Charities, have your say on the proposed Transparency Code
Charities involved in disaster response – don’t miss out on having your say! The Government is seeking submissions by 13 August 2021 in response to its consultation paper on the development of a voluntary code to improve the transparency of the use of charitable donations during natural disasters (‘the Transparency Code’).
The Transparency Code will provide charities which choose to become signatories with a framework for transparent reporting of disaster recovery fundraising and activities.
A working group of charity representatives (the Australian Red Cross, BlazeAid, the Minderoo Foundation and RSPCA Australia) and Treasury officials have developed a consultation paper which identifies five potential features of the Transparency Code which it promotes as key to ensuring the Transparency Code is a workable and effective solution to improving transparency. The consultation paper seeks views from charities and the general public on these features. These features are as follows:
1. The Transparency Code will require that signatories publish an appeal intent outlining how donated funds will be used in response to the natural disaster.
2. The Transparency Code will prescribe specific information for signatories to report.
3. The Transparency Code will set out minimum reporting frequencies for signatories to meet.
4. The Transparency Code will be voluntary and target charities involved in the response to a natural disaster and in receipt of substantial public donations.
5. The Commonwealth will facilitate but not administer or enforce the Transparency Code, with compliance driven by signatories.
The consultation paper indicates that greater transparency by charities will help to improve the public’s understanding of charitable fundraising and the use of charitable donations in responses to natural disasters, strengthening public trust in the sector. Stronger public trust will result in continued donations, allowing charities to provide crucial services to recovering communities.
Please click here to read more and to access the consultation paper.
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