A new Governance Standard comes into being today. It will affect charities that fail to join to the National Redress Scheme for victims of institutional child sexual abuse.

An amendment to the Australian Charities and Not-for-Profits Commission Regulation2013 introduces a new Governance Standard to maintain and enhance public trust and confidence in the Australian not-for-profit sector.

The new Governance Standard 6 requires a registered charity to take all reasonable steps to join the National Redress Scheme for Institutional Child Sexual Abuse if a redress claim has been, or is likely to be, made against it.

The change approved by the Australian Parliament yesterday aims to incentivise charities to participate in the Redress Scheme and ensure that survivors of institutional child sexual abuse are appropriately compensated.

“These changes while significant, will only affect a small number of charities,” ACNC Commissioner the Hon Dr Gary Johns said.

A legislative amendment to the Australian Charities and Not-for-Profits Commission Act 2012 regarding eligibility to be a Basic Religious Charity (BRC) will commence in March.

The ACNC is working with the Department of Social Services, on the practical implementation of the changes.

Resources

Governance Standard 6 resources.
Basic Religious Charity resources.