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MMM Australia: mini-review for donors

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Mini-review of MMM Australia (MMM) as an organisation that seeks donations. (Including the answers to the questions that the Australian charity regulator, the ACNC, suggests that you ask.)

Is MMM registered?

  • As a charity, yes.
  • Other registrations:
    • As a public company (a company limited by guarantee).
    • Operating in five of the seven states that have a fundraising licence regime, but not licensed in any of them. (A public request for donations – in the website header – may also, for some or all of the states, be an argument for being licensed.)

What do they do?

Do they share the Gospel?

  • No.

What impact are they having?

  • There is no indication that they are even assessing their impact. (I searched for ‘outcomes’ too.)

What do they spend outside the costs directly incurred in delivering the above impact, that is, administration?

  • From the classification of expenses used by MMM there is no clear way to even estimate this percentage.

Can you get a tax deduction?

  • No.
    • Not to MMM anyway. But to the fund run by the international association of MMM organisations, the charity M M M International Development Fund, yes.
      • There’s no link, or instructions though.

Is their online giving secure?

  • PayPal is used, so yes.

What choices do you have in how your donation is used?

  • None.

Is their reporting up-to-date?

  • Yes (and a month and a half before the final date)[1].
    • But if you are considering a large donation, I would ask for more up-to-date financial information – the accounts are for a year end that is now over 11 months ago.

Does their reporting comply with the regulator’s requirements?

  • AIS 2015: Not quite. No outcomes are reported, and it completed question 14(a) when it shouldn’t have.
  • Financial Report 2015: Questionable:
    • Do the directors’ realise that, by saying that “there are no users who are dependent on its general purpose financial statements” , they are also effectively saying that all current and prospective donors, staff and suppliers are able to command the preparation of a report tailored to their needs?
    • The accounting for ‘Special projects’ (Note 1o) and ‘Retirement funds held in trust’ (Note 1p) is questionable, but unlikely to be material.

What financial situation was shown in that Report?

  • MMM was unprofitable again this year, but at least the deficit was reduced by 59%.
    • I suspect that profitability will return now that MMM Build Pty Ltd has been closed.
  • Financial structure, both short-term (working capital) and long term (debt versus assets) is not obviously an issue.

What did the auditor say about the last financial statements?

  • He gave a ‘clean’ opinion. To take the right amount of comfort for this finding, please read here and here.
    • But he agrees with the directors’ decision – see Does their reporting.., above, – that the lower standard special purpose financial statements are appropriate.

If a charity, is their information on the ACNC Register complete?

  • Almost. It is missing information under ‘Other Name(s)’ and MMM Build Pty Ltd is overdue to select an Entity Subtype.

Who are the people controlling the organisation?

  • These people.
    • Or maybe Roderick McGarvie instead of Dale Richardson, as it says on the ACNC Register under ‘Responsible Persons’?

To whom is MMM accountable?

  • Although they make no mention of it, they are, apart from the ACNC, accountable because of their membership of Missions Interlink.

Is it responsive to feedback?

  • When sent a draft of this review, they did not respond.

 

 

  1. The document recorded as a Financial Report on both MMM Australia and MMM Build Pty Ltd is not a financial report, but a copy of the Group AIS.
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