Every registered charity in Australia has to report to the national regulator each year. For many small groups run by volunteers, this task lands on one busy treasurer or secretary. It is easy to put off until the deadline is close. A little planning makes the job much lighter.
The regulator is the Australian Charities and Not-for-profits Commission, usually called the ACNC. Its main yearly report is the Annual Information Statement. What else you must lodge depends on the size of your charity. This guide covers who reports, what they report and when it is due.
What the Annual Information Statement is
The Annual Information Statement is an online form required under the ACNC Act. It asks about your charity’s activities, people and finances over a 12 month reporting period. The ACNC says it is free to submit. Information from it is published on the ACNC Charity Register, so donors and the public can see it.
Most registered charities must lodge one every reporting period. There are some exceptions. Aboriginal and Torres Strait Islander corporations regulated by ORIC generally report to ORIC instead. Basic Religious Charities still lodge the statement but skip the financial questions.
Newly registered charities report from the date of their registration decision. They do not report from any earlier date they may have been entitled to registration. If your group has only just registered, check which period your first statement covers. The ACNC Charity Portal shows what is due for your organisation.
Charity size decides what else you lodge
The ACNC sorts charities into three sizes based on annual revenue. These thresholds were raised from 1 July 2022, starting with the 2022 statement. Your size tells you whether a financial report must go in with your statement. It also tells you whether that report needs a review or an audit.
- Small charities have annual revenue under $500,000. They lodge the statement and may add a financial report if they choose.
- Medium charities have revenue from $500,000 up to under $3 million. They lodge the statement plus a financial report that has been reviewed or audited.
- Large charities have revenue of $3 million or more. They lodge the statement plus an audited financial report.
The ACNC encourages small charities to prepare a financial report even when it is optional. Doing so gives your board a clear picture of where the money went. It also helps when you apply for grants. Many funders ask for financial statements as part of an application.
Revenue can rise quickly after a big grant or appeal. A charity that was small last year may be medium this year. Watch your income during the year so the change does not catch you out. Booking a reviewer or auditor early saves stress near the deadline.
When the statement is due
The statement is due six months after the end of your charity’s reporting period. Most charities use a financial year of 1 July to 30 June. For them the statement and any financial report are normally due by 31 December. Charities with a different reporting period work out their own date from the same rule.
The ACNC can grant extensions in some cases. If you think you will be late, contact the ACNC before the due date. If the statement is already overdue, lodge it through the Charity Portal as soon as you can. Missing reports can lead to compliance action and, in the end, loss of registration.
You can read the ACNC’s own guidance on the Annual Information Statement for charities. It explains the questions and the exceptions in more detail. The ACNC also publishes a guide to each year’s form. It is worth reading before you start, as questions can change from year to year.
Gathering the information before you start
The form is much quicker when the facts are ready. You will need your income and expenses for the period, along with details of your activities. You will also need information about your Responsible People, such as board members. A simple folder for each year keeps this in one place.
Good donor and member records make reporting easier too. Many small charities now use software to track supporters and gifts. Our roundup of customer relationship management tools covers options that can suit a nonprofit. Clean records save hours when the statement is due.
Keeping records and reporting changes
Charities must keep financial and operational records for seven years. They can be paper or electronic, as long as they are easy to find. They must be in English or easy to translate into English. You do not send them to the ACNC unless it asks.
Old paper files take up room, and many groups store them offsite. If you are weighing up options, our guide to storage units versus warehouses sets out the trade offs. Whatever you choose, keep records dry, secure and labelled by year. Someone new should be able to find them without a long search.
Charities must also tell the ACNC about certain changes. These include a change of name, governing document, Responsible People or address for service. Small charities have 60 days after the change to notify the ACNC. Closing the charity and some breaches of the rules must be reported too.
A change of address is easy to forget during a move. If your charity is changing premises, add the ACNC update to your checklist. Our article on planning an office relocation can help you cover the other tasks. A missed address update can mean missed letters from the regulator.
Fixing a mistake after you lodge
Sometimes an error turns up after the statement has gone in. If the error is material, the charity must amend its statement. Small charities have 60 days from finding the error to do so. Medium and large charities have 28 days.
The six ACNC Governance Standards sit alongside these reporting duties. They cover matters such as accountability to members and the duties of Responsible People. Accurate reporting is part of being accountable. A board that checks the figures before lodging is meeting those standards in a practical way.
State rules can apply as well
Some charities report to more than one regulator. An incorporated association that is also a registered charity may have duties to both the ACNC and its state or territory regulator. Streamlined arrangements reduce some double reporting. They do not cover every charity or every obligation, and the rules differ between states.
Structure matters too. Charitable companies generally report to the ACNC instead of ASIC, though some Corporations Act duties still apply. If your charity is thinking about merging with or taking over another organisation, the legal form of the deal matters. Our piece on a business sale and a share sale explains the basic difference.
Frequently asked questions
Does a small charity need an audit?
No, the ACNC does not require small charities to lodge a reviewed or audited report. They only need to lodge the Annual Information Statement. Your state regulator, funders or own rules may still ask for one. Check your governing document and grant agreements.
When is the statement due for a June year end?
It is due six months after the reporting period ends. For a period ending 30 June, that is normally 31 December. Contact the ACNC before the due date if you may be late. Extensions are possible in some cases.
What happens if we never lodge?
The ACNC can take compliance action against charities that do not report. In the end, it can revoke a charity’s registration. Losing registration can affect tax concessions and public trust. Lodging late is far better than not lodging.
How long do we keep our records?
The ACNC requires charities to keep records for seven years. Paper and electronic records are both accepted. They must be easy to find and in English or easy to translate. Other laws may set their own periods for some records.
This article is general information only and is not legal or financial advice. Reporting rules change and differ between states, so check with the ACNC or speak with a qualified accountant or lawyer about your charity’s situation.