The ACNC recognises that a charity’s usual operations may be affected by COVID-19, as well as the measures being put in place to try and control its spread. This page provides some information about these issues.

Charity meetings and AGMs

The ACNC's Governance Standard 2 requires a charity to be ‘accountable to members’. A common way for charities to do this is through AGMs and other meetings.

The effects of COVID-19 mean that many charities are choosing to hold meetings remotely. But if your charity is unable to hold meetings at all during this time, the ACNC recommends you:

  • advise or consult with members on the reasons for postponing any meeting
  • document why a meeting did not occur or could not occur online
  • use alternative ways to communicate the information that it would have provided at a meeting to members
  • schedule a future date for any postponed meetings (even if this has to be amended again later).

If your charity needs to delay or postpone its AGM, it should check requirements with its other regulators:

Charity operations and governance

The effects of COVD-19 mean that some or all of your charity's activities may need to be modified or even temporarily halted.

It is important your charity keeps records of changes it makes to its operations and keeps everyone informed of what it is doing, and why.

Regular communication about your charity's changed activities should be a priority. Some charities may be able to offer their programs online.

Importantly, if your charity's operations do change, it is important they remain consistent with the charity’s charitable purpose. Your charity's purpose is what it was set up to achieve. Your charity can have more than one charitable purpose.

Finances and fundraisers

Financial considerations

Each charity needs to consider how COVID-19 affects their finances. These considerations can include:

  • Assessing future cash flows and doing a forecast - or adjusting a forecast - in light of current events.
  • Speaking to funders about the effects of cancelling or delaying activities that are part of funding agreements.
  • Knowing fixed costs and when they will need to be paid. Also, not committing to any more expenditure if possible.
  • Reviewing existing liabilities (for example, exploring options with banks or financial institutions, including deferring loan repayments if applicable).
  • Considering financial assistance available from governments or relief packages from banks or financial institutions

Further information on financial reporting and COVID-19

Charity reserves

The ACNC understands that some charities may consider drawing on their reserves to stay afloat if income sources change or services need to increase.

Responsible People must consider whether drawing on reserves is the best option, or whether there are other alternatives. And Responsible People should also be aware of any restrictions on the use of reserves, and ensure there are proper records that document any debate or decision to draw on charity reserves.

Charity fundraisers

For a charity that has decided to cancel or postpone a fundraising event due to concerns over COVID-19, there may be questions raised over what to do with any money already committed (for example, through ticket sales or other purchases).

In these situations, it is important that a charity is transparent about what it is going to do:

  • Will the money be refunded - either immediately or in time?
  • Can the money be refunded - are there any legal issues preventing this happening?
  • Will the charity hold the money until the fundraiser is rescheduled?
  • Will the charity commit the money towards a future event or effort?

Whatever the charity decides to do, it is important that it documents the decision and communicates clearly with supporters and other stakeholders the reasons for the decision. It should also be clear about how funds will be refunded or used in line with donors' original intent and the charity's charitable purpose.

Charities that continue to fundraise should be mindful of any physical distancing protocols and other measures. Charities may also want to consider alternative ways to raise funds, such as online appeals.

Government support for eligible charities

Federal Government

Changes to ancillary fund guidelines

The Federal Government has amended the ministerial guidelines for public and private ancillary funds. The amendments were to 'provide a credit for funds that make total distributions in financial years 2019-20 and 2020-21 that are at least four percentage points above the minimum required distributions'.

The credit may be used to reduce the minimum distribution by up to one percentage point in 2021-22 and future financial years until the credit is exhausted. The amendments aim to encourage ancillary funds to increase their granting during this time.

COVID-19 pandemic declared a disaster - implications for Australian disaster relief funds

In May 2020 the Federal Government declared the COVID-19 pandemic a disaster for the purpose of establishing Australian disaster relief funds as deductible gift recipients (DGRs), allowing them to receive tax-deductible donations.

Donations to Australian disaster relief funds are tax deductible when made within two years of 18 March 2020. The ATO has more information about disaster relief funds.

State and Territory Governments

State and Territory governments have established COVID-19 stimulus and relief packages for businesses and other organisations - including some charities:

ACNC compliance and Annual Information Statement submission

Some charities face challenges in submitting their Annual Information Statement on time due to the effects of COVID-19. The ACNC Commissioner has the discretion to defer when charities must submit 'approved forms', including the Annual Information Statement.

The Commissioner will exercise this discretion if it is fair and reasonable - or if there is a genuine need to do so - taking into account a charity’s individual circumstances.

Any request to defer a charity's Annual Information Statement submission date must be in writing and from a charity's authorised person - for example, a primary contact or Responsible Person. For the request to be considered, it must also include:

  • the reason for the delay in submission (which must be circumstances beyond the charity’s control), and
  • the new Annual Information Statement due date being requested.

Written requests must be sent to before the Annual Information Statement is due.

Charities that are seeking deferral of their Annual Information Statement submission and have other obligations to a state or territory regulator should check with that regulator for information about their reporting requirements.

For contact details, see our list of state and territory regulators.