NFP Sector More Transparent

7 May 2010

PricewaterhouseCoopers (PwC) together with the Institute of Chartered Accountants in Australia (the Institute) and the Centre for Social Impact (CSI) today announced World Vision and Mission Australia as winner and runner up respectively of the third annual Australian PwC Transparency Awards.

The Awards recognise and encourage the improvement of quality and transparency of reporting within the not-for-profit (NFP) sector. Organisations eligible for the Awards generated in excess of $10 million during the last financial year.

Rick Millen, PwC Corporate Responsibility Partner says, "It is encouraging to see the continuing improvement in the quality and transparency of the reporting of this year's PwC Transparency Award entrants."

"Transparency is key to conveying a thorough understanding of an organisation to stakeholders and the wider community; it is not just a process."

"Transparency can open an organisation up to constructive criticism but it can also be the catalyst for organisations to respond and excel."

"We are pleased to see organisations entering for consecutive years are continuously improving the areas of reporting we would expect to be addressed in leading practice reporting." he said.

"This year we are also noticing the nature of the organisations being attracted to the Awards broadening, with the inclusion of organisations with very different operating models."

Gina Anderson, CEO Philanthropy Australia said, "In a 24/7 digital world, donors, volunteers, business, government and the community are increasingly demanding that NFP organisations get better at telling their stories: what they do, why and how they do it, and what difference its makes. The transparency agenda is critical to achieving this."

Entrants

We were pleased to have 39 NFPs participate. Since the inception of the Awards, there has been 119 entrants take part. For 2009:

• 36% were new participants
• 18% entered for the second time
• 46% entered for the third time

Organisations' disclosure has been assessed according to a framework of criteria including strategy, financial and operational performance, governance, risk policies and sources of funding.

Graham Meyer, CEO of the Institute says, "We are pleased to see that the Awards are helping to raise the bar in the quality of transparent reporting across the NFP sector. This is important as there is not yet a single reporting regime in place for the NFP sector to compare minimum reporting requirements."

"Organisations who have nominated for this year's awards have achieved significant improvements in the standard of reporting compared to prior years."

Kevin Clarke for the Centre for Social Impact says, "It is encouraging to see the significant step changes and improvements these organisations are making in response to the feedback received each year."

"The depth and calibre of this year's entrants demonstrates the value NFPs place on transparent reporting, to communicate and enhance trust with their stakeholders."

Winner and runner-up

The Jury was presented with a shortlist containing five worthy and diverse finalists. The final decision was very close.

Spokesperson for the Jury, Gina Anderson, CEO, Philanthropy Australia said, "World Vision's very open, clear reporting, especially considering the difficulty of explaining such a complex organisation made them a worthy recipient of this year's PwC Transparency Awards."

"World Vision has made giant strides with their evaluation report, disclosure of remuneration, the use of narrative and discussion of impact and learnings in their reporting processes."

"A brave and reflective report."

Commenting on the runner-up Ms Anderson said, "Mission Australia's Annual Review has improved with each year of entry and is noticeably improved from two years ago."

"The Annual Review summarised the five year performance well and in different formats."

The Awards were presented to the winner and runner-up by Ms Anderson at the third PwC Transparency Awards Presentation Evening held in Sydney last night.

Awards Scope and Details: PwC Transparency Awards

• Relates to the Australian NFP sector for 2009
• Voluntary registrations & submissions taken from across the sector – 50 registered, 39 submissions received.
• Eligible charities were required to meet the following criteria
  • Have Deductible Gift Recipient status
  • Endorsed by the ATO for charity tax concessions
  • Have audited accounts
  • Generate revenue in excess of $10m
  • Not an educational institution or a religious institution (other than that directly related to the provision of charitable community work)
  • Only one submission per organisation.
• PwC in Europe has established similar Awards, which have succeeded in improving the quality and transparency of NFP sector reporting.
• Winner and runner-up receive $20,000 and $10,000 respectively towards sending member(s) of their organisation on training and development or study tours.
• Further details available at Transparency Awards.

Award Assessment Framework

The assessment framework is based on PricewaterhouseCoopers' Reporting Framework, the Institute's recent research and the Global Reporting Initiative's reporting guidelines. The criteria cover each of the following sections:

• About the organisation
• Meeting the need
Strategy and mission
• Structure and vision
• Performance
• Financial performance and position
• Overall assessment

Review Process

Each organisation nominating for the Awards submitted its annual report and other information used to communicate with its stakeholders (eg. website, donor magazines, etc).

Review of the submissions

Three step process:

1. Rigorous review by PwC reporting experts against the assessment framework.
2. Shortlisted organisations reviewed by the 4-person judging panel:
   • Kevin Clarke, Senior Lecturer, School of Accounting, The University of New South Wales, representing the Centre for Social Impact
   • John Gordon, Ex-PwC Partner and experienced NFP auditor
   • Graham Meyer, CEO, Institute of Chartered Accountants in Australia, and
   • Rick Millen, PwC Foundation Partner.
3. External Jury reviewed the judging panel's shortlist to select winners. Members of the Jury were:
   • Senator Ursula Stephens, Parliamentary Secretary for Voluntary Sector and Social Inclusion
   • Mr Peter Hunt, Executive Chairman, Caliburn Partnership Pty Ltd
   • Ms Gina Anderson, CEO, Philanthropy Australia
   • Mr Andrew Hewett, Executive Director, Oxfam International (2008 Transparency Awards winner).

Overview of winner

• www.worldvision.com.au

World Vision is Australia's largest charitable group. World Vision helps over 20 million people every year, thanks to the support of more than 400,000 Australians.

World Vision provides relief in emergency situations and works on long-term community development projects. Together, these address the causes of poverty and help people move towards self-sufficiency.

Overview of runner up

• www.missionaustralia.com.au

Mission Australia is an empowering and compassionate community service organisation. We have been helping to transform the lives of Australians in need for almost 150 years.

Arising historically from various City Missions, including Sydney City Mission, our founding purpose is to meet human need and to give expression to the love of God.

We believe in helping Australians in need get back on their feet. We are committed to eliminating disadvantage and creating a fairer Australia.

With more than 450 services across metropolitan, rural and regional Australia - in every state and territory - we assist more than 300,000 people each year.

About PwC

PricewaterhouseCoopers provides industry-focused assurance, tax, and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.

'PricewaterhouseCoopers' refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

About the Institute of Chartered Accountants in Australia

The Institute of Chartered Accountants in Australia (the Institute) is the professional body representing Chartered Accountants in Australia. Our reach extends to more than 62,000 of today's and tomorrow's business leaders, representing over 50,000 Chartered Accountants and 12,000 of Australia's best accounting graduates who are currently enrolled in our world class Chartered Accountants postgraduate program.

Our members work in diverse roles across commerce and industry, academia, government, and public practice throughout Australia and in 140 countries around the world.

We aim to lead the profession by delivering visionary leadership projects, setting the benchmark for the highest ethical, professional and educational standards, and enhancing and promoting the Chartered Accountant brand. We also represent the interests of members to government, industry, academia and the general public by actively engaging our membership and local and international bodies on public policy, government legislation and regulatory issues.

The Institute can leverage advantages for its members as a founding member of the Global Accounting Alliance (GAA), an international accounting coalition formed by the world's premier accounting bodies. With a membership of approximately 775,000, the GAA promotes quality professional services, shares information, and collaborates on international accounting issues.

Established in 1928, the Institute is constituted by Royal Charter. For further information about the Institute, visit charteredaccountants.com.au.

About the Centre for Social Impact

The Centre for Social Impact is a unique partnership between the Business Schools of the University of New South Wales, the University of Melbourne, Swinburne University of Technology and the University of Western Australia. Our mission is to create beneficial social impact in Australia through teaching, research, measurement and the promotion of public debate.

We bring together the business, government, philanthropic and third (not-for-profit) sectors, in a collaborative effort to build community capacity and generate social innovation.

At CSI we seek to respond to the rapidly evolving needs of the third sector, the emerging framework of social investment and the developing challenges of corporate responsibility and sustainability.

Full details can be found about the Centre at www.csi.edu.au.