Climate group 350.org may lose charity status over protest call

Climate group at risk of losing its charity status after footage emerges of CEO appearing to urge protesters to break the law.

350.org Australian chief executive Blair Palese

An anti-coal organisation is at risk of being deregistered as a charity with Turnbull government ministers seizing on new footage of its chief executive urging protesters to “get arrested” at a blockade of the Port of Newcastle in May 2016.

Climate group 350.org is being investigated by the federal government’s charities regulator to determine whether it promoted unlawful activities, with The Australian obtaining video of its Australian chief executive Blair Palese appearing to encourage anti-coal protesters to break the law.

Speaking at an event in Sydney in April 2016, Ms Palese said the organisation was urging supporters to take-part in the blockade of Newcastle Harbour to prevent coal shipments leaving the terminal as part of the worldwide “Break Free” protest movement against fossil fuels.

“It’s a big ask,” she said. “We’re asking some people to get arrested. We’re asking some people to step-up, join the event, be in kayaks and boats, literally blockade that day and be part of a flotilla that will say no more fossil fuels out of that port.”

“It (coal) can no longer be part of the economy that makes up Australia’s future.”

Nearly 2000 protesters participated in the May 8 2016 demonstration at Newcastle’s Horseshoe Beach while about 200 kayaks and catamarans blockaded the harbour with the police charging more than 60 individuals over the action.

Resources Minister Matt Canavan seized on the footage of Ms Palese, telling The Australian that her conduct gave “all charities a bad name.”

“A registered charity should not be encouraging people to break the law,” Senator Canavan said. “And if 350.org had any credibility they’d disavow this conduct or take themselves off the registered charity list.”

According to its financial statement for the year ended June 30 2017 lodged with the Australian Charities and Not-for-profits Commission (ACNC), 350.org recorded a total income of $1.2 million nearly entirely sourced through donations including $641,598 from “foundations” and $110,260 in the form of “international” donations.

West Australian Liberal MP Ben Morton — who wrote to the ACNC to raise concerns about the activities of 350.org in September — told The Australian the undisclosed funding from “foundations” was “of great concern” and blasted the lack of transparency around the group’s finances.

“Do these foundations have tax deductibility status? Are they being used to hide the source of the donation?” he said.

“350.org is clearly a political organisation and should lose its charity status and all the concessions that follow. As a minimum they should at least be required to disclose more transparently to the higher standard like a political party or associated entity.”

In his letter to the ACNC, Mr Morton warned the activities of 350.org threatened to “bring the sector into disrepute and could contravene the provisions of the Charities Act 2013.”

Assistant Minister to the Treasurer, Michael Sukkar, said that maintaining the “integrity and public confidence in the Australian charities and not-for-profits sector is of paramount importance to the Government.”

“It is therefore concerning to see any unlawful conduct being encouraged by registered charities,” he told The Australian. “Individuals and organisations are always encouraged to raise concerns about registered charities and not-for-profits with the Australian Charities and Not-for-profits Commission Act (ACNC).”

Mr Sukkar announced a review of the ACNC legislation last month, saying the government would “consider whether any amendments are required to equip the ACNC Commissioner to respond to both known and emerging issues.”

The deputy chief executive of 350.org Australia Glen Klatovsky told The Australian he could not fully answer a series of questions because there was an investigation being conducted by the ACNC, but made clear the organisation wished to retain its charity status.

“350.org Australia takes its obligations as a registered Australian charity very seriously and is working with the ACNC to ensure that we continue to meet its requirements,” he said. “350.org Australia remains wholly focused on delivering its charitable purpose for the benefit of the Australian community.”

The ACNC, now headed by former Keating government minister Gary Johns, told The Australian it was “investigating (350.org’s) activities and operations” but was constrained from saying anything publicly due to the “secrecy provisions in the ACNC Act.”

“Our general approach to investigating these kinds of concerns is to establish if a charity has a purpose of promoting unlawful activity,” an ACNC spokesman said. “Where a charity invests significant resources into engaging in, or promoting, unlawful activities, this may amount to having a disqualifying purpose under the Charities Act.”

“Without commenting on any particular case, the ACNC would be concerned if statements are made that may suggest that a charity has a disqualifying purpose, including engaging in, or promoting, activities that are unlawful.”

The ACNC said it was difficult to distinguish between “what a charity does, and what it says it will do.”

“Clearly, if a charity spends a lot of its time doing things that might contradict its purpose, then it may breach its obligations under the ACNC legislation,” the spokesman said. “What we would do in this situation is contact a charity to clarify comments and establish whether the statements were made on behalf of the charity, or in a personal capacity.”

“The ACNC regulates the charity, and not the individual.”

The ACNC has compliance powers and can issue organisations with formal warnings, undertakings or compliance agreements as well as revocation of charity status which would also remove an organisations entitlement to access charity tax concessions.