In this edition
Our feature article includes a practical guide for directors acquiring a financially distressed charity, outlining the opportunities and complex governance and legal risks involved in such acquisitions. We also bring you various sector updates including:
- The Australian Charities and Not-for-profits Commission’s (ACNC) invitation for public feedback on its revised guidance on the provision of housing by charities.
- Infoxchange’s 2025 Digital Technology in the Not-for-Profit Sector Report.
- The Institute of Company Directors Australia’s article highlighting Justice Connect’s advocacy for reform of Australia’s deductible gift recipient (DGR) system.
- Updated guidance for Aboriginal and Torres Strait Islander corporations reporting to the Office of the Registrar of Indigenous Corporations (ORIC).
- A timely reminder of the critical importance of meeting reporting obligations.
- A link to the Charity Law Association of Australia and New Zealand’s (CLAANZ) webinar in continuation of their Key Case Series.
Research and resources
Acquiring a financially distressed charity – a practical guide for directors
Mergers and acquisitions are becoming more common in Australia’s charity sector as organisations seek to sustain services and respond to financial and regulatory challenges. Acquiring a charity in financial distress or under administration offers opportunities but also brings complex governance and legal risks. This article highlights the essentials for directors, including the importance of keeping charitable purpose at the centre, managing conflicts of interest, securing member approvals, and maintaining strong documentation. We explain directors’ duties (particularly in the context of insolvent trading and the safe harbour’ protections) and describe the main legal risks when acquiring a charity facing financial challenges.
Our article on Merging with a charity in financial distress: a practical guide for directors provides more detail and practical guidance.
Have your say: updated ACNC guidance on housing
The ACNC is seeking public feedback on its updated Commissioner’s Interpretation Statement on the provision of housing by charities, with submissions due by Friday 12 December. The revised statement clarifies how the ACNC applies the law to housing activities, aiming to support innovation and investment in social and affordable housing. Key updates include harmonisation with State and Territory tenant eligibility criteria, guidance on priority tenant cohorts such as veterans and older women, clarification on when private benefit in home ownership is considered incidental, and more detail on assessing benefits to third parties.
In light of Australia’s housing crisis and the valuable work undertaken by so many charities in this space, this is a timely opportunity for charities to play a role in shaping this key ACNC guidance.
See the updated Commissioner’s Interpretation Statement Consultation Draft: Charities’ provision of housing.
Digital technology in the not-for-profit sector report released
Infoxchange’s newest report has just been released, which shows 67% of not-for-profits surveyed now using generative AI, mainly for content creation. However, the report reveals most charities lack the policies, training and cyber security needed to use AI safely, and digital inequality remains a challenge (particularly for smaller and volunteer-led organisations).
See the full Digital Technology in The Not-for-profit Sector Report.
New campaign launched to reform the DGR status system
Justice Connect, supported by the Minderoo Foundation, has launched the Unlock DGR campaign to advocate for urgent reform of Australia’s DGR system. The campaign highlights that more than half of Australia’s 60,000 registered charities are unable to access DGR endorsement, restricting their ability to receive tax-deductible donations and vital funding. Justice Connect argues the current system is outdated and overly complex, locking out smaller and emerging charities from crucial support.
Learn more in the Institute of Company Directors Australia’s article.
Updated guidance for charities reporting to ORIC
Aboriginal and Torres Strait Islander corporations reporting to ORIC are encouraged to read the updated guide on annual general reports.
Reminder to stay up to date on reporting obligations
The ACNC has revoked the registration of 75 charities for repeatedly failing to submit their Annual Information Statements (AIS). These de-registrations follow a public notice in September 2025, warning charities to meet their reporting obligations or risk losing their status and associated Commonwealth tax concessions.
ACNC Assistant Commissioner Cate Bennett noted while many of these charities may have ceased operating or merged, they are still required to notify the ACNC and complete outstanding reports. Accurate reporting ensures the Charity Register remains up to date, supporting transparency and public trust in the sector.
Charities which have lost registration can apply for reinstatement by submitting overdue reports and reapplying through the ACNC Charity Portal. As a reminder, charities operating on a standard financial year (1 July to 30 June) must submit their 2025 AIS by 31 January 2026.
For more guidance on how to prepare and submit your AIS, click here to access the ACNC’s annual information statement hub.
Upcoming events and webinars
CLAANZ Webinar
In continuation of their Key Cases Series, CLAANZ will hold a webinar on the recent Supreme Court of Queensland decision, The Presbyterian Church of Queensland v Catalyst Carina SPV Pty Ltd & Anor [2025] QSC 255.
This free webinar will be hosted by Chris Mills (Neumann & Turnour Lawyers), Anne Robinson (Prolegis Lawyers) and Elizabeth Shalders (Mills Oakley), and is on Tuesday 2 December 2025 from 10:00 am to 11:000 am AWST / 1:00 pm to 2:00pm AEDT / 3:00 pm to 4:00 pm NZDT.
Click here to register.
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.