ACNC annual report shows volatile year for charities

It’s been a busy year for the charity regulator with the creation of new programs and a federal election resulting in more complaints about charities.

The ACNC has tabled its annual report in Parliament, giving a glimpse into the year that was for the charity regulator.

The report highlights that charities have faced a volatile year, but that charities were resilient even as demand increased.

Register showcases charity work

The report also reflects on the ACNC’s actions over the past year, including enhancements to the Charity Register.

According to the report, these changes resulted in visits to the register growing with a total of 5.6 million searches made this year.

“Most Australian charities are volunteer run (51 per cent), and the majority are small organisations (65 per cent) with no online presence. The enhanced register features provide a greater opportunity for these small charities to publicly showcase the work they do,” said acting commissioner Deborah Jenkins.

Key actions completed

Also on the to-do list was a check of charity records to ensure charities were maintaining their charitable purposes and entitlement to registration. Any charities that faced issues in this area were provided with assistance, the report states, and new compliance programs were introduced.

Other highlights from 2021-22 included the launch of the eighth edition of the Australian Charities Report, the publication of findings and lessons learned from the compliance review program, and development and publication of guidance on remuneration for key management personnel.

Jenkins said another achievement was working with the federal government on changes to charity size thresholds, which cut red tape for around 5000 charities.

“With their size shifting downward, they have fewer ACNC reporting obligations, starting from the 2022 Annual Information Statement reporting period,” Jenkins said.

“Other red tape cuts will result from work that culminated this year with the removal of duplicated reporting requirements for charities that fundraise in New South Wales, and from our work with the Australian Taxation Office on Deductible Gift Recipient reforms.”

The ACNC’s executive and senior leadership team met with 178 charities, sector representatives or peaks during the course of the year to gain insights into the issues of importance to charities.

“We welcomed input from stakeholder groups, including peak accounting bodies. This stakeholder engagement is critical to our work, and we appreciate the contributions of everyone who participated in our forums or provided feedback on initiatives,” Jenkins wrote in the report.

“I believe the key achievements of this year will provide benefits to charities for many years to come.”

Over the year, the ACNC completed 55 reviews and finalised 96 investigations. Fifteen charities had their registrations revoked after an investigation and 41 were referred to other government organisations.

The ACNC slightly missed its target of 90 per cent of new charity registrations completed within agreed timeframes, coming in at 83 per cent. Some applications were incomplete and therefore closed, others were withdrawn when they didn’t meet requirements, and others were refused.

Political advocacy a problem

The regulator received 2522 concerns about charities, an increase of 26 per cent on the previous year. It partially attributes this raise to the federal election; in the lead up to the May poll, the ACNC received 490 complaints about charities engaging in advocacy for or against a candidate or party.

Other common concerns included individuals obtaining private benefits from charities (24 per cent) and mismanagement of funds (18 per cent). 

Nineteen charities were identified as being at risk of advocating, and these charities were provided with guidance, the report said.