The QUT Standard Chart of Accounts (SCOA) for the Not for Profit (NFP) sector has been formally approved by all Australian Governments for implementation by 1 July 2010.
Federal and state governments, meeting as the Council of Australian Governments (COAG) in Canberra on 19-20 April, agreed to an implementation plan and governance structure to develop a nationally consistent approach to fundraising regulation, and the adoption of a SCOA where possible by 1 July. The COAG meeting agreed that this will further reduce the regulatory burden and improve public confidence in the NFP sector. COAG agreed in December 2009 to adopt a SCOA for NFP organisations receiving government grants. The Chart of Accounts, developed by QUT’s Australian Centre for Philanthropy and Nonprofit Studies (ACPNS), is available free of charge to NFP organisations. Speaking in January, centre Director Professor Myles McGregor-Lowndes said the chart would remedy a lack of consistency in accounting categories and terms required by government departments which funded NFP organisations.
This article was reproduced with the permission of Pro Bono Australia. (Pro Bono News 2010, Pro Bono Australia, Camberwell, viewed 17 May 2010, www.probonoaustralia.com.au)
What this means...
The introduction of the SCOA will mean the NFP industry will move towards a more streamlined approach to the way information is recorded. This will result in greater financial transparency.
How this will affect donors...
With greater consistency in reporting styles among NFPs, donors will be able to better compare how their money is actually being spent. The SCOA should make it clearer for donors where their money is going.
Why Mater Foundation supports this...
As one of the bigger fundraising organisations in Queensland, Mater Foundation strives to promote innovative and effective fundraising throughout the industry, leading by example. Encouraging all NFPs to implement the SCOA is important and ensuring our donors have confidence in the work of Mater Foundation is paramount.