Step 1: Is my organisation a not-for-profit?
Generally, a not-for-profit is an organisation that does not operate for the profit, personal gain or other benefit of particular people (for example, its members, the people who run it or their friends or relatives). The definition of not-for-profit applies both while the organisation is operating and if it ‘winds up’ (closes down).
To be registered, your organisation must show the ACNC that it operates on a not-for-profit basis. For many organisations this can be done by showing that:
- their governing documents include suitable not-for-profit clauses, and
- they act consistently with these clauses.
It can still be a not-for-profit if it simply provides a benefit to a member while genuinely carrying out its charitable purpose, or pays a member a reasonable amount for services they have provided or reasonable reimbursements.
A not-for-profit can make a profit, but any profit made must be used for its charitable purpose(s).
Attention:You need to know! Find out more about being not-for-profit.
You may not be eligible to register with the ACNC.