The Australian Charities and Not-for-Profits Commission (ACNC) announced they have revoked two Charities following investigations into their activities and operations.
ACNC Commissioner, the Hon. Dr Gary Johns, confirmed The Australian Foundation for Disabled Children and Youths Ltd and Pockets Australia Pty Limited had their Charity status revoked, a move that is “reserved for the most serious cases of misconduct or mismanagement.”
“The revocation of Charity status is the strongest enforcement power the ACNC can take against a Charity,” Dr Johns said. “Following investigations into these Charities, the ACNC has no alternative but to revoke Charity status.”
Both Charities have 60 days to object to the revocation decision, and if failing this, they will lose the right to the Commonwealth Charity tax concessions.
Dr Johns said the ACNC will continue to prioritise Charities that meet their obligation. In the last year, the ACNC has revoked the Charity status of 21 organisations and there are more likely to follow in the next month.
The ACNC is encouraging the public to come forward with concerns, adding: “Many of these investigations were borne out of concerns raised by members of the public.”
All Charities must report annually and meet the ACNC Governance Standards that require Charities operate lawfully and be run in a responsible manner.
Dr Johns said the ACNC has an education-first approach to helping Charities avoid mismanagement and get back on track.
“Wherever possible, we want to work with Charities to ensure they have the procedures and principles in place to guarantee their Charity is well-run,” Dr Johns said.
“However, where Charities fail to display a commitment to their governance, transparency or accountability, we will take the appropriate regulatory action.”