Country Idealist Profiles

Non Profit Recognition – Official Process

1.  Determine whether the organisation is a “charity”.  To be a charity the organisation must:

  • be an entity (corporation, unincorporated association, trust or partnership etc)

  • be a trust fund or an institution

  • be able to demonstrate from its constituent or governing documents and the organisation’s activities (if applicable) that it is carried on for the public benefit or the relief of poverty

  • be non-profit. This means the organisation is not carried on for the profit or gain of its owners, members or other private people

  • not be
    – carried on for sporting, recreational or social purposes
    – carried on for political, lobbying, promotional or illegal purposes
    – carried on for a commercial purpose to generate surpluses, or
    – a government instrumentality carrying out the ordinary functions of government

  • from the listing that applies to your organisation, have a sole purpose
    – within the characteristics in the ‘Description’
    – the same as, or equivalent to, that of any organisation in the ‘Charities – examples’, and
    – not the same as, and not equivalent to, any in the ‘Non-charities – examples’.

2. Apply for endorsement as an Income Tax Exempt Charity (ITEC).  All charities are not automatically exempt from income tax.

  • Apply for an Australian Business Number (ABN), a single identifier for all business dealings with the tax office and for dealings with other government departments and agencies.

  • Apply for endorsement as a tax concession charity or income tax exempt fund.  

3.  The Australian Taxation Office will process the application and will send written confirmation to the organisation that:

  • your organisation is endorsed as exempt from income tax, or

  • endorsement has been refused.

If your organisation is endorsed, it is exempt from income tax from the date the endorsement starts.
Source(s):
http://ato.gov.au/nonprofit/content.asp?doc=/content/34308.htm&page=11&H11
http://ato.gov.au/nonprofit/content.asp?doc=/content/34267.htm&page=4#P214_16925 

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