Charities have a number of ongoing reporting obligations, including the requirement to submit an Annual Information Statement (AIS) and annual financial report to the Australian Charities and Not-for-profits Commission (ACNC).
The reporting requirements depend on the size of the charity:
- A small charity (which has annual revenue of less than $250,000) must submit an AIS and can choose to submit a financial report.
- A medium charity (which has annual revenue of $250,000 or more, but less than $1 million) must submit an AIS and a financial report that is either reviewed or audited.
- A large charity (which has annual revenue of $1 million or more) must submit an AIS and an audited financial report.
The ACNC has been taking action in respect of charities who have failed to submit an AIS for two consecutive years. In March, over 1,300 charities were revoked, and this month a further 6,000 charities have been notified that they may lose their registration and access to Commonwealth charity tax concessions if they do not comply within the stipulated timeframe. The ACNC noted in its Media Release that many of these charities may be inactive, however, others may be deliberately non-complying.
If you require further information about your charity’s obligations to submit an AIS, or if you are in the process of establishing a charity and require advice about an appropriate structure and regulatory issues, please contact:
T +61 3 9611 0134