From the 2023 Annual Information Statement onwards, all charities (except Basic Religious Charities) are required to report on their related party transactions through the Annual Information Statement. Reporting requirements for related party transactions differ according to charity size.
A related party transaction is a transfer of resources, services, or obligations between related parties. It does not have to include financial payment. A related party transaction can include:
- purchases, sales or donations
- receiving goods, services or property
- leases
- transferring property, including intellectual property
- loans
- guarantees
- providing employees or volunteers
- a Responsible Person of a charity providing professional services (for example, accounting or legal services) at a discounted rate or for free.
To view further information from the ACNC regarding related party transactions and the required reporting, click here.