Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The object of this Division is to promote the objects of this Act by giving the public (including donors, members and volunteers of registered entities) confidence that registered entities:
(a) manage their affairs openly, accountably and transparently; and
(b) use their resources (including contributions and donations) effectively and efficiently; and
(c) minimise the risk of mismanagement and misappropriation; and
(d) pursue their purposes.
Note: The objects of this Act include supporting and sustaining a robust, vibrant, independent and innovative Australian not - for - profit sector (see subsection 15 - 5(1)).
(2) This Division achieves that object by setting up a system to allow the regulations to specify standards with which an entity must comply in order to become registered under this Act, and to remain entitled to be registered under this Act.
Note 1: The main consequence of failure to comply with these standards is a loss of the entity's entitlement to registration. If the entity is a federally regulated entity, such a failure to comply may also result in enforcement action under Chapter 4.
Note 2: For the consequences of registration, see section 20 - 5.
Note 3: A registered entity must notify the Commissioner of significant non - compliance with these standards that results in the entity no longer being entitled to be registered (see section 65 - 5).