International Day of Charity was established by the United Nations with the aim of mobilising people, organisations and communities around the world to help others through volunteer and philanthropic activities. It is a day that recognises the efforts of charitable organisations and individuals, as well as the role of charity in alleviating humanitarian crises and human suffering. The United Nations chose this date to commemorate the anniversary of the passing away of Mother Teresa of Calcutta, who received the Nobel Peace Prize in 1979 “for work undertaken in the struggle to overcome poverty and distress, which also constitute a threat to peace”.
The Gilbert + Tobin Charities and Social Sector team acknowledges the enormous (often unrecognised) contribution of the organisations and people within the charity sector.
In this month’s social sector spotlight, we bring you various sector updates, including from the Australian Charities and Not-for-profits Commission (ACNC).
Research and resources
The ripple effect – considering the impact of USAID cuts on Australian charities
As we approach International Day of Charity, this month’s feature article takes a timely look at the far-reaching consequences of recent USAID funding cuts, highlighting the ripple effect on how these changes are reshaping the landscape for Australian charities. It explores the growing pressures faced by the sector, including reduced funding, operational disruptions and increased competition for resources. In the spirit of a day dedicated to recognising and supporting charitable efforts worldwide, this article also discusses the legal and regulatory considerations for charities adapting to this changing landscape, the broader sector implications and the strategies being adopted to build resilience, such as diversifying funding sources, strengthening local partnerships, and increasing advocacy efforts. In highlighting both the resilience and vulnerability of the sector, this piece underscores the ongoing relevance of the International Day of Charity in alleviating humanitarian crises and human suffering, noting that a mix of collective support and creative adaptation will be key to helping charities in times of uncertainty.
Click here to read our article ‘The ripple effect – Considering the Impact of USAID cuts on Australian charities’.
New ACNC constitution templates for charitable companies limited by guarantee
Following public consultation earlier this year, the ACNC has released an updated version of its constitution template for public companies limited by guarantee (CLBGs). The ACNC has stated they are intended for use by small CLBGs which intend to obtain registration as a charity with the ACNC. Rather than a single template, the ACNC has released five variations.
The five versions of the constitution template are tailored to CLBGs which:
do not have and are not applying for deductible gift recipient (DGR) endorsement
have, or are applying for, DGR endorsement as a whole and are required to maintain a gift fund
have, or are applying for, DGR endorsement for the operation of a fund, authority, or institution
have, or are applying for, registration as the ‘Health Promotion Charity’ subtype of charity, or
have, or are applying for, registration as the ‘Public Benevolent Institution’ subtype of charity.
The templates are suited for those companies with a more straight-forward membership structure and are not designed for use by other legal structures such as incorporated or unincorporated associations or proprietary companies limited by shares.
While these templates provide a useful starting point and welcome refresh to the ACNC’s previous approach, they are not designed to cover every CLBGs unique circumstances and care should be taken to assess whether they are appropriate for the relevant organisation’s current and future circumstances and governance arrangements.
Our team of charity law experts have significant experience in governance matters for charities (both seeking registration and registered), including preparing constitutions for new entities and updating constitutions for existing charities. Please feel free to reach out if you need any help with your governing documents.
The ACNC template constitutions are available here.
ACNC guidance on governance practices for complex structures
The ACNC has released new guidance which aims to help charities identify and manage common governance issues which may arise when operating within a ‘complex structure’ or a ‘group’ of companies or entities.
According to the ACNC, a complex structure typically involves multiple entities which might have varying purposes, operations and legal structures (e.g., trusts, incorporated associations, unincorporated bodies, companies limited by guarantee or private companies). These structures are often used to help charities manage risk, focus on different programs or operate across multiple locations.
However, with complexity in group structure comes the risks of governance and operational complexity, which has the potential to lead to confusion and non-compliance with roles, responsibilities and obligations. ACNC registered charities have various governance obligations including compliance with the ACNC’s Governance Standards, the ACNC’s External Conduct Standards (if operating overseas), meeting the criteria required to maintain their entitlement to registration, record-keeping and reporting obligations. Therefore, each charity which is part of a complex structure will generally require more robust, considered and tailored governance measures to ensure compliance with their legal and regulatory obligations.
The new guidance outlines areas of governance which charities within a complex structure need to consider, including policies and procedures, record-keeping, common boards and directorships, board meetings, roles within complex structures, conflicts of interest and related party transactions.
Charities, especially those with shared boards or complex governance arrangements, are encouraged to read the guidance. As always, our experienced charity law experts are here to help if you require any assistance or advice, including regarding review of your existing structures and considerations regarding expanding or varying such structures.
You can read more and access the ACNC’s guidance by visiting ACNC - Governance practices for complex structures.
ATO and ACNC warns of cyber security risks
The ACNC has released key findings of a review into cyber security as an emerging risk for charities and reminds the community the threat of a cyber-attack is real, the risks are significant and charities must be vigilant and have strong cyber governance practices in place.
Nearly all charities, small and large, hold sensitive personal data such as the names and other details of donors, members, volunteers, staff and the people who use their services. The Cyber Security Risks review identified key areas where charities could strengthen governance to minimise risks and manage a cyber incident if necessary.
Charities have an obligation to ensure good governance is in place to minimise the risks, and to be prepared to act quickly and effectively if a cyber security incident occurs. The review found charities achieved satisfactory cyber security governance by:
Having robust information and data management policies and procedures in place.
Having governance that enabled and supported board members to drive strong cyber governance practices.
Promoting a strong culture of cyber security awareness to ensure the charity’s people understood common cyberthreats and best practice measures to manage them.
Drawing on the latest cyber security resources, tools and advice freely available online through various lead agencies and organisations.
Understanding risks in the charity’s unique operating environment and taking steps to actively manage them.
The review also addressed the particular risks entailed in the use of artificial intelligence.
Similarly, the Australian Taxation Office (ATO) also reminds NFPs to protect their organisations from email cybercrime. Email compromise presents one of the most reported cyber security risks according to the Australian Signals Directorate (ASD) - the federal agency running Australia's Cyber Security Centre. Email accounts are valuable targets for cybercriminals as they can be used to impersonate account owners, spread scams or malicious links, access sensitive information and perform password resets.
The ATO advises systems and processes must be in place to reduce the risk of a cyber event, and to plan for what to do if one occurs. The ASD recommends taking the following simple and practical steps:
check your email settings
turn on multi-factor authentication
turn on email content filtering
train staff and volunteers to recognise suspicious email activity.
Read the ACNC and the ATO’s report and guidance regarding cyber security risks by accessing the following links: ACNC - ‘The threat is real’: ACNC Cyber Security Risks review highlights best practice and ATO - Stay safe: protect your NFP from email cybercrime.
Upcoming events and webinars
Legalwise Seminar – Not-For-Profits and Charities: Compliance, Governance and Structural Reform in 2025
This full day, online seminar covers a range of current topics critical for charity and not-for-profit compliance, governance and structuring. The seminar includes a one-hour presentation from our very own Elizabeth Lathlean on the topic ‘NFP and Mergers: Practical Approaches to Legal Concerns’. You can register to attend all sessions or just a half day (i.e. only the morning session or only the afternoon session).
Event details
Date: Wednesday, 17 September 2025
Time: 9:00am to 5:15pm AEDT (with Elizabeth presenting from 10am to 11am)
Format: online via Zoom (with an option to register and access the post seminar recording)
For legal practitioners: Earn up to 7 CPD Units in Substantive Law by attending the webinar.
Registration: Click this link to register.
Don’t miss this opportunity to gain valuable insights and practical knowledge on NFP mergers and acquisitions and other key developments in the sector.
We acknowledge and pay respect to the custodians of the lands upon which our offices are located – the Gadigal people (Sydney), the Wurundjeri Woi-wurrung people (Melbourne) and the Whadjuk Nyoongar people (Perth), as well as all custodians across this nation.
We also recognise the continuing contribution Indigenous charities, not-for-profit organisations and their supporters, together with all First Nations Peoples, provide in addressing the unique systemic disadvantages arising from historical, societal and structural inequalities. It is an honour and a privilege to support this important work and we thank our First Nations clients, partners and friends for their generosity in sharing their knowledge, culture and experiences with us.