The ACNC has power to act in response to a variety of concerns about charities.
Generally, we will only act on concerns where:
- there is a serious risk to public trust and confidence in the sector, AND
- they relate to a charity's compliance with requirements of the ACNC Act.
The ACNC's powers to investigate
In certain situations, the ACNC has the power to investigate, and we will be particularly concerned if it is alleged that a charity:
- is not entitled to be registered as a charity or as a specific subtype (charity subtypes must match the charity's purpose)
- has not met ACNC requirements to keep appropriate records
- has not met ACNC requirements to provide accurate information, such as financial information or details of its Responsible People
- has used funds or assets for non-charitable purposes, such as for the private benefit of its members, or these have been stolen
- has not been accountable and transparent to its members (it may have failed to hold an annual general meeting or similar)
- has been involved with fraud or criminal activity (the person raising the concern will be asked if they have contacted the police)
- has failed to ensure that its Responsible People are suitable and not disqualified
- has failed to ensure its Responsible People have complied with their duty to act in good faith, with a reasonable degree of care and diligence, in the charity’s best interests and pursuing its purpose
- has failed to ensure its Responsible People have complied with the duty to disclose perceived or actual conflicts of interest and not to misuse their position or any information obtained in the performance of their duties.
If a charity operates overseas, it will have additional obligations to the ACNC. We have the power to investigate certain situations, and we will be particularly concerned if it is alleged that a charity:
- has failed to properly manage and control its overseas activities, or finances and other resources it uses overseas
- has failed to keep or obtain proper records of its overseas activities
- has failed to implement processes or procedures aimed at combatting fraud and corruption in its overseas activities
- has failed to protect vulnerable people that it works with as part of its overseas activities.
The ACNC will assess the level of risk when deciding what action to take.
There are some areas that the ACNC cannot investigate because they are outside our regulatory responsibility.