Whether you are looking to setup a charity or an association for a not-for-profit purpose; we could be of assistance. There are various structures to choose from. All Charities and not for profits should register with the ACNC. There are various tax and compliance concessions granted to not for profit organizations. These concessions depend on the activities carried out by the not for profit.
We have experienced and qualified accountants who can not only help you make the right choices pertaining the structure of the not-for-profit but also help you understand the obligations placed on not for profits in Australia.
There are specially drafted constitutions that would need to be used that are tailor-made according to the activities and long term objectivities of your charity or a not-for-profit.
The structure of your organisation shall also determine the scope and extent of your activities.
The common structures are as under:
- An Association
- A Company
- A Trust
Non-Profit or Charity Setups in Australia are required to register with the Australian Government in the same manner as any other business set-up in Australia; meaning an NFP would have to have its own ABN, TFN and other registrations as per specific requirements.
Under a Company Structure, Charity organizations are registered as a Public Limited Company with a Liabilities Guarantee. It means the proprietor or the members of the company are limited to a liability of a specific amount towards the property of the company in case of winding up of the company.
Companies are registered under the Corporations Act 2001C of the ASIC. A company registered is recognized throughout Australia. For a Public Limited Company, must have,
- At least 3 directors and 1 secretary.
- At least 1 member
- A registered office address and principal place of business located in Australia
- The registered office open and accessible to the public
- Maintained register of its members
- Record of all directors and members; minutes of Meetings and Resolutions
- Proper financial records
- Hold a AGM once every calendar year within 5 months after the end of its financial year
- Lodge notices whenever changes to its officeholders, office addresses and constitution or Company Name Occur
A setup within Australia can also be registered under state and territory associations’ incorporation legislation, which is not administered by ASIC. This setup is also a legal entity in Australia and is eligible to use legal laws as required. These Incorporated associations are restricted for their operations within the state and territory in its home jurisdiction. However if an association wants to conduct business outside its home jurisdiction, it must be registered to do so. These home jurisdictions impose less onerous conditions than the corporations act governing the activities of companies.
An Incorporated association may become registered under the Corporations Act in order to carry out business in other states or territories of Australia without needing to register as a company. These associations will become an Australian registered body and will be allocated an Australian Registered Business Number.
With a specific deed a trust can be registered as a not for profit or a charity too. The deed should be quite specific in nature in regards to the governing rules and objectives.
Setting up a Not for profit hence may be quite complex because such a setup attracts quite a few concessions. The regulating guidelines are quite precise and pre-defined. It would be best to setup an appointment with us beforehand to find out more about your proposed Not for Profit or Charity.