The Australian Charities and Not-for-profits Commission (ACNC) on Tue 7.5.2013, released a statement on its regulatory approach. Details are on the ACNC website.
Speaking at the release of the regulatory approach, ACNC Commissioner Susan Pascoe emphasized that the majority of charities act honestly but when willful wrongdoing occurs the Commission will use its regulatory powers.
The Commissioner said the ACNC begins from a presumption that charities act honestly and prudently. However, “we will take decisive action when a charity acts dishonestly and puts public trust and confidence at risk,” Ms Pascoe said.
The ACNC’s approach begins with providing information and guidance to help charities to understand and meet their obligations. Some charities may need more assistance. For a small number, the ACNC will use its powers under the ACNC Act.
Ms Pascoe says the proportionate approach means that the regulator will take the minimum action required to address the issue. “If a lesser option does not resolve the issue, we will take progressively stronger action until the issue is resolved”. “In most cases we will give the people involved a chance to explain why the issue occurred. We will consider their explanation seriously before we decide if we need to use our formal powers,” Ms Pascoe said.
Source: ACNC release, 7 May 2013
[LTN 85, 7/5/13]