ACNC: Relief from Compliance Obligations
While charities are encouraged to continue to meet the governance standards as much as possible, the ACNC Commissioner has acknowledged that not-for-profit entities are facing unique challenges due to COVID-19.
In recognition of this, the ACNC has determined that it will change its approach to certain breaches of:
- Governance Standard 1 and External Conduct Standard 1: a charity cannot operate outside its charitable purposes.
- Governance Standard 5: the charity requires Responsible Persons to ensure it does not operate while insolvent.
- External Conduct Standard 2: a charity is required to obtain and keep records for its operations outside Australia.
The ACNC will not investigate or take action concerning potential breaches of the above standards which may occur between 25 March 2020 and 25 September 2020. This measure has been implemented to allow charities to effectively operate during this time and to help increase public confidence in the not-for-profit sector. For more information see the ACNC website.