Where are we up to in charity
regulation?
Susan Pascoe AM: Commissioner,
Australian Charities and Not-for-profits
Commission (ACNC)
Better Boards Conference,
Adelaide, 2 August 2014
Overview
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Policy Context
NFP Sector in Australia
ACNC key functions
ACNC charity regulation and Board obligations
Benefits of registration and regulatory oversight
Policy Context
• Government intention to abolish ACNC,
archive charity register, implement self
reporting and return registration and regulatory
oversight to ATO
• Senate voting intentions unclear
• ACNC continuing to pursue dual role:administer the ACNC Act and Charities Act and
retain charity regulator as viable agency, and
support transition planning for transfer of
functions to ATO.
Scope of the NFP sector
• Estimated 600,000 not-forprofit (NFP) groups
• About 60,000 charities
(welfare, education, religion
and other recognised
charities)
• 4% of GDP/ $58 billion*
• Averaging 6% growth p.a*
• More than one million
employees* – 9% of
Australia’s employees
• More than 6 million volunteers
Sourced from 2012-13 ABS Satellite Accounts
The ACNC: our functions
Registration
Register, Charity Passport,
research & data-sharing
Reporting & Compliance
Advice, guidance & education,
research & policy
The ACNC: Objects and Executive Team
• Maintain, protect and
enhance public trust
and confidence in NFP
sector
• Support sustainable,
robust, vibrant,
independent and
innovative NFP sector
• Contribute to red tape
reduction
Regulatory obligations of charities
Ongoing obligations
• maintain ongoing entitlement to registration as a charity
• notify ACNC of significant changes:• Charity name and address for service
• change to responsible persons (board, committee members
or trustees)
• changes to governing documents
• significant non-compliance
•keep records
•submit Annual Information Statement to ACNC
•comply with governance standards
NB: Size affects obligations
2014 Annual Information Statement
• 2013 info will be pre-populated in 2014 statement
• Annual Financial Report required for the first time from
medium and large charities
– voluntary for small charities
– reviewed or audited for medium charities
– audited for large charities
• To ensure integrity of Register, will ask for governing
documents and responsible person information
• Fixes some common reporting errors from 2013 (such
as definition of ‘basic religious charity’)
2014 Annual Information Statement
Summary of requirements
Size/
Category
Annual
Revenue
2014
Annual
Information
Statement
(nonfinancial
questions)
2014
Annual
Information
Statement
(financial
questions)
Annual
financial
reports
audit/
review
Small
< $250,000
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9 items
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Medium
$250,000 <$1,000,000
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12 items
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audit or
review
Large
$1,000,000
and above
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15 items
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audit
Basic
Religious
Charities
N/A
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Nil
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Deregistration
Graduated Sanctions
Investigation
Assistance
Guidance
Charity regulation: Benefits for charities
• Badge of credibility as a registered charity
• Access to Cth tax concessions and other benefits
• Visibility through Charity Register = single point of
contact (one stop shop) for public, donors, funders etc
• Online ACNC Charity Portal to provide info in real
time and store core information
• Over time, reduced red tape through streamlined
regulatory requirements and Charity Passport
(enabling report once, use often with core charity
information such as Annual Information Statement, charity
documents, registration history, charitable purpose history,
responsible persons, ACNC enforcement outcomes)
Charity regulation: Benefits cont.
• Use Register to find out information about other
charities
• Through Register, increased accountability and
transparency of sector – greater trust & confidence
• Dissemination of info and research about sector ( EY
& Curtin research)
• Regulatory oversight – take action against charities
doing wrong thing – maintaining trust and confidence
for benefit of other charities and the community
• Timely advice, guidance & education
ACNC Register: story so far
4.4 million
Finding out more: www.acnc.gov.au
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