1. Before you apply to register a charity Matt Crichton | ACNC Education Officer April Kitchenham | ACNC Education Officer 12 July 2016

2. Before you apply to register a charity About the ACNC Charities, not-for-profits and deductible gift recipients Should you register a charity? (benefits and obligations) What you need before you apply Tax concessions Applying for charity registration More information

3. About the ACNC: what we do Register new charitiesMaintain a charity registerRegulate charities (reporting and compliance)Advice, guidance and educationReduce red tape for charities

4. About the ACNC: what we are not Internal dispute resolution serviceSubstitute for your incorporating regulatorAdvocacy body for the sectorTrying to run your organisationLegal adviserAustralian Taxation Office or other agency

5. Charities, NFPs and DGRs Charities (54,000) Not-for-profit Charitable purpose Public benefit Meet ACNC requirements Deductible Gift Recipients (DGRs) 32% of charities Not-for-profits (NFPs) (600,000) The ACNC regulates charities

6. Should you register a charity? Want to set up a new charity? Is setting up a charity the best way to achieve your goals? Is there another charity you could support or work with? Is your NFP eligible to register? acnc.gov.au/whocanregister Do you need to register to receive tax concessions? Want to register your NFP? Are there benefits to registering? acnc.gov.au/startcharity acnc.gov.au/applytoregister https://www.ato.gov.au/Non- profit/Getting-started/ acnc.gov.au/findacharity

7. Benefits of being a registered charity Can apply to Australian Taxation Office (ATO) for charity tax concessions (CTCs) such as income tax exemption or goods and services tax (GST) concessions Depending on subtype (purpose), may apply to be endorsed as a deductible gift recipient (DGR) Other Commonwealth concessions, benefits or exemptions Presence on the ACNC Register

8. Obligations of registered charities Keep charity status Notify of changes and report annually Keep certain financial and operational records Meet the ACNC governance standards Meet other obligations Guidance: acnc.gov.au/ongoingobligationsacnc.gov.au/ongoingobligations

9. What to check about your organisation before you apply Be eligible to be a charity –not-for-profit –charitable purpose for the public benefit Legal structure –not an individual, a political party, or a government entity Australian Business Number (ABN) Rules or governing documents Charity name Responsible person details Knowledge of tax concessions

10. Not-for-profit Not-for-profit clause How assets and income will be used and distributed. 'The assets and income of the organisation shall be applied solely to further its objects and no portion shall be distributed directly or indirectly to the members of the organisation except as genuine compensation for services rendered or expenses incurred on behalf of the organisation.‘ Dissolution clause What happens to the organisation’s assets if it winds up. 'In the event of the organisation being dissolved, the amount that remains after such dissolution and the satisfaction of all debts and liabilities shall be transferred to another charitable organisation with similar purposes which is not carried on for the profit or gain of its individual members.'

11. Charitable purpose or subtype Charities Act 2013 (Cth) lists twelve charitable purposes: –advancing health –advancing education –advancing social or public welfare –advancing religion –advancing culture –promoting reconciliation, mutual respect and tolerance between groups of individuals that are in Australia –promoting or protecting human rights –advancing the security or safety of Australia or the Australian public –preventing or relieving the suffering of animals –advancing the natural environment –promoting or opposing a change to any matter established by law, policy or practice in the Commonwealth, a state, a territory or another country (where that change furthers or opposes one or more of the purposes above), and –other similar purposes ‘beneficial to the general public’ (a general category). acnc.gov.au/charitablepurpose

12. Charitable purpose or subtype Charities can have only charitable purposes, or purposes that are ancillary or incidental to a charitable purpose Non-charitable purposes include: –sports, recreational or social purposes –providing private benefits –promoting activities that are unlawful or contrary to public policy –the purpose of promoting or opposing a political party or candidate. Charitable purpose must benefit the public generally, or a particular group of people. acnc.gov.au/charitablepurpose

13. Your charitable purpose Does it say what the organisation wants to achieve?Will it be suitable over time?Is it clear and easy to understand?Will the activities of your organisation work towards it?acnc.gov.au/acnc.gov.au/charitablepurpose

14. Charitable purpose: DGR categories Public benevolent institution (PBI) To relieve suffering that is serious enough that it would arouse a feeling of pity or compassion in members of the community Institution, not merely a fund Main purpose of ‘benevolent relief' Relief provided only for people in need Health promotion charity (HPC) To promote the prevention or control of diseases in people Institution Promote the prevention or control of disease in people Must work towards prevention or control of disease Promoting the prevention or control of disease must be its principal activity

15. Legal structure Size Interstate and/or overseas Employees and/or volunteers Accountability to members and the public Liability of members and office holders Government grants Charity assets Things to consider Incorporated association Company limited by guarantee Indigenous corporation Public or private ancillary fund Trust Co-operative Unincorporated association Not an individual, a political party or a government entity Types of structures ACNC: acnc.gov.au/legalstructure and acnc.gov.au/startcharity ATO: ato.gov.au/Non-profit/Getting-started-for-non-profit- organisations/Choosing-a-legal-structure Other regulators: acnc.gov.au/otherregulators Legal advice More information

16. Australian Business Number (ABN) Before you can apply to register, you need an ABN. Apply on the Australian Business Register website: abr.gov.auabr.gov.au ACNC uses ABN (no separate charity registration number) Name must match your governing documents ABN ‘entity type’ must match your legal structure ACNC cannot register your charity before the date the ABN commences

17. Governing documents Rules, constitution, articles of association, trust deed etcMust include Object or purpose Not-for-profit basis, including on winding up May include Membership rules How the organisation makes decisions How meetings are held Appointment and powers of ‘responsible persons’ on the governing body (committee of management or board) DGR clause (if applicable). acnc.gov.au/governingdocument ato.gov.au/nonprofit > Getting started

18. Governing documents: Templates acnc.gov.au/governingdocument

19. Charity name: dos & don’ts acnc.gov.au/findacharity abr.business.gov.au DoDon’t Meet other regulators’ requirementsMake it similar to another charity Make it distinctiveUse offensive words or acronyms (in English or another language) Get permission to use itMake it misleading Include it in governing documents

20. Responsible persons Must provide name, date of birth and address of all responsible persons Choose responsible persons carefully. They: –are responsible for the charity’s direction and governance –have responsibilities under the ACNC Act –in rare situations, may be suspended or removed by the ACNC acnc.gov.au/responsiblepersons

21. Who are your responsible persons? Charity structureResponsible persons Incorporated associationMembers of the committee of management Company limited by guaranteeDirectors Indigenous corporationDirectors TrustTrustees or the directors of a corporate trustee Co-operativeDirectors Organisation incorporated another way (such as by an Act of Parliament) Depends on the legislation or charter (may be a trustee, director or council member) Unincorporated association Not always clear (for example, for a religious organisation, may be a central governing body and branches)

22. Charity tax concessions and deductible gift recipient (DGR) status Select option on ACNC registration application form ACNC passes the application to the ATO ATO accepts ACNC decision on charity status and decides if TCC and DGR status May be special conditions for some concessions ato.gov.au/Non-profit ato.gov.au/Non-profit > Getting started Tax basics for non-profit organisations Endorsement to access tax concessions

23. ACNC application process Apply free of charge at acnc.gov.au/registeracnc.gov.au/register Use our registration application guide acnc.gov.au/registrationguide acnc.gov.au/registrationguide For assistance call 13 22 62 or email advice@acnc.gov.auadvice@acnc.gov.au

24. After you submit your application Contact you Ask you for any extra information needed Answer your questions about your application Registration Analyst willIf successful We will tell you why You can ask for our decision to be reviewed – see our guidance on review of ACNC decisionsreview of ACNC decisions If unsuccessfulGenerally determined within 28 days of us receiving all information You will receive a Charity Pack: www.acnc.gov.au/charitypack www.acnc.gov.au/charitypack

25. Common problems with applications ACNC: Lack of suitable rules or governing documents Not charitable or not solely charitable Private benefit to members ATO: Income tax exemption - missing or conflicting information DGR endorsement – missing or ineffective revocation clause DGR endorsement – DGR item number does not appear to correspond with charities stated purposes

26. More information ACNC Registration application guide acnc.gov.au/registrationguideacnc.gov.au/registrationguide Starting a charity acnc.gov.au/startcharityacnc.gov.au/startcharity Register my charity acnc.gov.au/registeracnc.gov.au/register Register my charity type (structure) acnc.gov.au/legalstructureacnc.gov.au/legalstructure Governing documents acnc.gov.au/governingdocumentacnc.gov.au/governingdocument Responsible persons acnc.gov.au/responsiblepersonsacnc.gov.au/responsiblepersons Charity tax concessions acnc.gov.au/taxconcessionsacnc.gov.au/taxconcessions ATO ATO Non-profit ato.gov.au/non-profitato.gov.au/non-profit Not-for-profit Law at Justice Connect: nfplaw.org.aunfplaw.org.au

27. Keep in contact with the ACNC Commissioner’s Column, email updates, Quarterly Update Web guidance 13 ACNC (13 22 62) 9.00am – 6.00pm AEST advice@acnc.gov.au facebook.com/acnc.gov.au @acnc_gov_au youtube.com/ACNCvideos

28. Keep in contact with the ATO Subscribe to the Non-profit News Service via www.ato.gov.au/non-profit www.ato.gov.au/non-profit Call NFP Advice on 1300 130 248 8.00 am – 6.00 pm AEST, Monday to Friday

29. THANK YOU View this webinar and transcript, check the topics of upcoming webinars, and register at acnc.gov.au/webinars education@acnc.gov.au acnc.gov.au/webinars