Understanding charities is at the foundation of our approach to regulation. We focus on guidance and education, and when we take compliance action and use our regulatory powers we consider the potential impact this could have on the charity and the community they serve.
Guidance, education and advice
We support charities to meet their obligations through advice, guidance, education and support. For example, we provide guidance on what charities need to do to meet their ACNC obligations, on good governance and protecting your charity from fraud.
- Tools to manage your charity
- Take the ACNC compliance test to see if your charity is meeting its obligations
Our compliance powers
We have powers to gather information, and monitor whether charities are meeting their obligations, and formal compliance powers to respond to charities not meeting their obligations (for example, not acting for their charitable purpose).
Where charities fail to meet their obligations, we may use formal powers to:
- warn charities that they are not meeting their obligations and explain what action we may take (warnings)
- direct charities to do or not do something (directions)
- make arrangements with charities about what they need to do to meet their obligations - these arrangements can be enforced by a court (enforceable undertakings)
- ask a court to make charities to do or not do something (injunctions)
- suspend or remove a 'responsible person' such as a board or committee member (suspension and removal)
- disqualify a responsible person (such as a committee or board member, or trustee) who has previously been suspended or removed for 12 months. During that time, the person is not allowed to be a responsible person of any charity (disqualification) and will be listed on the disqualified persons register
- in exceptional circumstances, revoke (cancel) a charity’s registration (which may affect a charity’s eligibility for tax concessions and other government benefits, concessions or exemptions), and
- apply administrative penalties if a charity makes false or misleading statements or fails to lodge documents (such as reports, notices, returns or statements) on time.
Where appropriate, our powers to revoke a charity’s registration or apply administrative penalties can be used against any charity. For all other formal powers, we can only exercise them on ‘federally regulated entities’. Find out more about the definition of 'federally regulated entities’, in our glossary.
When we use our compliance powers
When deciding whether to use our powers or make certain decisions, we apply our regulatory approach and follow our compliance and enforcement policy and procedures. We consider the:
- type of problem
- person or situation at risk (for example, whether it affects people, money or public trust and confidence generally)
- nature and degree of potential harm
- likelihood and frequency of occurrence or recurrence
- risk profile of the charity (for example, the size of a charity, the existence of accountability mechanisms, its history of compliance and cooperation)
- behaviour of those responsible for the charity
The ACNC can apply administrative penalties if a charity makes false or misleading statements or fails to lodge documents on time. We may remit all or part of any penalties that apply, following our regulatory approach.
Example schedule of administrative penalties that apply to charities who fail to lodge an Annual Information Statement by its due date
Publishing compliance decisions
We publish the use of any formal powers (other than applying administrative penalties) on the ACNC Charity Register. It will appear on the charity’s listing on the Register.
See our summary of charity compliance decisions.
Charities not in contact with the ACNC
Unopened mail has been returned to the ACNC from a number of registered charities, which suggests that the postal address supplied to the ACNC is incorrect or the charities are not recognising mail from the ACNC. Most of these charities have had some contact with the ACNC but may have overlooked updating this information. If a charity does not submit its Annual Information Statement for two years, the ACNC will progress towards revoking their registration. Read more information, including a list of charities we are trying to contact.