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Setting up your charity with the right legal structure is a crucial first step. The structure you choose will determine how your charity operates and is regulated. You can opt for an incorporated structure, such as an incorporated association or a company limited by guarantee, or an unincorporated structure, such as an unincorporated association.

At Sprintlaw, we can guide you through the process of choosing and setting up the best structure for your charity. Properly setting up your charity from the start can help you avoid legal complications down the line, ensuring you’re compliant with all regulations and giving you the peace of mind to focus on your cause.

For more information, you can read further here.

While all charities are not-for-profit (NFP) organisations, not all NFPs are considered charities. The key distinction lies in their purpose and the legal recognition of that purpose.

• Not-for-profit organisations (NFPs) exist to serve a purpose that is not focused on generating profit for distribution to members. They can cover a wide range of activities, such as sporting clubs, social enterprises, and community groups. NFPs can still make a profit, but any surplus must be reinvested into achieving their mission rather than being distributed to individuals or shareholders.
• Charities, on the other hand, are a specific type of NFP that exists for charitable purposes, such as relieving poverty, advancing education or health, or promoting other causes for the public benefit. To be recognised as a charity, an organisation must meet specific legal requirements, including registering with the Australian Charities and Not-for-profits Commission (ACNC) in Australia. Registered charities may also be eligible for additional tax concessions and public recognition as a charitable organisation.

In summary, while both NFPs and charities are mission-driven and non-profit-distributing, charities must meet stricter legal criteria and are typically more focused on public benefit causes.

There are several business structures to choose from when setting up a not-for-profit (NFP) organisation, including:

• Incorporated Associations
• Companies Limited by Guarantee
• Non-trading Co-operatives
• Indigenous Corporations
• Unincorporated structures, such as a trust or an unincorporated association

The best structure for your NFP will depend on various factors, such as the purpose of your organisation, who you aim to benefit, where you plan to operate, and what assets you intend to hold. Each structure has its own legal obligations and operational requirements, so it’s important to choose the one that aligns with your goals.

A lawyer can help you navigate these options and select the structure that best suits your charity’s objectives and needs.

Tax concessions are benefits that not-for-profit (NFP) organisations may be entitled to, depending on their structure and purpose. These concessions can include exemptions or reductions in taxes like income tax, GST, and fringe benefits tax (FBT). The types of tax concessions available will vary based on your organisation’s specific activities and how it is set up.

In addition to tax registrations, your organisation may need other licences, permits, or registrations to legally operate. A lawyer can help identify which tax concessions your organisation qualifies for and assist with the application process, ensuring your NFP gets the maximum benefit while staying compliant with all legal requirements.

Our fixed-fee Charity Set Up packages start at $2300 + GST. It includes phone consultations with our expert lawyers, assistance with the registration process (for example, with ACNC) and answers to any legal questions you might have. Our expert lawyers have experience working with a range of NFP organisations, so we’re always happy to help.