Peak councils
7.1 Overview
7.2 Roles and types of peak councils
7.3 Resourcing
7.4 Effectiveness of peak councils
7.5 The important role of peak councils

8 Accountability to the public
8.1 The need for accountability
8.2 Current systems of accountability
8.3 Problems with current forms of accountability
8.4 Improving accountability to the public
8.5 The Commission's approach

9 Fundraising
9.1 Fundraising in Australia
9.2 Regulation of fundraising

10 Charitable Trusts
10.1 The role of charitable trusts
10.2 Accumulation of income by charitable trusts
10.3 Restrictions on the organisations charitable trusts can assist

11 Client fees
11.1 Contribution of client fees to funding of the sector
11.2 Level of client fees
11.3 Importance of client fees to individual CSWOs
11.4 Rationale for client fees
11.5 Access and ability to pay
11.6 The scope for client fees
11.7 Concerns about client fees
11.8 The Commission's position

12 Taxation arrangements
12.1 Introduction
12.2 How should the community view taxation arrangements for CSWOs?
12.3 Is support through the tax system the best way of encouraging CSWOs?
12.4 Existing taxation arrangements
12.5 Major issues with tax deductibility of donations
12.6 Input taxes
12.7 CSWOs and competitive advantage
12.8 Capital gains tax
12.9 Dividend imputation credits

13 Benchmarking for improved performance
13.1 Introduction
13.2 The value of benchmarking
13.3 Performance differences between CSWOs and for-profit organisations
13.4 Differences between performance found in a benchmarking study
13.5 Conclusions

14 Quality systems
14.1 Introduction
14.2 Service standards - the current approach
14.3 An accreditation approach
14.4 A quality systems approach
14.5 The ISO 9000 series of standards
14.6 Resource implications
14.7 Responses to the Draft Report
14.8 The Commission's position

15 Frameworks for government funding of CSWOs
15.1 Introduction
15.2 The nature of co-responsibility
15.3 Perceptions of current funding arrangements
15.4 Inputs, outputs and outcomes
15.5 Preferred approaches to funding
15.6 Current status of output-based funding
15.7 Implementing output-based funding
15.8 Other funding approaches
15.9 Funding the individual
15.10 Principles for funding arrangements

16 Selection by governments of service providers
16.1 Introduction
16.2 Current arrangements
16.3 Degree of openness of selection procedures
16.4 Reviewing existing service providers
16.5 Methods of contestable selection
16.6 Principles for selecting providers
16.7 Organisational developments within the sector
16.8 Organisational developments for governments

17 Support for policy development
17.1 Introduction
17.2 Improving statistical collections
17.3 The role of research
17.4 Consultation between governments and CSWOs

18 Synthesis
18.1 Introduction
18.2 The objectives of the recommendations
18.3 Conclusion: CSWOs in a participative democracy

PART C Appendices

A Inquiry procedures

B Submissions received and public hearing participants

C The largest 50 community social welfare organisations

D The smallest community social welfare organisations

E Official aid through overseas aid organisations

F Non-government development organisations

G Peak council survey

H Overseas examples of accountability returns

I Fundraising legislation

J Tax deductibility of donations

K CSWOs and competitive neutrality

L State tax exemptions

M Overseas taxation arrangements

N Benchmarking human services

O The 20 elements of ISO 9001


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