Managing a vocational education organisation: Part Nine – Not-for-Profit RTOs

noprofit

It would seem, that a not-for-profit business model would assist in overcoming the current problem of public funds being used for private profit making as takes place in some RTOs. The Not-for-Profit sector is regulated by Legislation that already exists.

For-Profit

A for-profit organisation, by definition, exists to achieve a profit or gain for its individual members. A for-profit corporation is an organisation which aims to earn profit through its operations and is concerned with its own interests and not those of the public (non-profit corporation) is known as a for-profit corporation[

Not-for-Profit

A not-for-profit organisation is an organisation that is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect. This applies both while the organisation is operating and when it winds up. Any (modest) surpluses are put back into the organisation, not the pockets of directors or staff.

This, it would seem, would assist in overcoming the problem of public funds being used for private profit making as takes place in some RTOs.

Not-for-Profit Organisation

A not-for-profit organisation describes an organisation where any financial surplus (profit) is put back into the organisation as a whole, not the individual pockets of organisation directors.

The Australian Tax Office says, “A non-profit organisation is an organisation that is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect. This applies both while the organisation is operating and when it winds up.

Any profit made by the organisation goes back into the operation of the organisation to carry out its purposes and is not distributed to any of its members.

They accept an organisation as non-profit where its constituent or governing documents prevent it from distributing profits or assets for the benefit of particular people – both while it is operating and when it winds up. http://tinyurl.com/l9p6hcc

Not-for-profit law

You have to observe:

  • the requirements of incorporation in your state (if you’re an incorporated association). These vary from state to state, but they’re not particularly taxing; in most states all you have to do is have an official contact point, hold annual meetings, and submit annual reports.
  • the requirements of fundraising in your state (if you’re raising funds from the public) You’ll need to register with the relevant authority in your state, and there will be certain rules about what you can and can’t do, but as you’re a bona fide organisation that actually does wish to raise funds for a good cause these rules aren’t likely to interfere with your operations very much.
  • the requirements of Tax Office status (if your organisation is eligible for any not-for-profit or charity tax breaks).

Not-For-Profit Registered Training Organisations

Registered Training Organisations (RTOs) provide training and assessment. An RTO may be an Institute of TAFE, an adult and community education provider (e.g. Learn Local organisation), a group training company, a private provider or a school.

Not-For-Profit Registered Training Organisations include those which provide:

  • Vocational Education and Training (VET / VTE)
  • Competency Based Training and Assessment
  • Traineeships
  • Upskilling Programs
  • Labour Market Programs and Employment Schemes.

Only registered training organisations (RTOs) can:

  • issue nationally-recognised VET qualifications and statements of attainment
  • apply for state and Commonwealth Government funding
  • offer training to overseas students

Funding of Not-For-Profit Registered Training Organisations

A Not-For-Profit Registered Training Organisations may be funded through multiple funding streams including State and Commonwealth Government funding.

Funding provided by the Victorian government is managed through a service agreement between the relevant Government Department and the organisation. A Service Agreement Information Kit for Funded Organisations provides organisations funded by the Department of Human Services (DHS), Department of Health (Health) and Department of Education and Early Childhood Development (DEECD) with online information about service agreements.

Example Not-for-Profit Registered Training Organisation

VETEA is an Australian-based, not-for-profit Government Registered Education, Training and Employment Organisation dedicated to personal and professional development of individuals. VETEA offers Education and Training Programs designed to support Youth, Adult and Mature-age people pursue their education, training and career pathways.

VETEA is supported by seven (7) subsidiary organisations.http://tinyurl.com/mxakebp

Case Study of Not-for-Profit Organisation and Community College Partnership

A case study of a not-for-Profit and community college partnership. The study looks at how Northern Virginia Family Service, a non-profit organisation, and Northern Virginia Community College partnered together to provide Training Futures, a six month training program designed to help low-income adults in Northern Virginia start new careers in office administration and advance towards degrees and certificates in college.

The authors share information about participants and the education and employment outcomes they achieve, program design, recruitment strategies, curriculum, training approach, services provided, employer involvement and funding.

They also discuss the history of the program and partnership, partners’ roles and responsibilities, key staff members, planning processes, data management, and key innovations and lessons learned from the partnership.

This case study builds on research done through Courses to Employment, a demonstration project funded by the Charles Stewart Mott Foundation that investigated how community college and non-profit partnerships can help low-income adults succeed in college and the labour market.

Details: http://tinyurl.com/mulq82p

Compliance

Not-for-Profit Compliance Support Centre: http://tinyurl.com/pjgnhzg

Australian Skills Quality Authority/Victorian Registration and Qualifications Authority

The Australian Skills Quality Authority (ASQA) is the national regulator for Australia’s vocational education and training sector. ASQA regulates courses and training providers to ensure nationally approved quality standards are met.http://tinyurl.com/p7qeag4

The Victorian Registration and Qualifications Authority (VRQA) is the statutory authority responsible for ensuring that employers of apprentices and trainees and providers of education and training (including course and qualification owners) meet quality standards, and that information is readily available to support informed choice in education and training.

The VRQA:

  • registers certain education and training providers and awarding bodies
  • registers certain qualifications and accredits courses
  • registers children for home schooling in Victoria
  • regulates apprenticeships and traineeships in Victoria. http://tinyurl.com/kt8rrtq
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