This webinar focused on charities operating overseas. We discussed the ACNC External Conduct Standards, which overseas charities are required to comply with, and we talked about the steps charities should take to ensure good governance when working internationally.
We were also joined by the Australian Council for International Development (ACFID), to discuss the ACFID Code of Conduct.
Webinar transcript
Stewart McMillan
Hello and welcome to the Australian Charities and Not-For-Profits Commission Webinar. Today’s presentation, we will be focusing on charities operating overseas. We are going to dive into the ACNC External Conduct Standards, which overseas charities are required to comply with, and we’ll talk about the steps charities should take to ensure good governance when working internationally. We are also joined by the Australian Council for International Development, ACFID, to discuss the ACFID code of conduct. My name is Stewart and I'm from the ACNC Education and Public Affairs team.
Joining me today: Ian from the ACNC Compliance Team; and from ACFID, Emily Morton, the Effectiveness and Engagement Director; and Douglas Wu, the Standards and Code Lead. Thank you all for joining me today. It’s great to have you here.
Before we start, I would like to acknowledge the traditional owners, we are presenting our webinar today from the lands of the Wurundjeri people, and I would like to acknowledge them as the traditional owners. I would also like to acknowledge the traditional custodians of the various lands on which everyone else is joining us from. I pay my respects to elders both past, present and emerging.
So, just before we begin I’ll cover off some housekeeping details here. If you have any issues with the webinar audio, you can try listening through your phone. You can just call the number listed in the email that you have received when you signed up and there’ll be an access code there and you can listen in that way.
We also have some wonderful colleagues working behind the scenes today. That's Gabby, Jacinta and May-Li who are going to be answering some questions in the background as they come through. So, feel free to type in a question or two in the go-to-webinar interface. If we are unable to respond, there will be a chance for you to send an email to us at education@acnc.gov.au and we’ll respond to you after the webinar.
Just so you know we are recording this webinar today, and the slides in the recording are going to be available on our website at some stage in the next few days. We will also send out an email to everyone who registered today, to give them a link to the recording, and some of the other resources that we referred to today. We might mention some of the website’s links during today’s webinar, and if we do, we'll drop them in the chat as we go along so you can see. Finally, we'd really like to grab some feedback if you'd like to provide it. There's going to be a little survey after the proceedings today, that will probably take you around 20 seconds to complete. If you want to go and answer a couple of those sort of questions we'd really appreciate that.
Okay, let’s get to it then. The reason why we are all here. Today we will be covering what are the External Conduct Standards and who needs to comply, how to meet those standards, the ACFID code of conduct, tips for operating overseas, and we’ll be also answering some of your questions at the end of the session. I’d like to start with you, Ian. Can you give us a brief overview of the External Conduct Standards? What are their primary objectives and how do they align with the ACNC’s overall mission?
Ian Parry
Thanks, Stewart. Yeah, happy to answer that question. I’d just like to start by thanking everyone for attending today’s webinar, and I’d also like to thank Emily for attending to provide ACFID’s perspective and information about their code of conduct. So, the External Conduct Standards, they govern how a registered charity must manage its activities and resources outside Australia. From the ACNC's perspective, understanding and complying with the External Conduct Standards supports charities to operate in a way that enhances public trust and confidence. Our regulatory approach supports charities through education and guidance to comply with their obligations, so they can do their best work to deliver overseas aid.
The ACNC understands the work that charities do to support overseas aid is important work. The External Conduct Standards establish principles for good governance to ensure that charities operating overseas effectively achieve their purpose. So, we’re going to run through each of the four External Conduct Standards, and I’ll discuss the steps charities can take to meet each standard. In terms of practical steps, I’ll mention the self-evaluation tool the ACNC has available for charities operating overseas. This is a great tool to allow charities to do a self-evaluation to understand what governance might be suitable for them. But first, let’s discuss which charities need to comply with the External Conduct Standards.
So, charities that need to comply with the External Conduct Standards. This is charities that operate outside Australia, even if the overseas activities are just a minor part of its work. It also includes basic religious charities, if they operate outside of Australia. Even though they don’t have to comply with the ACNC governance standards, basic religious charities are required to comply with the External Conduct Standards. So, the External Conduct Standards apply to charities of all sizes, large and small. The overseas activities don’t need to be a significant proportion of a charity’s overall activities. If a charity’s operating overseas, it needs to comply with the External Conduct Standards.
So, let’s talk a little bit about what it means to be operating overseas. Operating overseas includes overseas programs or projects, whether they’re large or small. It includes sending staff volunteers or beneficiaries overseas. Includes working with third parties overseas, or what might be referred to as partners, and it includes sending money overseas, even small amounts of money. So, just on that last point, a charity might not be physically going overseas, might not be sending staff overseas, but if it’s actually sending money overseas, that is considered operating overseas.
Stewart McMillan
Thanks, Ian.
Ian Parry
I’d like to – go ahead, Stewart.
Stewart McMillan
Oh no, sorry, Ian. Thanks, Ian, for that. Do you want to just briefly guide us through what the External Conduct Standards are and how you can meet those External Conduct Standards?
Ian Parry
Yeah, absolutely. We can start with External Conduct Standard one. That's a good place to start. So, External Conduct Standard one covers the activities and control of resources. So, charities need to take reasonable steps to ensure overseas activities are in line with the charitable purpose and their not-for-profit status. So, there's two elements there. The first one’s the activities. Charities need to make sure that the programs and projects align with their charitable purpose for which they’ve been approved. The second element there is the control of the resources. So that's where the governance comes in to make sure that charities are accountable for the programs and projects that they’re undertaking. The money’s being spent the right way, and the governance is in place to control how the projects are delivered.
If we go onto the next slide we’ll talk about how to meet External Conduct Standard one and some of the things that charities can consider. So, the ways to meet the standard include having clear policies for approvals and recording decisions, having secure services for transferring funds, conducting due diligence before working with third parties and monitoring overseas projects. So, it’s essential to maintain accountability. Having reasonable controls in place mitigates the risks of funds being misused, and we can think about some of the high-risk areas. Funds being misused for a personal benefit, or terrorism financing is another example of high-risk misuse.
We'll move on to External Conduct Standard two now. So, External Conduct Standard two covers the annual review of overseas activities and record keeping. Requires a charity to obtain and keep records of its operations outside Australia. Records must include information necessary to prepare a summary of the overseas activities and expenditure on a country-by-country basis. Charities need to keep records for each financial year when operating, giving funds or working with third parties overseas. So, just this standard covers the requirement for charities to obtain and keep sufficient records. And just focusing on a country-by-country basis, so if charities are operating in multiple countries, it’s important to break up their programs and projects on a country-by-country basis to meet this External Conduct Standard two.
We’ll move on to the next slide where we’ll have a look at the ways that charities can meet External Conduct Standard two. So, they need to complete and accurate records for seven years, record details of all activities overseas including how the activities further the charity’s purpose. Record details of all expenditure overseas and keep a list of all third parties. So, the ACNC doesn’t require charities to provide records for its operations outside Australia. Charities do need to submit some reporting, including the Annual Information Statements, and some charities are required to submit financial statements as well. However, in some circumstances, the ACNC may request the information in relation to External Conduct Standard two from a charity as part of a compliance activity, such as an enquiry or an investigation. So, important to keep that in mind.
We’ll move on to External Conduct Standard three. This covers anti-fraud and anti-corruption. External Conduct Standard three requires a charity to take reasonable steps to minimise any risk of corruption, fraud, bribery, or other financial impropriety by its responsible people, employees, volunteers or third parties outside Australia. It also requires charities to take reasonable steps to identify and document any perceived or actual material conflicts of interest for its employees, volunteers, third parties or Responsible People outside of Australia.
Now, a reminder of the need for charities to comply with Australian laws: charities have particular obligations to comply with laws in relation to bribery. There's other laws that charities need to consider as well, including taxation, money laundering, financing of terrorism, sexual offences against children, modern slavery, people trafficking and smuggling. Just be mindful that there can be restrictions in place for organisations that have international sanctions.
Let’s consider how charities could meet External Conduct Standard three. Some ways to meet this standard include having clear policies for proper and ethical financial management and ensuring everyone working with the charity knows them. Supervising staff involved in fundraising, managing money or financial reporting, and having a way for people to report suspected wrongdoing without fear. While it’s important to have policies and processes in place to ensure things go well, it’s also mindful not to turn a blind eye when things go wrong. It’s really encouraged for charities to have a strong culture and processes in place to respond when things do go wrong so they can actually maintain a good reputation for the charity.
Let’s have a look at External Conduct four. External Conduct Standard four covers the protection of vulnerable individuals. So, charities need to take reasonable steps to ensure the safety of vulnerable individuals overseas, including vulnerable beneficiaries, employees or third-party contractors. So, the definition of vulnerable individuals, it’s defined as people under the age of 18 or those who may be unable to take care of themselves, or unable to protect themselves against harm or exploitation. So, this is another example where charities have obligations under Australian laws in relation to people trafficking and prevention of sexual exploitation.
Move on to consider the ways that charities can meet External Conduct Standard four, this includes developing a policy and/or a code of conduct for protecting vulnerable individuals. Prioritising the safety of vulnerable people when selecting third parties or partners that you’re working with overseas, and ensuring staff and volunteers are suitable qualified in safeguarding vulnerable people and properly supervised when working with them. Such an essential point that last one about getting suitably qualified staff and making sure that you do the necessary checks to identify that the staff are suitably qualified and appropriate to work with your organisation.
So, just commenting on this a little bit further, in 2023 the ACNC conducted a number of compliance reviews focused on charities working overseas with vulnerable children. We identified a deficiency with some charities, particularly smaller charities that relied entirely on the overseas partner to do the right thing. A common response when charities were asked about compliance with External Conduct Standard four was the overseas partner does that. While it’s true that the overseas partner will run the programs, External Conduct Standard four requires the Australian charities themselves to take reasonable steps. If the overseas partner does the hands-on work delivering the program the Australian charity should be familiar with and regularly review the governance the overseas partner has in place, to ensure the overseas partner is accountable for the use of the funds, or in the situation with External Conduct Standard four, has appropriate governance to safeguard the vulnerable beneficiaries.
So, that's an overview of each of the four External Conduct Standards. I hope the overview was useful I think now we’re going to have a look at ACFID code of conduct. So, I’ll hand back to yourself, Stewart. Thank you.
Stewart McMillan
Yes. Thank you very much, Ian,, for the valuable information. Now, just shifting perspective a little, I would like to bring in our guest speakers this afternoon, Emily Morton and Douglas Wu from ACFID. Thank you for joining us today. Emily, can you tell us what the Australian Council for International Development is and what the code of conduct entails?
Emily Morton
Sure, thanks, Stewart, and good afternoon everyone, it's really lovely to be joining you today. I'm here from the lands of Ngunnawal and Ngambri people in Canberra. As Stewart said, my name is Emily Moreton, and I'm the Director of Effectiveness and Engagement at the Australian Council for International Development, or ACFID. So, ACFID is the peak body for Australian NGOs that are involved in international development and humanitarian action. So, we have a couple of key roles. We help to lead change and influence policy that relates to Australia’s aid program. We do this through advocacy to government, and we also set standards for the Australian NGO sector through the ACFID code of conduct, which I’ll speak a little bit more about shortly. As a membership organisation, we also focus on bringing our members together and building relationships, including providing a learning program and opportunities for our members to collaborate with other organisations.
So, ACFID currently has 128 full members and 21 affiliates, and these include large household name NGOs you might be familiar with, as well as smaller single issue or country specific organisations, and a lot of faith-based organisations as well. So, our members work across all sectors, and over half are small to medium organisations that disperse under a million dollars to international development projects. So, we have a really diverse mix of members. All ACFID members work overseas, usually through partner organisations, or those third parties we’ve been talking about, or also delivering programs themselves.
So, you can see in this image that our members primarily work in Southeast Asia, East Africa and the Pacific. This map comes from an NGO aid map which we host on our website. So, if you're interested you can go and have a look, search and see which ACFID members are working where. Potentially if you're working in a particular country and you're looking to see who else is there. This is a really useful resource and shows you what sectors they’re working in. Even the specific projects as well. So, you can find that on ACFID’s website.
So, there are lots of reasons why organisations might choose to join ACFID. Some of them are listed here. So, some of our members are really interested in our work in advocacy and engaging more with government, while others want to strengthen their networks with other like-minded NGOs. So, for many organisations, one of the main reasons they join is the ACFID code of conduct. So, meeting the standards in the ACFID code helps them to demonstrate to their supporters and donors that they’re meeting good practice standards. It also gives them a bit of a benchmark to help improve their accountability and effectiveness.
So, the ACFID code has been around for more than 25 years. It’s a voluntary and self-regulatory standard. So, this means it’s developed by the sector for the sector, and the main responsibility for compliance rests with the ACFID member. So, organisations can choose to join ACFID and therefore choose to meet the standards in the code as well. The code is owned by our members, not ACFID. If we can keep clicking through, any changes to the code can only be made by agreement from our members. So, the code itself is not set by ACFID, and it reflects the shared understanding of what accountable and effective practice when working overseas looks like. So, to hold ACFID members to account, the code is supported by an independent complaints-handling mechanism. So, anyone can make a complaint if they believe that an ACFID member has breached the code. You can find more information about this on our website.
Meeting the standards in the code is a really core part of ACFID membership, and organisations have to demonstrate and commit to meeting the code as part of their membership application and then through annual reporting to ACFID as well. But it’s important to note that while all of our members do have to meet the code requirements, the way that they do this can differ and it is commensurate with the size and scope of their activities as well. So, it will look really different depending on the different organisations. So, we wanted to share just a short video, hopefully, it will work, just to explain a bit more about the code from the perspective of our members. So, thanks, team.
I think we might be missing the sound, so I'm happy to keep going or we can jump back.
Stewart McMillan
Yes, I think that's best. We’ll put a link in the chat of the YouTube video, Emily, sorry for that. Yes.
Emily Morton
No problem. Thanks, Stewart. All right, so continuing on, then what does the ACFID code itself cover? So, the code outlines standards for all aspects of an organisation’s work. So, this includes the systems that help them to actually function as an organisation, so these are things you’ll be really familiar with. Things like financial management, governance processes, how they manage their volunteers and staff. This section of the code includes requirements that align really closely with the ACNC Governance Standards, and a lot of the External Conduct Standards that Ian talked about earlier. So, they cover issues around fraud and corruption, but also additional things like fundraising and human resources.
The code sets standards for how ACFID members work in partnership with others, how they plan, monitor and evaluate their work and communicate this to others, including the public. Finally, the code sets standards around the approaches that actually underpin the work that they’re doing overseas. So, for example, promoting human rights, investing in local leadership and making sure that the work that they’re doing is contributing towards systemic and sustainable change. So, this part of the code also aligns with External Conduct Standard four, around ensuring that children and vulnerable people are protected as well.
So, this is just a really quick example of part of the code, you can see it outlines the high-level commitments, but it also includes the types of evidence that organisations are required to have to demonstrate that they’re meeting those higher-level commitments. So, it's too much detail for us to go through today, but I'd encourage you to have a look on our website if you want to know more. I won't spend too much time on this, but these are just some of the different reasons why our members have told us that they value the code.
So, it’s really important to us that the code remains up-to-date and really useful for our members. So, we review the code every five or six years through a thorough consultation process, and this includes input from those outside the membership including the ACNC, our partner and networks overseas and the Department of Foreign Affairs and Trade as well. The most recent version of the code was launched just a couple of weeks ago, following an 18-month review process. We were really pleased to have the ACNC Commissioner, Sue Woodward, launch the revised code with us.
So, through the consultation process, we looked at a lot of the emerging issues that are facing our members and the communities that they're working with overseas. It was also an opportunity I guess to streamline some of the code requirements as well and look at how they align with other standards. So, some of the changes that have been made aim to strengthen how our members are responding to critical issues. So, you can see a couple of them coming up here. So, for example, ACFID members are now required to think about and respond to risks associated with climate change, and also commit to minimising their carbon footprint. This was in response to realising that this is such an essential issue that is facing many of the communities that our members are working with overseas.
Racial justice is another important issue affecting the sector, and ACFID members have agreed that they will now provide training in issues related to diversity and anti-racism and make sure their HR policies cover equity, diversity and anti-racism. We’re conscious that these changes and meeting these standards requires effort and input from our members. So, a big part of ACFIDs role is providing resources and guidance to help them actually meet these standards as well. There's also a big focus in the sector on investing in local decision making and engaging in equitable partnerships with those that we’re working with overseas. So, ACFID members will need to demonstrate how they’re doing this as it’s relevant to their operating context and the partners that they work with.
Then the code continues to be strengthened, this is a really important area for us as it is in the External Conduct Standards, to make sure that we’re protecting individuals and communities from harm. A subset of ACFID members are required to join the International Misconduct Disclosure Scheme. So, this scheme aims to prevent the movement of perpetrators of sexual abuse between organisations, particularly in high-risk settings such as humanitarian responses. But if you’re interested in knowing more about the scheme, they have a website, but you can also get in touch with ACFID as well.
Finally, we also made some changes that would ensure that the code remains up to date with other legislative and regulatory requirements. So, we aim to avoid duplication, but give our members confidence that if they’re meeting the code they’re also meeting other standards. So, in terms of the ACNC standards, if a charity complies with the ACFID code, then it’s very likely to meet the External Conduct Standards and we’ve been working together with the ACNC team to map the revised code and the External Conduct Standards and the Governance Standards and this mapping can be found on the ACNC website and gives our members and other organisations who are thinking about that alignment a really good starting point.
So, before I finish my section, just one of the key messages I wanted to leave with you is that there a lot of resources freely available through ACFID’s website. So, our aim through the code is to help improve the standards and practice across the broader international development sector, including organisations that aren’t yet ACFID members. So, if your organisation is operating overseas or you’re thinking about doing so, ACFID’s website has an extensive good practice toolkit which outlines the standards in the code, but also has a huge number of curated resources and guidance as well. This includes lots of examples from our members, as well as specific policy guidance developed by ACFID and others. I know the ACNC has some excellent resources, and we link to many of them. But these are maybe some that you haven’t seen before.
So, you can access the good practice toolkit, there's a QR code there on the screen if you've got your phone handy, or there's also the link up there as well. ACFID also has an eLearning platform called Learn with ACFID, and nearly all of our courses are freely available to anyone and in particular introduction to safeguarding course is translated into 11 languages. So, if you’re operating overseas or you have volunteers or partners working over there, you might like to have a look, and it might be available in a language, in their first language as well. So, that brings me to the end of this overview of the code and ACFID, our contact details are on the screen so if you do have any questions about ACFID or the code, please get in touch, and we wish you all the best for the excellent work that you are doing. So, thanks, Stewart, I’ll hand it back to you.
Stewart McMillan
Thank you very much, Emily, for outlining the code and the work ACFID does. I might just bring Ian back into the conversation. This links back to general advice concerning organisations, potentially small charities working in times of crisis such as natural disaster and conflict, where resources can be very limited. So, Ian, what practical advice would you give to help small charities remain compliant without becoming overwhelmed?
Ian Parry
Thanks, Stewart. Yeah, certainly we appreciate that smaller charities would not have the resources available to implement the sophisticated governance that larger charities would have in place. But it’s important, it’s still very important that smaller charities take reasonable steps to comply with the External Conduct Standards. So, there should be a reasonable level of planning and assessment to ensure the overseas aid that the smaller charities are providing will support the charitable purpose. I’d recommend that charities use the self-evaluation tool for charities that we have available on our website, and I do note the good practice toolkit that Emily referred to, that's available on the ACFID website as well. So, there are resources available to support small charities, they don’t have to start from scratch.
So, that self-evaluation tool for charities operating overseas, it helps them to self-assess their compliance with the External Conduct Standards and also identify areas where they may need to strengthen their governance. It’s really important to take that step to invest in governance, implementing simple but effective measures to develop a culture of accountability is really important to ensuring compliance with External Conduct Standards.
Stewart McMillan
Humanitarian relief areas are often high risk in terms of governance. How can charities ensure that when they give money in these regions, they are effectively supporting relief efforts while also upholding the External Conduct Standards and mitigating risks like corruption or misallocation of funds?
Ian Parry
I think it goes back to the culture of accountability, not blindly trusting overseas partners that they work with, but taking those reasonable steps to ensure that they can actually get those records they need to be able to demonstrate that the funds they are providing to overseas partners, or the projects or programs that they’re implementing, are done so in a way that complies with the External Conduct Standards. When we think about charities that need to manage their programs when they’re operating overseas in a crisis, I think generally, the nature of a crisis means that it’s difficult to prepare and plan for. The charities should ensure they are well prepared to provide overseas aid in a crisis. The nature of a crisis also makes it likely that risks may be higher. You think about potential for harm to staff and beneficiaries and potential for misuse of funds, for example.
So, it’s important to ensure that charities are prepared for this and have good governance in place to support their overseas operations. So, yeah, it’s all about those reasonable steps. I wouldn’t refer to it as being flexible, but certainly, we need to think about what charities should consider are reasonable steps in relation to the conditions they’re working in, and this will vary depending on the individual circumstances.
Stewart McMillan
Just, I’ve got another question on sending money overseas. For charities that operate within Australia but fund activities in humanitarian relief areas overseas, how do the External Conduct Standards apply? Are there any specific governance considerations these organisations should keep in mind when giving money to a specific region?
Ian Parry
Yeah, certainly. So, I think the short answer to that is yes, the External Conduct Standards do apply when you’re working with a third party or partner overseas. The governance would change depending on how you’re actually operating overseas. So, we might think about the larger charities that actually send staff and volunteers overseas to implement projects and programs. You think there would be like a high level of policies and procedures to govern those activities. If you contrast that to charities that are sending funds overseas to a partner organisation, a lot of the hands-on work would be delivered by the partner organisation. But that doesn’t mean the charities shouldn’t be accountable. They need to have those measures in place to ensure that the overseas partners are doing the work in a way that supports their charitable purpose and allows compliance for the External Conduct Standards.
So, accountability’s really important when complying with the External Conduct Standards, and it will help assist to mitigate the risks of funds being misused. Just reiterating that good governance supports charities operating overseas to keep on track and avoid the risks associated with funds being used for things like personal benefit or even terrorism financing.
Stewart McMillan
You’ve just tapped into something that was going to be my final question, and that was working with third parties. What if charities aren’t actively working overseas, but they’ve engaged a third party to deliver services on their behalf in another country? What do they need to do?
Ian Parry
Yeah, so this is a good slide to finish the discussion on, as it reiterates a high-risk area for Australian charities operating overseas. I hope the message has been clear, that even if Australian charities are merely sending funds overseas to a third party or partner organisation, the External Conduct Standards certainly do apply. Now, we do appreciate that if the overseas partner is implementing the projects or programs, they would have governance in place themselves. The Australian registered charity needs to have visibility or oversight of how those funds are being applied to support their charitable purpose.
So, doing things such as reviewing the governance that’s in place of the overseas partner, actually doing that due diligence and necessary checks at the start to engage the overseas partner would be a really essential step to take. All these things are really important to ensure that charities have good governance to support their overseas activities to ensure they’re complying with the External Conduct Standards.
Stewart McMillan
Just finally, I might open the floor to both ACFID and ACNC on this. But what are two things that charities can take away from this presentation when operating overseas? I might start with you, Emily, if that’s okay.
Emily Morton
Sure, Stewart. No problem. So, I think I mentioned earlier that there is a lot of support out there, but I think I’d reiterate what Ian has mentioned in terms of looking ahead and being prepared around your accountability mechanisms that you have. So, it might be using times when it’s not a humanitarian crisis to prepare for if you wanted to do that. So, looking at the types of systems and processes that you have in place to support the work that you’re doing so that when you do need them they’re there and functioning as well. So, yeah, that would be I guess my main take away, would be to take the time to look through that.
Stewart McMillan
Great. Ian, do you have any key takeaways?
Ian Parry
Yeah. From my perspective, I think the key takeaway and the experience I’ve seen as a regulator, listening to the stories of charities that do operate overseas is ensuring that charities take that time to invest in good governance, and it’s what Emily referred to in terms of preparing and planning. There is support out there for charities. I do appreciate that when you have charities, often volunteers are doing the work and the resources can be quite tight. It can be overwhelming to understand what governance is required. But there is support out there.
The ACNC has a governance toolkit that’s available. I’ve mentioned already about the self-evaluation tool we have available to support charities to be aware of their obligations regarding the External Conduct Standards. Emily has also mentioned the good practice toolkit that they have available for the public to be aware of their obligations. So, yeah, to wrap that up, it's investing a little bit of time at the front end to develop good practices and good governance will reap rewards in the long run to ensure that charities are more effective in meeting their charitable purpose in supporting overseas aid.
Stewart McMillan
Fantastic. All right, so I think what we might do is we might just start wrapping up the formal part of the presentation. I think we might have in the previous slide before, I think what was shown on the screen was some fantastic resources that we have in the ACNC. If you’d like to learn more about the External Conduct Standards, I encourage you all to head to ACNC.gov.au/ecs. Also, the education team have developed an interactive quiz where you can test your knowledge and can even download a certificate of completion. It’s a really good tool for potentially all your board members to do and take to the next board meeting. Finally, we have a resource on how the External Conduct Standards map to the ACFID code of conduct.
Additionally, if you’d like to learn more about ACFID, I encourage you to head to ACFID.asn.au/codeofconduct. Additionally, there is a good practice toolkit on your screen as well as the eLearning modules that Emily highlighted throughout her presentation. All right. So, I think we just have enough time to answer some of your questions. One that has recently come through, which I think I might pass to you, Ian, is do the requirements apply only to charities registered in Australia or do the requirements also apply to overseas charities as well?
Ian Parry
Yeah, thanks for passing that question on, Stewart. So, the External Conduct Standards only apply to Australian registered charities who are registered with the ACNC. So, that’s where the obligation lies. However, we do understand that a lot of the programs and projects are delivered by overseas partners. They’re not immediately accountable for the External Conduct Standards. It’s the Australian registered charity that works with those overseas third parties that need to comply with the External Conduct Standards. So, throughout the presentation today, we’ve been talking about reasonable steps that the Australian registered charities can take when they work with overseas partners to do the due diligence and ensure that the appropriate governance is in place to comply with the External Conduct Standards.
Stewart McMillan
Fantastic. I think I’ve just got a final one for you, Ian. Is both the ACNC External Conduct Standards and the ACFID code mandatory?
Ian Parry
So, the External Conduct Standards, my understanding is that they are mandatory. So, Australian charities that are registered with the ACNC must comply with the External Conduct Standards. They are principles-based, so we do acknowledge that. But certainly, to maintain registration it is important that Australian registered charities comply with the External Conduct Standards. Failure to comply with the External Conduct Standards can be grounds for a loss of charity registration or revocation of registration. Of course, that’s in the context of our regulatory approach, where in the first instance, we would support charities who are willing and able to comply with the External Conduct Standards, to get them back on track. However, where there is significant and persistent serious non-compliance, that’s when we start to talk about – you know, failure to comply with the External Conduct Standards, it can be serious and it may result in charities losing their registration. So, from that perspective, yeah, they are mandatory.
Stewart McMillan
Fantastic. All right. Thank you for that, Ian. So, I guess that wraps up today’s webinar. We’ve got a few ways you can stay in touch with us, which you can see on your screen at the moment. Our monthly newsletter, which I encourage you to subscribe to, which has some fantastic resources. We also have some fantastic web guidance on our website where you can access past webinars and podcasts. And finally, if you’d like to contact us you can via the web address on your screen. Additionally, we’re on various social media platforms, so please follow up on those various websites.
Thank you very much for coming along today. Special thanks to our guest Emily Morton from ACFID, as well as Ian from our compliance team. Additionally, I’d like to thank Jacinta, Gabby and May-Li for doing the wonderful work behind the scenes to facilitate this webinar this afternoon. Feel free to join us on future webinars that are coming up, which you can sign up for on our website when they become available. So, that is all from us. Thank you very much and have a great day.