Development Activities Policy

This policy will apply to activities and operations of CBM Australia, at all times.

CBM Australia seeks to fund projects and activities that bring sound development outcomes and support the CBM Australia Strategy.

What is the purpose of CBM Australia’s Development Activities Policy?

This policy provides a basis for increasing the level of financial support from the community delivered to effective field programming and advancing CBM Australia’s progress towards its strategic objectives.

Together with the accompanying standard and procedure, this policy informs the assessment of the suitability of development activities to receive CBM Australia funding.

This policy aligns CBM Australia’s identification of development activities in our field programming with:

  • Australian tax deductibility status according to the Australian Government’s Overseas Aid Gift Deduction Scheme (OAGDS);
  • The Australian Government Department of Foreign Affairs and Trade’s (DFAT) Recognised Development Expenditure (RDE) explanatory notes (2019).

Tax deductibility

CBM Australia ensures that funds classified as tax deductible donations for the purpose of overseas aid are used to support eligible development and humanitarian activities according to OAGDS Guidelines. CBM Australia is committed to development activities that contribute to improving the long-term well-being of individuals and communities in developing countries. CBM Australia has processes to review development activities throughout the project cycle.

The definitions below are adapted from the Overseas Aid Gift Deduction Scheme (OAGDS) Guidelines (2016) and constitute the classification of development activities as eligible for tax deductibility:

• Fair distribution:

Seek to ensure that development activities aim to improve the well-being of those in need without favouritism or discrimination by race, religion, culture or political persuasion.

• Local participation:

Meet the needs expressed by a community, and seek community participation in addressing those needs to ensure that activities are appropriate, are in direct response to local needs, and build on local capacities.

• Sustained or lasting benefits:

Seek long term impacts through technical, social, cultural, financial and environmental sustainability. The activity itself does not need to be sustained or demonstrate that it is sustainable, but the benefits which have resulted from the activity should be lasting and able to be sustained.

Recognised Development Expenditure (RDE)

CBM Australia seeks to maximise its Recognised Development Expenditure (RDE) as defined by the Department of Foreign Affairs and Trade (DFAT), with the aim of maximising funds from DFAT in CBM Australia’s ANCP grant.  

CBM Australia seeks to avoid or minimise funding activities in four specific areas that are not recognised as development expenditure. These areas are:

  • proselytism activities that promote a particular religious adherence;
  • partisan political activities, including supporting a political party, or promoting a candidate or organisation affiliated to a particular party;
  • welfare activities which do not change the long term outcomes for a community;
  • channelling funds where no report on outcomes can be obtained.

Any expenditure identified within these categories is withdrawn from RDE through the application of the Development Expenditure Standard and RDE Exclusion Procedure.

The Board and management of CBM Australia are fully committed to the principles of this policy. Any breach of strategic significance or any material risk associated with this policy will be reported to the Board in a timely manner.