ACNC holds boards responsible for bad third party agreements

“Charity boards have a role to play in ensuring that they are not putting the charity at risk of reputational damage by entering into agreements with providers that are acting improperly.”

These are the words of ACNC Commissioner, Susan Pascoe, in her recent Commissioner’s Column.

“Remember that even if fundraising is undertaken by third parties it is still your brand. The ACNC will hold the board of the charity responsible for the exercise of appropriate governance,” she said.

“The values of your charity need to be reflected in the ethics and conduct of your fundraising, no matter who conducts it on your behalf. If you cannot defend the costs of the fundraising, the methods used, or the actions of those acting on your behalf, then you risk compromising public trust in your charity.

“Now more than ever, charity boards need to ensure that if they enter contractual arrangements with third party fundraisers they are doing appropriate due diligence, the contractual terms are reasonable and proper supervision is undertaken by the charity to ensure that the third party provider is acting appropriately.”

Pascoe has recently been featured on television programs The Project and Weekend Sunrise speaking about the implications of fundraising.