An Australian Business Number (ABN) is an 11-digit number issued by the Australian Business Register (ABR).
This is the physical address where the charity can be contacted. Note it may not necessarily be where the charity conducts its services.
‘Administration costs’ are generally costs that are not directly incurred in delivering charitable services. In many instances, they are represented as a percentage of the total costs of running the charity. In Australia, there are no clear standards or definitions to identify which of the charity’s costs should be classified as ‘service related’ and which...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Nursing homes – Inpatient convalescent care and residential care,...
A person authorised by a charity to sign the relevant forms to be submitted for legislative purposes (such as a lawyer or an accountant). The charity needs to provide the information to the agent and declare that the information is correct.
An Annual General Meeting (AGM) is usually held once a year where all members of a charity attend. The purpose of an AGM is to give members a report on the charity’s activities and finances for the previous year, provide the opportunity for members to ask questions, and to elect members of the charity’s governing...
Charities report annually to the ACNC through the Annual Information Statement. The statement includes information about each charity’s activities e.g. location, programs, beneficiaries, operations and basic financial information.
All other expenses include miscellaneous other expenses, such as interest expenses, miscellaneous expenses not included in general and administrative expenses. These may include: administration costs; agency contractor staff; bad debts; bank charges; board/governance expenses; cleaning; consultancy fees; costs directly associated with grant funds; credit card fees; depreciation; entertainment costs; equipment hire/lease; printing and stationery; rental...
Unselfish regard for or devotion to the welfare of others.
Ancillary funds are set up for the purpose of providing money, property or benefits to DGRs (‘Deductible Gift Recipients’). Ancillary funds are special funds that provide a link between people who want to give (‘donors’) and organisations that can receive tax deductible donations. Note that there are two types of ancillary funds – private and...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Animal protection Animal protection and welfare – Includes animal...
A yearly publication authored by the charity which gives important information about its work and finances.
An audit is an official inspection of an organisation’s accounts, typically by an independent body. Medium sized charities (annual revenue between $250k – $1m) must submit financial reports to the ACNC which have been either audited or reviewed. All large charities (annual revenue greater than $1m) must provide audited financial reports to the ACNC. If...
Those in a charity who hold a position which authorises them to sign on behalf of the charity, for example a chief executive officer, company secretary, or an authorised agent such as a lawyer or accountant. This ensures another layer of credibility of information provided by the charity.
This metric is a crude measurement looking at the expenses of a charity on employment. It takes the total amount of revenue spent for employee expenses and divides it by the number of FTE’s. This measurement assumes every employee carries an equal cost to employ.
A Charity’s beneficiary or beneficiaries are the people or cause the charity benefits.
A bequest is the act of giving assets such as stocks, bonds, jewelery, and cash, to charities through the provision of a will or an estate plan.
The Board is comprised of members of a charity who are responsible for managing its finances, operations, staff and volunteers. (Some charities use committee or company directors).
Meetings where board members make decisions about how to run the charity.
Basic Religious Charity (BRC) are registered charities which exist for the purpose of advancing religion.
Charities will use either cash or accrual accounting when submitting their annual financial report to the ACNC. Cash accounting records revenue when money is received and when expenses are paid out. Accrual accounting records revenue when it is earned and expenses when they are incurred.
All charities must have a charitable purpose. There are set requirements to be registered as a charity. These are usually defined in a charity’s governing document or mission statement.
Activities include a charity’s operations and programs they undertake to achieve their mission, as well as the provision of funds or other support. They can be financial or non-financial. The activities that charities choose to describe their mission are based on the International Classification of Non-profit organisations. When charities report their activities to the regulator they...
Details provided by the charity to the ACNC by way of identifying the charity, its key operations and information. Such as: charity’s name; contact information; Address for Service; and legal structure.
Published by the ACNC, the charity register contains information about Australian registered charities. Listings on the register show basic details about the charity, including its purpose, managers and size. To change the details of a charity, the charity must notify the ACNC as a first point of contact.
All reporting is through the Australian Charities and Not-for-profit Commission. Generally, charities will report on a 12-month period, with the standard reporting period beginning on 1 July and ending on 30 June – mirroring a typical financial year. They may also report over the calendar year. Some charities can request a non-standard reporting period. Each...
Charities are generally classified into three size categories based on annual revenue, each with different responsibilities in reporting to the ACNC: small (less than $250k), medium (between $250k and $1m) and large (over $1m). For the purpose of additional reporting, a further breakdown has been defined, based on annual revenue; Extra small (<$50k), Small ($50k-$250k),...
A further definition allocated to identify a charity’s purpose. There are 14 specific ‘subtypes’ that are utilised. Advancing health Advancing education Advancing social or public welfare Advancing culture Advancing religion Promoting reconciliation, mutual respect and tolerance between groups of individuals that are in Australia Promoting or protecting human rights Advancing the security or safety of...
A Company Limited by Guarantee (CLG) is a type of legal structure for charities or Not-for-profits. CLGs are registered by the Australian Securities and Investments Commission (ASIC).
The ACNC Commissioner is a statutory office holder appointed to administer the ACNC Act.
A Compliance Agreement is an action plan developed in consultation between the ACNC and a charity to address governance issues and ensure commitment from a charity to get back on track.
Members of the public can raise concerns about registered charities. The first place to raise a concern is the ACNC. Any concerns brought to Giving Guide’s attention may be directed to the ACNC.
A situation where personal interests conflict with the responsibility to act within the best interests of a charity. A conflict itself may be occurring, or potentially occur or perceived to be occurring and the potential outcome can be for financial, as well as non-financial gain. It is important to disclose and carefully manage any potential...
A constitution is a formal document that defines a charity’s charitable purpose, the not-for-profit nature of the charity and the process of making decisions and consulting members by the board.
The relationship between a charity and business is known as a corporate partnership. In return for a charity receiving funds, goods, or services, the business receives something that is a benefit to the corporation.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Culture and arts Promoting Australian Indigenous culture and customs. ...
Current liabilities are an organisation’s short-term financial obligations that are due within one year or within a normal operating cycle. Current liabilities may include, but not limited to: accounts payable; accrued expenses; loans payable; GST payable; employee entitlements (benefits/provisions); ABN withholding tax payable; PAYG withholding payable; grants received in advance; revenue received in advance; and...
Only certain organisations are entitled to receive income tax deductible gifts and tax deductible contributions. They are called Deductible Gift Recipients (DGRs). All DGRs have to be endorsed by the ATO unless they are listed by name in the income tax law. There are two types of DGR endorsement: where an entity is endorsed as...
Organisations that are endorsed as Deductible Gift Recipients (DGRs) are entitled to receive gifts which are deductible from the donor’s income tax. DGRs are either: endorsed by the Australian Tax Office (ATO) and fall in a general DGR category or, in exceptional cases, listed by name in the tax law. There are specific requirements an...
A Direction is an enforcement power under the ACNC Act. The ACNC may issue written directions, which instruct a charity to do or not do something, if the charity fails to respond to the ACNC’s regulatory advice.
A disqualified person is a person who may not be eligible to participate on a charity board. Reasons for disqualification include being convicted of certain offences, bankruptcy or personal insolvency agreements, or disqualification by a court or regulator.
A donation is a gift of time, money or skill to help a charity with no obligation from the charity other than trying to further their mission.
Double defaulters have failed twice to submit their Annual Information Statement to the ACNC. Double defaulter charities have their charity status revoked for failing to meet their reporting obligations, and lose access to Commonwealth charity tax concessions.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Economic, social and community development Community and neighbourhood organisations...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Emergency and relief Disaster/emergency prevention and control – Organisations...
Employees expenses/payments include salaries and wages paid to staff employed by a charity. This includes permanent, casual and temporary staff. It also includes leave expenses and superannuation payments.
This equation shows the per cent a charity spends on employee expenses compared to its total expenses. Employee Expenses / Total Expenses = Per cent Employee Expenses
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Employment and training Job training programs – Organisations providing...
An organisation must be endorsed by the ATO if they want to: access tax concessions as a charity, and/or receive deductible gift recipient status. There are two types of endorsement: charity tax concessions; and deductible gift recipient (DGR). Being endorsed for charity tax concessions does not mean a charity organisation is automatically endorsed as a...
A thing with distinct and independent existence. It includes individuals, a body corporate or politic, an unincorporated association or other body of people, and a trust. It includes a person involved in a charity’s governing body and a registered charity.
Type of charity – legal structure All charitable organisations who register with the ACNC will need to ensure their governing documents (for example, their rules, constitution, trust deed, rule book or articles of association) are correctly aligned to the charity’s legal structure, that meet the requirements in order to register with the ACNC. Incorporated legal...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Environmental activities Pollution abatement and control – Organisations that...
This measure gives an approximation of time, indicating how long a charity could cover it’s expenses using their net current assets should revenue immediately stop.Months of expenses covered = Net current assets / (Total monthly income – Total monthly expenses).
The External Conduct Standards are governed by the ACNC. They are used to monitor the administration and have oversight of charities operating overseas.
Fringe benefits tax (FBT) is a tax paid on benefits that an employer provides to their employees in addition to their salary, such as the use of a work car or phone. Charities can apply for FBT rebates and FBT exemptions, depending on the type of charity.
Annual financial reports provide financial information and act as an additional level of assurance about a charity’s operations and financial affairs during a reporting period. They help charities meet the legislative obligations in the ACNC Act. Financial statements are prepared as required by the ACNC Act and Regulations using standards set by the Australian Accounting...
Charities that are a members of an approved reporting group are not required to submit individual Annual Information Statements. Instead, their Annual Information Statement is submitted via Group Reporting as part of a larger group.
Financial reporting is the disclosure of financial and related information to management and external stakeholders (e.g., investors, customers, regulators) about how an organisation is performing over a specific period of time. Unless a charity is registered with Office of the Registrar of Indigenous Corporations (ORIC), all registered charities must submit an Annual Information Statement.
Fraud occurs when someone acts in a dishonest way so that they receive a benefit or someone else experiences a loss. Over half the allegations of fraud within charities have related to the conduct and activities of senior and entrusted members, including the Chief Executive Officer (CEO), directors (those on the governing body) and financial...
A not-for-profit organisation may be exempt from FBT if it is a: registered Public Benevolent Institution (PBI; other than public and not-for-profit hospitals) endorsed by the ATO; registered Health Promotion Charity (HPC) endorsed by the ATO; public or not-for-profit hospital public ambulance service. Capping thresholds apply to organisations that are eligible for FBT exemption. The...
FBT is a tax payable by employers who provide fringe benefits to their employees or to associates of their employees. This is the case whether or not the employer is the actual supplier of the benefit (e.g. where the benefit is provided by an associate of the employer, or under an arrangement with a third...
A not-for-profit organisation may qualify for the FBT rebate if it is a non-government organisation and a : charity that is an institution certain type of scientific or public educational institution trade union and employer association not-for-profit organisation established to encourage music, art, literature or science not-for-profit organisation established for musical purposes not-for-profit organisation established...
A charity’s full-time equivalent (FTE) staff figure refers to the number of full-time employees it would have if it combined the hours of all full-time, part-time and casual employees.
Fundraising forms an important source of funding for a charity. It is the responsible persons of a charity that ensure the legal requirements, methods and standards of fundraising are met.
A gift is given willingly to someone without payment; a present. It may come in the form of money, goods or other property. Some charities may provide gifts to individuals – including current or outgoing responsible persons, members, staff or volunteers – as a gesture of gratitude and appreciation for their service. For information about...
Goods and Services Tax (GST) is a tax paid by consumers for products sold for consumption in Australia. The tax is paid by consumers and remitted to the Government by the business selling the product and/or services.
Governance encompasses the processes by which an organisation operates and is controlled, and by the mechanics which its people are held accountable. Ethics, risk management, compliance and administration are all forms of governance.
The ACNC Governance Standards have been put in place as a set of minimum standards that are required to be met by all registered charities.
The governing document outlines the detail of how the organisation will be governed, it sets out its charitable purpose and how the responsible person(s) will manage and consult members.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Grant-making activities Grant-making foundations – Private foundations; including corporate...
Some charities make grants to other charities, individuals or beneficiaries, while some grant scholarships. If the charity made grants and donations for use in Australia it will be reported in this category.
Charities have to report which country received the grant or donation. Grants and donations made by a charity for use outside Australia may include: sponsorship programs or projects that a charity manages; money, goods or services a charity has donated to its sister organisations or main governing body overseas and indirectly sending money overseas, via...
Charities can have permission to report to the ACNC as part of a group, either through: joint reporting when a charity as part of a group of registered charities submits one annual information statement and one financial report (if applicable) or collective reporting when a charity as part of a group of registered charities submit...
GST is a tax applied to the sale price of goods and services as outlined by the Australian Taxation Office (ATO). Charities are afforded some GST concessions. Further details can be found at www.ato.gov.au.
Goods and services tax (GST) concessions are available to not-for-profit (NFP) organisations. Additional GST concessions are available to: Australian Charities and Not-for-profits Commission (ACNC) registered charities that are endorsed to access GST charity concessions; gift deductible entities; and government schools. For GST purposes an endorsed charity is a charity that is an ACNC registered charity, has an...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Higher education – Higher learning, providing academic degrees; includes...
An honorarium is a honorary payment made to someone without obligation in recognition of their professional service. Charities may provide honorariums to individuals including responsible persons, members, staff or volunteers in appreciation for their services.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Hospital services and rehabilitation activities Hospitals – Primarily inpatient...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Housing activities Housing associations – Includes development, construction, management,...
A health promotion charity (HPC) is one of the categories or ‘subtypes’ of charity. HPCs are charitable institutions whose principal activity is to promote the prevention or the control of diseases in humans.
Income is money received, especially on a regular basis, for work or through investments. One main component of charity income is revenue.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Income support and maintenance Income support and maintenance –...
Income tax in Australia is imposed by the federal government on the taxable income of individuals and corporations. Whether a not-for-profit organisation has to pay income tax will depend on whether it is exempt from income tax. Only certain types of not-for-profit organisations are exempt. Many are taxable and may need to lodge income tax...
Charities must be endorsed by the Australian Tax Office (ATO) to be income tax exempt. Charities, including Health Promotion Charities (HPC), Public Benevolent Institutions (PBI) and religious institutions, must be registered with the Australian Charities and Not-for-profits Commission (ACNC) before the ATO can endorse them to access charity tax concessions. If an organisation is a...
Incorporated associations usually have a not-for-profit legal structure set up under a state or territory law. Generally these associations have a number of members, managed by committee that meets at least annually, guided by a set of rules and operate in the state or territory where it is incorporated. Incorporation is a voluntary, simple and...
Incorporated structures The most commonly used incorporated legal structures for charities (and other not-for-profits) include: Incorporated associations (the most common type) – the name will be something like ‘XYZ Incorporated’ or ‘XYZ Inc’; Companies limited by guarantee (the next most common structure) – for example, ‘XYZ Limited’ or “XYZ Ltd’; Non-trading co-operatives – the name...
Charities hold sensitive information about their beneficiaries, employees/volunteers and donors, so it’s important for charities to manage this data appropriately and protect themselves from the threat of security breaches.
An organisation is insolvent when it is considered ‘unable to pay its debts as and when they become due and payable’. Considerations may include the ability to collect money owed, raise funds and sell assets (for a reasonable market value in a timely manner).
This equation shows the per cent a charity spends on interest expenses. Interest expense ratio = interest expenses / total gross income
Interest expenses include interest paid by a charity on any money it has borrowed (e.g. interest on bank overdraft or mortgage) as well as any interest accrued during the year’s reporting period that has not yet been paid.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. International activities International development assistance – Programs and projects...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Law and legal services Legal services – Includes advice...
A charity’s legal structure affects many things, such as its legal identity (whether it can be sued), its governance structure (who makes what types of decisions), who is liable for its debts and its specific responsibilities, such as what its reporting or other compliance obligations.
Activities include a charity’s operations and programs they undertake to achieve their mission, as well as the provision of funds or other support. They can be financial or non-financial. The activities that charities choose to describe their mission are based on the International Classification of Non-profit organisations. When charities report their activities to the regulator they...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Mental health and crisis intervention Psychiatric hospitals – Inpatient...
The joining of two or more charities into one organisation is called a merger.
A standard for measuring or evaluating something, especially one that uses figures or statistics.
The Federal Minister responsible for charities and Not-for-profits is the Assistant Minister for Treasury and Finance, Senator the Hon Zed Seselja.
The NDIS is the National Disability Insurance Scheme. For more information, visit: www.ndis.gov.au.
Current assets should be larger than current liabilities indicating the charity may have more leverage to pay its debts. Net Assets Liabilities ratio = Total current assets / total current liabilities.
This ratio shows the size of an organisation’s operating surplus or deficit, as a percentage of their total income. Net income ratio = (Total Income – Total expenses)/Total Income A higher percentage indicates a better organisational operating surplus, as a percentage of total income.
Total gross income = (Total revenue + Other income) – Total expenses.This amount is determined by subtracting a charity’s total expenses and/or payments from its total income and/or receipts.
A not-for-profit organisation does not operate for the profit, personal gain or other benefit of particular people.
Non-current loans payable should include loans payable by a charity to other entities in the period beyond 12 months from the end of a reporting period.
Non-current loans receivable include loans receivable by a charity from other organisations in the period beyond 12 months from the end of the reporting period.
The National Standard Chart of Accounts (NSCOA) is an accounting tool and data dictionary of accounting terms to be used for charities and other not-for-profit organisations. It has been established to provide standardised financial reporting terminology.
The Office of the Registrar of Indigenous Corporations (ORIC) is an independent statutory office holder who administers, supports and regulates corporations by: advising on how to incorporate; training directors, members and key staff in good governance; ensuring compliance with the law; intervening when needed. A charity that submits its annual reports and governing documents with ORIC fulfils its reporting and notification obligations...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Other philanthropic intermediaries and voluntarism promotion Volunteerism promotion and...
Also known as comprehensive earnings, this is a catch-all classification for the items that cannot be included in typical profit and loss calculations because they do not stem from the company’s regular business activities and operations
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Other education Vocational/technical schools – Technical and vocational training...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Other health service delivery Public health and wellness education...
Other income comes from transactions that are not part of a charity’s ordinary operations but affect the charity’s profit and loss. This may include: gains (only when they form part of the surplus/deficit for the year) such as sale of a charity’s asset this might include motor vehicle, equipment, real estate, investments, assets that are...
An asset is a resource, with economic value, that a charity owns or controls with the expectation that it will provide a future benefit. A fixed asset is a long-term tangible piece of property or equipment that a charity owns and uses in its operations to generate income. It is typically an asset that will...
A liability is something a charity owes. Other non-current liabilities are liabilities that are anticipated to be settled more than 12 months out from the end of the reporting period.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Other recreation activity Recreation and social activities undertaken only...
Some Australian registered charities operate overseas. The ACNC provides a collection of resources for charities that operate overseas, including links to the ACNC External Conduct Standards.
Parents & Citizen’s Associations (P&Cs), are organisations set up to support schools. Many P&Cs are registered charities.
A Public Benevolent Institution (PBI) is a charity that specifically aims to relieve sickness, misfortune, helplessness, poverty, suffering, distress or disability.
A penalty or punishment, typically of financial nature, may be imposed by a governing agency for providing false or misleading information or not providing information.
An act or gift done or made for humanitarian purposes.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Primary and secondary education Pre-school, primary and secondary education...
A privacy policy is a statement that explains in simple language how an organisation or agency handles your personal information. Please refer to Giving Guide’s privacy policy for detail around how we collect, store and use data and people’s information.
A private ancillary fund (PAF) is a type of charitable trust, which exists for the purpose of providing grants to eligible charities over time. https://www.ato.gov.au/non-profit/getting-started/in-detail/types-of-dgrs/private-ancillary-funds/
No charity can exist for the purpose of delivering private benefit, whether that be financial or non-financial. Charities are highly encouraged to put in place policies and procedures to prevent and manage private benefit.
A program is an activity or service that a charity runs (whether permanent or temporary, small or large) to pursue a charitable purpose for its beneficiaries. The 2020 Annual Information Statement (AIS) was the first AIS that asks a charity for information about its programs.
The ACNC allow charities to choose from close to 2000 categories to represent the activities of their programs.
The ACNC permits charities to break their operations into a maximum of 10 programs per charity. Each program must have a name, a broad classification and at least one beneficiary.
A public ancillary fund is a communal philanthropic structure established by a will or trust deed for the purpose of making distributions to DGRs that are not ancillary funds. Public ancillary funds are a DGR and eligible for income tax exemptions. There is a compilation of the Public Ancillary Fund Guidelines 2011 that shows the...
A purpose that an organisation has is for the public benefit if and only if it is aimed at achieving a universal or common good, it has practical utility and it is directed to the benefit of a sufficient section of the general community.
A charitable purpose (also called a mission or object) is the reason a charity has been set up and what its activities work towards achieving. All charities registered with the ACNC must have a charitable purpose. This purpose is usually set out in the charity’s governing document.
The act of recording a name or information on an official list. Charities are registered through the ACNC.
A governmental body which oversees a particular economic activity. Charities must meet many different legal requirements imposed by government agencies, at local, State, Territory and Commonwealth levels.
Related party transactions are dealings between a charity and ‘related parties’. These can be people or organisations, such as board members or executive officers and organisations with a significant influence over the charity (e.g. an organisation that appoints one of the members of the board of the charity). They are defined as a transfer of...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Religious activities Congregations – Churches, synagogues, temples, mosques, shrines,...
Remuneration is the pay or other financial compensation provided in exchange for services performed (not to be confused with giving (away), or donating, or the act of providing to). Remuneration is used to describe payment made to board members for their duties. Charities can remunerate board members, but the decision rests with each charity and...
As a general rule, charities report every 12 months, with the standard reporting period similar to that of a typical financial year, July 1st to June 30th.
Research is the systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions. Giving Guide aims to help build trust and confidence in the Australian charity sector through the provision of research.
People who make up the governing body, board or committee responsible for the governance of a charity. See Governance for further detail.
Revenue is any monetary value earnt through the sale of goods or services, through the use of capital or assets, or revenue arising from the contribution of an asset to a charity when certain conditions have been met during the ordinary activities of the charity.
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; Rental income (if not earned as part of a charity’s ordinary activities); Other...
This metric reveals the amount of revenue the charity receives from donations and bequests. Shown as a percentage of the total revenue. Revenue from donations / Total revenue = Revenue from donations ratio
A donation is when a charity receives voluntary support (in cash or gifts in kind) with no material benefit to the donor. This includes 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...
This metric reveals the amount the charity receives from goods and services that it provides. Shown as a percentage of total revenue. Revenue from goods and services / total revenue = Per cent revenue from goods and services
This includes all types of funding and financial help provided by Commonwealth, State, Territory or local governments. Revenue includes: general purpose government grants or funding; revenue received under a contract with government to supply specified services; government procurement: the procurement of goods, services and construction on behalf of a public authority, such as a government...
This metric reveals the amount the charity receives from the Government including Grants. Shown as a percentage of total revenue. Revenue from Government / total revenue = Per cent revenue from Government.
Revenue from investments is the amount of revenue earned from investments. Including: revenue interest, dividends and distributions from investments and investment portfolios, and dividends and/or distributions from units held in managed funds which may hold real estate.
This metric reveals the amount the charity receives from its investments. Shown as a percentage of total revenue. Revenue from investments / total revenue = revenue from investments ratio
The revenue from supplying goods and services may include: sale of items; commercial activities; fees and charges for services; 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...
An organisation loses its charitable status through revocation, or official cancellation. Charity status can be voluntary or involuntary. The current status of each charity will be shown on their individual charity page.
Managing a charity’s risk is important. The ACNC provides information to reduce such risks. https://www.acnc.gov.au/tools/topic-guides/risk-managing-charity-risk
Social media is any digital tool that allows users to quickly create and share content with the public. You can connect with Giving Guide through social media using: Facebook, Instagram, Twitter and LinkedIn.
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Social services Child welfare, child services and day care...
This activity is best explained by some general examples of the activities a charity may undertake within this category. The examples are not an exhaustive list. They are presented as a guide. A charity’s experience or interpretation of the category may be different. See Charity Activities. Sports Sporting activities undertaken only as a means of...
The standard reporting period for charities is usually by financial year, 1 July to 30 June. Charities that use a different accounting period for reporting need to request a substituted accounting period. This means their financial information may be delayed for the particular time of year.
Financial surplus is the balance between financial income and financial expenditure. A charity that can generate surplus is generally considered good practice. Any surplus generated must be used to further its cause, and not for profit or financial gain.
A reduction by the government in the amount of tax that a particular group of people or type of organisation has to pay or a change in the tax system that benefits those people. Tax concessions are available to charities from the Australian Taxation Office (ATO) and from relevant state and territory governments. Charities must...
Charities must take all reasonable precautions and exercise due diligence as they can be potential channels for raising and distributing funds for terrorism financing.
Total assets refers to the total amount of assets owned by an entity. Assets are items of economic value, which are expended over time to yield a benefit for the owner. Assets supply future benefits to a charity and include anything of commercial value managed by the charity at the end of a reporting period....
These are the total Assets expected to be realised, sold or consumed within 12 months from the end of a reporting period. These may include: cash in the bank (restricted and unrestricted); petty or on hand cash; short-term investment; prepayments; accrued income; other financial assets; and inventory on hand – such as stock held by...
Total Expenses are for any period for which the Total Expenses are being determined. It is the sum of the total gross cash expenditures of the organisation during such period, including all operating expenses. e.g. Employee expenses + Interest expenses + Grants and donations made for use in Australia + Grants and donations made for...
Total gross income comprises all incomes received by an individual from all sources. This total is a charity’s total revenue, receipts and other income. Total gross income = (Total revenue + Other income).
Total liabilities consists of both current liabilities and non-current liabilities. Liabilities are the future sacrifices of economic benefits to the charity, generally, what it owes. It includes anything of identifiable value owed by a charity at the end of a reporting period.
Non-current assets are a company’s long-term investments that have a useful life of more than one year. For large charities, total non-current assets is the combination of non-current loans receivable + other non-current assets. For medium-sized charities they report the total amount of non-current assets.
Non-current liabilities, also known as long-term liabilities, are obligations listed on the balance sheet not due for more than a year. Examples of noncurrent liabilities include debentures, long-term loans, bonds payable, deferred tax liabilities, long-term lease obligations, and pension benefit obligations.Noncurrent liabilities are compared to cash flow, to see if a charity will be able...
This is a charity’s total revenue from government, donations and bequests, providing goods or services, investments, and other revenue. Revenue is what a charity earns in a year as a result of carrying out its activities.
A trust deed is a legal document that sets out the rules for establishing and operating a fund. It includes the fund’s objectives, who can be a member and whether benefits can be paid as a lump sum or as an income stream. The trust deed and superannuation laws together form the fund’s governing rules....
A trust is an arrangement where a person or company (the trustee) holds assets (trust property) in trust for the benefit of others (the beneficiaries). Trusts can be registered as a charity if they meet strict legal charity definitions and the registration requirements. Trusts fulfilling this definition will appear as a charity on Giving Guide.
A volunteer is someone who renders a service or takes part in a transaction while having no legal concern or interest. Volunteers help charities in many ways such as preparing food, visiting elderly people, to being a board member. They are vital to the not-for-profit sector and play a major role in the sustainability of...
If you would like to volunteer with particular cause or charity, you can search to find the contact details of a charity that you would like to help. It’s good practice to ask what type of volunteers the charity needs, to see if your skills are required. You could also use a volunteering matching website...
Volunteering Australia is the national peak body for volunteering, working to advance volunteering in the community.
Vulnerable persons are defined as a people aged under 18 or other individuals who may be unable to take care of or are unable to protect themselves against harm or exploitation.
Winding up is the process of dissolving an organisation. While winding up, an organisation ceases to do business as usual. Its sole purpose is to sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders. Type of winding up include voluntary, compulsory, liquidation by the order of the court, or...
The ACNC may withhold information about a charity from the ACNC Charity Register. Charities can ask for information to be withheld although these circumstances are limited.
