Dear <<First Name>>,
The Australian Charities and Not-for-profits Commission (ACNC) has established five governance standards for charities. The last of these standards concerns the duties of board members or other responsible persons to their charities â€“ in other words, their fiduciary duty. This is one of the highest standards of care imposed and means that board members must not put their personal interests before the interests of the charity or profit from their position, unless the charity consents.
Over the next six months in six different articles we will examine the significant duties of board members of registered charities. In the months to come we will deal with the duty of board members:
The topic for this month is the duty of board members to act with reasonable care and diligence.
- to act in the best interest of the charity and for a proper purpose;
- not to improperly use information or their position;
- to manage financial affairs responsibly;
- to disclose and manage conflicts of interest; and
- not to allow a charity to operate while insolvent.
In this issue of Not-for-Profit Law Notes we will also discuss superannuation obligations and the issue of whether a worker is an employee or independent contractor and we take a quick look at the 2015 Federal budget cap placed on the â€˜meal entertainmentâ€™ benefits.