The Australian Charities and Not-for-profit Commission (ACNC) has announced its decision to deregister the former AFL affiliated charity Balls4Life. Established in 2010, the charity raised money to fund prostate cancer research by selling signed match-day footballs and auctioning them on the Balls4Life website.
The ACNC has stated that the deregistration was effected under sections 35-10(1)(a), (c)(i) and (ii) of the ACNC Act. These provisions give the Commissioner the power to deregister a charity if any of the following conditions are met:
- at any time after the date of effect of the registration, the charity is or was not entitled to registration;
- the charity has contravened a provision of the Act, or it is more likely than not that the charity will contravene a provision of the Act; or
- the charity has not complied with a governance standard, or it is more likely than not that the registered entity will not comply with such a standard.
Whilst the ACNC has not disclosed the specific conduct giving rise to its decision, it has been reported that the charity failed to account for upwards of $90,000 in funds.
As an ACNC registered entity, the charity was entitled to deductible gift recipient (DGR) status as well as tax concessions for GST, income tax and fringe benefit tax. The decision to deregister Balls4Life is backdated to 3 December 2012, meaning that it was not eligible for these tax concessions and DGR status from this time. This could have flow-on effects for anyone who has made a contribution to the charity since 3 December 2012.
For more information about ensuring that you comply with your obligations as an ACNC registered charity, please contact: