Governance standards

Description

This article outlines the governance standards set by the Australian Charities and Not-for- profits Commission (ACNC) and their relevance to parishes.

Overview

The ACNC is the regulator for registered charities. All parishes in the Diocese are registered charities.

The ACNC governance standards require charities to remain charitable, operate lawfully, and be run in an accountable and responsible way. They aim to uphold public trust and support sound management.

Incorporated parishes and other Anglican entities set up as incorporated associations must comply withthe standards. Most parishes are not incorporated and are classified as basic religious charities, which are exempt from the legal obligation. Even so, all parishes are encouraged to follow the standards as good practice.

ACNC governance standards

Each registered charity (except basic religious charities) must:

• Demonstrate and comply with its charitable purpose and not-for-profit status, and make this information publicly available.
• Be accountable to members and allow opportunities for concerns to be raised about governance.
• Comply with relevant Australian
• Ensure responsible persons (e.g. parish council or management committee members) are not disqualified from managing corporations or charities.
• Ensure responsible persons:
• Act with care and diligence
• Act in good faith and in the charity’s best interests
• Do not misuse their position or information
• Disclose actual or potential material conflicts of interest
• Manage finances responsibly
• Do not allow the charity to trade while insolvent

Related resources

• ACNC governance standards