Australian Guide to Managing Charity Money
Thursday, 21st January 2016 at 9:36 am
The national charity regulator has launched a new guide for Not for Profit board members on managing finances and meeting their reporting duties.
The Australian Charities and Not-for-profits Commission (ACNC) said the guide provided insights into good practices of financial management, focussing on practical steps that charities could take to ensure their finances were used appropriately and protected from misuse.
It also explained the obligations that charities have to the ACNC with regard to their finances such as providing financial reports and ensuring that they operate as Not for Profits.
“This guide has been developed to help charities understand their obligations to the ACNC related to managing their finances, reporting on their transactions and ensuring their funds are used to further their charitable purpose, and not for any private benefit,” ACNC Commissioner, Susan Pascoe AM, said.
“Being Not for Profit is an essential element of being a charity, and although the term is used commonly, the definition of Not for Profit is not always well understood.”
“Overwhelmingly, the majority of charities want to do the right thing. However, when issues do arise in charities, they tend to relate back to governance.
“72 per cent of concerns substantiated and addressed by the ACNC between 2012 and the end of 2014 were about breaches of the ACNC governance standards,” Pascoe said.
“To help address these issues, the ACNC is providing resources to assist all charities to operate with good governance and to understand their obligations as a registered charity.”
The guide looks at the main reporting and record-keeping obligations, as well as what the term “Not for Profit” means in practice.
It contains an overview of some of the main issues charity board members need to be aware of, such as being diligent about a charity’s financial affairs, protecting its resources from abuse and ensuring it is accountable.
The ACNC said the guide was for people who are, or are considering becoming, board members of a charity registered with the ACNC as well as employees and volunteers of charities.
The guide can be downloaded here.