A not-for-profit organisation does not operate for the profit or personal gain of its individual members. Not-for-profits can make a profit, but any profit made must be used to carry out the organisation's purposes and must not be distributed to owners, members or other private people.
Not-for-profit (NFP) organisations fall within two broad categories:
- other NFP organisations that are not charities, eg most sporting and recreational clubs, community service organisations, professional and business associations and social organisations.
Registering a not-for-profit organisation
Registration of a company creates a legal entity separate from its members. Companies are registered under the Corporations Act 2001, which is Commonwealth legislation administered by the Australian Securities and Investments Commission (ASIC). A company's registration is recognised Australia wide and the company can hold property and can sue and be sued.
Further information on registering an NFP company and responsibilities of an NFP company is available on the Australian Taxation office website.
Not-for-profit tax laws and concessions - Australian Taxation Office