Reminder: what is a de-identified registration decision summary?
The Australian Charities and Not-for-profits Commission (ACNC) has the power to publish de-identified summaries of its decisions to approve or reject applications for charity registration. These summaries are often published to improve transparency and educate the charity sector and general public.
The issue: community sporting events
The latest de-identified registration decision summary looks at an organisation whose purposes (ie. objects) are to hold cultural events for an ethnic community. Its governing document (also known as a constitution or rules) said that its purposes included ‘creating community sport events’.
Promoting sport is not generally recognised as a charitable purpose. However, an activity like sport can be done for a variety of purposes. An organisation can promote sport for a non-charitable purpose (for example, the joy of the game) or for a charitable purpose (for example, as a means of engaging with at-risk youth, or supporting people with a disability).
The issue for the ACNC was whether the organisation’s purpose of engaging in community sports events was an independent non-charitable purpose.
The decision: the purpose was for a charitable purpose
The organisation explained that it would promote sporting events held by other charities as part of fundraising appeals to raise money for hospitals and medical research. Taking a holistic view, it was clear the organisation participated in sport events to fundraise for charities and the ACNC registered the organisation as a charity.
The lesson: everything comes back to purpose
The ACNC will look holistically at what an organisation says it will do (ie. in its purpose clause in its governing document) as well as what it actually does in practice.
- If your organisation wants to become a registered charity: it is important to be clear about what your charitable purpose is and to tell a consistent story to the ACNC about it. Make sure the purpose in your governing document is supported by other information in your charity application, as well as other places such as your business plan, annual reports, website or social media pages.
- If your organisation is a registered charity: your organisation’s purpose is its guiding star. People governing the charity should refer to it regularly, especially when considering new programs, developing new strategies or collaborating with others. Change your purpose with care, and ideally with legal advice.
The content on this webpage was last updated in June 2025 and is not legal advice. See full disclaimer and copyright notice.
