Donors and others involved in Australia’s charity sector continue to turn to the Charity Register as a source of truth, with millions of Register searches recorded in the past financial year.
The Australian Charities and Not-for-profits Commission (ACNC) 2023 – 2024 annual report has been tabled in Parliament, detailing the regulator’s significant achievements. In 23-24, there were 19 million clicks on the Charity Register, as people searched for key data about charities, including financial information and the names of charity leaders.
Commissioner Sue Woodward AM said the Charity Register supports sector transparency and is a critical source of truth for the public, the sector and government.
“Much of our work is to confirm the Register is accurate and up-to-date, with data drawn from information that charities submit to us,” Ms Woodward said. “As part of this process, we conducted 250 reviews of charity reporting, as well as 492 reviews of charities with deductible gift recipient endorsement to check they are still eligible for charity registration.”
The ACNC website, which provides resources and guidance for charities and the public, received 3.8 million views. The Commission worked with the Australian Signals Directorate to update cyber security guidance and to produce a joint podcast, and hosted webinars on related party transactions and the Annual Information Statement.
It replied to 21,663 calls and 8,695 written queries from charities and the public. On-time reporting improved, with 73% of charities submitting required information on time.
Compliance
In 2023–24, there were 2,309 concerns about charities raised ̶ a 10% increase on the previous financial year. More than 1,000 (45%) came from the public. Of these, 26% related to private benefit ̶ the use of charity money for personal gain ̶ while 21% related to mismanagement of charity funds.
The ACNC completed 59 investigations, revoking the charity status of nine organisations due to compliance action, and referring 36 charities to other government agencies when they were able to act. There were several joint investigations and other activities with Australian and state agencies.
A risk based triage process was used to assess concerns. Regulatory actions included developing compliance agreements (such as action plans to improve management practices) and providing education (such as advice to improve record keeping). We conducted 52 compliance reviews to check charities’ general level of compliance with the ACNC Act and address any risks identified. Of the 52 reviews, 26 related to cyber security compliance.
The ACNC announced a compliance and enforcement focus for the 2024–25 financial year. Priorities continue to include protecting vulnerable people; preventing misuse of charities for terrorism purposes; stopping financial mismanagement, fraud and private benefit; and preventing charities from carrying out activities that put them at risk of a disqualifying purpose.
Another announced focus relates to the emerging risk of the misuse of complex structures to conceal fraud or non‑compliance.
“Like other Australian-based regulators and international colleagues, we are concerned about the use of complex structures to either hide what charitable funds are being used for, or to conceal significant private benefit or other serious non-compliance,” Ms Woodward said.
Registration
There was a 14% rise in registration applications, with 6,286 applications submitted ̶ 751 more than the previous year. A significant part of registration work related to changes affecting not-for-profits (NFPs) that self-assess as income tax exempt. If an NFP has charitable purposes, it will need to register with the ACNC to retain income tax exemption. As a result, thousands of mostly small organisations have been prompted to consider charity registration. The ACNC developed guidance and tools to help NFPs identify if they are charitable, and met more than 23 NFP peak bodies to ensure new applications were grouped, to help streamline assessment.
To highlight common issues for organisations that apply for registration, the publication of a series of registration decision summaries began. These summarise actual decisions, with details that could identify organisations removed.
Data and engagement
ACNC data was used to provide deep insights into the sector. The 10th edition of the Australian Charities Report, published in June, revealed cost-of-living pressures are having a significant impact, with charity expenses increasing at twice the rate of revenue. Extra small charities (those with annual income under $50,000) comprise nearly a third of the sector and have been more affected by these pressures.
Sector engagement continued to be a priority. The Commissioner and senior leaders had 48 speaking engagements and attended 96 meetings or forums. Further, there was consultation with the ACNC’s Adviser Forum, Sector Forum and Consultation Panel, and the annual Regulators Day was held. A refresh of the ACNC’s Advisory Board was announced by Assistant Minister Andrew Leigh MP, with the new board led by Sarah Davies AM.
Key Facts:
· ACNC 2023 – 2024 annual report tabled in Parliament.
· Report details the charity regulator’s significant achievements.
· In 23-24, there were 19 million clicks on the Charity Register
· Charity Register is a critical source of truth for the public, the sector and government.
About us:
The ACNC regulates Australia's 60,000 registered charities.
Contact details:
media@acnc.gov.au 0481 456 411
