Organizational Compliance Requirements for Charities in Australia

This report provides a detailed overview of the organizational and compliance requirements for charity organizations operating in Australia. It covers internal and external compliance requirements, including adherence to the Data Protection Act, Archives Act, and tax policies. The report also discusses the effects of compliance, potential risks, penalties for non-compliance, and risk minimization strategies. Furthermore, it examines available compliance systems, such as risk management systems, and compares them in terms of cost-effectiveness, efficiency, and feasibility. The report recommends the implementation of a contingency plan to prepare for unpredictable events and includes a personal reflection on the learning gained from the study. This student-contributed assignment is available on Desklib, a platform offering past papers and solved assignments for students.

Organisational requirements

Table of Contents
COMPLIANCE REQUIREMENTS:..............................................................................................3
COMPLIANCE EFFECTS..............................................................................................................5
COMPLIANCE SYSTEMS:...........................................................................................................6
4. Reflection (1st person)..................................................................................................................7

COMPLIANCE REQUIREMENTS:
Internal compliance requirements, including information management and recordkeeping
requirements
The charity organization should comply with Data protection Act and the Archives Act, 1983, in
order to continue its operation in Australia. If a charity is to attain its aim then the trustees
require making sure that resources are correctly used and its finances are used up efficiently and
its financial dealings are nicely managed. Charities differ noticeably in terms of their volume,
actions and complexity. The trustees are collectively liable for implementing, establishing, and
monitoring their charity’s inner information administration. Internal review is piece of the
internal control pact. The internal auditor usually reports directly to the trustees or an audit
committee set up by the trustees. Internal auditors look at all the risks facing an organization and
what is being done to manage those risks. Mixed motive investments are ones which trustees
make on the basis that there are elements of both a financial investment and a programme related
investment. A distinctive characteristic of internal compliance requirement is to make sure that
no sole individual has exclusive liability for every single deal from authorization to completion
and review.
External compliance requirements
The Australian based old age home should comply with all tax policies regarding the social care.
Other important criteria’s to be followed and maintained are trade restrictions, environmental
regulations, tariffs, employment laws, reform etc. Charities should keep in mind about the places
where a government does not want them to provide services or goods. The external requirements
include laws that may impact on the charities’ process, including NPO regulation and criminal
and terrorist legislation, this may differ from region to region. Another factors that charitable
organization needs to consider is understanding of climate change or seasonal or terrain
distinction which may influence charities’ service deliverance.
Industry compliance requirements

Industry compliance requirements include economic enlargement, interest duty, trade rates, wage
rates, inflation, cost of living and working hours. These factors mentioned have key impacts on
how charities function and their decision making process. Other important requirements that
need to be considered are health and safety consciousness, cultural aspects and various
demographic and population growth rate.

COMPLIANCE EFFECTS:
Areas affected
The area affected depends on the region or nation or the continent where the charitable
organization exist. Every place has their own rules and laws governing and regulating the
jurisdiction (Hopkins, 2017). Different areas within the organization also include different laws
and regulations that meed to be followed. Thus, in simple words, it can be said that various areas
have their impacts, benefits and advantages.
Risks
Unusual payment mechanisms or money requests or for money cash to be compensated into an
explanation not held in the given name of the associate, or in a realm in which the partner is not
based o the associate may be, or may have participation with, politically uncovered persons
(PUPs) or partners request superfluous or unusual levels of privacy and secrecy or the partner
cannot reveal much previous project delivery and it is difficult to get independent references
Penalties
The organization may attract penalties and compensation from government or other judicial
systems if they do not follow the guidelines as mentioned by the laws and legislations. This is the
biggest threat that charitable organizations face as they generally face monetary crunch. Penalties
usually if imposed on any charitable organization create havoc for their existence. All
organizations try to avoid such situations by strictly following all guidelines and incorporate the
ones newly introduced.
Risk minimisation
This is done through a very rigorous strategy mechanism that allows the charitable organization
to conduct and operate their functions smoothly while keeping in mind the laws and legislations
working in that region or nation (Rathi, Given, & Forcier, 2016). Risks always exist but can be
avoided to much extent if proper awareness and investigation is done about the current external
factors.

COMPLIANCE SYSTEMS:
Discuss available systems, options or components, including discussion of relevant
standards for each option; for example risk management and implementation of a risk
management system
The risk management system is a comprehensive and structured approach to identify and manage
several risks that may disrupt or hamper the process. It includes a process for frequently
reviewing and assessing the judgment based on original developments or events taken (Li, 2016).
This is a program designed in such a way to recognize possible events that might have an effect
on the charitable organization and to defend and reduce risks to the organization’s services,
property, and workers. Effective risk management ensures the continuity of charitable
organizations operations. The steps that include implementation of risk management process
starts with first identifying the risk and then analyzing the probable risk that may affect the
organization. This is the most important step that provides the path to be followed.
Compare systems or components in terms of:
Cost
Effectiveness The compliance procedure is very effective and efficient. This has helped to
maintain the balance and proper functioning of the organization process.
Efficiency The efficiency can be determined through much evaluative process. This is the major
feature of the procedure.
Feasibility The feasibility is a little low as it requires lot of time for completion.
Match to organisational culture The culture is very diverse and requires incorporation of many
organizations and inclusion of their culture.
Recommend system or components

One recommended system can be implementation of contingency plan (Waste, 2016). This
involves a course of action that helps an organization to prepare for any future unpredictable
event.

Reflection
This study helped to widen my understanding about the charitable organization operating in
Australia. This was a very enriching and beneficial report that I have ever prepared. In this
assessment, a detailed approach about the laws and regulation that old age home need to follow
in order to exist and continue their welfare operations. It was a very interesting topic for me and
the research helped to create an understanding about the necessary requirements that various
charitable organizations need to maintain.

Reference list
Waste, S. M. S. (2016). contingency plan.
Hopkins, B. R. (2017). Starting and managing a nonprofit organization: A legal guide. John
Wiley & Sons.
Rathi, D., Given, L. M., & Forcier, E. (2016). Knowledge needs in the non-profit sector: an
evidence-based model of organizational practices. Journal of Knowledge
Management, 20(1), 23-48.
Li, Y. (2016). Introduction: Challenges and opportunities for NGOs in different parts of the
world. In NGOs in China and Europe (pp. 21-40). Routledge.