A Responsible Person is someone who is responsible for governing a charity. Generally, a charity’s Responsible People are its board or committee members, or trustees (including insolvency trustees or administrators).
The ACNC requires charities to meet Governance Standards. Under Governance Standard 4 charities must make sure its Responsible People are suitable, and under Governance Standard 5 they must ensure their Responsible People are aware of their duties and comply with them.
Under Governance Standard 5 Responsible People must:
- act with reasonable care and diligence
- act honestly and fairly in the best interests of the charity and for its charitable purposes
- not misuse their position or information they gain as a Responsible Person
- disclose actual or potential conflicts of interest
- ensure that the financial affairs of the charity are managed responsibly, and
- not allow the charity to operate while it is insolvent.