charity

 

Are you aware that from 1 January 2014 a new definition of a charity applies?

As detailed on the Australian Charities and Not for profits Commission (ACNC) website, the intention behind this new definition is to address previous issues that sometimes made classifying a charity confusing and often resulted in time consuming and costly legal action to seek the clarity.

The ACNC site tells us that the Charities Act now states that to be a recognised as a charity, an organisation must:

  • be not-for-profit
  • have only charitable purposes that are for the public benefit
  • not have a disqualifying purpose
  • not be an individual, a political party or a government agency. 

Generally, there will be no impact on existing charities or the need to make any changes but if unsure follow the link to the Australian Charities and Not for profits Commission (ACNC) website for more information.

If you are planning to register as a charity you need to apply to the ACNC who will make the final determination.  For more information relating to the registration process, follow this link to the ACNC website Who can apply to be registered?  that provides additional information as well as the steps you will need to follow.

Also, read our next post which will give you some information in relation to the updated Not for Profit Guides from the Australian Tax Office.