The Australian Charitable Incorporated Organisation: A Reform Proposal

Abstract

There is increasing recognition of the need to evaluate and reconsider the future of the corporate form, particularly in the context of purpose-based endeavours. This article proposes that the Federal Government consider, and consult on, the introduction of a specialist legal structure for charitable entities as part of its consultation on recommendations from the review of the Australian Charities and Not-for-profits Commission legislation. The introduction of a specialist structure – the Australian Charitable Incorporated Organisation (‘ACIO’) – has the potential to mitigate current incoherence and complexity in the governance and regulatory framework of Australian charities and builds on the success of charitable incorporated organisations in other jurisdictions.

Keywords: directors duties, charities, nonprofit, governance, regulation, fiduciary duties, members

JEL Classification: K10, K20