Registered charities

what charities are tax deductible

Registered charities need to be endorsed to receive concessions for income tax, GST or fringe benefits tax.

They apply for endorsement using an Application for endorsement as a tax concession charity .

What is a registered charity?

Registered charity means an entity that is registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity.

To be a charity, your organisation must:

  • be a not-for-profit
  • have a charitable purpose
  • be for the public benefit (other than where the charitable purpose is the relief of poverty).

If your organisation is a charity, you can choose whether or not you want to register it with the ACNC. However, your organisation must be registered by the ACNC before we can endorse it to access charity tax concessions.

Find out more

For more information about the definition of a charity and the registration process with the ACNC, visit acnc.gov.au External Link .

End of further information

Tax concessions available for registered charities

Different tax concessions are available for registered charities that also register with the ACNC as a particular type of charity, such as a public benevolent institution or a health promotion charity.

Find out more

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Registered charities must be endorsed by us before they can access one or more of the following tax concessions:

  • income tax exemption (removing the need to lodge income tax returns)
  • GST concessions (including concessions for fundraising)
  • FBT rebate (equal to 48% of the gross FBT payable, subject to a capping

    threshold)

  • FBT exemption (exemption from paying FBT, subject to a capping threshold).

To be endorsed as income tax exempt, your registered charity must meet certain additional requirements.

Find out more

For more information about the requirements that a registered charity must meet to be entitled to endorsement to access income tax exemption, refer to Endorsement to access charity tax concessions .

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If a registered charity wants to receive tax deductible gifts, it should seek endorsement as a DGR.

How to access charity tax concessions

Registration with the ACNC is voluntary. However, charities must be registered if they want to access charity tax concessions. To access charity tax concessions, a charity must first obtain an Australian business number (ABN), then register with the ACNC and then be endorsed by us.

Visit acnc.gov.au External Link for more information about how to:

  • apply for an ABN
  • use the ACNC registration application form, to apply for
    • charity registration
    • endorsement by us to access charity tax concessions.
     

If your organisation is already registered with the ACNC but did not apply for endorsement by us using the ACNC's registration application form, download our Application for endorsement as a tax concession charity.

For more information on the endorsement process (including income tax consequences once a registered charity is endorsed and income tax obligations if a charity is not registered and endorsed), refer to Endorsement to access charity tax concessions .

End of further information

Source: www.ato.gov.au

Category: Taxes

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