ACNC Complex Charity Structure Guidance
In 2024/25 the ACNC’s Regulatory Focus was to review complex charity structures and the governance and compliance challenges that can arise, as we mentioned in our newsletter of early June 2024.
On 20 October 2025, the ACNC released the findings of its review, which provides further guidance as to how charities can practise good governance and manage risk. A summary of the findings can be located here.
In short, the key findings demonstrated that charities operating within complex structures need to be able to:
- Demonstrate why their use of a complex structure assists in fulfilling their charitable purposes;
- Tailor their governance practices to their specific structure, often with the support of specialist advice; and
- Periodically review their structure and governance practices to ensure the arrangements are fit for purpose.
Also part of the regulator’s focus on complex structures was the publication of its Guidance document on 5 August 2025, which identifies the following points of focus:
- Policies and procedures – is it appropriate to use shared, common policies or consider developing bespoke policies for each entity?
- Record-keeping – especially where:
- decisions involve or affect multiple entities within the charity; or
- records relate or apply to multiple entities within the charity.
- Common boards and directorships – do the participants of common boards and directorships have the ability to meet their governance obligations whilst avoiding conflicts of interest?
- Board meetings – Is there a need to hold separate board meetings for each entity?
- Roles within complex structures – is an accurate organisation chart detailing the entities place in a complex structure maintained?
- Conflicts of interest – what appropriate processes are in place to ensure that conflicts of interest are disclosed and handled effectively?
- Related party transactions – are all related party transactions identified and managed in such a way that ensures the charity remains focused on its purposes?
The complete Guide titled “Governance practices for complex structures” can be found here.