Australian Charities and Not-for-profits Commission extends COVID-19 compliance arrangements

The Australian Charities and Not-for-profits Commission (ACNC) has extended COVID-19 compliance arrangements to 31 December 2020. Under these arrangements, the ACNC will not investigate certain breaches of the Governance Standards and the External Conduct Standards that occur from 25 March until 31 December 2020. Significant breaches may still be investigated.

For more detail, visit the ACNC’s webpage on compliance during COVID-19.

Under the original arrangements, before 18 September 2020, the ACNC would not take action on breaches of Governance Standard 5 (which includes the duty to ensure that the financial affairs of the charity are managed responsibly) on the condition that charity informed its members and the ACNC if it was trading while insolvent.

This requirement has now been removed and replaced with a statement that reminds charities they need to follow relevant legislation. Justice Connect has a summary of these requirements on its COVID-19-governance webpage.