On this page
Introduction
Note
This information only applies to organisations registered as a charity under the Australian Charities and Not-for-profits Commission Act 2012 (Cth) (ACNC Act).
If your organisation is a registered as a charity under the Australian Charities and Not-for-profits Commission Act 2012 (Cth) (ACNC Act), the ACNC's Governance Standards apply in addition to other sources of duties.
Broadly, the Governance Standards require charities to remain charitable, operate lawfully and be run in an accountable and responsible way. A charity must meet the Governance Standards when it applies to be registered with the ACNC and must continue to meet them to maintain its registration. These Governance Standards continue to apply in the event of a disaster or emergency.
For more information, see the ACNC webpage on the Governance Standards
Charities are registered in one or more charity 'subtype' categories. These subtypes are categories that reflect the charity’s charitable purpose (for example, advancing the natural environment).
See the ACNC webpage on charity subtypes.
For a charity to remain entitled to registration under the ACNC Act, it must ensure that it continues to meet the description of the subtype (or subtypes) of charity it is registered as.
To change or add a new charity subtype, charities should apply 'as soon as possible' to the ACNC through the ACNC Charity Portal. The charity must provide the ACNC with evidence of appropriate changes to the charity's governing documents (for example, its constitution) which reflect the change in the subtype before it will approve of such a change.
Case study – a meal centre charity provides accommodation services
Ballarat Community Kitchen is an organisation registered as a charity with the ACNC. The charity’s purpose is to relieve poverty by operating a community meal centre for homeless people in Ballarat, Victoria.
After a bushfire in the area, Ballarat Community Kitchen provides accommodation services to people who have been displaced.
What are the consequences (if any) for this charity operating outside its purpose?
In a disaster situation, it may be difficult for a registered charity to follow the required process of seeking and obtaining approval from the ACNC before undertaking disaster or emergency relief activities.
There are no provisions that allow charities registered with the ACNC to change their activities to a non-registered purpose on a temporary basis – they should either seek prior approval to change their registered subtype or and otherwise avoid undertaking activities outside the scope of their charitable purpose.
Operating outside a charity's registered purposes to provide different services may mean that the charity’s activities become inconsistent with its registered purpose (or purposes), and it would therefore no longer meet the description of the subtype (or subtypes). In these circumstances, the ACNC may revoke the charity's registration using its powers under the ACNC Act. Associated consequences of revocation include the loss of tax concessions.
Revocation of charity registration
Before the ACNC revokes a charity’s registration (where a charity operates outside its charitable purpose), the ACNC must consider a range of factors and give the charity an opportunity to respond to a notice of the intention to revoke charity status.
The range of factors that ACNC will consider are:
- the nature, significance and persistence of any contravention or noncompliance
- the actions that have or can be taken to address any contravention or noncompliance
- the need to ensure any contributions to the charity are applied consistently with its not-for-profit nature and charitable purpose
- the objects of any Commonwealth laws that refer to ACNC registration
- the harm to public trust and confidence
- the welfare of beneficiaries of the charity, and
- any other matter the Commissioner of the ACNC considers relevant
The ACNC’s decision to revoke is ultimately discretionary and revocation does not automatically follow a charity operating outside its registered purposes.
See the ACNC webpage on revocation by the ACNC: the Commissioner’s policy statement.
Caution
A charity which operates outside its registered purposes for a period without the ACNC deciding to revoke its registration, before returning to its usual activities, cannot assume that it has permanently escaped regulatory consequences.
While the ACNC Commissioner may consider whether the disentitling factor existed for a short time, the Commissioner ultimately retains the discretion whether to revoke registration.
Disclaimer: These resources provide general information about legal issues that may arise for not-for-profit organisations in managing disasters. This information is a guide only and is not legal advice. If you or your organisation has a specific legal issue, you should seek legal advice before deciding what to do. See full disclaimer and copyright notice.
The content on this webpage was last updated in December 2024.
