The ACNC says it will crack down on the misuse of complex corporate structures and focus on the way charities manage cyber security challenges.
At the Australian Governance Summit in Melbourne, Commissioner Sue Woodward AM said the ACNC is becoming increasingly concerned about the misuse of complex structures, where they may be part of attempts to conceal non-compliance with the ACNC Act and Regulations.
“Charities are free to use a variety of structures to suit their purpose and we acknowledge there can be good and legitimate reasons to do so. However, the decision to utilise complex structures, or the gradual and perhaps ad hoc development of complex structures, also comes with more complex governance obligations.
“At the rarer and more extreme end, we are concerned about entities that may deliberately use complex corporate structures to try and obscure illegal activities.”
Ms Woodward said the priorities are matters such as harm to children and vulnerable adults, directly or indirectly fostering terrorism or extremism, and financial mismanagement including fraud and significant private benefit.
Another compliance focus will be the challenges charities face relating to cyber security. Woodward called for charities to cultivate a culture of cyber security awareness.
“Cyber security is not solely the responsibility of IT professionals …everyone, from board members (who have the overall governance responsibility) to volunteers, should have the knowledge and tools to identify and mitigate potential cyber risks.”
Practical things you can do to help protect your charity include automatic software updates and management of strong and unique passwords across all accounts and devices.
The Australian Signals Directorate has developed a checklist for charities to complement their more comprehensive security guide. The ACNC’s Governance Toolkit: Cyber Security has more practical tips and information to help you shore up your charity’s cyber defences.