1. Introduction of Governance Standards

2.  Refer ACNC Act  Regulations passed in June 2013  Apply from 1 July 2013  5 Standards  A ‘base-line’ not best practice

3.  Apply from 1 July 2013  2 Exceptions ◦ If Constitution / Rules prevents compliance you have until 1 July 2017 to make changes to address, ◦ If an incorporated association will be taken to meet the governance standards until 1 July 2017 if  Appropriate incorporated assoc. legislation (state) sets out duties for responsible persons, and  Your charity & responsible persons) comply with this

4.  Purposes and not-for-profit nature of a registered entity ◦ Must be not-for-profit ◦ Work towards charitable purpose ◦ Able to demonstrate it ◦ Provide information about their purpose to the public

5.  What? ◦ Demonstrate your charity is established as a NFP entity with a charitable purpose ◦ Actually run as a NFP entity & work towards your charitable purpose ◦ Provide information about your charitable purpose to the public

6.  How? ◦ Clauses in your governing documents setting out your charitable purpose & not-for-profit nature ◦ Run your organisation as a charity ◦ Provide governing documents to ACNC for uploading to the ACNC Register, make available on your website

7.  Accountability to members ◦ If you have members, be accountable to them ◦ Provide adequate opportunity to raise concerns abut governance of the organisation

8.  What? ◦ Take reasonable steps to be accountable to your members, ◦ Allow members adequate opportunities to raise concerns about how your charity is run.

9.  Only applies if you have members,  How? ◦ Meetings at least annually with opportunities to ask questions & vote on resolutions, ◦ Give information to members, ◦ Have clear processes for appointing responsible persons (board members, committee members).

10.  Compliance with Australian Laws ◦ Must not commit a serious offence (i.e. fraud) under Australian Law ◦ No breach of laws where penalty 60 penalty units or more ($10,200)

11.  What? ◦ Must not act in a way that under commonwealth or state / territory law could be dealt with as,  An indictable offence (serious crime),  Breach of a law with a civil penalty of 60 penalty units ◦ Applies to the Charity not generally to individuals but may apply to governing body members acting on behalf of the charity

12.  Not a new obligation, you should be doing this now!,  Some obligations for charities regulated by state & territory legislation,  Be aware of major regulatory issues relating to your charity,  Some basic financial controls,  Process to ensure you meet legal obligations

13.  Suitability of responsible persons ◦ Must check that responsible persons are;  not disqualified from managing a corporation (Corporations Act), or  Disqualified from being a responsible person of a registered charity by the ACNC Commissioner ◦ Charities must take reasonable steps to remove responsible persons that do not meet these requirements

14.  What? ◦ Take reasonable steps to be satisfied that each responsible person if not disqualified from:  Managing a corporation under Corporations Act  Being a responsible person by the ACNC Commissioner within the previous 12 months ◦ If not satisfied, do not appoint, if already appointed, take steps to remove

15.  How? ◦ Search ASIC Disqualified persons register, ◦ Search ACNC register of disqualified persons (none as yet!) ◦ Require all responsible persons to sign declaration relating to disqualifying offences (ACNC has a suggested format ◦ Take these steps for existing responsible persons ◦ May be other state requirements i.e. Working with Children checks

16.  Duties of Responsible persons ◦ Charities must take reasonable steps to ensure responsible persons:  Understand, and  Carry out The duties set out in this standard

17.  What? ◦ Act with reasonable care and diligence, ◦ Act honestly in the best interests of the charity, ◦ Not misuse their position as a responsible person ◦ Not to misuse information gained in the role as a responsible person, ◦ Disclose conflicts of interest, ◦ Ensure the financial affairs of the charity are managed responsibly ◦ Not to allow the charity to operate while insolvent

18.  How? ◦ Bring these to attention of responsible persons  Outline in latters of appointment  Provide information to responsible persons on duties to refresh their knowledge,  Encourage responsible persons to attend, prepare for & participate at meetings  Have processes in place to manage conflicts of interest,  Take reasonable action if a responsible person is not carrying out their duties

19.  Common-sense  Minimum standards  Good practice not best practice  Detailed booklet at www.acnc.gov.auwww.acnc.gov.au