The ACNC External Conduct Standards are a set of standards that govern how a registered charity must manage its activities and resources outside Australia.
The standards require charities to take reasonable steps to ensure appropriate standards of behaviour, governance and oversight when undertaking activities or providing funding overseas.
The External Conduct Standards were introduced to promote transparency, as well as provide the Australian community with greater confidence that the sector will ensure that resources sent – or services provided – overseas reach legitimate beneficiaries and are used for legitimate charitable purposes.
The standards also seek to protect vulnerable people overseas.
Which charities must comply
Charities that operate outside Australia are required to comply with the External Conduct Standards.
Importantly, ‘operate outside Australia’ is not limited to major programs or projects. A charity is generally considered to operate outside Australia even if its overseas activities are just a minor part of its work, or if it only sends a small amount of money overseas. This is true even when such activities are conducted through a third party.
Basic Religious Charities must comply with the External Conduct Standards if they operate outside Australia, even though they don't have to comply with the ACNC Governance Standards.
Charities that do not operate outside Australia are not subject to the External Conduct Standards. However, these charities still must comply with the Governance Standards.
For more information, read our guide on charities operating overseas and see our detailed guidance that explains when the External Conduct Standards apply and when they do not apply.
External Conduct Standards and Governance Standards
The External Conduct Standards apply in addition to the existing ACNC Governance Standards, and they operate in a similar way to the Governance Standards – both are principles-based and set out reasonable levels of oversight and standards of governance rather than specific steps for charities to take.
This provides charities with flexibility when it comes to applying the External Conduct Standards to their own unique circumstances.
The External Conduct Standards
There are four External Conduct Standards that cover certain aspects of a charity's overseas operations.
How the ACNC regulates the External Conduct Standards
The ACNC regulates the External Conduct Standards according to our regulatory approach. We expect each charity that is required to comply with the External Conduct Standards takes the time to understand the standards and how they affect its operations. We also expect that each charity required to comply with the standards takes steps to ensure it meets them.
The ACNC expects most charities will be meeting the External Conduct Standards, and we focus on charities that have seriously or deliberately breached them – taking action where required.
Charities do not need to submit anything to the ACNC to show they meet the External Conduct Standards, but must be able to provide evidence of meeting the standards if requested.
However, we will ask organisations seeking registration with the ACNC (and charities applying for new charitable subtypes) about the steps they have taken to comply with the External Conduct Standards if they operate overseas.
The ACNC's External Conduct Standards self-evaluation tool
The ACNC's self-evaluation tool for charities operating overseas aims to help charities assess if they are meeting their obligations, and to identify issues that may prevent them from doing so.
The self-evaluation poses questions and prompts charities to describe both the practical steps they are taking to meet their obligations, and to list the relevant policies or procedures.