The nation’s charities regulator has told a parliamentary inquiry into cult groups that some religious charities’ exemptions to reporting requirements and governance standards “significantly impacts” its ability to act when public concerns are raised about charities.
In a submission provided to the Victorian Parliament’s inquiry in August, the Australian Charities and Not-for-profits Commission (ACNC) also said that the “differences between the obligations” of Basic Religious Charities (BRCs) and other charities “could impact … the public’s trust and confidence” in the charity sector.
Top officials from the ACNC are scheduled to appear tomorrow at the Victorian Legislative Assembly’s Legal and Social Issues Committee inquiry, examining recruitment methods and impacts of cults and organised fringe groups.
ACNC Commissioner Sue Woodward is scheduled to be among those representing the ACNC at the public hearing in the afternoon.
The ACNC has published its submission to the inquiry on its own website.
In the submission, the ACNC reports that Australia has 13,872 charities registered for the purpose of ‘advancing religion’, with 7,742 of these being charities self-identified as BRCs.
The submission says BRCs differ from all other charities because: ACNC governance standards do not apply to them; the ACNC Commissioner is not empowered to suspend or remove a ‘responsible person’ from a BRC; and BRCs are not required to submit annual financial reports to the ACNC or answer financial questions in the Annual Information Statement.
“These reduced reporting obligations and the inapplicability of the Governance Standards significantly impacts the manner in which the ACNC can apply our regulatory approach and enforcement powers when concerns are raised, or issues arise in relation to BRCs,” says the ACNC submission.
In a submission to the inquiry earlier this year, the Rationalist Society of Australia noted that damaging cults have charity status for the purpose of ‘advancing religion’.
In its submission, the ACNC said secrecy provisions affect how it communicates information about complaints or concerns about charities.
The ACNC said that it prioritised matters “where there is a risk to people, or charitable funds and assets”. It added that it considered conduct that harmed people, particularly children and vulnerable adults, to be among matters that were “so detrimental that we will always regard them as a priority”.
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Si Gladman is Executive Director at the Rationalist Society of Australia. You can contact him at sigladman@rationalist.com.au.