A handy guide published in Company Director February 2017 edition by Vera Visevic of Mills Oakley clearly sets out the priorities of what a diligent would-be director would look for when joining a not for profit board. 

This guide can be viewed in full, here.

To access any of Mills Oakley's other not for profit resources, please click here. 

New polling shows that when it comes to superannuation, most people want a system run on a not-for-profit basis with all returns going to members rather than creating an increased role for private financial institutions.

The Essential poll of 1000 people, commissioned by Industry Super Australia, found that only 31 per cent believed the banks will ensure the superannuation system works in their best interest. This compared to 38 per cent for the federal government; 61 per cent for the Fair Work Commission; and 69 per cent for Industry Super Funds.

Consumers felt strongly that their interests should be the sole focus of the owners of super funds. Some 70 per cent of those surveyed believed all super funds should be not-for-profit with all returns to members rather than split with shareholders; just 6 per cent disagreed.

Industry Super Australia chief executive David Whiteley said the results send a clear message the public want superannuation to work solely in their interests and not as a profit-making opportunity for the banks and their wealth management machines.

“When it comes to super, the banks are legally required to act in the best interest of their customers; most Australians don’t believe they do,” Mr Whiteley said.

Consumers believe aggressive cross-selling of advice, insurance and super by the private sector is designed to boost shareholder profits rather than leave fund members better off, he said.

“The banks’ relentless lobbying to remove consumer default protections could result in people ending up in under-performing funds and a nest egg that’s tens, even hundreds, of thousands of dollars short.

“Australians have told us what they think – they don’t trust the banks and believe their culture and profit motive are at odds with the purpose of super.”

The survey comes as the Turnbull government has renewed its commitment to mandating the appointment of independent directors and chairs to all super funds. A review by former Reserve Bank governor Bernie Fraser produced for the not-for-profit super sector rejected such a move in February.

However, in response to the Fraser review, the government affirmed its commitment to its planned changes, which were dropped as a result of a hostile Senate in the last Parliament. The current makeup of the Senate means any such move will face great difficulty in becoming law.

Mr Whiteley said the survey showed 58 per cent of respondents thought the banks would use the compulsory nature of super to exploit fund members.

Two thirds of respondents rejected increasing the influence of the banks in superannuation.

“Public opinion clearly runs counter to the banks’ efforts to change the super system to suit their vertically integrated business models. Astute policymakers will be listening,” Mr Whiteley said.

The Parliamentary Standing Committee on Economics will conduct a review of the major banks from this Friday. The CEOs of the major banks will appear before it. The New Daily is owned by industry super funds.

This article was originally sourced from The New Daily.

HomeGround is a real estate agency with a difference — it is not for profit.

Set up in 2014 by community organisation Launch Housing, it aims to create more affordable housing by tapping into the large private rental market.

"We've seen a significant decrease in public housing stock, it's reduced from 20 per cent down to 3 per cent in the past 20 years," HomeGround manager Christie Love said.

"At the same time, we've seen a significant increase in rental prices."

HomeGround works like a regular agency. The commission fees are standard but they go back into helping create affordable housing.

"You can have your property go on at full market, advertised on realestate.com and open to everyone, and get full market rent," Ms Love said.

"Then you have affordable properties, there's a criteria for the tenants that can lease those and an income restriction."

Beth Phillips is a savvy property investor with a strong social conscience, so for the past six months she has rented one of her units in Melbourne's bayside out at a subsidised rent to a low income tenant.

"It's been terrific, he's doing really well and it's had no impact really," she said.

HomeGround now has around 260 properties on its books with at least another 200 properties coming under management in the next few months.

"I've observed there's a sense of something bigger going on so the agents managing the property can manage with a greater sense of calm and knowing they're making an impact on the world," Ms Phillips said.

"As a result their service is excellent — it's well beyond what I've ever received anywhere else."

Community sector worker Felicity Rourke is renting her flat out at market rates, but is now considering dropping the rent.

"The management fees that were getting paid to the private company — it made sense that a not-for-profit were benefiting from that so it kind of ticked all my boxes in terms of my beliefs about ... supporting vulnerable people," she said.

A bonus is a special ruling by the tax office that allows any subsidised rent to be used as a tax deduction.

"You still have huge benefits in capital growth for yourself. A lot of people in my position have good incomes and a tax deduction goes a long way — it's almost as usual as additional income," Ms Phillips said.

HomeGround said the biggest challenge had been overcoming fears that low income tents will not pay the rent or look after the property.

"I've found I have to grow up and not be so affected about people's opinions on what I'm doing and questioning why I would do something like this," said Ms Phillips, who is now looking at leasing a number of her investment properties through Homeground.

Homeground has been so successful in Melbourne the team is already helping other community groups in New South Wales and Queensland set up similar not-for-profit real estate agencies.

This article was originally sourced from ABC Online. 

A new, not-for-profit KiwiSaver provider launching today says it is offering New Zealanders the chance to be $65,000 better off in retirement.

Simplicity is the pet project of former Tower Investments boss Sam Stubbs. It will be run by a charity, in a similar style to health insurance provider Southern Cross.

Stubbs said New Zealanders could expect to pay $54,700 on KiwiSaver fees on current structures over their working lives – more than the $35,900 they will fork out for their mobile phone bills or the $37,200 they will pay for power.

He is promising to slash that by heavily undercutting the market.

At the moment, the average KiwiSaver fund charges about 1.34 per cent of the member's balance in fees. Simplicity is promising half of that - $30 a year in administration fees and 0.3 per cent per year in total management fees. Fifteen per cent of the fees paid will go to the Simplicity charity, which will work to promote financial literacy.

All three Simplicity funds on offer will have the same fee structure. Other KiwiSaver providers charge more for high-growth options.

Stubbs said if he could get 4 per cent of the market, that would represent a lifetime saving of $4 billion to New Zealanders.

The power of compounding interest would amplify the savings KiwiSaver members made, so the difference in returns for Simplicity savers should be bigger than just the difference in the fees they paid.

He hopes to shake up the KiwiSaver market in a major way. "If we can run the cheapest fund and still give 15 per cent to charity, then others can do it, too."

KiwiSaver was not as competitive as it should be, he said, and providers had not been given any incentive to change or reduce costs to members. KiwiSaver accounts are mostly concentrated with the big banks.

He said while they had developed large economies of scale as balances grew, fees had not shifted accordingly. Because it did not require providers to front up with capital, KiwiSaver had become a "gravy train" for providers, he said.

"Compared to similar savings schemes in other developed countries, these fees are very high. Profits for KiwiSaver managers are at $150 million now. Without change, we think they will be at $1.3 billion by 2030."

Simplicity has developed a website portal to allow members to switch. Stubbs said the online focus of Simplicity was part of the reason it could offer lower fees. "There's none of the high cost traditionally associated with financial products – commission, branches or shiny head offices."

Stubbs said lack of education and lack of transparency around KiwiSaver fees meant few people understood how fees worked and what kind of impact they could have on long-term savings.

"We have declared war on high KiwiSaver fees today," Stubbs said. "Most New Zealanders don't even realise the high fees that they are paying.'"

Two of the directors for Simplicity have previously managed the Westpac and Tower KiwiSaver Schemes, another is former head of supervision for the Financial Markets Authority.

Simplicity eventually plans to branch out into life insurance products too. Stubbs said they were twice as expensive as they need to be.

He said it was refreshing and inspiring to be working on something that was designed to help New Zealanders, not line shareholders' pockets.

This article was originally sourced from Stuff.co.nz.

New Zealand's $60 billion not-for-profit (NFP) sector is facing concerns over the large number of organisations working in the area, a new report revealed. 

There are currently over 27,000 NFP organisations in the country, one for every 170 Kiwis. The Cause Report, by investment firm JBWere, is the first major in-depth analysis of the country's NFP sector.

JBWere's New Zealand head Craig Patrick said although the number of NFPs in New Zealand is substantially lower than Australia and the United States, the large numbers are "creating a burden on their supporters and volunteers.

The charity Cure Kids says it's working hard not to duplicate services and wants to make better use of its volunteers as new research shows there are more than 27,000 not-for-profit organisations in NZ - roughly two to three new charities are being created every day.

"Kiwis care very much about causes, and want to start and be involved in good works ... Since 2010, there have been 2.5 charities established each business day in New Zealand.

"Looking ahead, we think that more collaboration and mergers could be part of the solution," Patrick said.

Patrick said funding growth for the sector has been reasonably strong, almost 6 per cent annually since 2004.

"This growth has often been at the expense of margins which are squeezed. This has impacted on the ability for organisations to fund innovation and think more creatively. Where, for example, are the Googles in the NFP sector?"

Looking ahead, Patrick said JBWere saw a trend of new sources of funding emerging.

"Impact investments are becoming more popular where a project seeks to deliver both a financial profit as well as a social return."

New sources of funding were rewarding success, rather than just reimbursing an organisation's costs, and new methods of corporate support through partnerships emerged that offered benefits for both the company and the NFP organisation.

Cure Kids CEO Frances Benge welcomed the findings in the report.

"The Cause Report initiates an important discussion on a vital sector in the wellbeing of our society.

"The New Zealand picture emphases this need further with the reliance on philanthropy rather than government funding driving the importance of mutual interest collaborations, astute management of expenses and a greater appreciation of the value of volunteers," Benge said.

The report was based on data from Statistics New Zealand and data collected and published by Charities Services from charities' annual returns. It provides an overview of New Zealand's NFP sector including its asset base, income and expenditure, philanthropy and innovation, the makeup of its workforce and volunteers, and how the sector compares internationally.

This article was originally sourced from Stuff.co.nz.

The Australian Institute of Superannuation Trustees (AIST) board today announced the appointment of Eva Scheerlinck as acting CEO.

Ms Scheerlinck – who has served in the role of AIST Executive Manager, Governance & Stewardship since 2010 – will commence her new role when AIST’s current CEO, Tom Garcia, departs on March 10, 2017.

The appointment of Ms Scheerlinck brings stability and leadership to AIST while the search for a new CEO continues.

Applications for the CEO position closed last Friday and interviews for the role have now begun.

Mr Garcia – who announced he was stepping down from the role of CEO late last year – will continue his career in the profit-to-member superannuation sector, taking up an appointment with AustralianSuper.

This media release was sourced directly from AIST and was written by Janet de Silva.

Internet Australia, the NFP peak body representing Internet users, has raised serious concerns at comments made overnight by executives from nbn. 

In a document widely distributed to media outlets network engineering chief Peter Ryan and corporate affairs executive Karina Keisler attempt to justify nbn's decision to continue using technology that IA has described as "inferior" and unable to provide for the long term needs of Australian broadband consumers.

The pair's explanation regarding the future use of the technology deployed in the fibre-tothe-node (FTTN) rollout was described by IA's executive chair, Anne Hurley, as "seriously at odds with the advice from our internationally recognised technical experts".

Following increased complaints from nbn customers about slow speeds IA has called for nbn to abandon the use of FTTN, which it says will need to be replaced in 10 to 15 years or sooner in any case.

"Despite what Mr Ryan and Ms Keisler claim, IA maintains there is no upgrade path for FTTN. We have consistently argued that a return to a full-fibre NBN would be the best option, but failing this we support the use of "middle ground" technology called fibre-to-thepremises, known as FTTdp".

In its case, nbn prefers to ignore local spelling convention by using the term fibre-to-the curb. 

"It's not a case of upgrading FTTN, it amounts to a massive rebuild. The 'node' (the large cabinets being placed on footpaths across the country) and the electronics inside the cabinet will become redundant. The money and time spent installing an electrical power feed will also be wasted".

The nbn document states that it will use a new technology standard called Gfast. However, IA has repeatedly pointed out that Gfast is only suitable over short distances of copper wire, as is the case with FTTdp.

"The latest advice from our engineers and from overseas is that GFast will not work over Internet Society of Australia Limited | ACN 076 406 801 | www.internet.org.au| PO Box 1705, North Sydney NSW 2059 the long cable runs from the FTTN nodes to people's home and businesses".

nbn argues in favour of the continued use of FTTN on the basis that to change technology will increase delays in the completion of the project. IA maintains that efficient planning and fast-tracking construction would minimise any delays. It also argues that it makes no sense to condemn 50 percent of Australians to inferior technology while the other half enjoys ever increasing broadband speeds.

"Surely just doing FTTDP first up would be more cost effective. Doing it in two stages means a huge waste of public money".

Appearing at a Senate Estimates hearing last week nbn CEO Bill Morrow conceded that the company had not budgeted for upgrading premises with FTTN, stating the those customers wanting fast broadband would have to pay for their own upgrade.

"Australia needs ubiquitous, fast and affordable broadband. That was the essential purpose of building the NBN in the first place. It is extraordinary to see nbn now saying it will only properly service half the population".

This media release was sourced directly from Internet Australia and written by Anne Hurley, Executive Chair, Internet Australia.  

Yahoo chief executive Marissa Mayer will step down from the company that’s left over after Verizon Communications acquires its core internet assets.

The 41-year-old will receive a $30 million golden parachute and gain control of stock options valued at $75 million ($US56.8 million), according to a regulatory filing.

Yahoo’s email and other digital services will become part of Verizon, under a $6.38 billion ($US4.83 billion) deal struck last July.

Yahoo board member Thomas McInerney will run the new company called Altaba, including Yahoo’s most valuable parts including investments in China’s e-commerce leader, Alibaba Group, and in Yahoo Japan.

McInerney, 52, is a former executive with Ticketmaster and internet firm InterActiveCorp. He is set to receive $US2 million in annual base salary - double Mayer's current base pay.

Yahoo Chief Financial Officer Ken Goldman will also be stepping down and is set to get $9.5 million in severance.

Since becoming CEO in July 2012, Mayer’s time at Yahoo has had some controversial moments.

Her reign involved acquiring multiple businesses as she attempted to turn the company into a media powerhouse.

Earlier in the month it was revealed that Mayer would lose her cash bonus (worth about $2m a year) over the mishandling of a 2014 data breach.

An internal review found Mayer’s management team reacted too slowly to the breach which involved 500 million accounts that had been potentially compromised.

Moreover, a lawsuit was filed late last year in the US alleging that Mayer actively “purged the company of male employees”.

Scott Ard, a former media executive at Yahoo, alleged that Mayer “encouraged and fostered the use of [an employee performance-rating system] to accommodate management's subjective biases and personal opinions, to the detriment of Yahoo's male employees”.

This article was originally sourced from HC Online.

Vastly-experienced sports administrator Matt Carroll has been appointed as the new CEO of the Australian Olympic Committee.

Carroll replaces Fiona De Jong who announced her resignation in October last year.

Over 25 years in sports administration in Australia, Carroll has worked in several stints in rugby union including as deputy CEO of the ARU and general manager for the 2003 Rugby World Cup, served as head of the A-League for the FFA and was most recently CEO of Sailing Australia.

He was also interim chief operating officer and adviser to Japan Rugby ahead of the 2019 World Cup.

Long-serving AOC president John Coates says Carroll was selected from 322 potential candidates following a worldwide search.

Carroll's experience working in Japan would have benefits as the AOC prepare for three big events in Asia: the 2018 Winter Olympics in Pyeongchang, South Korea and as Australia pursues invitations for the Asian Games in 2022 and 2026.

This article was originally sourced from SBS News Online. 

The Board of Master Builders Australia has announced its appointment of Mrs Denita Wawn as the new Chief Executive Officer of Master Builders Australia effective 20 March 2017.

Mrs Wawn will be Master Builders’ first female CEO in its 127 year history to represent the $200 billion building and construction industry and only the third CEO in thirty years.

In announcing Mrs Wawn’s appointment, the National President of Master Builders, Mr Dan Perkins said, “Denita’s qualities, skills and experience as a highly accomplished industry leader and advocate saw her emerge as the successful candidate from the comprehensive recruitment process undertaken by the Board.”

“The Board is confident that Mrs Wawn’s leadership will see the implementation of its vision for Master Builders as a modern, credible and influential national voice for its more than 32,000 members,” he said.

“Denita has impeccable credentials for success including her wealth of experience spearheading game changing advocacy and industrial relations campaigns at the National Farmers Federation (NFF), and the Australian Hotels Association (AHA),” Dan Perkins said.

“As CEO of the Brewers Association of Australia and New Zealand, Denita implemented a highly successful reputational change strategy at a national and international level,” he said.

“Denita has spent over the past 12 months as General Manager Operations at Master Builders, giving her a strong foundation to understand the issues impacting on Master Builders and our members,” Dan Perkins said.

The Board is excited by Mrs Wawn’s leadership, her strong grasp of the factors which drive success in industry associations, and her passionate commitment for standing up for the interests of members,” Dan Perkins said.

This media release was sourced directly from Master Builders Australia.