We were recently contacted by a charity that received a Notice of Intention to Revoke Charity registration from the ACNC.

The issue related to an investment made by the Board, and whether it fell within the organisation’s charitable objectives.

Whilst there is no issue with charities investing funds, the purpose behind the investment is meant to further the objectives of the charity e.g. the return’s made on the investment.

It is important for charities to have sufficient governance procedures in place to ensure that any decisions made relating to investments are appropriately scrutinised, with the decision-making process clearly articulated in the charity’s records. Professional advice regarding the appropriateness of the investment would not be amiss considering the public (and the Regulator’s) expectation that charitable funds will not be exposed to a higher level of risk.

We assisted the charity in responding to the ACNC, which included drafting an investment policy which would set out a process to be followed for all future investments.

Get in touch with us for a confidential discussion if you are in a similar boat or wish to prepare in advance for the future.

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