You're conflating two things here. Your talking points relate solely to charities but you're referring to all not for profits. Not all non-profits are charities. A charity is just one type of not-for-profit organisation however the main difference between a nonprofit and a charity is that a nonprofit doesn't need to reach a 'charitable status' whereas a charity, to qualify as a charity, needs to meet very specific or strict guidelines. Only charities need to register with the ACNC - not all non-profits. In addition to being not-for-profit, a charity must only have charitable purposes (as deemed by Australian law) for the public benefit, not be a government entity, individual or political party and not have a disqualifying purpose (e.g. a purpose that goes against these requirements). Another difference between a nonprofit and a charity is that a charity must register and comply with the Australian Charities and Not-for-profits Commission (ACNC) - but other types of non-profits do not. Once a charity has a charitable status it then qualifies for charity tax concessions (not-for-profits can qualify for tax concessions but they differ from concessions for a charity).
Thankyou I have been developing a not for profit idea. Just learning what I can and Thankyou I’m very keen to learn more as I believe I have an idea that can help others. I can’t wait to try
Is this similar to a 'PMA' (Private Membership Association) in America, where: "Generally, those in a private membership association are not under the jurisdiction of the state, local, and federal governments’ laws and regulations, the exception being, when a private membership associates’ activities present a clear and present danger." If not, does such a thing exist in Australia?
Thanks a lot for those great videos! I'm thinking of transitioning from being a sole trader to a not-for-profit organization (something pretty small to start, with just me) but I'm a bit confused about how to pay myself. I want to deliver workshops in schools and for communities. Could I pay myself a percentage of the income from the workshops?
You can definitely pay yourself a wages from a NFP. In setting up a NFP you would also need at least two others to be involved, as something additional to think about.
A not for profit is one type of social enterprise. One where there is no benefits derived by "owners". And a social enterprise can be a one person business. Anyone can make an impact.
There are technical reasons behind this, but my take on the reason this is the case is the purpose of a NFP should be bigger than any one person. Plus it is hard getting a NFP off the ground, so a team from the start gives it a better chance of success.
Thanks for the info, Justin. Very helpful. I've been thinking about starting a recurring competition as a way to generate funds to donate to a charity like GiveWell. IE: Entry fees go into a pool that is split between eventual winners, the donation and admin costs. I've been having trouble figuring out where a project like this (ie an activity that is ostensibly an independent fundraising initiative for another, established charity) would sit on the NFP/Charity spectrum, and how best to get it set up for a minimum of effort. Would appreciate your insights :)
Hi Tom, It sounds like it could be a NFP and set-up that way. The challenge is whether it would be defined as a charity and would depend on clarifying the purpose and who this entity would ultimately help.
@@RightSource Thanks Justin. I agree, I don't really think it would meet the definition of a charity, as it wouldn't be directly helping anyone, rather it would act as a mechanism to turn the creativity of a community group into both recognition for the competition winners, as well as generate funds to hand over to charities already set-up and delivering programs. It's frustrating that NFPs can't be set up by a single person, because this type of project could be set-up and run by one person initially, and then grow as the project grows. It seems to be a real barrier to entry.
