ACNC External Conduct Standards Quiz

This quiz is part of our charity governance online learning content.

It covers the ACNC External Conduct Standards:

Read each question and choose the answer you think is correct. If you get a question wrong, you can try again. If you answer every question correctly, you can download our ACNC External Conduct Standards certificate to demonstrate your learning.

ACNC External Conduct Standards Quiz

Question 1

Who needs to comply with the External Conduct Standards?

Charities actively working overseas

Charities that only send funds overseas 

Charities that engage third parties to undertake overseas work on their behalf 

All of the above 

Tick icon Correct

All charities that operate overseas (including sending funds and working with third parties overseas), must comply with the External Conduct Standards.

Cross icon Incorrect

These charities must comply with the External Conduct Standards, but consider if other charities need to as well. Please try again.

Question 2

Do Basic Religious Charities need to comply with the External Conduct Standards if they operate overseas?

Yes

Tick icon Correct

All charities that operate overseas, including Basic Religious Charities, must comply with the External Conduct Standards.

Cross icon Incorrect

Basic Religious Charities must comply with the External Conduct Standards if they operate overseas, even if they don’t need to meet the Governance Standards. Please try again.

Question 3

When making funds and resources available for overseas operations, which process should be followed? 

Approval granted by a single person

Formal approval by more than one person

Transferring funds through informal channels

Using third-party intermediaries

Tick icon Correct

Charities should have a formal approval process involving more than one person when sending funds and resources overseas. It is important that funds are transferred securely, such as through formal banking systems.

Cross icon Incorrect

This is not an appropriate process for sending money overseas. Please try again.

Question 4

Which of the following is not an appropriate step to take when working with third parties overseas?

Continuing to work with third parties without monitoring their progress and financial status

Conducting due diligence, such as vetting and background checks

Having a formal written agreement

Regularly reviewing agreements with third party agreements

Tick icon Correct

It is important to closely monitor third parties to ensure their work on behalf of the charity is in line with its charitable purposes, and funds are being used responsibly.

Cross icon Incorrect

This is an appropriate step when working with third parties overseas. Please try again and choose the option that is not an appropriate step.

Question 5

The purpose of External Conduct Standard 1 is to ensure charities:

Remain solvent

Minimise risks to assets

Use their resources to further their charitable purpose

Operate in a way that is consistent with their purpose and character as a not-for-profit

All of the above

Tick icon Correct

These are all purposes of External Conduct Standard 1. The standard is intended to promote legitimacy and transparency and ensure a registered charity and its resources are not misused for non-charitable or illegal purposes overseas.

Cross icon Incorrect

This is one purpose of External Conduct Standard 1, but consider if there are other purposes. Please try again.

Question 6

To meet External Conduct Standard 2, charities should keep records of:

All operations outside Australia, including funds sent for use overseas and work with third parties

Historical charity information from 20 years ago

Tick icon Correct

The records must include information necessary for a charity to be able to prepare a summary of its activities and related expenditure outside Australia on a country-by-country basis.

Cross icon Incorrect

Charities are required to keep records for at least seven years. Please try again.

Question 7

Do charities need to submit their records of overseas activities to the ACNC?

Yes

Only if the information is requested as part of an enquiry or investigation

Tick icon Correct

The ACNC does not require a charity to provide records for its operations outside Australia. However, we may request this information from a charity as part of an enquiry or investigation. If the ACNC requests records of operations outside Australia, a registered charity should be able to provide them in a timely manner.

Cross icon Incorrect

Charities don’t need to submit their records to the ACNC, unless it is requested as part of an investigation. Please try again.

Question 8

When operating overseas, charities should take steps to minimise risks of:

Corruption

Fraud

Bribery

All of the above 

Tick icon Correct

External Conduct Standard 3 requires charities to take reasonable steps to minimise the risks that come with operating outside Australia, and particularly the risk of resources being stolen or misused for illicit or illegal purposes.

Cross icon Incorrect

Charities should minimise this risk, but consider if there are others. Please try again.

Question 9

Which of the following is a reasonable step to manage risks of fraud or financial impropriety and meet External Conduct Standard 3? 

Trusting third parties, and not having a formal agreement in place or conducting due diligence

Implementing a clear conflicts of interest policy, and keep an updated conflicts of interest register

Punishing staff for raising concerns or reporting wrongdoing

Making one person responsible for all financial management and decisions

Tick icon Correct

This is one way that a charity can manage the risk of fraud and financial impropriety. Other reasonable steps include supervising and providing adequate training for staff who are involved with charity finances, and keeping detailed financial records and regularly check financial statements for any signs of financial wrongdoing.

Cross icon Incorrect

This is not a reasonable way to ensure fraud is managed responsibly. Please try again.

Question 10

Which of the following factors should a charity consider when deciding on reasonable steps to protect vulnerable individuals?

The charity's annual budget

The nature and degree of vulnerability of the people it works with

The charity's marketing strategies

The number of social media followers the charity has

Tick icon Correct

Charities need to take steps to protect vulnerable people. ‘Vulnerable individuals’ are those under 18, or those who may be unable to take care of themselves, or unable to protect themselves against harm or exploitation.

Cross icon Incorrect

The reasonable steps that a charity must take to protect vulnerable people will depend on its particular circumstances of its work with vulnerable people and the associated risks. Please try again.

Question 11

Why might a charity choose to seek expert help or advice in meeting the External Conduct Standards?

To gain adequate knowledge and experience

To increase the charity's social media presence

To reduce the number of staff and volunteers

To avoid collaborating with third parties

Tick icon Correct

In addition to seeking expert advice, other ways to expand your charity’s knowledge of the External Conduct Standards including completing the ACNC self-evaluation for charities operating overseas, and consulting the Governance Toolkit.

Cross icon Incorrect

It is important for charities to understand how to meet the External Conduct Standards, if they are required to comply with them. Please try again.

Congratulations!

You have answered every question correctly. Download your certificate of completion.

Check out our other charity governance content to continue your learning.