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Internal disputes are disagreements or grievances between individuals or groups within a charity. These might be between members, between a member and the charity’s board or committee – its Responsible People – or between staff and the charity’s Responsible People.

Within any charity, it is important to have a clear, agreed-on way to deal with internal disputes. Your charity can adopt or adapt the following steps to form:

  • a procedure aimed at helping deal with and resolve internal disputes, and
  • a disciplinary procedure to be used when a member has breached the rules.

These template procedures can be incorporated into your charity’s governing document, with numbered clauses altered accordingly.

It is also important to remember that charities which fundraise in certain states or territories may be required by their fundraising regulator to have a procedure for dealing with internal disputes that relate to fundraising activities.

For example, in New South Wales, fundraising organisations must have a mechanism for resolving internal disputes.

Template resolution procedure for internal disputes

1. Grievances

1.1 This procedure applies to disputes or grievances under the charity’s governing document between a member or Responsible Person and:

  1. one or more members, or
  2. one or more Responsible People, or
  3. the charity itself.

1.2 This procedure applies to disputes or grievances under the charity’s governing document between a member or Responsible Person and:

1.3 Those involved in the dispute must try to resolve it between themselves either within 14 days of becoming aware of it, or within a timeframe agreed on by those involved.

1.4 If those involved in the dispute do not resolve it under Clause 1.3, within either 10 days or within a timeframe agreed on by those involved, they must:

  1. inform the charity’s Responsible People in writing
  2. agree or request that a mediator be appointed, and
  3. attempt in good faith to settle the issue through mediation.

1.5 Those involved in the dispute must either:

  1. agree on the choice of mediator, or
  2. where there is no agreement, consent to the following applying:
    1. for disputes between members, Responsible People will choose the mediator, or
    2. for other disputes, the president of the law institute or society in the state or territory in which the charity has its headquarters or is located will choose the mediator.

1.6 A mediator chosen by a Responsible Person or People:

  1. may be a current or former member of the charity
    1. must not have a personal interest in the dispute, and
    2. must be unbiased.

1.7 When conducting the mediation, the mediator must:

  1. allow those involved a reasonable chance to be heard
  2. allow those involved a reasonable chance to review any written statements
  3. ensure the mediation is conducted in a manner free from bias, and
  4. not make a decision on the dispute.

1.8 Each party must:

  1. do their best to resolve the dispute at the mediation conference,
  2. keep all information disclosed during the mediation process confidential and not use that information for any purpose other than the mediation, and
  3. bear the costs of mediation as agreed between the parties.

1.9 The terms of any agreement reached between the parties must be provided to the charity’s secretary and Responsible People.

Disciplining members

2.1 In accordance with this clause, a charity’s Responsible People may resolve to warn, suspend, or expel a member from the charity if:

  1. the member has breached the charity’s governing document, or
  2. the Responsible People believe that the member’s behaviour has caused, or is likely to cause, harm to the charity.

2.2 At least seven days before the meeting of the Responsible People at which a resolution under Clause 2.1 will be considered, the secretary must notify the member in writing:

  1. that the charity’s Responsible People are considering a resolution to warn, suspend or expel the member
  2. that this resolution will be considered at a meeting of the Responsible People, the date of which must also be provided
  3. what the member is said to have done or not done
  4. the nature of the resolution that is to be proposed at the meeting, and
  5. that the member may provide an explanation to the charity’s board or committee and its Responsible People, as well as how the member can do so.

2.3 Before the Responsible People pass any resolution under clause 2.1, the member must be given a chance to be heard by:

  1. sending the Responsible People a written statement prior to that meeting, and/or
  2. speaking at the meeting.

2.4 At the meeting, the member may:

  1. bring a support person, who may take notes, and
  2. call for a break if feeling overwhelmed.

2.5 After considering any statement provided under clause 2.3, the charity’s Responsible People must by resolution determine whether to:

  1. take no further action
  2. warn the member
  3. suspend the member’s rights for a period of no more than 12 months
  4. expel the member
  5. require the matter to be determined at a general meeting, in which case the member may not vote on any related resolutions, or
  6. refer the decision to an unbiased, independent person on conditions that they consider appropriate. This independent person can only make a decision that the Responsible People themselves can make under this clause.

2.6 The charity’s Responsible People cannot fine a member.

2.7 The secretary must give written notice to the member of the decision under clause 2.4 as soon as possible.

2.8 Disciplinary procedures must be completed as soon as reasonably possible.