The Power of Good Governance: How Toy Libraries Are Leading the Way in the Not-For-Profit Sector

In the not-for-profit sector, good governance is essential. It is a foundation piece leading to sustainable, impactful organisations. Good governance ensures transparency, and accountability which helps not for profit organisations, including Toy Libraries to fulfill their missions and better serve their communities.

Due to recent changes, many not-for-profit toy libraries must now register with the Australian Charities and Not-for-profits Commission (ACNC) to qualify for income tax exemption with the Australian Taxation Office (ATO). This can be daunting, particularly for volunteer committees who may be new to governance. For toy libraries, recognising their purpose as similar to that of already registered toy libraries has been a turning point in understanding their charitable nature.

Fortunately for our member toy libraries, TLA has been able to work with ACNC on behalf of members to coordinate a simplified bulk submission of applications to the ACNC for charity registration.  Through this, we have supported 35 toy libraries so far to register as a charity, with more to come.

Now with more than 85 toy libraries registered as charities across Australia, toy libraries are a great example of how good governance can transform non-profit operations. By registering as charities with the ACNC, these organisations show that their governance structures are robust. This recognition boosts credibility and trust. It helps toy libraries attract funding and support. Their commitment to good governance not only strengthens their own organizations, it also sets a positive example for others in the not-for-profit sector.

With strong governance and charity registration, toy libraries are better equipped to serve their communities. They can manage resources more effectively and respond to community needs more adeptly. This results in a more significant and lasting impact, as toy libraries go about their vital work of bringing play to families in a sustainable and affordable way.