ACNC media release

 

No.200

3 March 2017

‘Double defaulter’ charities risking loss of charity status

More than 1,300 registered charities are at risk of having the Australian Charities and Not-for-profits Commission (ACNC) revoke their registration, for twice failing to submit their annual reports.

ACNC Commissioner, Susan Pascoe AM, explained that these charities were persistently not meeting their obligations.

“Registered charities are required to submit an Annual Information Statement to the ACNC each year,” Ms Pascoe said. 

“The great majority of charities do the right thing and submit their reports yearly.

“This means the community has up-to-date information on the register, and is able to make informed decisions about donating, volunteering or issuing a grant.

“Not only is submitting the Annual Information Statement a legislative requirement, it also shows a commitment to transparency and accountability.

“These charities have already failed to submit an Annual Information Statement for either 2014 or 2015, and are now overdue in submitting their 2016 report.

“This is what we call a ‘double defaulter’, which is grounds for revocation of charity status.

“We have published a list of the charities at risk on our website at acnc.gov.au/doubledefaulters, and we have also written to each charity to warn them of the consequences.

“These charities must submit their outstanding reports immediately to maintain their charity status.

“I also encourage donors, volunteers and members of the public, to check the list and if they are associated with one of the charities, or know someone who is, to please contact the ACNC immediately.”

The charities listed have until 27 March 2017 to submit their overdue Annual Information Statements before their status is revoked.

Commissioner Pascoe warned that charities revoked in this process will lose access to Commonwealth tax concessions.

“ACNC registration is a prerequisite for obtaining generous Commonwealth charity tax concessions,” Ms Pascoe said.

“If these charities fail to submit their outstanding reports, the ACNC will revoke their charity status, and this will mean that they are no longer able to access Commonwealth charity tax concessions.

“This of course is a very serious consequence, which is why we are going to great lengths to warn these charities before we take action.

“In addition to losing Commonwealth charity tax concessions, charities that have their charity status revoked will no longer be able to display the ACNC’s Registered Charity Tick.”

The Registered Charity Tick was launched in December last year as a way for charities to show donors that they are a registered charity that is meeting its obligations with the ACNC.
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For more information about the Registered Charity Tick, visit acnc.gov.au/registeredcharitytick.

Further information about charity reporting requirements, including the Annual Information Statement, is available at acnc.gov.au/reporting.

Registered charities at risk of revocation can be found at acnc.gov.au/doubledefaulters.

ACNC Media Contact:

media@acnc.gov.au or 0466 089 108.

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