Seven things I’ve learned volunteering for an NFP
Brian Bissaker FCA shares some of his key takeaways from many years’ working with NFPs – including how CAs can deliver value.
In brief
- The skills CAs offer are much needed in many NFPs, including financial acumen and an eye for risk.
- Volunteering for NFPs can develop key skills such as leadership and compassion, which future employers will look upon favourably.
- Volunteering on NFP boards offers vital governance experience.
When Acuity talks to Brian Bissaker FCA, he’s out in the hot sun directing a group of CAs on how to work the land.
They have paid to work here for the day, offering their time to Cana Farm, part of Cana Communities: a not-for-profit that works with people who are experiencing homelessness, addiction, mental health issues and other barriers that have prevented them from having lives they aspired to.
Bissaker started his career at KPMG. With his CA designation, he was able to propel himself into several senior roles, including CEO of both Colonial First State and Virgin Money Australia. He now holds a number of directorships at organisations including IMB Bank and MetLife Insurance. He recently stepped down as chair of Year13, a profit-for-purpose that offers comprehensive career guidance to school leavers.
Bissaker has been volunteering for Cana Communities for eight years. Among other undertakings, he performs a corporate relationship role, visiting businesses and coordinating donations and work-day visits to the farm.
A passionate advocate for volunteering with NFPs, he shares seven insights he’s gained from working in the sector.
1. Giving back
Bissaker says the kind of expertise CAs can offer NFPs is vital to their survival. Simultaneously, altruistic CAs can derive a great sense of achievement and purpose from the sector.
“Volunteering is a demonstration of my commitment to community and it’s something I really enjoy doing,” he says.
2. Professional value
After a successful career, Bissaker says his objective for working with NFPs is not to further his career – although it does help him professionally.
“I know that when I go for a board position – and I’ve had many over the last 10 years – that during a hiring conversation, the board will want to discuss it. There’s an interest in connection with the community in a lot of organisations.
“It’s a point of interest. It demonstrates your people skills, your care for the community and your compassion for others. It illustrates the leadership skills that corporates are looking for.”
3. Financial management
Bissaker says every NFP needs good financial management.
“Finance in NFPs can present challenges. They’ve got to make sure that they are not out-spending themselves, or they’ll go backwards quickly.
“As a CA coming in, you can help them structure their finances and be a bit more conservative than what some other people might be. We know, for example, that cash flow is essential and can quickly drain over a period of time.”
4. Risk management
Understanding risk management is a key need in NFPs.
“CAs are very developed and mature in their processes around risk,” says Bissaker. “There'll be people from all different walks of life working in an NFP and they’re so focused on the outcomes that they can lack focus on risk.”
He says it can be challenging to get people to appreciate what the risks are and to get structures in place, “but charities are regulated and it’s also good practice to keep your people safe and to achieve your outcomes.
5. Leadership
“CAs offer skills such as leadership, organisational skills and project management, which are exactly the sort of things that every NFP I’ve ever seen needs,” says Bissaker.
“In NFPs, there are a lot of well-meaning people and a lot of them are volunteers, but to bring them together and have them all working in the same direction is a need, and CAs have those skills in spades.”
6. Governance experience
Bissaker says there are myriad opportunities for CAs to launch their non-executive director careers in NFPs.
“For example, on the Australian Institute of Company Directors website, there are dozens and dozens of NFPs looking for directors,” he explains.
“The amount of time you offer might not be large, but it will get you started in a director role. It will demonstrate your commitment to governance and, at the same time, you’ll be learning about what it’s like to be a director.”
Yet he urges CAs to do their due diligence. “With any NFP involvement, make sure you understand the executive and who is running the organisation. You need to have faith that they operate with high competence and integrity.”
7. Just start
The most important quality is that you need to have a passion to work for an NFP. After all, you’re not there for the money – you’re doing it because you want to make a difference and you feel for the cause.
“Remember the old adage: action creates motivation,” Bissaker says. “People procrastinate because they think it’s going to be hard and they wonder if they’re going to add value. Start with one organisation and a cause you are passionate about. That’s how you learn.”
What is a not-for-profit?
Not-for-profits (NFPs) are organisations that do not operate to make a profit. Put simply, any profit made goes back into the services the organisation provides.
Are taxes paid by not-for-profits?
According to the ATO, it depends. NFPs can be exempt from income tax, but to qualify they must meet the requirements to self-assess as income tax exempt or be a registered charity that is endorsed by the ATO as income tax exempt. Some NFPs have to register for taxes such as GST, FBT and PAYG withholding, depending on the type of organisation and how it operates.
How to register as a not-for-profit organisation
To register as an NFP, you first need to register as either a company (the liability of the company’s members is limited) or an incorporated association (a legal entity separate from its members). Then, you will need to register for an ABN and register on the Australian Charities and Not-for-profits Commission (ACNC). This information and more can be found on the ATO website.
Are all not-for-profits charities?
Short answer: no. While NFPs do not operate for the profit, personal gain or other benefit of particular people, they don't have to be charitable. To be legally recognised as a charity, an organisation must meet a strict set of requirements and be endorsed by both the ACNC and the ATO. All registered charities must be not-for-profit.
Take away
CA ANZ advocates for members to participate and have a positive impact on charities and not-for-profits. This survey reveals some of the positive community impacts made by CA ANZ members.
Find out more