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If you run a charity, you’re probably wondering where the line is between legitimate public advocacy and political activity that may disqualify your organisation.
Advancing a social cause is inherently political, so we understand that this is a question many charities are asking themselves in 2025.
When running a charity, it is vital that you know which activities you can and cannot engage in.
We’re here to help! Let’s break it down below.
What Does The Law Say?
- Charitable Purposes
In accordance with the Charities Act 2013 (Cth), a charity must have a ‘charitable purpose’ that complies with current legislation.
Section 12 of the Charities Act 2013 (Cth) sets out that your charity has a ‘charitable purpose’ if it is for:
- The purpose of advancing health
- The purpose of advancing education
- The purpose of advancing social or public welfare
- The purpose of advancing religion
- The purpose of advancing culture
- The purpose of promoting reconciliation, mutual respect and tolerance between groups of individuals in Australia
- The purpose of promoting or protecting human rights
- The purpose of advancing the security or safety of Australia or the Australian public
- The purpose of preventing or relieving the suffering of animals
- The purpose of advancing the natural environment
- Any other purpose beneficial to the general public that may reasonably be regarded as analogous to, or within the spirit of, any of the above purposes
If your charity exists for any of these purposes, it will be deemed to have a ‘charitable purpose.’
To ensure the livelihood of your charity, you must also ensure that your organisation does not have a ‘disqualifying purpose.’
- Disqualifying Purposes
Section 11 of the Charities Act 2013 (Cth) prohibits charities from having a ‘disqualifying purpose.’
Under the Charities Act 2013 (Cth), there are two types of disqualifying purposes:
(a) Disqualifying Purpose 1:
Where a charity’s purpose is to engage in, or promote, activities that are unlawful or contrary to public policy, it will be considered as having a disqualifying purpose.
“Contrary to public policy” means engaging in activity that undermines the rule of law, the constitutional system of government, or the safety and national security of the general public.
- An example of such a disqualifying purpose would be if a charity’s activities were aimed at raising funds for an identified terrorist group.
This is because terrorism is illegal, and a charity that supports such activities would compromise public safety and national security.
(b) Disqualifying Purpose 2:
Where a charity’s purpose is to promote or oppose a political party or a candidate for political office.
Now this is where the line between legitimate public advocacy and political activity becomes particularly relevant in 2025.
Although this disqualifying purpose might suggest that charities cannot engage in any political activity, the reality is more nuanced.
As someone running a charity, it is important to avoid engaging directly in activities that promote or oppose a political party or candidate. However, there are further do’s and don’ts you should be aware of – especially when it comes to distributing information and stimulating debate about public policy.
So, What Activity Can’t My Charity Engage In?
The law is clear: charities must not engage in activities that promote or oppose a political party or a political candidate.
For example, a political party cannot be deemed a charity because it inherently exists to promote its own political agenda and to engage in electoral competition.
Why is this the case?
- Because a political party’s core function is self-promotion as a political entity
- Because it inherently involves taking sides by promoting and opposing political candidates
It is critical to know that as a charity you cannot directly fund a political party. The Commonwealth Electoral Act 1918 (Cth) now (as amended for 2025) explicitly prohibits this. Directly funding a political party would likely be considered as promoting that party, thereby warranting your disqualification.
The Australian Charities and Not-for-profits Commission (ACNC) is the regulator of charities in Australia. They enforce the Charities Act 2013 (Cth) and ensure that your charity maintains a bona fide charitable purpose rather than a disqualifying one. For guidance on setting up your charity’s structure, do check out our Not-for-Profit Company Formation article.
The ACNC provides excellent guidelines on the do’s and don’ts of political advocacy and campaigning, which you can find here.
An informative example regarding what charities can and cannot do in relation to political advocacy – and the role of the ACNC – is outlined below:
| Example Australian Conservation Foundation’s Open Letter to Angus Taylor In 2023, the Australian Conservation Foundation (ACF) composed an open letter to the Federal Minister for Energy and Emissions Reduction, Angus Taylor, regarding the government’s inaction on climate change. The open letter called on Prime Minister Scott Morrison to remove Minister Taylor from his portfolio, arguing that his lack of action was detrimental to addressing climate change. In November 2023, the ACNC reviewed the ACF’s actions and stated that the letter amounted to engaging in activities that could be interpreted as opposing a political candidate. The ACNC emphasised that such opposition is not restricted solely to election periods but applies to any instance where current government members are challenged. The ACF defended its actions by asserting that its charitable purpose – the advancement of the natural environment – justified its public advocacy, claiming that the letter was fully aligned with its charitable objectives. |
In 2023, following numerous complaints after the 2022 Federal Election, the ACNC issued a stern warning to charities, signalling that any organisation engaging in political activity outside its stated charitable purpose risked disqualification.
Action taken by the ACNC should be taken very seriously. Keeping up to date with the ACNC’s guidelines and advice – and familiarising yourself with resources such as our Guide to Industry Regulations – can help ensure your charity remains compliant.
The Take-away:
Your charity should avoid engaging in any activity that may be viewed as:
- Promoting or opposing a political party
- Promoting or opposing a political candidate (whether during election periods or when they currently hold office)
What Can My Charity Do?
Whilst your charity must steer clear of activity that promotes or opposes a political party or candidate, it is entirely acceptable to engage in public debate that is directly relevant to your charitable purpose.
Charities are entitled to advocate for change and distribute information about the law, policy, and government practices-as long as such advocacy is relevant to your charity’s purpose and stops short of promoting or opposing any political party or candidate. For example, if you’re interested in further guidance on maintaining a robust governance framework, you might also explore our Business Structure Guide.
Consider the ACF example once again. The ACF’s charitable purpose is to advance the natural environment as set out in section 12 of the Charities Act 2013 (Cth). In promoting its purpose, the ACF is entitled to engage in public debate concerning climate policy and environmental law-provided it stops short of directly endorsing or opposing a political party or candidate.
In short, charities are allowed to participate in legitimate public advocacy that furthers their charitable purpose. It is only when such activity tips into direct political promotion or opposition that disqualification becomes a risk.
Legitimate Public Advocacy v Political Activity Warranting Disqualification
Let’s consider the examples below to further clarify what your charity can and cannot do when it comes to engaging in legitimate public advocacy versus political activity that could lead to disqualification:
| Legitimate Public Advocacy (Do’s) | Political Activity Warranting Disqualification (Don’ts) |
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The examples above should help you determine where the line is drawn between legitimate public advocacy and political activity that may risk your charity’s registration.
Anything Else To Watch Out For?
There sure is!
On 16 February 2025, the Federal Government announced proposed changes to the scope of ACNC’s Governance Standard 3.
You might be wondering: what exactly does Governance Standard 3 require? It mandates that charities must not act in a way that could constitute either an indictable offence or a breach of the law.
- An indictable offence, or
- A breach of the law
In essence, Governance Standard 3 requires charities to operate strictly within the confines of the law. While this sounds straightforward, the proposed changes have sparked significant debate in the charity sector.
The Federal Government proposes to expand Governance Standard 3 by stipulating that a registered charity will be de-registered with the ACNC if it:
- Acts in a way that constitutes a summary offence under any Australian law relating to real or personal property, or results in personal injury or harm; or
- Fails to take reasonable steps to ensure its resources are not used to promote acts that may be classified as an indictable offence, a serious summary offence, or incur a civil penalty of 60 penalty units or more.
Examples of offences referred to above include unlawful gathering or remaining on land or in a building, malicious damage or theft, and common assault or threatening violence against an individual.
So, What’s The Big Deal?
Many charities have expressed serious concerns about these proposed changes. The growing sentiment is that such amendments could undermine a charity’s ability to advocate for its cause without risking de-registration by the ACNC.
According to feedback from various legal experts, the Human Rights Law Centre and reputable organisations like Greenpeace, these changes may have far-reaching implications for:
- Access to justice, and
- A charity’s ability to advocate for its purpose without risking de-registration by the ACNC.
An interesting example to consider is that, if the proposed changes to Governance Standard 3 are drafted too broadly, even well-intentioned events – such as the annual march against sexual violence – might inadvertently risk disqualification.
This represents an extreme scenario, but one that underscores the delicate balance charities must maintain in their advocacy efforts.
Does This Impact My Charity Right Now?
It could – should the proposed changes come into effect. It is essential to monitor these developments closely.
Being informed on this topic is super important for the livelihood of your charity. To further support your compliance efforts, we recommend periodically reviewing your organisation’s practices and referring to our Industry Regulations guide for the latest legal insights.
Additionally, as the legal landscape continues to evolve in 2025, many charities are seeking regular legal advice to ensure ongoing compliance. For further assistance, consider exploring our Not-for-Profit Consultation service, which can provide tailored guidance to keep your organisation up to date.
Need More Help?
We’re here to help! We understand that the line between legitimate public advocacy and political activity that may lead to disqualification can appear blurred.
It may be challenging for your charity to confidently ensure that it does not inadvertently engage in political activity that could jeopardise its registration. Our goal is to simplify the legal complexities and ensure your charity remains true to its charitable purpose.
Reach out to our team for a free, no-obligations chat at team@sprintlaw.com.au or call 1800 730 617.
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