The decision follows five months of investigation into the charities’ activities and purposes by the Australian Charities and Not-for-profits Commission (ACNC). The investigations were undertaken with the charities’ cooperation. Both charities were given an opportunity to demonstrate why their registration should not be revoked and their responses were taken into account before a final decision was made. The charities are able to object to this decision and can reapply to be registered when the ACNCs’ concerns are wholly addressed.

Care 4 Kids Foundation of Australia Ltd operates in NSW, VIC, TAS and SA. The Indigenous Foundation of Australia operates in NSW and TAS. Both charities are managed by the same directors – Michael Johnson, Cherilyn Malbas and Edna O’Connor. The charities’ revoked status is recorded on the National Charity Register at www.acnc.gov.au/findacharity.

ACNC Commissioner, Susan Pascoe AM noted that these directors are also involved with a for-profit organisation, Cancer Foundation of Australia Pty Ltd. This organisation was not a registered charity and not within the ACNC’s jurisdiction.

Pascoe said that while most registered Australian charities were honest, professional and deserved public support, the Commission had dealt with more than 800 complaints or concerns about charities since its inception in December 2012.

“In most cases we work with charities to allow them to resolve any issues. The majority of complaints have been resolved with education and advice, or cooperative interventions where the ACNC has worked with the boards to rectify any concerns. This has resulted in improved practice,” says Pascoe.

“However there are occasions, for example where charities rely heavily on public contributions and where public trust and confidence is at risk, when revoking registration is our last resort.

“We know from our high priority compliance cases progressed over the last four months the assets of those charities totalled in excess of $78 million. This has including protecting monies from going offshore. The potential loss of assets to the sector and damage to the public’s trust and confidence in charities is significant if assets of this value are at risk.

“This transparency will be further strengthened when charities file their 2014 annual information statements, many of which are due by 31 December 2014. This will be the first time the public will have free access to financial information, governing documents and responsible person details of registered charities.”

Sarah Harding

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