This guidance is for organisations that are not registered charities.
If your organisation is already a registered charity, you do not need to take any of the actions outlined here. You can search the ACNC Charity Register to check if you organisation is registered.
Not-for-profits that:
- have an active Australian Business Number (ABN), and
- have self-assessed as Income Tax Exempt,
- must lodge an annual self-review return for the 2023-24 year with the Australian Taxation Office (ATO) to access an income tax exemption. More information on reforms of the administration of not-for-profits that self-assess as income tax exempt is available on the ATO website.
If a not-for-profit organisation is eligible for charity registration, it must register with the ACNC before the ATO can endorse it to receive tax concessions, including an income tax exemption.
All not-for-profit organisations with an active ABN not already registered with the ACNC as a charity will be required to lodge an annual self-review return with the ATO from 1 July 2023 to access an income tax exemption.
This guidance will help you determine if your organisation can be registered as a charity with the ACNC.
Eligibility for charity registration
To be eligible for registration as a charity, an organisation must:
- be not-for-profit
- have only charitable purposes that are for the public benefit
- have an Australian Business Number (ABN) with the right ‘entity type’. See our guidance about legal structures for more information.
- not have any disqualifying purposes (which are engaging in, or promoting activities that are unlawful or contrary to public policy; and promoting or opposing a political party of candidate for political office)
- not be an individual, a political party or a government entity. For example, government departments, local government authorities and entities that are under government control
- comply with the ACNC Governance Standards
- comply with the ACNC External Conduct Standards if operating overseas
Bulk registration process
The ACNC is currently developing a bulk registration process, which will only be available to eligible applicants
If your organisation is a member of a group of similar organisations (such as community sheds) that want to apply for charity registration with the ACNC, your group may qualify to use the ACNC’s bulk registration process.
To check if your group qualifies, or to ask a question about this option, please email us at registration@acnc.gov.au and we will contact you to discuss your eligibility.
Working out your organisation's purpose
To work out your organisation's purposes, examine its:
- governing document
- activities
- history, and
- how it uses its funds.
Organisations that self-assess their income tax status range across eight broad groups:
Some examples of community service organisations include:
- associations of play groups
- traditional service clubs
- community service clubs
- senior citizens organisations
- associations of Justices of the Peace, and
- industry ombudsmen.
Generally, traditional community service clubs that have mixed purposes and social clubs or associations do not meet the legal meaning of charity, as the purpose of social interaction is not generally recognised as a charitable purpose.
If your club provides social activities as part of achieving a recognised charitable purpose – for example, advancing social or public welfare - it may be eligible to register with the ACNC if it meets the legal meaning of charity and our requirements for registration.
For example, an organisation whose purpose is to provide social interaction for people living with dementia to improve quality of life and community participation may be eligible to be registered as a charity.
If your not-for-profit has a purpose to provide social and recreational activities, and a purpose that includes any of the following:
- relieving poverty, distress or disadvantage of individuals or families
- caring for, supporting and protecting children and young individuals
- caring for the aged
your not-for-profit may be eligible to be a registered charity.
Examples of cultural organisations that may be eligible for charity registration if they meet the private benefit restrictions include not-for-profits whose main purpose is:
- the promotion of Australian Indigenous culture and customs
- as a fine arts society or musical society
- as a foundation for theatre, ballet, and the opera
- as a museum or library, or
- as a foundation or trust supporting these activities
Cultural organisations that meet the legal meaning of charity and the ACNC’s requirements for registration can apply to register as charities with us.
Registered charities must not provide private benefits (financial or in kind) to their owners, members, or other individuals – both while operating and when winding up – unless the private benefits are:
- an essential means, or unintended by-product, of achieving the charity’s purpose, or
- genuine compensation for services provided to, or reasonable expenses incurred on behalf of, the charity.
For example, if a cultural organisation operates to primarily provide opportunities to further the careers of a particular group of artists (such as selling members' artwork through a gallery operated by the organisation), it is unlikely to meet the public benefit requirement.
Some examples of not-for-profit educational organisations include:
- universities or colleges managed by public bodies
- grammar schools
- primary and secondary schools
- not-for-profit business colleges
Educational organisations that have a purpose of advancing education, and that include:
- formal education
- vocational training
- publicly available research directed to expanding human knowledge
- provision of prizes and scholarships
- less formal education aimed at developing core life skills
may be eligible to register as charities with the ACNC if they meet the legal meaning of charity and our requirements for registration.
Examples of employment organisations include:
- trade unions
- employee or employer associations registered or recognised under the Fair Work (Registered Organisations) Act 2009 or an Australian law relating to the settlement of industrial disputes.
Trade unions and employer associations cannot be registered charities. This is because these organisations would not have charitable purposes for the public benefit, as benefits they provide are for members rather than the general public.
Health organisations include:
- public hospitals
- hospitals operated by a not-for-profit society or association
- not-for-profit health insurers within the meaning of the Private Health Insurance (Prudential Supervision) Act 2015.
Health insurance providers are not considered charitable.
Organisations run by the government cannot register with the ACNC. This includes government-run hospitals. See out guidance about government entities for more information.
Hospitals (and other healthcare providers) that meet the legal meaning of charity and our requirements for registration can apply to register as charities with the ACNC.
Examples of resource development organisations includes those established for the purpose of promoting the development of:
- aviation tourism
- Australian information and communications technology resources
- Agricultural, aquacultural, fishing, horticultural, industrial, manufacturing, pastoral or viticultural resources of Australia.
Not-for-profit resource development organisations that have a purpose of advancing industry, innovation or agriculture – and meet the legal meaning of charity and our requirements for registration – can be registered as charities with the ACNC.
Registered charities are prohibited from providing private benefits (financial or in kind) to their owners, members or other individuals – both while operating and when winding up – unless the private benefits are:
- an essential means, or unintended by-product, of achieving the charity’s purpose, or
- genuine compensation for services provided to, or reasonable expenses incurred on behalf of, the charity.
For example, if a resource development organisation primarily operates to provide opportunities to further the careers of a particular group, it is unlikely to meet the public benefit requirement of being a registered charity.
Examples of scientific organisations include institutions, associations or research funds that are established and operated primarily to advance science – for example, through research, exploration and teaching.
Scientific organisations that meet the legal meaning of charity and our requirements for registration can be registered as charities with the ACNC.
A not-for-profit organisation that conducts sporting activities solely to support:
- relieving poverty, distress or disadvantage of individuals or families
- caring for the aged
- caring for and supporting individuals with disabilities
may be eligible to be a registered charity if it meets the legal meaning of charity and our requirements for registration.
For example, an organisation whose purpose is to support people living with disability to participate in sport and improve their quality of life may be eligible to register as a charity.
Although other sporting and recreation clubs make a valuable contribution to our community, as a matter of law, their purposes are generally not recognised as charitable.
Resources to help your organisation apply for charity registration
The ACNC website has information to help organisations work out if they may be eligible to apply for charity registration. These include:
- guidance on starting a charity, and on charitable purpose and who can apply to be registered.
- our free online course How to Become an ACNC Registered Charity
- if you believe your not-for-profit is eligible for registration as a charity, refer to the ACNC’s before you start a charity checklist for help preparing your application.
Tips for completing a registration application
It is vital any registration application your organisation submits to the ACNC is fully and properly completed. A properly completed registration application is critical to a timely assessment.
The ACNC receives thousands of applications to register as a charity each year, and there are common reasons why we reject them as incomplete.
When completing a registration application, ensure:
- details for all your not-for-profit's Responsible People are included.
- your governing document includes all required information, such as your organisation’s name, objects, not-for-profit clause and winding up clause. Do not submit a draft governing document; the document submitted must be the final version.
- your organisation’s legal structure matches that stated in your organisation’s governing document, and its Australian Business Number entity type.
- you are consistent in how you answer questions on the registration form. For example, answers in the section on tax and deductible gift recipient status (DGR) must be answered consistently with questions in the rest of the form.