This is part of a series on charities in Australia. Read more of the series here.
A basic religious charity (BRC) is not subject to the same rules as other charities: it is not obliged to give the regulator any information on its finances, no matter its size, and unlike other charities, the Australian Charities and Not-for-profits Commission cannot suspend or remove a member of a BRC’s governing body.
Most alarmingly, a BRC does not have to meet any governance standards that apply to other charities, including:
- They must be able to provide information about its purposes to the public
- They must take reasonable steps to be accountable to its members and provide them with adequate opportunity to raise concerns about how the charity is governed
- They must not commit a serious offence (such as fraud) under any Australian law or breach a law that may result in a penalty
- They must take reasonable steps to be satisfied that the board or committee members are not disqualified from managing a corporation under the federal Corporations Act 2001
- Those running charities must ensure that those responsible: (1) act with reasonable care and diligence; (2) act honestly and fairly in the best interests of the charity and for its charitable purposes; (3) not misuse their position or information they gain; (4) disclose conflicts of interest; (5) ensure that financial affairs are managed responsibly; not allow the charity to operate while insolvent.
None of the above apply to a BRC charity.
