Non For Profits
& Accounting
The Great Bean Counters are passionate about positive change and the individuals through communities that facilitate for this via their actions.
To qualify as a Not-for-profit (NFP), commonly known as a non for profit, an organisations must provide services to the community and not operate to make a profit.
A few examples can include childcare centres, art centres, neighbourhood associations, medical centres and sports clubs.
In a NFP any profit must be used by the organisation and cannot be distributed to the membership, including cases where the organisation is closing.
NFPs must be registered before they are able to claim concessions. These NFPs may also need to register for various taxes such as FPT, PAYG withholding and GST. The funding model for your NFP may significantly impact upon operations, and what contributors may be able or unable to claim from their tax.
There are strict accounting requirements for NFPs that need to be met to ensure transparency and accountability. Preparation and setup through to regular auditing are all part of the services we can assist with to ensure you can focus on the positive impacts you are passionate about ensuring.
The Great Bean Counters are here to guide you through these queries so you can understand what you need to register for, what data is needed to be retained, how grants and gifts operate as well as the difference between employees and volunteers.
Did you know?
Charities can only receive tax-deductible gifts if the charity is a registered deductible gift recipient
Registering a Not For Profit
Charities are required to register to the Australian Charities and Not-for-profits Commission (ACNC). Once they are, or if they are endorsed by the commission they may be able to access tax concessions, such as income tax exemption, FBT exemption, FBT rebate and GST charity concessions.
When registering a Not for Profit (NFP) holding an ABN is a means to liaise with the ATO. If or once you have an ABN you can apply to be deductible-gift recipient (DGR) or a tax concession charity.
With an ABN, you can also register for taxes such as:
- GST;
- fringe benefits tax; and
- PAYG withholding.
Did you know?
Non for Profits account for 9.3% of the Australian workforce. That's 1,081,900 jobs!
GST & Not for Profits
If the turnover of your not-for-profit organisation exceeds $150,000 then it must be registered for GST. GST charity concessions must be registered for to be able to claim GST back on purchases of the Not-for-profit, meaning depending on spending it may be beneficial to register for GST before the threshold in some cases.
GST is paid generally upon grants received, including those from the government. It is important for cash flow to plan and retain money aside to pay for tax requirements such as GST on grants received.