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Not-for-profit organisations

Find out about paying tax, what to do if you have volunteers or receive gifts and paying super for your employees.

Last updated 3 September 2020

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Not-for-profit (NFP) organisations are organisations that provide services to the community and do not operate to make a profit for its members (or shareholders, if applicable). A few examples are childcare centres, art centres, neighbourhood associations, medical centres and sports clubs.

All profits must go back into the services the organisation provides and must not be distributed to members, even if the organisation winds up.

If you're running an NFP organisation, there may be concessions you can claim but you may need to register your organisation first. Your NFP organisation may also have to register for taxes such as GST, FBT and PAYG withholding, depending on the type of organisation and how it operates.

Learn about tax on funding and grants, receiving gifts, and the difference between volunteers and employees.

If you need help, phone the Not-for-profit infoline on 1300 130 248.

Related pages

Types of NFP organisations

The ATO describes not-for-profit (NFP) organisations as those that do not operate for the profit or gain of their members, including charities and deductible gift recipients.

Concessions

If you're running an NFP organisation, there may concessions you can claim but you need to register your organisation first.

Paying tax on funding and grants

If you receive a grant or funding to run your Aboriginal and Torres Strait Islander corporation, you may need to pay goods and services tax (GST).

Receiving gifts

Only certain organisations, including some government agencies, can receive tax-deductible gifts.

Do you have volunteers or employees?

It's important to work out whether a person is a volunteer or an employee. This may affect the tax on transactions.

Registering your organisation

Your NFP organisation may need to get an ABN. You may also need to register for some taxes such as GST, fringe benefits tax, PAYG withholding or other taxes.

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