The ACNC today confirmed it is investigating concerns raised about the charity which operates Brindabella Christian College in Canberra - Brindabella Christian Education Limited.
The ACNC has published a new de-identified registration decision summary, focusing on what we look at when considering if an organisation’s purposes are charitable, or they are incidental or ancillary purposes.
This Commissioner’s Policy Statement explains how the ACNC will interpret and administer the regulatory powers given to the Commissioner by the ACNC Act in circumstances where the ACNC becomes aware of an internal dispute within a registered charity.
A proprietary company limited by shares can be registered as a charity as long as its governing document makes clear that it must operate on a not-for-profit basis, and that it does not allow shareholders to receive private benefits.
However, any governing document generally appropriate for a proprietary company limited by shares will need significant amendments for it to also be appropriate for use if that organisation seeks registration as a charity with the ACNC.
In section 5 of the Charities Act, a charity is defined, in part, as being a not-for-profit entity, having purposes that are all ‘charitable purposes that are for the public benefit’ or ‘purposes that are incidental or ancillary to, and in furtherance or in aid of’ charitable purposes. These are purposes that are not of substance on their own, but which tend to help or naturally go with a charitable purpose.
The ACNC examines each purpose that an organisation has, or appears to have, to determine if it is a charitable purpose for the public benefit, or if it is a purpose that is incidental or ancillary, and in furtherance or in aid of, charitable purposes. This decision summary illustrates that process.
For an organisation to have a charitable purpose of relieving necessitous circumstances, it must only provide, via funds or goods, assistance to people who would otherwise lack what they need to have a modest standard of living in the Australian community.
A charity with a purpose of relieving necessitous circumstances will be entitled to registration with the charity subtype of 'advancing social or public welfare’.
Information and details about submitting the 2024 Annual Information Statement for multiple charities in bulk, and a downloadable copy of the 2024 Bulk Annual Information Statement.
Charities must be for the public benefit, meaning they must benefit the general community or a section of the general community. A charity may only confer private benefits if those benefits are incidental or ancillary to achieving its charitable purpose. An organisation that exists solely for private benefit cannot be a charity.
The issue of possible private benefits can also raise concerns in relation to conflicts of interest. ACNC Governance Standard 5 requires charities to take reasonable steps to ensure their Responsible People comply with a range of duties – these include acting honestly and in the best interests of the charity, and disclosing conflicts of interest.
We are committed to publishing interagency agreements such as Memoranda of Understandings (MOU) and Exchange of Letters (EOL) to be transparent about our dealings with other agencies and to demonstrate our independence as a regulator.