How does ACNC define charity size?

Attention - Important information! The size of your charity is based on annual revenue


Small charities (annual revenue is less than $250 000)

Medium charities (annual revenue is $250 000 or more but less than $1 million)

Large charities (annual revenue is $1 million or more)

Revenue is a component of total income.

A simple formula to assist charities to understand the terminology is:

Revenue + Other Income = Total Income.

Example 1 below shows how it may appear in an Income (profit and loss) statement:

What is revenue?

Revenue is realised from the sale of goods or services, through the use of capital or assets, or revenue arising from the contribution of an asset to a charity when certain conditions have been met during the ordinary activities of your charity

Revenue is usually shown as the top line item in an income (profit and loss) statement (see Example 1, above).

Examples of revenue for a typical charity include:

  • grants from government, foundations, private or any other sources
  • donations, tithes, bequests or legacies
  • fees for provision of services
  • sale of goods
  • inflows from fundraising activities or sponsorship
  • interest earned on investments, dividends
  • royalties and license fees
  • in-kind donations (for example, volunteer time or goods).

For technical guidance please refer to the following Australian Accounting Standards:

What is ‘other income’?

‘Other income’ is created from transactions that are not part of your charity’s ordinary activities.   ‘Other income’ is usually shown as a line item in the income (profit and loss) statement between revenue and total income (see Example 1, above).

Examples of other income for a typical charity include:

  • realised gain on sale of assets (for example, motor vehicles, equipment, real estate, investments, assets that are not part of your charity’s inventory)
  • realised gains on foreign currency transactions
  • forgiveness of a liability or debt.

What is other comprehensive income (OCI)?

The difference between ‘OCI’ and ‘other income’ is that OCI generally accounts for unrealised gains and losses.  The cumulative balance of OCI can be found in the equity section of the balance sheet in some form of a reserve but can also be included in the income (profit and loss) statement and other comprehensive income (see Example 2, below). 

Generally, small charities will not have any OCI. For medium and large charities, some examples of OCI include:

  • revaluations on land and buildings (that the charity still holds)
  • changes in the fair value movements on investments (that the charity still holds)
  • foreign currency transaction gains and losses on foreign subsidiaries.