A Health Promotion Charity (HPC) is one of the categories or ‘subtypes’ of charity that can register with the ACNC.
An HPC can apply for charity tax concessions and may be eligible to be endorsed as a deductible gift recipient (DGR) by the Australian Taxation Office (ATO).
If you want your organisation to be endorsed as a DGR under the HPC category, it must first be registered with the ACNC as a charity – as well as with the subtype of HPC – and also satisfy other ATO requirements.
This factsheet explains what an HPC is and outlines the requirements for registration as an HPC.
For more information, see our Commissioner's Interpretation Statement: Health Promotion Charities.
The legal meaning of Health Promotion Charity
The specific legal meaning of HPC is a charitable 'institution whose principal activity is to promote the prevention or the control of diseases in human beings'.
Not all health-related charities are HPCs.
The description of an HPC is narrower than the description of a charity with the purpose of 'advancing health’. This is because an HPC must promote the prevention or control of disease or diseases, it cannot just advance general health.
Examples of HPCs include organisations that:
- research treatments for diseases, or methods of disease prevention, or
- work to raise awareness of diseases.
Requirements for registration as a Health Promotion Charity
Your charity may be an HPC if:
- it fits the legal meaning of a charity and is entitled to be registered as a charity
- it is an institution
- it promotes the prevention or the control of disease in human beings (or does both), and
- its activity to promote the prevention or control diseases in human beings is its principal activity.
To be recognised as a charity, an organisation must:
- be not-for-profit
- have only charitable purposes that are for the public benefit
- meet the ACNC Governance Standards and the ACNC External Conduct Standards (if applicable)
- have an Australian Business Number (ABN)
- not have a disqualifying purpose
- not be an individual, a political party or a government agency
- not be ‘covered by a decision in writing made by an Australian government agency (including a judicial officer) under Australian law that provides for entities to be characterised on the basis of them engaging in, or supporting, terrorist or other criminal activities.’
Find out more about eligibility for charity registration with the ACNC.
An institution is a body created to carry out activities in furtherance of a particular purpose or aim.
There is no required legal structure for an organisation to be an institution, but that organisation must exist in a form that enables it to carry out activities.
In deciding whether an organisation is an institution, the main thing the ACNC will look at is the nature and frequency of the organisation’s activities.
To be an institution, your organisation must not be a mere trust or fund. It must do more than just hold property on trust and make distributions of funds or property to other organisations or individuals. It must have its own activities, or engage others to undertake activities on its behalf.
The ACNC will also consider membership of the organisation and the relationships between those who control it.
An organisation controlled by members of the same family, and which undertakes activities on a small scale and which has a small and exclusive membership, is unlikely to be an ‘institution’.
Definition of disease
The Macquarie Online Dictionary defines 'disease' as 'a morbid condition of the body, or of some organ or part; illness; sickness; ailment'.
'Disease' is a broad term that covers both physical and mental illnesses. It must be a disease, rather than a general health condition or symptom.
However, where a health condition or symptom, if untreated, will degenerate into a disease or diseases, activities to prevent or control that condition or symptom could be viewed as promoting the prevention or control of the disease or diseases.
The disease or diseases must affect people – diseases affecting animals or plants, but not people, will not meet this description.
Some examples of diseases are asthma, cancer, diabetes, AIDS, arthritis, heart disease, brain diseases such as Alzheimer’s disease, kidney disease, cerebral palsy, mental illness and multiple sclerosis.
Not everything that affects a person's mind or body is a disease. For example, pregnancy is not a disease and an organisation with a principal activity of educating people about the various stages of pregnancy would not be an HPC.
But there are diseases that can arise during pregnancy. An organisation with a principal activity of educating people about how to prevent the diseases that can arise during pregnancy may be an HPC.
Injuries, such as a broken arm suffered during a fall, are not diseases.
But injuries that are not treated properly can lead to the development of diseases. An HPC could have a principal activity of promoting the prevention or control of diseases that result from injuries.
For example, a fractured spine is an injury, but a fractured spine can lead to paraplegia, which is a disease. An HPC could have a principal activity of promoting the prevention or control of paraplegia.
Classifications and guidelines on disease
An organisation that has a principal activity relating to a potential health condition that is not yet widely recognised by health authorities as a disease may be an HPC, depending on how it carries out its activity and how the activity is intended to promote the prevention or control of disease.
The ACNC will be guided by the work of key health and research bodies on any existing, new or emerging definition of, or consideration of, disease or diseases, including:
- the Australian Institute of Health and Welfare – provides comprehensive information and research about health and diseases affecting Australians
- the National Health and Medical Research Council – a leading Australian expert body promoting the development and maintenance of public and individual health standards, and
- the World Health Organisation – a body with the primary role of directing and coordinating international health within the United Nations system. It publishes the annual World Health Report and the International Classification of Diseases.
The ACNC may also have regard to relevant work of similar reputable organisations such as the United States’ Centers for Disease Control and Prevention.
The ACNC considers that an organisation should identify the disease or diseases whose control or prevention it is promoting.
For example, to be an HPC, it would not be enough for an organisation to promote weight loss or increased physical activity without identifying the disease or diseases that are being prevented or controlled through this promotion.
Promoting
It is important that the principal activity of the organisation is to 'promote the prevention or control' of disease or diseases.
The use of the word 'promote' means that it is not just organisations that engage in activities to directly prevent or control disease or diseases that can be HPCs. Indirect activities, such as awareness-raising and research can also promote the prevention or control of diseases.
Definition of promote
The definition of 'promote' includes:
- to further the growth, development or progress of
- to encourage.
A broad view is taken of activities that might promote the prevention or control of disease. While the activities of promoting the prevention or control of disease must be the main focus of an HPC, these do not need to be the organisation’s only activities.
As 'promote' is to be understood by its ordinary meaning, there could be many ways in which an organisation’s activities promote the prevention or control of disease or diseases.
For example, an organisation involved mainly in public awareness-raising activities about the importance of immunisation against a particular disease would fit within this definition.
But the use of the word 'promote' does not apply broadly to general health and wellbeing programs. The promotion must relate to prevention or control of disease or diseases.
Work to promote the prevention or control of disease includes:
- taking action to reduce the spread of disease
- research into management and treatment of disease
- managing and treating disease
- activities to alleviate suffering or distress caused by disease.
Whether it has to be successful promotion
An organisation does not have to demonstrate its success in actually preventing or controlling disease or diseases.
But, the organisation does need to show that the nature of its activities can be considered to promote the prevention or control of disease or diseases.
For example, a research institution which is working to develop a treatment for a particular disease would have an activity of promoting the control of that disease, even though its efforts to develop the treatment may not be successful.
Examples of health promotion activities
Activities that may promote the prevention of a disease include:
- raising public awareness regarding a disease, its causes, and measures that can be taken to guard against contracting it
- undertaking medical research into the causes of a disease, or how to prevent a disease.
Activities that may promote the control of a disease include:
- developing or providing aids or equipment to help people suffering from a disease
- education of carers of people with a disease
- undertaking medical research into the treatment of a disease.
Activities that are unlikely to promote the prevention or control of a disease sufficiently for the purpose of registration as an HPC include:
- promoting healthy lifestyles in a general sense, such as the importance of healthy eating and regular exercise
- promoting a particular type of exercise due to its general health benefits
- activities intended to increase a person’s 'wellbeing', such as recreational and social activities.
When it comes to determining if an organisation is an HPC, the ACNC looks at the activities it undertakes.
It is possible an organisation that once fitted within the description of an HPC may no longer do so if it changes its activities.
An organisation's principal activity is the activity it conducts more than any other. An HPC can undertake other activities, but promoting the prevention or control of disease or diseases in human beings must be its main activity.
While most often the promotion activities will take the majority of the organisation’s time or resources, there may be cases where they do not.
The principal activity must be conducted in order to promote the prevention or control of disease or diseases. What is considered the principal activity will vary depending on the facts of each case.
The ACNC will group similar activities together when determining an organisation’s principal activity.
For example, if an organisation promotes the control of heart disease through three activities, it will be regarded as one activity – promoting the control of heart disease – that incorporates three different aspects. If each of the three activities takes up 20% of the organisation’s time and resources, the ACNC would accept that the organisation spends 60% of its time and resources promoting the control of heart disease.
This would mean that the organisation’s principal activity is promoting the control of heart disease.
If an organisation’s principal activity is not focused on promoting the prevention of control of disease, but leads to the prevention or control of disease as a possible outcome, the organisation is unlikely to be eligible for registration as an HPC.