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Is Your Charitable Status at Risk? ACNC Moving to Revoke Charity Status from "Double Defaulters"

Up to 1,400 charities have a deadline of 30 March 2015 to submit their 2013-2014 Annual Information Statements (AIS) or risk having their charity status revoked by the Australian Charities and Not-for-profits Commission (ACNC).

A double defaulter is a charity which has not lodged an AIS for two consecutive years and have failed to respond to reminders and warnings from the ACNC.

Often these will be charities which are no longer active; however, with a risk of having missed the AIS paperwork, charities should check the below list of ‘Double D’s’ to ensure that they are not on it.

The ACNC intends to revoke charity status under section 35-10(1)(c)(i) of the Australian Charities and Not-for-profits Commission Act 2012 (Cth) (Act) on the basis that the charity has contravened section 60-5 of the Act- namely the charity has double defaulted.

Revoking a charity status means the organisation will lose access to:

·         Income Tax exemptions;

·         Fringe Benefits Tax rebates; and

·         Goods and Services Tax concessions.

The full list of charities facing revocation can be accessed at: http://www.acnc.gov.au/ACNC/OnlineProcessors/Online_register/DD_notice.aspx

The ACNC has also announced that in the coming months an additional 7,000 double defaulting charities will risk losing their charity status.

The ACNC is sending a clear message that it will be pursuing Double D’s.

Jason Watson & Amanda Ly 

5 March 2015