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As part of secrecy reforms for the ACNC's work, we are publishing further information about our regulatory activities within the sector. The ACNC has received Federal Government funding for this work.

The information we will publish through this work relates to our regulatory and compliance activities. And in the context of our registration activities, this information will be published in the form of ‘de-identified registration decision (DRD) summaries'.

In publishing DRDs, the ACNC sets out to provide the public with greater insight into our activities, as well as improving transparency and providing clear educational benefits to the charity sector. 

These DRDs are de-identified summaries of actual registration applications, and illustrate some of the aspects of the ACNC's deliberations and decision-making when considering if an organisation is registered as a charity.

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 registration decision summary – incidental or ancillary purposes

In section 5 of the Charities Act, a charity is defined, in part, as being a not-for-profit entity, having purposes that are all ‘charitable purposes that are for the public benefit’ or ‘purposes that are incidental or ancillary to, and in furtherance or in aid of’ charitable purposes. These are purposes that are not of substance on their own, but which tend to help or naturally go with a charitable purpose.

The ACNC examines each purpose that an organisation has, or appears to have, to determine if it is a charitable purpose for the public benefit, or if it is a purpose that is incidental or ancillary, and in furtherance or in aid of, charitable purposes. This decision summary illustrates that process.
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De-identified registration decision summary – 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 registration decision summary – External Conduct Standards

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 standards also seek to protect vulnerable people overseas.
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De-identified registration decision summary – conflicts of interest

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 registration decision summary - private benefit and restrictive memberships

Charities must be for the public benefit, meaning they must benefit the general community or a section of the general community. An organisation that exists solely for private benefit cannot be a charity.

A charity may restrict its benefits to a particular class or group of people as long as the class is not closed, and the restriction advances its charitable purpose.
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De-identified registration decision summary – 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.
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De-identified registration decision summary - single activity, dual purpose

An important part of our engagement with organisations during the registration process is to gain enough information to adequately understand their work.

Doing so not only helps us evaluate if they are eligible for registration as a charity, but also helps us register them with the correct subtypes.
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De-identified registration decision summary - organisation undertaking community sport programs

To be registered as a charity, an organisation must have a charitable purpose. An organisation that has a governing document including an object of creating community sports events may be of concern because, generally, the purpose of promoting sport is not a recognised charitable purpose.

The ACNC accepts that many charitable organisations undertake sporting activities. We needed more information from the organisation to determine whether its object of engaging in community sport events amounted to an independent non-charitable purpose of promoting sport.