Charities in Australia : an abrogation of government's responsibility

Major charitable institutions in Australia are run as businesses. The charity sector in Australia is also called the Not for Profit (NFP) sector and referred to as the ‘third sector’ of the economy. That is, the sector in addition to the government sector and private enterprise. This paper will demonstrate that the Australian Charities or NFP sector is; 1. A significant sector in the Australian economy, 2. Funded to a great extent by Australia taxpayers through the taxation system, via tax deductible donations and tax concessions, and direct government funding, 3. A major provider of services that had been or should be provided by the Australian government, 4. Subject to regulation not well supported by government, and 5. A vehicle for high profile philanthropists to influence the direction of government spending and government policy. The use of the NFP sector by government to provide government services has turned the NFP sector into a non-transparent arm of government which allows abuses to occur with victims unable to obtain redress. This paper will conclude that the use of charities to deliver government services to some of Australia’s most vulnerable citizens is an abrogation of government’s duty of care and a distortion of democracy. This paper concludes that allowing charities/philanthropists to use their financial influence to divert government moneys to subsidise philanthropists’ causes and passions is ‘inherently undemocratic’. Government funds need to be spent on priorities determined by the democratically elected government of the day not by philanthropists, however well meaning. Government policies need to be determined by ‘evidence-based policy formulation’ determined by the democratically elected government of the day not by philanthropists, however well meaning.