COMMUNITY directors can breathe easier following a significant tax ruling brokered by Our Community's Institute of Community Directors Australia (ICDA).
In a big win for not-for-profits wanting to raise funds, the tax office has confirmed that all ICDA members will automatically be conferred the status of "responsible persons".
The decision is critical for those wanting to manage public ancillary funds, special funds used to connect donors and organisations able to receive tax deductible donations.
That's because tax law guidelines, since 2016, have mandated that boards or executive committees handling these public funds must be composed of a majority of "responsible persons".
The deputy tax commissioner's ruling found that "all registered members of ICDA will meet the requirements to be considered or to act as responsible persons".
Our Community Managing Director Denis Moriarty welcomed the decision, which he said would provide greater certainty for organisations managing such funds.
"ICDA members provide invaluable assistance to a wide range of not-for-profit organisations in every state of Australia, and have clearly demonstrated, through their commitment and selfless effort, their responsibility to the community."
He said that ICDA members' "awareness of their legal and societal responsibilities would seem more than comparable to that of other categories of responsible persons."
Other individuals often conferred with the status include school principals, judges, religious practitioners, solicitors, doctors, mayors, councillors, town clerks and MPs.
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