Charity compliance takes some getting used to


Kirra lately joined the committee of a not-for-profit organisation and went to see chartered accountant GAIL FREEMAN, confused in regards to the position of the Australian Charities and Not-for-profits Fee and Entry Canberra.

“I’M not shocked you’re confused; it’s complicated,” I stated. 

Gail Freeman.

“Firstly, your organisation has to register with Entry Canberra and have your guidelines authorised and obtain a certificates of incorporation as an included affiliation. 

“The subsequent factor is to register the organisation with the Australian Charities and Not-for-profits Fee (ACNC) as a charity.

“As soon as this registration is obtained and your charity needs to obtain tax-deductible items you have to to get approval from the Australian Taxation Workplace (ATO) to turn out to be a deductible present recipient (DGR). That’s, supplied your charity satisfies the required necessities for this based mostly on the character of the organisation and its charitable actions. 

“It’s also related to notice there are some sorts of charities that should be registered by one other authorities division earlier than utility is made to the ATO. 

“The approval might take a while relying on whether or not or not you possibly can self-assess. You might, at this stage, have to make adjustments to your guidelines if the ATO requires you to take action. If that is so you’ll have to notify each the ACNC and Entry Canberra in regards to the rule change.”

Kirra stated: “Now I perceive why I’m so confused!”

However there’s extra, I stated, itemizing just a few different necessary issues she wanted to know. 

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“If you’re altering the handle you do that solely by means of the ACNC, which notifies Entry Canberra,” I advised her.

“Each time a committee member resigns or is appointed or positions on the board change, you could notify the ACNC. It is advisable to do that after each AGM as nicely. 

“As you recognize, your charity can have a public officer and when the general public officer adjustments this must be notified to the ATO and Entry Canberra because the ACNC doesn’t maintain information of public officers. The general public officer is the one who indicators the BAS and tax returns, if these are required.

“The annual data report can also be submitted to the ACNC on-line and to not Entry Canberra. If the affiliation closes down it must notify Entry Canberra.

“For completeness and in case your affiliation ever decides to alter to an organization restricted by assure, the authorized necessities are fairly totally different. 

“An organization restricted by assure needs to be registered with ASIC and ACNC and the ATO, however not with Entry Canberra. The corporate should additionally notify the ACNC of all adjustments of administrators. 

“Any change to the corporate’s structure must be notified to ACNC. Sure different necessities for the corporate are based mostly on ACNC governance requirements. So, in case your organisation does comply with this route, you have to to refresh your self on all mandatory necessities.”

Kirra stated: “Thanks, Gail. Whereas it’s all very complicated, I now have a a lot clearer image. I believe…”

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For those who want help with the included affiliation of which you’re a member and its tax standing, contact the pleasant staff at Gail Freeman & Co on 6295 2844, e-mail [email protected] or go to

This column comprises common recommendation, please don’t depend on it. For those who require particular recommendation on this subject please contact Gail Freeman or your skilled adviser.

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Ian Meikle, editor