1. Introduction of Governance Standards
ConNEXTions 2013
Introduction of Governance Standards

2. Governance Standards Refer ACNC Act Regulations passed in June 2013
Apply from 1 July 2013
5 Standards
A ‘base-line’ not best practice

3. Governance Standards Apply from 1 July 2013 2 Exceptions
If Constitution / Rules prevents compliance you have until 1 July 2017 to make changes to address,
If an incorporated association will be taken to meet the governance standards until 1 July 2017 if
Appropriate incorporated assoc. legislation (state) sets out duties for responsible persons, and
Your charity & responsible persons) comply with this

4. Governance Standard 1
Purposes and not-for-profit nature of a registered entity
Must be not-for-profit
Work towards charitable purpose
Able to demonstrate it
Provide information about their purpose to the public

5. Governance Standard 1 What?
Demonstrate your charity is established as a NFP entity with a charitable purpose
Actually run as a NFP entity & work towards your charitable purpose
Provide information about your charitable purpose to the public

6. Governance Standard 1 How?
Clauses in your governing documents setting out your charitable purpose & not-for-profit nature
Run your organisation as a charity
Provide governing documents to ACNC for uploading to the ACNC Register, make available on your website

7. Governance Standard 2 Accountability to members
If you have members, be accountable to them
Provide adequate opportunity to raise concerns abut governance of the organisation

8. Governance Standard 2 What?
Take reasonable steps to be accountable to your members,
Allow members adequate opportunities to raise concerns about how your charity is run.

9. Governance Standard 2 Only applies if you have members, How?
Meetings at least annually with opportunities to ask questions & vote on resolutions,
Give information to members,
Have clear processes for appointing responsible persons (board members, committee members).

10. Governance Standard 3 Compliance with Australian Laws
Must not commit a serious offence (i.e. fraud) under Australian Law
No breach of laws where penalty 60 penalty units or more ($10,200)

11. Governance Standard 3 What?
Must not act in a way that under commonwealth or state / territory law could be dealt with as,
An indictable offence (serious crime),
Breach of a law with a civil penalty of 60 penalty units
Applies to the Charity not generally to individuals but may apply to governing body members acting on behalf of the charity

12. Governance Standard 3
Not a new obligation, you should be doing this now!,
Some obligations for charities regulated by state & territory legislation,
Be aware of major regulatory issues relating to your charity,
Some basic financial controls,
Process to ensure you meet legal obligations

13. Governance Standard 4 Suitability of responsible persons
Must check that responsible persons are;
not disqualified from managing a corporation (Corporations Act), or
Disqualified from being a responsible person of a registered charity by the ACNC Commissioner
Charities must take reasonable steps to remove responsible persons that do not meet these requirements

14. Governance Standard 4 What?
Take reasonable steps to be satisfied that each responsible person if not disqualified from:
Managing a corporation under Corporations Act
Being a responsible person by the ACNC Commissioner within the previous 12 months
If not satisfied, do not appoint, if already appointed, take steps to remove

15. Governance Standard 4 How? Search ASIC Disqualified persons register,
Search ACNC register of disqualified persons (none as yet!)
Require all responsible persons to sign declaration relating to disqualifying offences (ACNC has a suggested format
Take these steps for existing responsible persons
May be other state requirements i.e. Working with Children checks

16. Governance Standard 5 Duties of Responsible persons
Charities must take reasonable steps to ensure responsible persons:
Understand, and
Carry out
The duties set out in this standard

17. Governance Standard 5 What? Act with reasonable care and diligence,
Act honestly in the best interests of the charity,
Not misuse their position as a responsible person
Not to misuse information gained in the role as a responsible person,
Disclose conflicts of interest,
Ensure the financial affairs of the charity are managed responsibly
Not to allow the charity to operate while insolvent

18. Governance Standard 5 How?
Bring these to attention of responsible persons
Outline in latters of appointment
Provide information to responsible persons on duties to refresh their knowledge,
Encourage responsible persons to attend, prepare for & participate at meetings
Have processes in place to manage conflicts of interest,
Take reasonable action if a responsible person is not carrying out their duties

19. Governance Standards Common-sense Minimum standards
Good practice not best practice
Detailed booklet at