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About the organisation 

After several years of operation as an incorporated association, an organisation applied to the ACNC for charity registration.

Its governing document stated its objects, which concerned operating a religious congregation and undertaking ministry in the community.

In its application form, the organisation said it undertook various activities. These included conducting religious worship services, religious fellowship and discussions, and providing pastoral care.

About the application 

The organisation applied to the ACNC for registration with the charity subtype of ‘advancing religion’; one of the 14 recognised charity subtypes under which an organisation can be registered as a charity.

A religion involves a belief in a supernatural being, thing or principle, and acceptance of canons of conduct which give effect to that belief.

‘Advancing religion’ involves promotion of those beliefs, principles, observances and standards of conduct.

The organisation’s governing document contained clauses requiring it to operate on a not-for-profit basis, and to provide surplus assets to a charity upon winding up.

Its governing document and registration application also demonstrated compliance with the ACNC Governance Standards.

About the registration process 

The ACNC was satisfied that the organisation was a not-for-profit, and that it complied with the ACNC Governance Standards.

However, one aspect of the application raised a potential concern.

Most of the organisation’s activities – as listed in its application form – were clearly religious in nature. These included, for example, running church services, providing spiritual care and running funeral services.

But one of the activities was a weekly morning catch up for women in the local community to have morning tea and do crafts together. This raised a potential concern because the purposes of social interaction or recreation are generally not recognised as charitable purposes.

As a result, the ACNC looked further into the activity and the reason the organisation undertook it.

In its application form, the organisation said the activity was open to all women in the local area, and that it provided diverse ways for the organisation to connect with the community to share its religious beliefs.

The ACNC is aware that religious organisations commonly conduct small-scale social activities to bring together their followers and engage with the broader community.

In this case, it was not clear whether the crafting activity was engaged in such a way that it indicated that the organisation had a separate, stand-alone social or recreational purpose. But even if it did, the ACNC decided that the purpose would be incidental or ancillary to, and in furtherance or in aid of, the organisation’s charitable purpose of advancing religion.

The ACNC uses the phrase ‘incidental or ancillary purposes’ in reference to section 5 of the Charities Act.

A ‘charity’ is defined, in part, as being a ‘not-for-profit entity’, having purposes that are all:

  • ‘charitable purposes that are for the public benefit’ or
  • ‘purposes that are incidental or ancillary to, and in furtherance or in aid of’ charitable purposes.

Charitable purposes that are for the public benefit include the 12 charitable purposes set out in the Charities Act 2013 (Cth).

Purposes that are incidental or ancillary, and in furtherance or in aid of, charitable purposes are purposes that are not of substance on their own, but which tend to assist or naturally go with the charitable purpose.

Outcome 

The ACNC accepted that the organisation had no independent, non-charitable purposes and we registered it as a charity with the charity subtype of advancing religion.