Is your entity really a Public Benevolent Institution?

A Public Benevolent Institution (PBI) seeking deductible gift recipient (DGR) status is required to be registered with the Australian Charities and Not-for-profits Commission (ACNC) under the charity subtype, PBI prior to seeking DRG endorsement with the ATO. In assessing whether an organisation is a PBI, most Federal, State and Territory regulatory bodies including the ACNC … Read more

Charitable institutions: Land tax and other exemptions and the need to pay attention to the detail

A recent case dealing with Victorian land tax provides a timely reminder about how the nuances of the words used in exempting provisions in tax legislation will dictate the scope of the exemption. Taxpayers should be periodically monitoring exemption entitlements (existing or potential) and not assume the status quo is correct or that the same … Read more

National Redress Scheme & its impact on ACNC Charity/Basic Religious Charity status

Proposed new ACNC Governance Standard A registered charity must ensure that it continues to be entitled to registration with the Australian Charities and Not-for-profits Commission (ACNC). This includes meeting all the conditions for initial registration and ongoing registration obligations, including complying with the ACNC Governance Standards, where applicable the ACNC External Conduct Standards, as well … Read more

Proposed charity registration for all non-government DGRs

Currently, in order to be eligible for deductible gift recipient (DGR) endorsement, certain organisations are required to be registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC). Charity registration is a prerequisite for 40 of the 51 general DGR categories contained in the Income Tax Assessment Act 1997 (ITAA 1997). Organisations/DGR’s that … Read more

Government announcement regarding easing financial reporting burdens for charities

In August 2018, an independent review of the Australian Charities and Not-for-profits Commission legislation was handed down and included 30 recommendations relating to objects, functions and powers; regulatory framework; red tape reduction; and additional amendments (click here to see review findings). The Government’s response to these recommendations was released in March 2020, with the Government … Read more

Charities and the need to meet governance standards

In the 2020 Federal Budget, eagle-eyed charities and advisers may have noticed that the Federal Government has allocated $2.9 million over three financial years to the Australian Charities and Not-for-Profits Commission (“ACNC”) to conduct risk reviews of charities. The ACNC has confirmed that it will use this funding to “undertake field-based compliance reviews to assess … Read more

Varying your Pay As You Go (PAYG) instalments

Although many not for profits are income tax exempt and therefore not required to pay PAYG instalments,  their associated entities (carrying on commercial operations) or not for profits that do not fit within an income tax exemption category may still be required to pay PAYG instalments. For those entities that are required to pay PAYG … Read more

The importance of good governance in your NFP to obtaining and retaining tax concessions

The ramifications of poor governance are regularly evidenced in the public domain and can lead to a loss of public trust and confidence and in extreme situations threaten the viability of an organisation. Every non-profit (NFP) organisation benefits from good governance and its contribution to an organisation gaining and retaining the confidence and trust of … Read more