Charities risk consequences of overdue reporting

More than 4000 charities risk sanctions after missing the deadline for their annual reporting to the ACNC.

Registered charities that report on a standard 30-June financial year were required to submit their annual information statements by 31 January.

Ms Pascoe said charities that have failed to submit their statements were encouraged to do so immediately to avoid sanctions and possible status revocation.

‘The Australian public value transparency in the charity sector, and meeting ACNC obligations is a simple and effective way to achieve this,’ she said.

Registered charities that fail to meet their obligations may face financial penalties, and will lose the right to display the ACNC’s tick.  Ultimately, they risk revocation.

Commissioner Pascoe said that most charities have had several years to familiarise themselves with the ACNC’s annual-reporting requirements.

‘The 2016 [statement] is the fourth annual report that registered charities have been required to submit … ,’ she said.

‘Each year we send charities multiple reminders to ensure they know when their reporting is due, and how they can access our range of guidance materials and support services.

‘Since the ACNC was established in December 2012, financial penalties have been used sparingly.  Issuing financial penalties to charities is not something we take lightly.  However, if deemed appropriate we will penalise those who are wilfully avoiding their reporting obligations.’

Fines may be up to $4500, depending on the size of the charity.

For charities that have double-defaulted, failing to submit two statements, the risk grows.  ‘Failing to submit two [statements] is grounds for revocation … ,’ Ms Pascoe said.

Resources to help charities complete their 2016 statements, including a checklist, worksheet and a step-by-step guide, can be found at acnc.gov.au/2016AIS.


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