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Charities in chaos after coalition freezes funds

Sigh......:Woman Sad

 

 

http://www.smh.com.au/federal-politics/political-news/charities-in-chaos-after-coalition-freezes-fun...

 

Hundreds of charity, church and community groups across the country have been plunged into disarray after the federal government effectively froze millions of dollars in grants funding.

 

More than 400 groups, including Lions clubs, churches and not-for-profit groups, were told in August their funding applications had been approved and would be distributed under the current budget.

 

The money, allocated under the ''Building Multicultural Communities'' program, has to be spent by June next year. But community groups have been told the $4.55 million in funding is under review.

 

Ethnic Communities Council Newcastle and Hunter Region executive officer John Tucker said he had been informed by a public servant in the newly rebadged Department of Social Services that the money was in doubt.

 

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Re: Charities in chaos after coalition freezes funds

"Effectively froze"? 

the money was in doubt." ?

 

The money, allocated under the ''Building Multicultural Communities'' program, has to be spent by June next year. But community groups have been told the $4.55 million in funding is under review.

 

And all the above comments have now coalesced  into:  coalition freezes funds ? That is a real cold snap

 

As everything was OK up to 7th Nov, I would like more than one unconfirmed article into the supposed deep freeze.Myopic Tongues2 Small.jpg

 

 



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Re: Charities in chaos after coalition freezes funds

The Abbott government has backed away from distributing millions of dollars in grants promised to dozens of charities, community groups and local councils under Labor's national crime prevention program.

 

In some cases, small charities say their existence is under threat because they have spent money based on draft funding agreements that will no longer be honoured by the new government.

 

The biggest loser is the Police Citizens Youth Club, which has been warned the $7 million it was promised is ''on hold and unlikely to be delivered'', according to an insider.

 

Change of plans: Prime Minister Tony Abbott. 

 

The money was earmarked to provide youth mentoring programs in disadvantaged areas, including the ''Making Men'' and ''Girl's Choice'' projects to steer young people away from a life of crime.

 

The PCYC, which said it remained hopeful of receiving the 31 individual grants it secured in August, was warned its funding had been shelved pending a review of the Coalition government's spending priorities.

 

Father Chris Riley's Youth Off the Streets charity has received the first instalment of the $5 million it was promised because it expedited the signing of contracts before the change of government.

 

"We are in the process of advising organisations who were promised funding under the national crime prevention fund not to make any financial commitments."  But Father Riley hit out at the Coalition's decision, pointing out that national crime prevention grants were funded through the proceeds of crime rather than general revenue and were not election promises.

 

''I don't understand this, the proceeds of crime is not taxpayer money,'' Father Riley said.

Justice Minister Michael Keenan said: ''The government is currently working through the arrangements required to implement our election commitments.

 

''In the meantime, we are in the process of advising organisations who were promised funding under the national crime prevention fund not to make any financial commitments on the basis of commitments made by the former government.''

 

One group that was warned not to spend on the assumption that agreements were valid is the Women in Prison Advocacy Network, which was promised $297,000 to start a youth mentoring program in inner-city Sydney and the La Perouse and Maroubra areas.

Kat Armstrong, who runs the not-for-profit group, had expected a first instalment on September 30 but it did not materialise. The group has been advised that ''a majority'' of grants will be delivered.

 

''Given that we submitted a 36-page tender application and we were notified by the then minister, Jason Clare, that we were successful, we expect the money,'' Ms Armstrong said. ''What we've spent in two months to begin the program will make us very vulnerable to having to close down if we don't get the money we had been promised.''

 

The National Aboriginal Sporting Chance Academy had secured a total of $600,000 for programs for indigenous youth in Sydney and Dubbo but was warned the money was under review.

 

Mr Clare said Prime Minister Tony Abbott must step in to guarantee the PCYC and other groups would get their money.

''This government's priorities are all wrong. They are happy to spend taxpayers' money on going to weddings but are cutting millions of dollars in the budget for PCYCs and others to fight crime,'' he said.

 

Mission Australia, which had been promised nearly $500,000, said it ''remains optimistic''

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Organisations tasked with tackling social disadvantage will be given unprecedented new powers through cuts to red tape and more funding for frontline services, under reforms ordered by Social Services Minister Kevin Andrews.

 

The minister has asked his department for radical changes to its approach to funding and demanded that charities and organisations that receive government money to run programs be given much more control.

 The minister's office confirmed new agreements starting mid next year would be altered significantly, with millions of dollars of funding to be affected.

 The keys to the new approach will be less onerous reporting requirements and the ability of organisations that apply for money to use it without having to go through bureaucratic hurdles.

 The government believes this will allow organisations to slash the number of finance and administration staff they must employ and increase frontline staff.

 At the instigation of Prime Minister David Cameron, the Conservatives in Britain embraced the concept of the Big Society: the idea that government should step back to allow charity more room to help the needy.

 Mr Andrews is embarking on a different version of that concept. A spokesman for the minister said the government had already instructed the changes be made.

 "The government is committed to easing the administrative burden on civil society," the spokesman said. "Labor did nothing to help the sector; in fact they did the opposite and created a new regulator. We remain committed to scrapping the ACNC (Australian Charities and Not-for-profits Commission)".

 Coalition frontbenchers, including Tony Abbott and Malcolm Turnbull, held meetings with the Big Society's philosophical architect, Phillip Blond, during his Australian visit last year.

 The minister has also asked his department to re-establish a community business partnership to advise government on encouraging a culture of philanthropy in an effort to create alternative sources of funding to invest in social needs. The partnership will encourage prominent Australians to work together for the benefit of the community.

 Mr Andrews has told the welfare sector it has nothing to fear from the Coalition's new approach. Instead he has told his department the new approach will recognise and support the work of the "institutions of civil society".

 Mission Australia has been pushing the Big Society approach used in Britain, which is enlisting charities to take over the delivery of government services.

A senior government source said Australia could no longer afford to continue with a "one-size-fits-all" approach to social services and the new system would give greater autonomy to organisations outside government.

 Under the new system, not-for-profit organisations would be allowed to work with local communities to find innovative solutions to issues of poverty.

 They would also be asked to develop more flexible funding systems.

 

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Re: Charities in chaos after coalition freezes funds

Take from the poor and give to the rich is one of the coalitions core policies.

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Re: Charities in chaos after coalition freezes funds

Will the exclusive bretheran still be getting a tax break?

 

They do really good work.

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