3.7.3.2. Medium and Large Charities

Medium and large charities are required to disclose ‘material’ related party transactions in the Annual Information Statement and financial reports.

They do not have to report ‘immaterial’ related party transactions.

In summary, a related party is:

• a person that is connected to the charity, such as a Responsible Person or a close member of their family, that has control or joint control of the charity
• an organisation that is connected to the charity and has control or significant influence over the charity, such as a parent entity of the charity
• an organisation that the charity has control or significant influence over, such as a subsidiary entity
• any organisation and the charity that are members of the same group (for example, fellow subsidiaries)
• a member of the charity’s key management personnel (people with authority and responsibility for planning, directing and controlling the activities of the charity directly or indirectly) or a close member of their family
• an associate (an entity over which the charity has significant influence) or joint venturer (an entity that shares control of an arrangement with the charity and has rights to the net assets of the arrangement).
  

Reporting on the ACNC AIS

If a medium or large charity has no related party transactions during the reporting period, it should answer ‘No’ to the question in the 2023 Annual Information Statement which asks: ‘Did your charity have any reportable related party transactions in the 2023 reporting period’.

Alternatively, medium and large charities who did have material related party transactions must select one or more applicable types of related party transaction in the 2023 Annual Information Statement according to the related party transaction disclosure note in the financial report.

For example:

• Fees paid to a related party for providing goods or services to the charity
• Loans from/to a related party
• Salary/wages paid to a related party’s relative(s)
• Transfer of charity property or assets to a related party
• Charity goods or services provided at a discount to a related party
• Significant use of charity property by a related party
• Investment in a related party
• Other.
  

Medium and large charities can describe the related party transaction, if ‘Other’ is selected.
Medium and large charities can provide additional information about their charity’s related party transactions in an optional question – ‘Include any other relevant details’.

For example, list the page number of the financial report containing the related party transaction disclosure.