ACNC Reporting

The Unforgiving Nature of Deadlines

Charities are required to submit an Annual Information Statement (AIS) within six months of the end of their reporting period. Failure to do so can lead to penalties, public shaming via an 'overdue' status on the Charity Register, and ultimately, deregistration.

ACNC

The Domino Effect of Non-Compliance

Consider the case of the Elfin House Community Child Care Centre in Rockhampton. In June 2024, this not-for-profit abruptly closed its doors, leaving families and staff in the lurch. The centre had reported a near $100,000 deficit at the end of 2022 and had an overdue AIS for 2022. While financial woes were a significant factor, non-compliance with reporting obligations likely compounded their troubles.

The ACNC's Iron Fist

The ACNC doesn't just wag its finger at defaulters; it takes action. In October 2024, over 60 charities had their registrations revoked for failing to submit two or more AISs. Many of these were likely defunct, but their failure to notify the ACNC led to deregistration.

Similarly, in April 2023, more than 700 charities faced the same fate for repeated non-compliance.

The Moral of the Story

For charities, timely and accurate reporting isn't just a box-ticking exercise; it's a lifeline. It ensures continued registration, tax concessions, and, most importantly, public trust. So, before you dismiss the AIS as another tedious task, remember: neglecting it could lead to your charity's untimely demise.

In Conclusion

Annual report lodgement with the ACNC is a non-negotiable aspect of running a charity in Australia. The consequences of non-compliance are severe, as evidenced by numerous cases where charities have been deregistered for failing to meet their obligations. To avoid becoming another cautionary tale, ensure your charity stays on top of its reporting duties. After all, in the world of charitable organisations, compliance isn't just paperwork—it's survival.

How to Nail Your ACNC Annual Information Statement: A Practical Guide

1. Basic Charity Details

Before you even log in, ensure the basics are up-to-date:

• ABN and contact information: The ACNC is quite particular about having your charity’s current details. If your address or responsible people have changed, update those first.
• Reporting period: Check your approved reporting period in the ACNC Charity Portal.

2. Financial Information

This is where charities often trip up, so be prepared:

• Annual financial report (if required): Medium and large charities (annual revenue over $250,000 or $1 million, respectively) must submit audited or reviewed financials.
• Revenue and expenses: Total figures for all income streams and operational costs.
• Assets and liabilities: Include any property, equipment, or cash reserves, and detail what your charity owes.

Smaller charities may not need to submit full financials, but having basic figures ready ensures you don’t misreport. Double-check everything against your financial records—guesswork isn’t an option.

3. Activities and Outcomes

The ACNC is keen to see how your charity is delivering on its promises. You’ll need:

• Descriptions of activities: Summarise the main activities carried out during the year. Be concise yet specific—phrases like “ran events” or “raised awareness” won’t cut it.
• Key achievements: Include measurable outcomes (e.g., "distributed 10,000 meals" or "trained 50 volunteers").
• Changes in purpose or activities: If you’ve pivoted to new goals or programs, mention them here.

4. Responsible People

Update the list of your board members, trustees, or committee members:

• Full names
• Roles (e.g., chairperson, treasurer)
• Start and end dates of their involvement

This is a good chance to check if anyone needs removing or adding to the register.

5. Governing Documents

Medium and large charities must confirm they’ve complied with their governing documents. If you haven’t reviewed yours recently, now’s the time to dust them off.

6. A Clear Head and a Secure Login

Lastly, have your ACNC Charity Portal login details handy. Reset your password in advance if you can’t remember it (we’ve all been there). Sit down in a distraction-free zone with your materials organised and ready.

Pro Tips

• Start early: You’ve got six months after your reporting period ends, but leaving it to the last minute increases the risk of errors or late penalties.
• Review last year’s submission: It’s a good reference point for consistency.
• Proofread before you submit: Silly mistakes like typos or misreported figures can lead to unnecessary headaches.
• Ask for help: If you’re stuck, the ACNC has resources and a support line. Use them!

Filing your AIS doesn’t have to feel like scaling Mount Doom. Arm yourself with these essentials, and you’ll conquer the process like a pro. Tick those boxes, hit submit, and give yourself a pat on the back for keeping your charity in tip-top compliance.