Changes to the structure and activities of your not-for-profit (NFP) organisation can affect your ability to continue to access some endorsements and concessions.
There are many reasons why your organisation may need to change its structure. They include:
- changes in size, income or assets
- increasing membership numbers
- changes in location or operation.
Your organisation's fundraising and other activities may grow to a point where you decide to apply for deductible gift recipient status and need to amend your constitution.
We recommend that you carry out a yearly self-review of your organisation's entitlement to endorsement and concessions. You should also carry out a review when there is a change in your organisation's structure and activities.
If your organisation is no longer entitled to endorsement, you must notify us. We may prosecute if you do not notify us.
We have worksheets to help you self-review your organisation's entitlement to endorsement and concessions.
We also have a self-governance checklist to help you conduct review your organisation's status as an NFP organisation and its tax obligations. The checklist will assist you with your governance practices. Good governance practices helps you identify and manage tax and super compliance risks.
Use our worksheets and self-governance checklist annually, and whenever there is a change in your organisation structures and activities.
Next steps:
- Endorsement review worksheet for income tax exempt charities (NAT 74110)
- Worksheet 1: review of a DGR endorsed as a whole
- Worksheet 2: review of a DGR endorsed for the operation of a fund, authority or institution it owns or includes
- Income tax status review worksheet for self-assessing non-profit organisations
- Self-governance checklist for non-profit organisations
If a change in your organisation's structure creates a new entity, you need to apply for a new ABN and endorsement for the various concessions your organisation wants to access. If your previous organisation's structure is no longer operating, you must cancel the ABN.
If your unincorporated organisation is contemplating incorporation, you should consider the tax implications of incorporating before making a decision.
See also:
- Notifying us of changes
- Tax aspects of incorporating your business
- Not-for-Profit LawExternal Link - provides legal information and advice