Charities fall down

5 Mar BRR image

More than 20 per cent of Australian charities have failed to meet their annual reporting obligations to national charity regulator, the Australian Charities and Not-for-profits Commission (ACNC), with thousands missing the 31 January deadline.

The ACNC has said 7,000 charities failed to deliver their 2014 annual information statements (AIS), with 2,000 of these charities located in New South Wales.

Charities that use a standard reporting period (1 July – 30 June) had until 31 January 2015 to submit their 2014 AIS. Submitting a 2014 AIS is a legislative requirement for charities registered with ACNC and there are penalties for non-lodgement, including the revocation of charity status.

ACNC Commissioner, Susan Pascoe AM FAICD, has warned that charities with overdue 2014 statements needed to take urgent action to avoid penalties and added that the regulator will soon begin issuing warning letters to those who failed their obligations.

The 2014 AIS updates are also essential as the information is entered into the national charity register, which allows members of the public and donors to find information about charities. This information is particularly important as it increases transparency in the sector and helps to promote public trust and confidence.

Charities that do not use a standard reporting period of 1 July to 30 June have six months from the end of their reporting period to submit their 2014 AIS. ACNC has said charities are advised to check their substituted accounting period is approved by viewing their charity’s entry on the charity register or by logging into the charity portal.

Further information can be found here.