The ACNC have published a significant piece of guidance to help charities and the public understand the ACNC’s view on charities and administration costs.
The set of frequently asked questions (FAQs), Charities and administration costs, discusses the common issues that are raised with the ACNC â€“ many of which originate from concerns raised by members of the public.
There are no laws or regulations that specifically set out the amount charities can spend on the expenses that would be considered administration. There’s also significant ambiguity when it comes to what exactly an administration cost is. It is a complex area which makes it difficult to assess if a charity is being run efficiently and effectively.
The ACNC have published this guidance to help the public and donors understand what administration costs are, why they are necessary, and when they may be unreasonable and therefore warrant scrutiny from the ACNC.
To view the guide click here