What is a non-profit?
Not-for-profit organizations are types of organizations whose primary purpose is to provide benefits and service to its members, not to earn profits for its shareholders.
A not-for-profit can make and keep profits as long as it is to used to pursue its purpose, such as to expand its facilities in order to deliver greater benefits and services to a larger number of members.
Nonprofit organisations are tax-exempt. In a nonprofit organization, income is not distributed to the group’s members, directors, or officers
There are different ways you can register as a not-for-profit organisation. Before you register, you should consider what structure best suits your organisation’s purposes.
Registering as a company
Registering as an incorporated association
Creating a registrable Australian body
Registering as a company
Charitable and not-for-profit organisations can be registered as public companies limited by guarantee. This means the liability of the company’s members is limited. The limit is usually the amount members will contribute to the property of the company if it is wound up.
Registration of a company creates a legal entity separate from its members. This means the company can hold property and sue or be sued.
If a public company limited by guarantee subsequently registers with the Australian Charities and Not-for-profits Commission (the ACNC), some of these Corporations Act obligations are turned off.
Registering as an incorporated association
An incorporated association also known as Co-operatives is a legal entity separate from its members. The incorporated association structure can be more effective for small community organisations. They are generally simpler and more affordable than a company structure.
Incorporated associations are registered under state and territory legislation, which is not administered by ASIC. Incorporated associations can only carry on business in the state they’re registered in. For example, if registered in Victoria, they can only conduct business in Victoria. If they want to trade in other states, they need to become a registrable Australian body.
Unincorporated groups
For groups that have decided not to incorporate, the following fact sheet has information about unincorporated associations, including:
- developing a statement of objectives and rules
- the risks that may arise for unincorporated groups, and
- registration as a charity with the Australian Charities and Not-for-profits Commission (ACNC)
How we can help
We can provide you with professional consultations and support for various aspect such as:
- Registration process
- Tax concessions
- Endorsement process
- Legal structures
- Financial management
Talk to our friendly team and see how we can help.
Overall Pros and Cons
Pros
- Tax exemption
- Limited liability
- Eligible for grants
- Working for society
Cons
- Lack of funds
- Low pay and loss of tax status
- Competition for funding
- Paperwork and administrative costs
Do you want to get started? Click here to fill in your details.
Success stories
How Wilson & Associates helps us with our profit turn-around and growth strategies – by Dr. Watson, CEO, Ethos Health,13/06/2018
Wilson & Assoc provides robust planning, rigorous performance management, commercial and strategic advice, and helps drive profit and accelerated growth.
What we are about
We are a leading chartered accounting firm providing Tax and External CFO services.
We provide financial clarity and structure, illuminate roadmap to vision, translate strategies to actionable plans, help build agility and resilience to thrive under all conditions.
We bring 25 years of experience solving complex problems at large corporates to servicing clients without the big costs.
Our mission is to help clients create the financial future they want. Our business is to help save tax, build wealth, and grow amazing business. Our brand is built on trust. Our reputation is built on mastery and integrity. Our success is measured by the values we create for clients.
