Commonwealth Act

Charities Act 2013 (Cth)

The Charities Act defines charity and charitable purpose for Commonwealth law, shaping ACNC registration, structure and charity claims.

In forceCommonwealthPlain-English guide5 practical checks

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

The Charities Act matters because it answers a threshold question: is the entity a charity for Commonwealth law?
For small operators, that affects structure, branding, grant applications, tax pathways, fundraising expectations and whether the organisation's purposes are framed in a way that...

Likely relevant if

Founders deciding whether an organisation can be registered as a charity
Social enterprises trying to balance mission, revenue and not-for-profit purpose
Boards, committees and trustees reviewing charitable purposes

Check first

Check whether the entity's purposes are charitable purposes for public benefit.
Draft governing documents so not-for-profit character, objects and winding-up treatment are clear.
Avoid charity claims where the entity has not been assessed or registered as a charity.

The threshold question

This Act is short, but it does heavy lifting. It is the starting point for deciding whether an organisation is a charity under Commonwealth law.

The legal question is narrower than ordinary language. A founder might say the organisation is charitable because it does good work. The Act asks about legal purpose, public benefit, not-for-profit character and whether any disqualifying purpose is present.

Questions to work through

The entity needs to be not-for-profit.
Its purposes need to be charitable purposes for the public benefit, or incidental to those purposes.
It must not have a disqualifying purpose.
Individuals, political parties and government entities are treated differently.

What to check before launch

Question	Why it matters
What is the real purpose?	The legal objects need to match the work the organisation will actually do.
Who benefits?	Public benefit is central for most charitable purposes.
Where does surplus money go?	Not-for-profit clauses and winding-up clauses need to stop private distribution.
Will it trade?	Trading can be compatible with charity status, but it should support the charitable purpose.

Business owner view

Key takeaways

Do not build the brand around charity status until eligibility has been checked.
Draft objects clauses in plain language, but make sure they line up with recognised charitable purposes.
Check ACNC registration, tax endorsement and fundraising rules as separate steps.
If a commercial business is donating profits, sponsoring a cause or running a foundation, document the relationship clearly.

Plain-English glossary

Charity: A not-for-profit entity with charitable purposes for the public benefit and no disqualifying purpose, subject to the Act's definition.
Charitable purpose: A legally recognised charitable purpose, such as advancing health, education, social or public welfare, religion, culture or other public-benefit purposes recognised by law.
Public benefit: The benefit that the charitable purpose provides to the public or a sufficient section of the public.
Disqualifying purpose: A purpose that can prevent charity status, including certain unlawful purposes or a purpose of promoting or opposing a political party or candidate.

Common questions

Can a business be a charity?

A charity must be not-for-profit and have charitable purposes for the public benefit. A trading activity can exist, but it needs to support the charity's purposes rather than private profit distribution.

Is a good cause automatically a charity?

No. The purposes, public benefit, disqualifying purposes, structure and governing documents all need to be checked.

Why does wording in the constitution matter?

The organisation's objects and winding-up clauses are often central to whether it is not-for-profit and charitable in the legal sense.

How Sprintlaw can help

Company Set Up Regulatory Compliance

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Quick read

The Charities Act matters because it answers a threshold question: is the entity a charity for Commonwealth law?
For small operators, that affects structure, branding, grant applications, tax pathways, fundraising expectations and whether the organisation's purposes are framed in a way that...

Likely relevant if

Founders deciding whether an organisation can be registered as a charity
Social enterprises trying to balance mission, revenue and not-for-profit purpose
Boards, committees and trustees reviewing charitable purposes

Check first

Check whether the entity's purposes are charitable purposes for public benefit.
Draft governing documents so not-for-profit character, objects and winding-up treatment are clear.
Avoid charity claims where the entity has not been assessed or registered as a charity.

The threshold question

This Act is short, but it does heavy lifting. It is the starting point for deciding whether an organisation is a charity under Commonwealth law.

Questions to work through

The entity needs to be not-for-profit.
Its purposes need to be charitable purposes for the public benefit, or incidental to those purposes.
It must not have a disqualifying purpose.
Individuals, political parties and government entities are treated differently.

What to check before launch

Question	Why it matters
What is the real purpose?	The legal objects need to match the work the organisation will actually do.
Who benefits?	Public benefit is central for most charitable purposes.
Where does surplus money go?	Not-for-profit clauses and winding-up clauses need to stop private distribution.
Will it trade?	Trading can be compatible with charity status, but it should support the charitable purpose.

Business owner view

Key takeaways

Do not build the brand around charity status until eligibility has been checked.
Draft objects clauses in plain language, but make sure they line up with recognised charitable purposes.
Check ACNC registration, tax endorsement and fundraising rules as separate steps.
If a commercial business is donating profits, sponsoring a cause or running a foundation, document the relationship clearly.

Plain-English glossary

Charity: A not-for-profit entity with charitable purposes for the public benefit and no disqualifying purpose, subject to the Act's definition.
Charitable purpose: A legally recognised charitable purpose, such as advancing health, education, social or public welfare, religion, culture or other public-benefit purposes recognised by law.
Public benefit: The benefit that the charitable purpose provides to the public or a sufficient section of the public.
Disqualifying purpose: A purpose that can prevent charity status, including certain unlawful purposes or a purpose of promoting or opposing a political party or candidate.

Common questions

Can a business be a charity?

Is a good cause automatically a charity?

No. The purposes, public benefit, disqualifying purposes, structure and governing documents all need to be checked.

Why does wording in the constitution matter?

The organisation's objects and winding-up clauses are often central to whether it is not-for-profit and charitable in the legal sense.

Charities Act 2013 (Cth)

Start here

The threshold question

What to check before launch

Business owner view

Plain-English glossary

Common questions

Related topics

How Sprintlaw can help

Charities Act 2013 (Cth)

Start here

The threshold question

What to check before launch

Business owner view

Plain-English glossary

Common questions

Related topics

How Sprintlaw can help