Commitment 7.1:
We are not-for-profit and formed for a defined public benefit.

Compliance Indicators

Compliance with the Commitments will be assessed against the following Compliance Indicators. All of the applicable Compliance Indicators must be met by every ACFID Member to be considered compliant with the Code. Each of the Compliance Indicators has one or more compliance Verifiers. Verifiers are the description of evidence that is required to substantiate compliance with each Compliance Indicator. Guidance is also provided.

7.1.1 Members define their public benefit and specify the rules to ensure that they operate as a not-for- profit entity.

A governing instrument which outlines the relevant rules for a not-for-profit entity and is available on the organisation’s website.

Guidance

Different organisations operate under different structures. While ACFID does not advocate the adoption of any particular model, the ACFID Code of Conduct requires that the structure of the signatory organisation is clearly documented through a governing instrument, with a clear statement of purpose that seeks to provide a benefit to the public, and clauses or rules that relate to charitable purpose or not-for-profit nature. A not-for-profit entity is one that does not operate for the profit, personal gain or other benefit of particular people.

The following are example clauses that would show that the organization is not-for-profit:

  • Not-for-profit clause: The assets and income of the organisation shall be applied solely in furtherance of its objects and no portion shall be distributed directly or indirectly to the members of the organisation except as bona fide compensation for services rendered or expenses incurred on behalf of the organisation.
  • Dissolution or Winding up clause: In the event of the organisation being dissolved, the amount that remains after such dissolution and the satisfaction of all debts and liabilities shall be transferred to another organisation with similar purposes which is not carried on for the profit or gain of its individual members.

Some Commonwealth, state and territory incorporating regulators provide template or ‘model’ governing documents for charities with certain legal structures.

The ACNC also provides a template constitution for a small company limited by guarantee with charitable purposes which can be found in the Resources Section below.

Good Practice Indicators

The following Good Practice Indicators describe a higher standard of practice than that set out in the Compliance Indicators. While Members do not need to meet the Good Practice Indicators to be considered compliant with the Code, they will self-assess against these indicators once every three years. This provides a clear pathway for Members to strengthen and improve practice over time.

  • Remuneration policy or guidelines that set conditions on payments or expenses paid to governing body members is in place.
  • Periodic review of compliance with organisational governing instrument is undertaken by the governing body.

Good Practice Guidance

Here are some practical suggestions for your organisation to further deepen and improve practice over time.

Not-for-profit status

  • Include clauses in your governing instrument which clearly establish the non-for profit status and practices of your organisation
  • Being not-for-profit relates to how profits or surpluses are used. A not-for-profit organisation can still make a profit (or surplus), but assets and income can be used solely towards achieving the organisation’s objectives and not distributed among members.
  • Include a clause in your governing instrument describing how you would use any surplus 

Governing body

  • Include clauses in your governing instrument which clearly establish the voluntary status and practices of your organisation. 
  • If any member of the governing body was paid for work performed in a capacity other than as a member of the governing body, the organisation must disclose the payments made in their annual financial statements.
  • The inclusion of additional clauses in the governing instrument or the development of a governance policy or board charter could elaborate on the clauses within the governing instrument by detailing the reimbursement of any reasonable expenses incurred for governing body members for costs associated with attendance at meetings or in the conduct of their duties; and how governing body members carrying out other professional functions for the organisation such as a consultancy, will be remunerated. 

ACFID Resources

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Other Resources

ACNC template constitution for a charitable company limited by guarantee contains a comprehensive governing document level conflict of interest clause

The template constitution is designed to assist a not-for-profit organisation that is incorporated as a company ...

Good Governance Principles and Guidance for Not-for-profit Organisations

Key principles that are a useful starting point for NFP boards when considering what constitutes good governance ...

About

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Annual Report 2021-22

Reporting on ACFID’s activities to ensure transparency and accountability

ACFID

ACFID is the peak body for Australian NGOs involved in international development and humanitarian action.

Our PARTNERSHIPS

ACFID works and engages with a range of strategic partners in addition to our members.

GOVERNANCE

ACFID is governed by its Board, ACFID Council, and various expert and governance committees.

Members

Conference

Conference 2022

HEALTHY PLANET, HEALTHY COMMUNITIES Acting with evidence, equity and inclusion for a resilient future

Meet our Members

The ACFID membership is comprised of Australian NGOs that actively work in the international aid and development sector.

Become a member

Joining ACFID means joining an experienced and powerful mix of like-minded organisations committed to good international development practice.

Membership types & fees

ACFID has two types of organisational membership: Full Membership and Affiliate Membership.

State of the Sector

The State of the Sector Report provides a comprehensive and robust analysis of the state of the Australian aid and development sector.

NGO Aid Map

ACFID’s NGO Aid Map allows the Australian public and stakeholders to explore the work of ACFID Members around the world

Our Focus

Budget Analysis

Federal Budget 2022 Analysis

Facts and figures on how aid is presented in this year’s annual budget

Strategic Plan

ACFID prioritises a robust response to climate change and pressure on civil society in developing countries, as well as other key priorities.

Emergency Aid

ACFID Members provide vital life-saving assistance in the immediate aftermath of an emergency.

Climate Change

Action on climate change is one of ACFID’s highest priorities, as it is an existential threat to humanity and our development.

Civil Society

Civil societies are a cornerstone of regional stability and ensure that the voices of the marginalised are heard.

Supporting NGOS

Supporting NGOs as Valuable Partners.

Inclusive & locally led development

Walking the talk on inclusive development.

Humanitarian Action

Taking humanitarian action for those in greatest need.

Elevating Development

Elevating Development to the Heart of Australia’s International Engagement.

PSEAH

Improving standards, practice and culture to prevent and respond to sexual exploitation, abuse and harassment.

Code of Conduct

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2022-23 ACFID Code of Conduct Review

The ACFID Code of Conduct is periodically reviewed to ensure it continues to reflect good practice and the needs of ACFID and its members.

Code of Conduct

The Code is a voluntary, self-regulatory industry code of good practice.

About the Code

Find out more about the Code of Conduct and how it operates.

Good Practice Toolkit

Overview and practical resources, and examples to support the implementation of the Code.

Spotlight on the Code

Provides a thematic ‘deep dive’ into each of the nine Quality Principles in the Code

Compliance

This section outlines the responsibility to be taken by each Member to ensure compliance with the Code.

Complaints Handling

How to make a complaint and information on the Code’s independent mechanism to address concerns relating to an ACFID Members’ conduct.

Other Standards

Mapping the Code with other professional standards and principles in the humanitarian and aid sector in Australia and internationally

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