Starting a Not-For-Profit or Charitable Organisation
Are you thinking about starting an organisation, charity, club,
association, social enterprise, co-operative or some other kind of
not-for-profit group? If so, this information may be helpful.
What's the Difference between a Charity and a
There are approximately 600,000 Not-For-Profits in Australia and
approximately 60,000 are registered as charities.
Charities are entitled to a range of tax concessions that are
typically not available to other Not-For-Profit organisations.
These may include Income Tax Concessions, Fringe Benefits Tax, GST
concessions and endorsement as a Deductible Gift Recipient
Typical examples of Not-For-Profit organisations include
sporting clubs and community groups.
In comparison, to be registered as a charity, an organisation
must be 'Not-For-Profit' and must also fall within one (or
more) charitable purposes.
These charitable purposes broadly are:
relieving poverty, sickness or the needs of the aged;
advancing religion; or
other purposes beneficial to the community.
Act 2013 codified the above charitable purposes into 14
categories, however, the future of the legislation is currently
What is a Deductible Gift Recipient (DGR)?
A DGR is an entity with tax status that entitles a donor to a
tax deductible receipt to the value of the donation or gift. DGR
status also entitles the organisation to receive funds from
particular types of grant makers and philanthropic bodies that are
only able to give money to organisations that have DGR status.
DGR status is not available to all charities, but is available
to charities that fall within one of the DGR categories. For a full
list of DGR categories
Typically, organisations seek DGR status as it makes charitable
giving more attractive to donors. However, it is worth noting that
DGR status is not essential in order to fundraise, and some
government entities, philanthropic organisations and members of the
public are happy to provide funding or give donations to
organisations without DGR status.
If you are undertaking fundraising activities for charitable
purposes (irrespective of whether your organisation is endorsed as
a DGR) you need to apply for a fundraising licence in each of the
States and Territories where fundraising is undertaken. This
requirement does not apply to religious institutions in some
Is my Organisation Eligible for DGR Endorsement?
We would be pleased to assist you with determining whether your
organisation should register for DGR endorsement, and recommend
that you review the comprehensive Guide to Deductible Gift
Recipient Status published earlier this month by Justice
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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