Charity registration and ATO reporting changes for Not-for-profits
Yarrilinks Inc is now registered as a charity with the Australian Charities and Not-for-profits Commission. Click on the link to view our profile.
Yarrilinks has recently registered as a charity with the Australian Charities and Not-for-profits Commission. This has come about due to changes in ATO reporting requirements for some not-for-profit organisations.
As a condition of our registration, we need to comply with the ACNC’s Governance Standards for charities, keep relevant records, and submit annual reports to the ACNC.
What are the new requirements, which groups need to register as charities, and why?
There have recently been changes to the requirements for not-for-profits that self-assess as income tax exempt. From the 2023/24 financial year onward, an annual self-review return must be lodged in order to receive an exemption. This has highlighted a need among many organisations, including Landcare, to review their income tax status.
Importantly, organisations that fit the definition of a charity, ie by having a charitable purpose, must actually be endorsed by registration with the Australian Charities and Not-for-profits Commission to be eligible for a tax exemption.
What support has Landcare’s peak industry body provided in this process?
Landcare Victoria Inc. (LVI) has taken a leadership role for the Landcare community in Victoria by providing numerous resources that help to clarify these changes and provide guidance and advice for Landcare groups navigating the process of charity registration, which is not always straightforward depending on the history and governance arrangements of the group. Tying up loose ends prior to charity registration has also raised the question of incorporation for many groups, so LVI have also produced a webinar on this topic.
Resources:
LVI member groups with questions or concerns can contact Landcare Victoria directly. Support may also be available on a local level from Landcare facilitators and Regional Landcare coordinators.
Alicia has been working through the process with other groups in the Yarrilinks Landcare Network.
Does this mean I can receive a tax deduction for donating to Yarrilinks?
Unfortunately, no. Charity registration is different to “Deductible Gift Recipient” (DGR) status, which allows an organisation to receive financial donations for which the giver can claim an eligible tax deduction. However, Landcare Victoria Inc. does have DGR status, and can receive donations on behalf of Landcare Groups. When donating, you can leave a note whether you wish to support a particular group.