You may have seen the headlines about the three Queensland charities that had their charity registration recently revoked. All the three charities in question now have 60 days from the date of revocation to object to the decision of the Australian Charities and Not-for-profits Commission (ACNC). This is a huge awakening for charities that are lackadaisical about ensuring that they are dotting the I’s and crossing the T’s on their charity status.

Acting ACNC Commissioner Murray Baird said that ACNC take concerns about the operations of charities seriously and they will not hesitate to revoke charity status when organisations are not meeting the basic governance standards required.

“Part of the ACNC’s role is to shine a light on Australia’s charity sector, and take action where there has been wrongdoing,” said Baird.

They ACNC was initially created to protect the public trust and confidence in the charity sector in Australia and they regularly work with the public to identify and investigate charities that are breaching the act. They claim they receive approximately 60 concerns each month which are raised by general members of the public and within the charity sector itself.

The ACNC governance standards are identified on their website and represent the core, minimum standards on how charities, including their processes, activities and relationships, must be operated.

With over 600,000 registered charities in Australia and over 4,000,000 volunteers, it is important that these guidelines are met at all times.

There are some things you can do to ensure there is adequate governance on your non-profit board.

• Make sure the role of the board is clearly defined.
• Confirm the board is aware of its responsibilities and the documentation of policies and procedures.
• Ensure there is a clear strategic direction for the organisation which is communicated to all relevant stakeholders.
• Make certain the board consists of appropriate individuals with the knowledge and experience to meet the purpose of the organisation.
• Double check the financial responsibilities are managed well to maintain the financial health of the business.

Having your charity status revoked will seriously damage the reputation of your charity for years to come. Therefore, in this case, it is best to ensure that you are following the charity standards at all times and operating a transparent operation that clearly has nothing to hide.