Note: The information in this section of the guide is tailored for medium and large charities. Medium charities have annual revenue of between $250,000 and $999,999, and large charities have annual revenue of $1 million or more. If your charity has annual revenue of less than $250,000, refer to the section in this guide covering income and finances for small charities.
Help and guidance on each question in this section is outlined below. Help is also contained in the 2020 Annual Information Statement itself - clicking on 'More Information' under each question will reveal support text and examples to help you respond.
Clicking on 'More Information' again will close the help text.
The National Standard Chart of Accounts (NSCOA) is a free tool and data dictionary for charities and not-for-profits which can also help guide your charity through this section of the AIS. For more information, refer to our factsheet on NSCOA.
Example comprehensive income statement and balance sheet for medium and large charities
| Income statement |
|---|
| Gross income |
| a. | Revenue from government, including grants | $X |
| b. | Donations and bequests | $X |
| c. | Revenue from providing goods or services | $X |
| d. | Revenue from investments | $X |
| e. | Other revenue | $X |
| f. | Total revenue (a + b + c + d + e) | $X |
| g. | Other income, for example gains | $X |
| h. | Total gross income (f + g) | $X |
| Expenses |
| i. | Employee expenses | $X |
| j | Interest expenses (large charities only) | $X |
| k. | Grants and donations made for use in Australia | $X |
| l. | Grants and donations made for use outside Australia | $X |
| m. | All other expenses | $X |
| n. | Total expenses/payments (i +k + l + m) | $X |
| o. | Net surplus/deficit (h - n) | $X |
| p. | Other comprehensive income (if applicable) | $X |
| q. | Total comprehensive income (o + p) | $X |
| Balance Sheet |
| Assets |
| r. | Total current assets | $X |
| s. | Non-current loans receivable (large charities only) | $X |
| t. | Other non-current assets (large charities only) | $X |
| u. | Total non-current assets (s + t) | $X |
| v. | Total assets (r + u) | $X |
| Liabilities |
| w. | Total current liabilities | $X |
| x. | Non-current loans receivable (large charities only) | $X |
| y. | Other non-current liabilities (large charities only) | $X |
| z. | Total non-current liabilities (x + y) | $X |
| aa. | Total liabilities (w + z) | $X |
| ab. | Net assets/liabilities (v – aa) | $X |
16. Income statement summary
Gross income
a. Revenue from government (including grants)
Revenue from government includes:
- general purpose government grants or funding
- revenue received under a contract with government to provide specified services
- government procurement
- government rebates, supplements, subsidies or funded programs
Include all types of funding and financial assistance provided by Commonwealth, state, territory or local governments in the 2020 reporting period, even where there was no condition attached to the grant.
Do not include grants from non-government organisations or companies (these should be included in ‘revenue from providing goods or services’ or ‘donations and bequests’, depending on the type of grant).
b. Donations and bequests
A donation is when a charity receives voluntary support (in cash or gifts in kind) and there is no material benefit to the donor. Donations and bequests include donations from:
- public collections
- fundraising
- philanthropic trusts and corporations
- non-government grants that do not include the provision of goods or services
- members (but not membership fees)
- supporters
- employees
As well as:
- bequests and memorials
- tax deductible donations and gifts from the public
- tax deductible donations from members, supporters and employees
- non-tax deductible gifts and bequests.
Do not include fundraising income where there is a sale of an item – for example, raffle tickets, tickets to a fundraising event, sale of merchandise.
c. Revenue from providing goods or services
Revenue from providing goods and services includes:
- sale of items
- commercial activities
- fees and charges for services provided
- certain types of grants from non-government bodies like philanthropic trusts and corporations
- rental income (if earned as part of your charity’s ordinary activities)
- running lotteries and gaming machines
- receiving royalties
- membership fees
- corporate sponsorship or partnership revenue
- subscription fees.
Do not include any revenue from government – this should be included under ‘revenue from government’. Include revenue from providing goods or services as part of your charity’s ordinary activities.
d. Revenue from investments
Include revenue interest, dividends and distributions from investments and investment portfolios, and dividends and/or distributions from units held in managed funds which may contain real estate. Do not include rental income or the increase in fair value of investments.
e. Other revenue
Other revenue may include:
- levies where there is no obligation to supply goods or services
- recoupments – for example, electricity for sublet arrangements, insurance recoupments for workers compensation, salaries for jury duty and other cost recoveries such as airfares and accommodation for conferences
- other revenue not already captured in the above categories.
f. Total revenue (a+b+c+d+e)
This total is calculated automatically from your charity’s revenue from government, donations and bequests, revenue from providing goods or services, revenue from investment, and other revenue. Revenue is what your charity earns in a year as a result of carrying out its ordinary activities.
Ensure your charity’s total revenue matches the size of your charity. For more information, see our factsheet on charity revenue and size.
g. Other income (for example, gains)
Other income comes from transactions that are not part of your charity’s ordinary operations but affect your charity’s profit and loss. This may include:
- gains (only when that form part of the surplus/deficit for the year) such as sale of an asset of your charity. This might include the sale of a motor vehicle, equipment, real estate, investments, assets that are not part of your charity’s inventory (stock or sale of goods)
- forgiveness of a liability or debt
- gains on foreign currency transactions
- rental income (if not earned as part of your charity’s ordinary activities)
- changes in the fair value of investments if these are reported in your charity's profit and loss statement rather than the statement of other comprehensive income.
h. Total gross income (f+g)
This total is calculated automatically from your charity's total revenue/receipts and other income.
Expenses
i. Employee expenses
Employee expenses/payments include salaries and wages paid (and payable if using accrual accounting) to staff employed by your charity. This includes permanent, casual and temporary staff. It also includes leave expenses and superannuation.
j. Interest expenses (large charities)
Interest expenses include interest paid by your charity on any money it has borrowed (for example interest on its bank overdraft or mortgage) as well as any interest accrued during the reporting period that has not yet been paid.
k. Grants and donations made for use in Australia
Some charities make grants to other charities, individuals or beneficiaries, while some grant scholarships. If your charity made grants and donations for use in Australia, enter the amount here.
l. Grants and donations made for use outside Australia
Grants and donations made by your charity for use outside Australia may include:
- sponsorship programs or projects that your charity manages
- money, goods or services your charity has donated to sister organisations or main governing body overseas
- indirectly sending money overseas, via another Australian organisation or charity.
If your charity has made a grant or donation for use outside Australia, list the country where the grant or donation was made in question 8 under the 'Program Location' section.
m. All other expenses
Other expenses/payments are those not already listed. These may include:
- administration costs
- agency contractor staff
- amortisation expense (loss due to the depreciation of a non-tangible asset – for example: intellectual property such as patents, trademarks or copyrights)
- auspicing/partnership fees
- bad debts
- bank charges
- board/governance expenses, including governance activities such as travel and accommodation for meetings
- cleaning
- consultancy fees
- cost of goods sold
- costs directly associated with grant funds
- credit card fees
- depreciation
- entertainment costs
- equipment hire/lease
- printing and stationery
- rental expenses
- repairs and maintenance.
n. Total expenses (i+k+l+m)
This amount is calculated automatically from your answers to i, k, l and m.
o. Net surplus/(deficit) (h-n)
This amount is calculated automatically by subtracting your charity's total expenses/payments (n) from its total income/receipts (h).
p. Other comprehensive income (if applicable)
Other comprehensive income is identified below the surplus/deficit line in a total comprehensive income statement. An example may be a revaluation of land or buildings owned by your charity (but not sold).
q. Total comprehensive income (o+p)
This amount is calculated automatically by adding your charity's net surplus/deficit (o) and other comprehensive income (p).
Balance sheet
Assets
r. Total current assets
Assets are generally ‘current assets’ if they are expected to be realised, sold or consumed within 12 months from the end of the reporting period. They may include:
- cash in the bank (restricted and unrestricted)
- petty cash
- cash on hand
- short-term investment
- prepayments
- accrued income
- other financial assets
- accounts receivable, less provision for doubtful debts
- rental debtors accounts receivable, less provision for doubtful rental debtors
- other debtors, less provision for doubtful debts
- inventory on hand – such as stock held by your charity or as food or clothing held for distribution.
s. Non-current loans receivable (large charities only)
Non-current loans receivable include loans receivable by your charity from other organisations in the period beyond 12 months from the end of the reporting period.
t. Other non-current assets (large charities only)
Other non-current assets usually relate to fixed assets such as land and buildings, but can also include other items expected to be realised, sold or consumed more than 12 months from the end of the reporting period. They may include, but are not limited to:
- long-term investments and other financial assets (not trading stock)
- land
- accounts receivable not realised within 12 months from the end of the reporting period, less provision for doubtful debts
- rental accounts receivable not realised within 12 months from the end of the reporting period, less provision for doubtful rental debtors
- buildings, less accumulated depreciation of buildings
- plant and equipment, less accumulated depreciation of plant and equipment
- rental property furniture and fittings, less their accumulated depreciation
- motor vehicles, less their accumulated depreciation.
u. Total non-current assets (s+t)
Medium-sized charities should enter the total amount of non-current assets at this point. For large charities, this figure will be calculated automatically (s+t).
v. Total assets (r+u)
This amount is calculated automatically.
Assets provide future benefits to a charity and include anything of commercial value that is controlled by your charity at the end of the reporting period. Some categories may only be relevant for charities using accrual accounting.
Liabilities
w. Total current liabilities
Current liabilities may include, but are not limited to:
- accounts payable
- accrued expenses
- loans payable
- other payables
- GST payable
- employee entitlements (benefits/provisions)
- ABN withholding tax payable
- PAYG withholding payable
- superannuation payable
- salary sacrifice
- hire purchase liability
- lease liability
- revenue received in advance
- grants received in advance
- grants payable to government departments.
x. Non-current loans payable (large charities)
Non-current loans payable should include loans payable by your charity to other entities in the period beyond 12 months from the end of the reporting period.
y. Other non-current liabilities (large charities)
Other non-current liabilities relate to balances that are expected to be settled beyond 12 months from the end of the reporting period. These include:
- hire purchase liability
- lease liability
- employee entitlements (benefits/provisions)
- loans payable not likely to be repaid in the next 12 months.
If a liability that would normally be included as non-current is likely to be repaid within 12 months from the end of the reporting period, it may be more appropriate to list it as current.
z. Total non-current liabilities
Medium-sized charities should enter the total amount of non-current liabilities at this point. For large charities, this figure will be calculated automatically (x+y).
aa. Total liabilities (w+z)
Medium-sized charities should enter the amount of total liabilities at this point. For large charities, this figure will be auto calculated (w+z).
Liabilities are the future sacrifices of economic benefits to the charity – generally, what it owes. It includes anything of identifiable value that is owed by your charity at the end of the reporting period.
ab. Net assets/liabilities (v-aa)
This amount is calculated automatically by subtracting your charity’s liabilities (aa) from its net assets (v).
Once you have entered all this information, click on the 'Save' button on the bottom right hand side of the page. Then click on 'Next' to continue your 2020 Annual Information Statement.
Note: If your charity is registered with ASIC, you will need to provide a street address for your charity.
You must add at least one program for your charity, and you can add up to 10 programs. The more programs you add, the more information there will be about your charity's work on the Charity Register.
