The ACNC Answers Eight Questions from Australian Charities

21 April 2022

Fams welcomed ACNC Assistant Commissioner General Counsel, Anna Longley, to the In Conversation With… table earlier this month.

The Australian Charities and Not-for-profits Commission (ACNC) is the national regulator of charities, led by Commissioner Hon Dr Gary Johns.

Assistant Commissioner Anna Longley joined Fams to talk about the ACNC’s vital work in the not-for-profit sector.

She answered important questions from the sector in the following areas:

1. What should my annual financial report contain? 

  • A charity’s annual financial report should include information about: its sources of government revenue; its economic dependency on government revenue; and the funding it receives from the government which is not yet recognised as revenue.
  • More detailed information 

2. Does my charity need to report on key management personnel remuneration?

  • Small charities have no requirement to submit an annual financial report or report key management personnel remuneration. Medium charities have different obligations, depending on whether they prepare General Purpose Financial Statements or Special Purpose Financial Statements. Large charities must report key management personnel remuneration (unless an exemption applies).
  • More detailed information

3. Have charity size thresholds changed?

  • From the 2022 reporting period onwards, charity size thresholds will be: Small charities – annual revenue less than $500,000; Medium charities – annual revenue of $500,000 to $2,999,999; and Large charities – annual revenue of $3 million or more.
  • More detailed information

4. What tools can I use when reporting on my charity’s programs?

  • The AIS Program Previewer is a new tool you can use to preview the section of the Annual Information Statement that asks for information about your charity’s programs, so you are ready to provide the best information for your charity by the time you complete your statement.
  • More detailed information
  • The ACNC has released a video to help you use the Enhanced Charity Register.
  • More detailed information

5. What governance standards does my charity need to meet?

  • Charities must meet the ACNC’s Governance Standards to be registered – and remain registered – with the ACNC. The ACNC’s six Governance Standards cover such areas as purposes; accountability to members; compliance with Australian laws; suitability and duties of Responsible Persons; and maintaining and enhancing public trust and confidence in the Australian not-for-profit sector.
  • More detailed information

6. Tell me more about Director IDs. 

  • You need a director identification number (director ID) if you’re a director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation.
  • More detailed information

7. Which DGR categories need to be registered with the ACNC?   

  • All entities that hold Deductible Gift Recipient (DGR) endorsement must be registered as charities with the ACNC. This applies to 11 DGR categories, including all school building funds, necessitous circumstances funds, and organisations listed on the Register of Cultural Organisations (ROCO) and the Register of Environmental Organisations (REO).
  • More detailed information

8. What charity management tools does the ACNC provide?

  • The ACNC offers practical tools for submitting the Annual Information Statement; maintaining your charity’s status; planning fundraising; and applying for tax concessions.
  • More detailed information

You can also access the presentation notes here.

To find out more about the ACNC’s requirements, visit acnc.gov.au