Company Description

The modern world is replete with problems and issues facing the entire mankind. In face of such shortcomings of the society, there are some charitable institutions which work toward the betterment and upliftment of specific sections of the society. The Hope Foundation Australia is one such charitable organization which has dedicated itself to the emancipation of women in Australia and help them get over their addictions and/or prostitution. The present report entails a critical evaluation of the foundation’s legal structure and its organizational framework.

Company History

The Hope Foundation is a not-for-profit charitable institution based in Brisbane. The company was founded by Bronwen Healy, who also serves as the CEO of the Foundation. The community organization was founded in the year 2009. The Hope Foundation exists to provide help, hope and healing to women and children entangled in the sex industry and/or those struggling with substance abuse and addiction. The Foundation inaugurated its first official drop-in space – named the Hope Haven – in 2011 in Brisbane (Hope Foundation Australia Ltd, 2017). It is protected place for females who want to change their lives from the sex industry and/or addiction of any sort.

Organizational Structure

As per the Australian Securities and Investment Commission (ASIC) all public companies should have a minimum of three directors, one member and one secretary. In line with these provisions, the Hope Foundation has three Directors, 4 members and one Company Secretary. The three Directors include:

• Bronwen Healy – Director – Founder & CEO of the Foundation
• Adrian Schrinner – Director – Dpt. Mayor of Brisbane and Local Councilor
• Gret Tait – Chairman and Director – Youth worker (Hope Foundation, 2017)

As far as the hierarchical structure goes, the BOD leads the team by formulation of strategy which the Executive Team implements.

Company Mission & Vision

The Hope Foundation envisions to establish a residential rehab farm where women who desire profound life change from the prostitution industry and addiction can live. The Foundation intends to call this rehab center as “Acres of Hope”. The main focus of the organization is to uplift women and free them from the shackles of prostitution and addiction (Hope Foundation, 2017).

Company programmes and Activities

Some of the main campaigns run and events organized by the Foundation include the following:

Hope Haven – This is a protected sanctuary for females who want life change and the haven offers a wide variety of activities for the females each week such as cooking classes, writing workshops, one-on-one sessions, creative workshops, art therapy and many more (Hope Foundation, 2017).

Outreach Celebrations – The Hope Foundation holds two yearly outreach celebrations every year since its inception i.e. Christmas and Valentines’ Day. The essence of these events is to display love – to demonstrate these women that they are valued, loved and have been created for a purpose. They are provided with gifts, cards, flowers, chocolates and lavish meals. These are the two most popular and favorite events at the Foundation (Hope Foundation, 2017).

Organizational Structure

In February 2013, the organized its new yearly conference – the Loved conference. This conference outspreads the success of the rest of the outreach celebrations into a one-day conference replete with fellowship, prayer, worship, live music and inspiring speakers. The Loved conference intends to reach out too all women – the hurting, the lost and the broken and establish the cornerstone for new future and hope for all.

Customer segment

The core support team of the foundation provides help to all women who contact them and want to enter a new life away from prostitution and addiction. The support is provided through one-on-one sessions, phone calls and emails (Hope Foundation, 2017).

Company Financial Report

The company’s annual report is not published publicly. Although it does maintain its financial records and accounts which can be furnished when requested or asked for. However, it is not obligated to publicly furnish its accounts every year like other organizations belonging to the above 1 million revenue bracket are required to.

Company Audit

As per the Section 307 of The Corporations Act 2001, the Hope Foundation Australia hired external auditors to conduct their financial audit. The audit provided true and fair account of the organization’s financial position. The report concluded that the Foundation is in a sound financial situation. 

Registration

Hope Foundation’s Australian Company Number is 139247591 and its Australian Business Number is 63139247591 (Hope Foundation Australia Ltd. 2017).

Legal structure

It is registered in the country of Australia. The current status of the organization is “Registered”. The liability of the members is confined to a specific amount which they contribute at time of a winding up. This amount is mentioned in a clause in its MOA. A member of the foundation limited by guarantee does not need to put any capital if the firm is a going concern. The subclass of Hope Foundation is Unlisted Public NFP.

Business address

265 Mt Gravatt Plaza, QLD 4122 Australia

Key personal

CEO and founder: Bronwen Healy

Regulatory framework

The Australian Charities and Not-for-Profit Commission Act 2012 (ACNC Act) outlines the functions and objectives of the ACNCs in Australia and the framework for regulation and registration of charities. Therefore, the Hope Foundation should satisfy a series of governance standards to get registered and stay registered with the ACNC. The Foundation did not have to submit or deposit anything to demonstrate that it meets the standards, but it should have the relevant evidence of complying with the standards which can be furnished when requested. The standards outlined in the regulatory framework of ACNC require the Hope Foundation to stay charitable, run legitimately and operate in a responsible and accountable manner (Australian Charities and Not-for-Profits Commission, 2017).

Not For Profit (NFP) Status

The Hope Foundation is a registered not-for-profit organization and holds its full registration with the ACNC. To get registered as NFP in Australia, several required laid out by the ACNC need to be followed. The first standard requires that the foundation should be non-profit organization and work for charitable purposes. They should be able to showcase this and furnish information regarding their purpose to the public (Taxpayers Australia, 2013). In addition to this, it should have an ABN, should not be in support of any criminal or terrorist activity.

In its mission statement, the Hope Foundation states that its main objective is to uplift women and create a better future for them (Mann & Roberts, 2015). The Foundation clearly states that it is a NFP. Its main aim is charity and it is classified under ACNC as a “public benevolence organization” plus a “purposes beneficial to the women and other similar charitable purposes”. To be able to get categorized in such subtypes, the foundation complies with the Charities Act 2013 to fit in the bracket of “the purposes for public benefit”. The activities and events listed on its website make this pretty evident (Barraket, 2008).

Taxation

In Australia, charitable organizations are categorized as either Public Benevolent Institutions (PBIs) or Health Promotion Charities (HPCs). Both these types get broader tax rebates as compared to other charitable institutions. The Hope Foundation is registered with ACNC and hence is eligible to claim charity tax concessions. It has registered itself as PBI with the ACNC to be classified as that specific subtype of charity (CCH Australian Staff, 2012). Several tax concessions are available to the Hope Foundation namely: Income Tax exemption, FBT exemption, Fringe Benefits Tax concession and Goods and Service tax concessions. The organization is exempt from paying income tax and does not need to file tax returns (Australian Government, 2017). There are several GST rebates for transactions entailing endorsed charities which are registered for GST. The Hope Foundation is also entitled to a rebate equivalent to 49% for the period 1^st April 2015 to 31^st March 2017 of the total FBT payable, subject to a threshold (IBP Inc. 2015).

Non profit status

The Hope Foundation Limited has been incorporated on 3^rd September 2009. The company type is Australian Public Company (APUB) and its class is Limited by Guarantee (LMGT). Objective of company is not to earn profit as they aim to provide better lifestyle to vulnerable women.

Company Programs and Activities

Facilitating the mission

The Hope Foundation envisions to establish a residential rehab farm where women who desire profound life change from the prostitution industry and addiction can live. Company is justifying their mission by conducting various programs and providing rehab services to women.

Deductible gifts

The foundation holds a full deductible gift recipient (DGR) status. Donations made above $2 are completely tax deductible. There are several things which should have happened for the Hope Foundation to be given the DGR status. Major points include: an application for approval to the Department of Foreign Affairs and Trade; permission from the Minister of Foreign Affairs; application for endorsement as a relief fund; and apply for endorsement to the ATO. From the Foundation’s present status, it is clear that it has garnered approval from all these parties (O’Halloran, 2012).

Shareholder report and accountabilities

They are required to provide description of the services provided by them along with the legislation complied by them. They are accountable towards community to provide viable service by making optimum utilization of available sources.

Conclusion

As per the present study, Hope Foundation Limited is recommended to have publicity of their activities to attain donation and other assistance for government, individuals and corporate entities as they hold a full deductible gift recipient (DGR) status. Further, they should update their legal compliance with the changing regulatory framework. Thus, the report evaluated the legal framework and organizational structure of the Hope Foundation Australia. It was identified that the community organization’s present status is Registered with the ACNC. As per the Australian Securities and Investments Commission the foundation belongs to the class of Limited by Guarantee and its sub class is Unlisted Public NFP. The Hope Foundation has a full deductible gift recipient (DGR) status which implies that the donations made above $2 are completely tax deductible. The Hope Foundation is registered with ACNC as a Public Benevolent Institution and hence is eligible to claim several charity tax concessions like income tax rebates, GST concessions, FBT rebates etc.

References

Australian Charities and Not-for-Profits Commission. (2017). Meet Governance Standards. [Online]. Available through: <https://www.acnc.gov.au/ACNC/Manage/Governance/ACNC/Edu/GovStds_overview.aspx>. [Accessed on 8^th June 2017].

Australian Government. (2017). Charity Types and Concessions. [Online]. Available through: <https://www.ato.gov.au/Non-profit/Getting-started/Endorsement/Tax-concession-charity-endorsement/Charity-types-and-concessions/>. [Accessed on 8^th June 2017].

Barraket, J. (2008). Strategic Issues for the Not-for-profit Sector. UNSW Press.

CCH Australian Staff. (2012). Australian Master Tax Guide 2012. CCH Australian Staff.

Hope Foundation Australia Ltd. (2017). [Online]. Available through: <https://au.mycompanydetails.com/company/hope-foundation-australia-ltd/139247591>. [Accessed on 8^th June 2017].

Hope Foundation. (2017). Hope Haven. [Online]. Available through: <https://www.hopefoundation.org.au/find-hope/hope-haven/>. [Accessed on 8^th June 2017].

Hope Foundation. (2017). Our vision for the future. [Online]. Available through: <https://www.hopefoundation.org.au/about-hope/our-vision-for-the-future/>. [Accessed on 8^th June 2017].

Hope Foundation. (2017). What we do? [Online]. Available through: <https://www.hopefoundation.org.au/about-hope/what-we-do/>. [Accessed on 8^th June 2017].

Hope Foundation. (2017). Who we are. [Online]. Available through: <https://www.hopefoundation.org.au/about-hope/who-we-are/>. [Accessed on 8^th June 2017].

IBP Inc. (2015). Australia Tax Guide Volume 1 Strategic Information and Business Taxes. IBP.

O’Halloran, K. (2012). The Profits of Charity. OUP.

Taxpayers Australia. (2013). The Taxpayers’ Guide 2013 – 2014. John Wiley & Sons.

Mann, R. A., & Roberts, B. S. (2015). Business law and the regulation of business. Nelson Education.