A company is a "non-charitable not-for-profit" company if:
- it is not carried on for the profit or gain of members; and
- its Constitution (or other governing document) prohibits the company from making distributions of any kind (money or property) to its members; but
- the company does not carry on its business for charitable purposes.
These kinds of companies do not need to apply for endorsement as income tax exempt. Instead, they self-assess their status. However, before doing so they should seek legal advice to ensure the company fits into one of the required categories. Examples of relevant organisations include: a community service organisation, a sporting organisation, an educational institution, a religious organisation.
