How we can help you register a charity
Registering or starting a charity requires adherence to criteria set out by the Australian Charities and Non-for-profit Commission (ACNC). These criteria include, being a non-for-profit entity, only have charitable purposes for the public benefit, complying with the ACNC Governance Standards and not having disqualifying purposes.
If you would like to register an existing business, you must have specific clauses in your business governing document. The required clauses include, purpose clauses, winding up clauses and conflict of interest clauses, while still complying with the necessary legislation for your legal structure in relevant jurisdiction. The mechanisms for changing an entities governing document depends on its legal structure and can include board meetings, member votes and approvals. HCN Law can help in complying with criteria and the application itself.
If you are starting a new entity for the purpose of becoming and registering as a charity, there are usually two options available, being an incorporated association or a company limited by guarantee.
Incorporated associations are the most numerous amongst the charities registered with the ACNC. An incorporated association limits the liability of directors and members as well as allowing appropriate financial reporting and governing structure to be a registered charity. In establishing an incorporated association, the governing document or constitution of the entity can be made to reflect the ACNC criteria from foundation.
A company limited by guarantee has similar features to an incorporated association but is capable of being used for larger charitable organisation. These companies are administered by ASIC and the ACNC.
The Deductable Git Recipients (DGR) registration by the Australia Tax Office (ATO) enables your charity to take tax deductible donations. Applying for a DGR with the ATO can be done simultaneously with ACNC registration but must adhere to additional requirements to be eligible for the DGR.
For more information about charities and not-for-profits, please contact us on 02 4934 6899 or book a free consultation here.
