A charity can be classified as small, medium or large, with a charity’s size based on its annual revenue for the reporting period.
For reporting periods starting from the 2022 Annual Information Statement, charity sizes are:
- Small charities are those with annual revenue under $500,000
- Medium charities are those with annual revenue of $500,000 or more, but under $3 million
- Large charities are those with annual revenue of $3 million or more.
- Small charities - annual revenue under $250,000
- Medium charities - annual revenue of $250,000 or more, but under $1 million
- Large charities - annual revenue of $1 million or more.
What is revenue?
Revenue is a component of total income.
A simple formula to help charities understand this is: Revenue + Other Income = Total Income.
Revenue is realised from the sale of goods or services, or through the use of capital or assets. Revenue can also arise from the contribution of an asset to a charity when certain conditions have been met during the charity's ordinary activities.
Charity size and financial reporting obligations
A charity's financial reporting obligations to the ACNC depend on whether it is considered a small, medium or large charity.
|Annual Information Statement||Tick icon||Tick icon||Tick icon|
|Annual financial report||(optional)||Tick icon 1||Tick icon 1|
|Basis of accounting||Cash or accrual||Accrual 1||Accrual 1|
|Type of financial statement 2||Small charities can choose to submit a financial statement. The type of financial statement can be the same as a medium or large charity||
|Review or audit for annual financial report||No ACNC obligation for review or audit||The ACNC requires your financial reports to be either reviewed or audited 2||The ACNC requires your financial reports to be audited|
Both medium and large charities may use transitional reporting arrangements in their financial reporting.
Charity size and other obligations
Charities also have other obligations that are dependent on whether they are small, medium or large.
Time to notify the ACNC of changes to its:
|ASAP but no later than 60 days||ASAP but no later than 28 days|
|Administrative penalties for not submitting documents||More on administrative penalties|
Read more about detailed reporting information for charities, recent changes to accounting standards and how they affect the way charities report financial information.
Read more about how a charity can apply to keep its charity size.