MV Law partner Massimo Di Maio says the charitable and not-for-profit (NFP) sector has really been tested in recent years. Photo: Liv Cameron.
There’s a lot more to establishing and running a charity these days than simply “being a nice person”, says corporate lawyer Massimo Di Maio.
The long-term impact of COVID-19, natural disasters, and cost-of-living pressures, combined with the “plethora of general uncertainty” surrounding recent global issues, has created challenges for society’s most vulnerable – and those who try to help them, he says.
Massimo, a partner at Canberra’s MV Law, says Australia’s charitable and not-for-profit (NFP) sector has really been tested in recent years. MV Law has seen a significant rise in the number of charities seeking specialist help to ensure they meet all the necessary legal – and even ethical – requirements to operate effectively … and compete for that dwindling donor dollar!
In these lean economic times, and with donor scrutiny at an all-time high, it’s no longer enough for a charity to simply ‘do good’ — they need to prove it, legally, ethically and transparently.
And if you get it wrong, it can impact funding, reputational standing, and your ability to deliver services, according to Massimo.
Currently, there are about 60,000 registered charities in Australia, with half of these small community-level organisations run by volunteers.
That can be a tough ask when the regulatory burden is real.
There’s the question, for example, of what constitutes a charity versus a not-for-profit (NFP).
Massimo says that not all NFPs are charities, but all charities must be not-for-profit; they must be registered and comply with the strict requirements of the Australian Charities and Not-for-profits Commission (ACNC), including financial reporting, director duties, and transparency regarding purpose and outcomes.
Put simply, a charity must have a specific mission with charitable purposes that operate for the public benefit, while an NFP can have broader purposes (such as a community sports club or educational or social organisation).
“If you meet the stringent requirements of the ACNC, information about a charity’s programs, beneficiaries, locations and other key data is publicly available, which allows potential donors to easily conduct due diligence,” Massimo says.
Additionally, charities can apply for specific tax concessions and become a Deductible Gift Recipient (DGR), which allows donations to be tax-deductible, making them more attractive to donors.
“You can see this with people like Bill Gates (recognised as one of the most generous billionaires) who can do lots of good for the world, but there are tax advantages to doing incredibly good things,” Massimo says.
He advises charities and NFPs across a broad range of areas, helping them navigate legal and regulatory landscapes, draft or revise outdated constitutions, and ensure the right governing structures and procedures are in place so the organisation can truly focus its work on its core mission.
While charities pride themselves on having responsible people in place, one of Massimo’s top tips is to “ensure every single member of the board comes in with a set of skills that contributes to a 360-degree experience”.
One of the most rewarding projects he has been involved with was helping Kane Constructions’ ACT General Manager, Jo Farrell, establish the not-for-profit organisation Build Like A Girl, which supports women who want to become tradies and champions other women who work in trades.
Jo, who herself worked her way up from an unpaid labourer to the general manager of a multi-million-dollar construction company, has a vision to increase the recruitment and retention of women in skilled trade roles and foster collaborative relationships with employers and industry.
Massimo worked closely with Jo to establish a legally sound and strategically structured charity, including preparing its constitution, registering the organisation with the ACNC, and applying for all available tax concessions.
“Jo had a bold, visionary idea — and our job was to make sure the foundation could sustain and grow that,” he says.
“It was a really interesting and inspiring project to be a part of – helping to create a platform that supports women in trades and drives long-overdue change in the construction industry.”
Learn more at MV Law Canberra.
