Does your charitable company have a constitution called memorandum and articles of association?
Was your charity established prior to 2011?
Has your constitution been reviewed to see if it complies with the Queensland Revenue Offices requirements for a not-for-profit?
Has your charity changed its activities since it was established?
Has your not-for-profit checked that its constitution complies with recent tax rulings?
Has your charity checked how the ACNC legislation impacts on its constitution?
Recent ACNC reviews show that charities at risk of being non- compliant fell into four main categories:
- Where there is a disconnect between a charity's purpose and its activities.
- Where its governing document is out of date and contains clauses that contradict its not-for-profit and the public benefit requirements of a charity.
- Where it is registered with subtypes that do not reflect it’s purpose.
- Where it has purposes which are not charitable.
For the full report see the ACNC Integrity Charity Register
Another conundrum impacting on charities is where the constitution does not set out the rules for members to call a members meeting. If appropriate provisions are not set out in the charity’s constitution, there may be no remedy available to a member to resolve a grievance or dispute except to apply to a court for relief.
Please do contact Lesleigh for a review of your charity or not-for-profit entity’s constitution.