Not-for-Profit Law

A not-for-profit entity is any organisation that operates to fulfil a purpose rather than benefit its members, owners, or other stakeholders. In Australia, an NFP entity may also:

• be registered with the ACNC
• have a not-for-profit clause in its governing document
• be endorsed as a deductible gift recipient (DGR) by the ATO.

That means an NFP entity doesn’t need to have a specific structure. Companies, trusts, associations and cooperatives can all be NFPs. Different structures do have different operational and tax implications, though, so choosing the right one matters a lot. Your commercial solicitor can help you choose and set up an appropriate structure for your entity.

In Queensland, a person or organisation can apply to raise funds for a charitable purpose. A charitable purpose means providing care, physical aid, resources, or education to someone in distress (which can be due to age, a natural disaster, or various other factors).

A one-off appeal generally lasts less than 6 months and requires approval from the Queensland government. At the end of the appeal period, all funds must be donated or used for the purpose for which they were raised.

Registered charities don’t have a time limit on their fundraising. If you need to raise funds for longer than 6 months, ask your solicitor about partnering with an existing charity. You can also seek an extension from the government.

• define its charitable objectives and operating rules in a constitution
• use its income and assets to fulfil those objectives (rather than benefit stakeholders)
• be an association of 3 or more people
• have a not-for-profit clause in its constitution
• be controlled by a governing body (generally, your management committee). 

As not-for-profit lawyers, we can’t. We can, however, refer you to an appropriately licensed tax specialist.