Global Citizen in the AAT – a change in the interpretation of PBI?

The Administrative Appeals Tribunal (AAT) recently rejected the Australian Charities and Not-for-profits Commission’s (ACNC) decision to deny a charity known as Global Citizen Limited (Global Citizen) access to Public Benevolent Institution (PBI) status because its activities included advocacy.

Background

Global Citizen is an Australian charity focused on the education and advocacy of the community and campaigns against extreme poverty, polio and infectious diseases. For the past two years, this organisation has fought to become a PBI.

Becoming a PBI endorsed charity allows organisation to achieve deductible gift recipient status and opens avenues to receive grants from ancillary funds.

Previously, Global Citizen was registered through the ACNC as a charity with the subtype of advancing education. In August 2018, Global Citizen applied to become registered as a PBI subtype. This application was later refused by the Commissioner of the ACNC in September 2019.

Global Citizen attempted to overturn this refusal in November 2019. However, the Commissioner disallowed the objection in February 2020. Subsequently, Global Citizen applied to the Administrative Appeals Tribunal (AAT) to seek a review of the Commissioner’s refusal to acknowledge Global Citizen as a PBI subtype. 

The Commissioner asserted to the AAT that Global Citizen was not eligible to be registered as a PBI on the basis that;

• Global Citizen has an independent purpose, or purposes, of education and/or advocacy and is therefore prevented from being classified as a PBI; and

• Global Citizen does not provide relief directly or through related entities to those in need, which further inhibits Global Citizen from being registered as a PBI. Rather, Global Citizen lobbies governments and philanthropists.

Opposingly, Global Citizen submitted that;

• its only objective was the provision of benevolent relief of poverty, sickness, destitution, distress, suffering and helplessness to persons in need, with a particular weight on ending extreme deprivation internationally; and

• there is no requirement for a PBI’s activities to be exhibit to direct, causal relief to people in need.

The AAT ruled in favour of Global Citizen, finding that the organisation was established for the purpose of relieving poverty. The AAT stated that ‘Global Citizen is accepted to be appropriately described as an institution that is ‘organised’ for, or ‘conducted for’ or that ‘promotes’ the ‘relief of poverty’.

Key takeaways

The AAT acknowledged that it is common for large PBI charities to engage with the political process as a standard and essential part of their work because governments are consistently key players in delivering the relief that is sought.

Given it is not uncommon for charities to engage with the political process, this decision suggests that lobbying government will not in itself be a reason for rejecting PBI status. 

Please do not hesitate to get in contact with one of our specialists to discuss any of your not-for-profit queries.

Ryan Popovski
Graduate Lawyer
T: 03 5226 8572
E: rpopovski@ha.legal

Hugo Le Clerc
Lawyer
T: 03 5225 5213
E: hleclerc@ha.legal

Paul Gray
Principal
T: 03 5225 5231 | M: 0414 195 886
E: pgray@ha.legal