For many small charities in Australia, compliance with regulatory obligations can feel like an overwhelming burden. Between chasing funding, managing volunteers, and delivering community programs, administration and record-keeping can easily slip down the priority list. But failing to comply with ACNC requirements can lead to serious consequences, including loss of registration, reputational damage, and even financial penalties.
Below, we break down some of the most common compliance mistakes made by small charities, and offer practical, easy-to-follow tips to avoid them.
1. Incomplete or late Annual Information Statements (AIS)
Every registered charity must submit an Annual Information Statement (AIS) to the ACNC. This includes basic operational details, financial summaries, and governance disclosures. Missing your AIS deadline, or lodging incomplete or inaccurate information, is one of the most frequent compliance breaches reported by the ACNC. While the ACNC allows some time after the deadline to correct mistakes in the AIS, it’s best to submit it accurately the first time to avoid unnecessary issues.
Tip:
Mark your calendar with key ACNC dates. For charities on the standard financial year, the AIS is due by 31 January each year. The ACNC Charity Portal sends reminders – make sure your authorised person’s contact details are always up to date.
See the ACNC’s official guidance for more information.
2. Poor record-keeping practices
Many small charities operate informally, without structured systems for maintaining records. But under Australian law, all charities must keep financial and operational records for seven years to demonstrate how they are achieving their charitable purpose.
Tip:
Use simple tools like Excel, Google Drive, or entry-level accounting software. Establish a habit of filing board minutes, receipts, grant agreements, and program outcomes promptly. A few hours a month can save major stress down the line.
See the ACNC’s official guidance for more information.
3. Not updating responsible persons or contact details
Changes to your board members (Responsible Persons), secretary and the contact details (such as address, email, or phone number) must be reported to the ACNC.
Charities are required to notify the ACNC of any changes as soon as reasonably possible after becoming aware of them. The notification deadlines are:
- 28 days for medium or large charities
- 60 days for small charities
Failure to notify the ACNC is a breach of your obligations and may result in inaccuracies on the public register, potentially affecting your charity’s transparency and good standing.
Tip:
Make it part of your board induction and resignation process to immediately notify the ACNC. Keep a compliance checklist in your governance manual to help trigger updates.
See the ACNC’s official guidance for more information.
4. Outdated or non-compliant governing documents
Your charity’s constitution (or rules) must comply with current ACNC governance requirements. Many smaller charities continue using templates from a decade ago that don’t reflect best practice, or worse, don’t reflect how the charity actually operates.
Tip:
Review your governing document annually. The ACNC offers model constitutions based on your charity’s structure (e.g. incorporated association, company limited by guarantee). If you’re unsure, seek legal or governance support.
See the ACNC’s official guidance for more information.
5. Not understanding Governance Standards
All charities registered with the ACNC must comply with six governance standards. These legal obligations help ensure your charity is operating properly, maintaining public trust, and fulfilling its purpose. Failure to meet them could lead to serious consequences, including revocation of charity status.
The six ACNC governance standards are:
- Standard 1: Purposes and not-for-profit nature
- Standard 2: Accountability to members
- Standard 3: Compliance with Australian laws
- Standard 4: Suitability of Responsible People
- Standard 5: Duties of Responsible People
- Standard 6: Maintaining and enhancing public trust and confidence in the Australian not-for-profit sector
Tip:
Make governance a standing priority. Review your compliance annually, ensure Responsible People understand their obligations, and embed good governance practices into regular operations. Use resources like the ACNC’s governance toolkit, or professional advisors to support your charity’s governance health.
See the ACNC’s official guidance for more information.
Conclusion: Stay Compliant, Stay Focused on Your Mission
Running a charity is a balancing act, and compliance can often feel like just another task on a long to-do list. But understanding your obligations and putting in place a few simple systems can make all the difference. By staying on top of your reporting, governance, and record-keeping, you not only meet your legal obligations – you protect your charity’s reputation, funding opportunities, and community impact.
Remember: compliance isn’t about red tape, it’s about good stewardship. It builds confidence with donors, keeps your board aligned, and ensures your mission stays on track.
Don’t wait for an issue to arise. Be proactive!
Please get in touch with Warlows Legal today using the contact information below.
