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Introduction

The ACNC’s Secrecy Reform Project will see us publish further information about our regulatory activities within the sector. The ACNC has received funding for this work through the 2023-24 Federal Budget.  

As part of this project, the ACNC will publish information relating to our regulatory and compliance activities. Doing so provides the public with greater insight into our activities, as well as improving transparency and providing clear educational benefits to the charity sector. 

De-identified reasons for registration decisions

In the context of our registration activities, this information will be published in the form of ‘de-identified reasons for decisions to accept or refuse organisations’ applications to register as charities’.

When considering whether any organisation is eligible for registration as a charity, or eligible to be registered with a specific subtype, the ACNC takes into account:

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De-identified reasons for registration decision – necessitous circumstances

For an organisation to have a charitable purpose of relieving necessitous circumstances, it must only provide, via funds or goods, assistance to people who would otherwise lack what they need to have a modest standard of living in the Australian community.

A charity with a purpose of relieving necessitous circumstances will be entitled to registration with the charity subtype of 'advancing social or public welfare’.
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De-identified reasons for registration decision – private benefits

Charities must be for the public benefit, meaning they must benefit the general community or a section of the general community. A charity may only confer private benefits if those benefits are incidental or ancillary to achieving its charitable purpose. An organisation that exists solely for private benefit cannot be a charity.

The issue of possible private benefits can also raise concerns in relation to conflicts of interest. ACNC Governance Standard 5 requires charities to take reasonable steps to ensure their Responsible People comply with a range of duties – these include acting honestly and in the best interests of the charity, and disclosing conflicts of interest.
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De-identified reasons for registration decision – proprietary company limited by shares (Pty Ltd)

A proprietary company limited by shares can be registered as a charity as long as its governing document makes clear that it must operate on a not-for-profit basis, and that it does not allow shareholders to receive private benefits.

However, any governing document generally appropriate for a proprietary company limited by shares will need significant amendments for it to also be appropriate for use if that organisation seeks registration as a charity with the ACNC.