As the lodgment due date for the not-for-profit (NFP) self-review return draws near, you may be taking a closer look at your NFP’s situation and wondering how to lodge if your organisation may have charitable purposes.
Since 2012, there has been a legal requirement for NFPs with only charitable purposes to register with the Australian Charities and Not-for-profit Commission (ACNC) and apply to the ATO to be endorsed as income tax exempt.
If you’re unsure of your NFPs tax status and are now considering if it needs to register with the ACNC as a charity, you can take the following steps to lodge the NFP self-review return:
- Select 'yes' or 'unsure' to the question, 'Does the organisation have any charitable purposes?'
- Submit your NFP self-review return with an 'income tax exempt' outcome. We may contact you to offer support guidance to establish your tax status.
Can a NFP choose not to register as a charity?
A charitable NFP can choose not to register with the ACNC as a charity, however they are not eligible to self-assess their income tax exemption. They are a taxable NFP and may be required to lodge an annual income tax return, or notify us of a non-lodgment advice.
For more information, watch a recording of our webinar What if I am charitable – what do I do?External Link It walks through what to do if you find out you are charitable, how to complete the NFP self-review return and charity registration requirements.
You don’t have to wait until 31 March 2025 to lodge your NFP self-review return. Many NFPs have already lodged using Online services for business or the Self-help phone service on 13 72 26. Find out tips to help you lodge at How to access and lodge the NFP self-review return.