It Depends – What are the ACNC’s requirements to register a charity?

In this edition of It depends, special counsel Carly Ashwood talks about the ACNC’s requirements to register a charity.

Video transcript

Welcome to this video and our Not-for-profit Legal 101 Series. I’m Carly Ashwood, special counsel in the corporate advisory team here at Cooper Grace Ward Lawyers. Today, I’ll be talking to you about the requirements of the Australian Charities and Not-for-profits Commission, The ACNC, when considering charity registration applications.

How does the ACNC determine if an entity is a charity?

The ACNC makes a determination as to whether a not-for-profit is a charity under the legislation it administers and there are a number of requirements. Most commonly, in order to be registered as a charity an entity must be a not-for-profit, only have charitable purposes, not have any disqualifying purposes. For example, engaging in activities that are a contrary to public policy, comply with the ACNC governance standards, and meet the requirements of one or more charity subtypes.

How do you determine what charity subtype to apply under?

The appropriate charity subtype to apply under depends on the activities and the objects of the entity. There are 14 charity subtypes and a charity can apply under one or more. Common charity subtypes include the advancement of health, the advancement of education, the advancement of religion, the advancement of the natural environment, and social and public welfare.

Are there any special requirements for some charities?

Whether there are any special requirements in a charity registration application depends on the activities and the objects of the organisation and the charity subtype it is applying under. By way of example, there are special requirements for charities with overseas activities and for charities that are applying for particular tax concessions. For example, the ATO’s requirements in relation to gift funds and public funds. Charities with overseas activities will need to comply with The ACNC’s external governance standards.

Some charities, such as those that operate a deductible gift recipient scholarship fund or a building fund, will need to comply with the ATO‘s requirements in relation to public funds. Other charities, such as those for the advancement of the natural environment or cultural organisations, will need to comply with the ATO’s requirements in relation to gift funds.

If you have any questions about registering as a charity or available tax concessions, please feel free to contact me. Please also tune in for our other videos in this Not-for-profit and charities legal 101 series. Thank you.