Checklist: protecting your charity against terrorism financing

Meet governance standard 4: suitability of responsible persons

Summary:  charities must take reasonable steps to:

  • be satisfied that its responsible persons (such as board or committee members or trustees) are not disqualified from managing a corporation under the Corporations Act 2001 (Cth) or disqualified from being a responsible person of a registered charity by the ACNC Commissioner, and
  • remove any responsible person who does not meet these requirements.

What steps has your charity taken to make sure its responsible persons are suitable?

For the ACNC, responsible persons (“responsible entities” under the ACNC Act) are the people (or organisations, in some limited cases) responsible for directing a charity, who are members of the charity’s governing body (including directors or committee members), or trustees (including insolvency trustees or administrators).

This standard requires registered charities to take reasonable steps to be satisfied that its responsible persons are not disqualified from:

  • managing a corporation under the Corporations Act 2001 (Cth), or
  • being a responsible person by the ACNC Commissioner, within the previous 12 months.

If a charity is not satisfied, it must not appoint this person. If the person is already appointed, the charity must take reasonable steps to remove them as a responsible person.

Questions to ask

  • Do you have a good understanding of the background and affiliations of your responsible persons?
  • Does your charity know if your responsible person has any other reason for wanting to be involved with your charity?

Steps you can take