It’s the exception that an organisation stays true to its mission.
The natural course - the unfortunate natural evolution of many
originally Christ-centered missions - is to drift.
This statement by Chris Crane, then President and CEO of Edify and a former President and CEO of Opportunity International, is quoted in the recent book, Keeping Faith.[i] Although Chris Crane was speaking from an American context, the secularisation of Christian organisations is a worldwide phenomenon.[ii]
The authors of Keeping Faith further note “We believe that the most important thing that God requires of Christian organisations is faithfulness to the Christian life: expressed in the Bible and modelled by Jesus. This faithfulness is maintained by ensuring an overlap between the ethos (culture, spirit) of an organisation with its Christian identity and the impact that it has.[iii]
Faithfulness is a key Biblical concept. We are exhorted to remember that God is faithful and to be faithful ourselves in dependence on the Spirit:
Let not steadfast love and faithfulness forsake you;
bind them around your neck;
write them on the tablet of your heart. (Proverbs 3:3, ESV)
Be faithful unto death, and I will give you the crown of life. (Jesus to the church in Smyrna, Revelation 2:10b, ESV)
… the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, self-control … (Galatians 5:22-23)
These Biblical injunctions not only apply to our personal lives, but to our organisational roles as members of boards, councils and other governing bodies. I also agree with the authors of Keeping Faith that these principles apply to organisations which the church establishes to further the proclamation of Jesus as Lord and Saviour, the making of disciples and the advancement of the Christian faith.
The concept of organisational faithfulness underpins the updated Diocesan Governance Policy adopted by the Synod of the Anglican Diocese of Sydney (Sydney Synod) in September 2024.[iv]
Some background
The proper governance of Diocesan organisations has been a concern of the Anglican Diocese of Sydney for nearly 170 years[v], but it was only in 2014 that the Synod adopted a formal Governance Policy for Diocesan Organisations (GPDO). The adoption of this policy was motivated, at least in part, by a concern to arrest mission drift and followed several years of discussion. However, the GPDO did not apply to all Diocesan organisations. Its application was limited to 37 named organisations.
The adoption of the GPDO also coincided with the establishment of the Australian Charities and Not-for-profits Commission (ACNC) and reflected the new regulatory framework for charities.
As well as governance standards, the GPDO incorporated a Statement of Personal Faith to ensure, with a few exceptions for some alumni members of the councils of some Diocesan schools, that the members of the governing body of a Diocesan organisation expressed a Christian faith. The Statement of Personal Faith was amended in 2019 to specifically refer to issues of human sexuality in a way which created controversy in some communities, especially some Diocesan school communities.
In August 2021, the Standing Committee of Sydney Synod initiated a review of the GPDO by establishing a Governance Policy Review Committee which was asked to consider a number of issues, including the relationship of the GPDO to other Diocesan policies and guidelines, changes in charity law and regulation since 2014 and issues arising from the debate on religious freedom.
The Committee consulted widely, reported to the Sydney Synod and released an exposure draft of a new policy. After considering submissions on the exposure draft, an updated Diocesan Governance Policy (updated Policy) was presented to the Synod in September 2024. The updated Policy was overwhelmingly supported and adopted with only minor amendments.
Diocesan organisations (incorporated and unincorporated) and non-parochial entities subject to the updated Policy (collectively, organisations) were encouraged to amend their constitutions (or other governing documents) to conform to the updated Policy by the time of the 2026 Synod, to be held in September this year.
It is worth noting that in 2024 the Sydney Synod also adopted, for the first time, a Parish Governance Policy which has many features in common with the updated Policy and is being progressively implemented for the parishes of the Diocese.
Expanded scope of the Diocesan Governance Policy
The updated Policy seeks to ground good governance in the teaching of Scripture, rather than
relying on secular models or government prescription whilst at the same time recognising changing public expectations of transparency, accountability, and good governance within the not-for-profit and charity sector.
The purpose of the updated Policy is to encourage organisations and non-parochial entities to seek high standards of governance, whilst partnering with the Diocese in a shared ministry of proclaiming Jesus as Lord and Saviour, making of disciples and advancing the Christian faith, in a manner appropriate to their context and their individual charitable purposes.
The updated Policy applies to a broader range of entities than the GPDO, essentially all organisations which are, directly or indirectly, under the control of the Sydney Synod.[vi] The updated Policy adopts a ‘tiered approach’ which acknowledges the diversity of organisations within the Diocese and allocates them to one of four Levels on the basis of factors such as their size, status (unincorporated or incorporated), connection with the Diocese and the complexity of the regulatory environment in which they operate.
Some of the key concepts in the updated Policy which support organisational faithfulness are described in the rest of this article.
Identity and clarity of purpose
The updated Policy reinforces the importance of organisations complying with the ACNC Governance Standards (even if they are basic religious charities and formally exempt from the standards), as well as complying with the ACNC External Conduct Standards.[vii]7
More importantly, the updated Policy has a focus on an organisation’s charitable purpose(s). An organisation must have a purpose which is within one of the nine categories listed in the Charities Act 2013 (Cwlth) - advancing education, health, religion etc (or are public benevolent institutions or health promotion charities). The charitable purpose(s) must be clearly expressed in the organisation’s constitution, and, in the case of a Level A, C or D organisation[viii], must be consistent with the broader charitable purposes of the Diocese.[ix] An organisation ordinarily should develop a vision and strategy (or ministry plan) for the pursuit of the charitable purpose(s) of the organisation over a rolling 3-5 year period.
An organisation registered with the ACNC ordinarily should be registered with “advancing religion” as their charitable subtype, or one of multiple charitable subtypes. By way of example the Anglican Community Services Ordinance 1961 provides that the organisation is established as a public benevolent institution to further the work of the Anglican Church of Australia, Diocese of Sydney by promoting and proclaiming the gospel of the Lord Jesus Christ while undertaking works of public benevolence that reflect the love of God as shown in Christ.
Registration with “advancing religion” as a charitable subtype is consistent with the purpose of the updated Policy outlined above. It will also enhance the ability of an organisation to be regarded as a “religious institution” (or similar terminology) for the purposes of advantages, privileges and exemptions available under Federal and State legislation (including legislation protecting religious freedoms). The updated Policy also notes that it is expected that organisations will seek to rely on those advantages, privileges and exemptions where necessary to enable compliance with the updated Policy.
The updated Policy also reflects the multiple identities of organisations. The vast majority of organisations in the Diocese are not companies established under the Corporations Act 2001 (Cwlth). If an organisation is incorporated, it is usually established by the Sydney Synod as a body corporate under the Anglican Church of Australia (Bodies Corporate) Act 1938 (NSW). As such many of the provisions of the Corporations Act do not apply to organisations in the Diocese.[x] It is therefore not surprising that the updated Policy requires organisations to comply with the ordinances and policies of the Sydney Synod.
Organisations are also not-for-profit organisations or NFPs - category for exemption from income tax and some other (but by no means all) taxes. NFPs must not operate to make a profit for members (including members of their governing boards) or other stakeholders. NFPs do not declare dividends, make payments for the personal benefit of members or other stakeholders or distribute assets to members or other stakeholders (including on dissolution or winding-up).
Organisations are also religious entities. There are range of benefits given to religious entities – including fundraising exemptions, anti-discrimination exemptions, religious freedom laws (but not in NSW or at the federal law), tax benefits or exemptions. Increasingly in order to access these benefits, religious entities must be registered with the ACNC as charities having advancing religion as their purpose, or one of several purposes.
Christian faith and character
The updated Policy clarifies and expands the requirement that members of the governing body of most organisations must express a Christian faith and sets out the Diocese’s understanding of Christian faith and character as including:
(a) personal belief that the canonical scriptures are the ultimate rule and standard of faith given by inspiration of God and contain all things necessary to salvation,
(b) personal belief in the Christian faith as professed by the church of Christ from primitive times, and in particular as set forth in the creeds known as the Nicene Creed and the Apostles’ Creed,
(c) personal belief that there is only one way to be reconciled to God which is through his Son, Jesus Christ, who died for our sins and was raised for our justification, and that we are justified before God by faith only,
(d) personal belief that the canonical scriptures are the supreme authority in all matters of faith and conduct, and
(e) a personal commitment to living in obedience to the commands of Christ through the power of the Holy Spirit.
The updated Policy also requires members of governing bodies to attend regularly and be actively involved in a Bible-based church.
All members of the governing body of a Level C or D organisation[xi] ordinarily should be elected or appointed by a diocesan or parish officeholder or organisation, unless required by law or the constitution of the organisation provided for members to be elected or appointed by other persons as of 1 September 2024.
The updated Policy also introduces an improved nomination and selection process for the election or appointment of a person as a member of the governing body of a Level C or D organisation. A person may not nominate, and a Diocesan elector or appointor (including the Sydney Synod) may not elect or appoint, a person as a member of a governing body unless written evidence of the nominee’s Christian faith and character and regular attendance and active involvement in a Bible-based church (including a reference from a parish minister or senior Diocesan leader) is obtained.
Similar requirements exist for the election of appointment of the chief executive officer of a Level C or D organisation. Some limited exceptions for some alumni members of the governing bodies of some Diocesan schools have been retained.
Broader charitable purposes and doctrine of the Diocese
As noted above, the charitable purposes of an organisation must be consistent with the broader charitable purposes of the Diocese.
An organisation should pursue the charitable purposes for which it is established, and use its property, in a manner which is consistent with the doctrine of the Diocese and which advances the broader charitable purposes of the Diocese. Members of governing bodies must personally commit to pursue an organisation’s charitable purposes in this manner consistent with the doctrine of the Diocese. There are exceptions for Level B organisations.[xii]
In order for these requirements to be properly applied and for organisations, and members of governing bodies, to be able to comply with them, a three page statement entitled “The Doctrine of the Anglican Diocese of Sydney” outlining the doctrine of the Diocese has been prepared by the Diocesan Doctrine Commission. The statement is a succinct summary of the doctrine of the Diocese which does not emphasise current issues. The statement is available on the Sydney Anglicans website.
Personal Statement and Commitment to Organisational Faithfulness
Persons elected or appointed as a member of the governing body of a Level C or D organisation must provide a written statement which attests to their Christian faith and character where required (see above) and in all cases:
(a) acknowledge that the purposes of the organisation are to be pursued in a manner which is consistent with the doctrine of the Diocese; and
(b) commit, as a member the governing body of the organisation, to endeavour to:
(I) exercise their powers and discharge their duties in accordance with the constitution (or other governing document) of the organisation, applicable law and Diocesan ordinances applicable to the organisation, and
(ii) wherever lawful and practicable, exercise their powers and discharge their duties so that (A) the applicable provisions of the updated Policy are implemented by the Diocesan organisation in an appropriate and demonstrable way, and (B) the organisation’s purposes are pursued in a manner which is consistent with the doctrine of the Diocese.
The Personal Statement and Commitment to Organisational Faithfulness also contains an agreement that a person’s continuance as a member of the relevant governing body is dependent upon their continuing agreement with the statement, an undertaking to resign if this ceases to be the case and an acknowledgment that they may be removed from office if this ceases to be the case.
Similar requirements exist for persons elected or appointed as the chief executive officer of a Level C or D organisation.
Conclusion
Will Christian organisations always remain faithful to the Christian life as expressed in the Bible and modelled by Jesus? No more so than individuals will always remain faithful. Organisations serve people and work in a fallen world and will be subject to attack by the powers and principalities of this world and at times succumb to mission drift.
The Diocesan Governance Policy adopted by the Sydney Synod aims to minimise this risk and ensure organisations within the Diocese are well governed by faithful Christians as they pursue their charitable purposes, maintain their Christian ethos and identity and positively impact our communities and society, serving and proclaiming Jesus Christ as Lord and saviour.
Greg Hammond OAM is a former partner of Mallesons and since “early retirement” has served on the boards of several not-for-profit organisations including Anglican Community Services (aka Anglicare Sydney), the Australian University of Theology and Opportunity International Australia. He was deputy chair of the Governance Policy Review Committee which prepared, and recommended, the updated Policy to the Sydney Synod.
Endnotes
[i] Keeping Faith: How Christian Organisations Can Stay True to the Way of Jesus by John Swinton, Kara Martin, and Stephen Judd, Acorn Press 2023.
[ii] See the examples given in the Preface to Keeping Faith, ibid, under the heading “The loss of faithfulness”.
[iii] See the examples given in the Preface to Keeping Faith, ibid, under the heading “The loss of faithfulness”.
[iv] All the ordinances and policies adopted by, and reports to, the Synod of the Anglican Diocese of Sydney referred to in this article are available on the document repository page of the Sydney Anglicans website - https://docs.sydneyanglicans.net/s/.
[v] The first constitution of the Church Society of the United Church of England and Ireland in New South Wales (commonly known as the Church Society of Sydney and a predecessor of Anglican Community Services, aka Anglicare Sydney) was established in 1856 following a public meeting where the "rules and regulations" for the Society were finalised. These “rules and regulations” pre-date the formation of the Sydney Synod.
[vi] The updated Policy applies to Diocesan schools and other incorporated or unincorporated bodies (including trustees of a trust) (a) which are constituted by ordinance or resolution of the Synod, (b) in respect of which, or whose property, the Synod may make ordinances, or the Archbishop-in-Council may impose legally binding conditions, or (c) which operates within the Diocese and uses a church name in a manner described in section 6 of the Anglican Church of Australia Act 1976 (NSW).
However, the updated Policy does not apply to parishes and provisional parishes (including the cathedral and pro-cathedrals), recognised churches and provisional recognised churches, pre-schools, and schools not registered and accredited for the purposes of the Education Act 1990 (NSW).
[vii] The ACNC Governance Standards are a set of core minimum standards relating to charity governance and how a charity is run including its processes, activities and relationships - see https://www.acnc.gov.au/for-charities/manage-your-charity/governance-hub/governance-standards.
A basic religious charity is a a charity registered with the ACNC that has the charitable purpose of advancing religion and meets six specific criteria - see https://www.acnc.gov.au/manage-my-charity-type/basic-religious-charities.
The ACNC External Conduct Standards are a set of standards that govern how a charity (including a basic religious charity) registered with the ACNC must manage its activities and resources outside Australia (including when it sounds money overseas - see https://www.acnc.gov.au/for-charities/manage-your-charity/governance-hub/acnc-external-conduct-standards.
[viii] In simple terms (a) a Level A organisation is an unincorporated organisation, and (b) a Level B organisation is an organisation which operates within the Diocese and uses a church name in a manner described in section 6 of the Anglican Church of Australia Act 1976 (NSW).
A Level C or D organisation is an incorporated organisation which conducts an enterprise in its own right (rather than an administrative function under an ordinance) and has an Australian Business Number. A Level D organisation conducts a more complex enterprise, or operates in a more complex regulatory environment, than a Level C organisation.
Further detail is set out in Appendix 1 of the updated Policy.
[ix] The broader charitable purposes of the Diocese are (a) as set out in Section 4 of the Anglican Church of Australia Trust Property Act 1917 (NSW) or any other applicable statute, or (b) as publicly expressed by the Archbishop or the Synod for the purposes of the updated Policy from time to time, including the purpose articulated by the Archbishop in the document “Purpose and Priorities for our Diocesan Fellowship”.
[x] It should be noted that section 111L of the Corporations Act provides that if a company is is registered with both the ACNC and the Australian Securities & Investments Commission, some requirements in the Corporations Act do not apply. These requirements are described as being ‘turned off. See https://www.asic.gov.au/for-business-and-companies/nfps-and-charities/registered-charities-obligations-to-the-acnc-and-asic/ for further information.
[xi] See footnote 8 for brief descriptions of Level C and D organisations.
[xii] See footnote 8 for a brief description of a Level B organisation.