Liquidating assets for charity
When you decide to wind up, you need to visit your incorporating regulator’s website or contact them.Generally, incorporating regulators have step-by-step guides and detailed information on winding up on their websites.For more information about compulsory winding up, check with the Australian Securities and Investments Commission (ASIC) or your state or territory regulator.Winding up may involve many activities, such as: If your charity is incorporated, the process for winding up depends on your charity’s incorporating regulator.Before applying to cancel your charity’s registration, you must submit your most recent Annual Information Statement.If you don’t do this, you must explain why it is not necessary when you apply to cancel your registration.Many registered charities’ governing documents have a ‘winding up clause’ (also called a ‘dissolution clause’) that says that you must give any ‘surplus assets’ to another charity with similar purposes.The governing documents may set out a procedure for choosing this charity.
When you are winding up, you must follow your governing documents (such as your constitution, rules or trust deed).
Each incorporating regulator has different processes, forms and other legal requirements.
For example, your incorporating regulator may require you to appoint a liquidator if your assets are worth more than a certain amount.
The ACNC will decide whether to approve your charity’s application to cancel its registration according to the ACNC Commissioner’s Policy Statement: Choosing to revoke.
In some cases, the ACNC has the power to revoke your charity’s registration without you applying (for example, if your charity has a trustee in bankruptcy, a liquidator, or a person appointed or authorised under an Australian law to manage the charity because it is insolvent).