A charity is an entity:
- that is not-for-profit;
- all of the purposes of which are charitable purposes for the 'public benefit', or incidental or ancillary to, and in furtherance or in aid of, such purposes;
- which does not have any 'disqualifying purposes'; and
- which is not an individual, a political party or a government entity.
The entity can be (but doesn't have to be) a company limited by guarantee.
However, for an entity to enjoy the tax benefits of being a charity, it must be:
- registered as a charity with the Australian Charities and Not-for-profits Commission; and
- endorsed by the ATO for tax concessions.
For endorsement as a charity, the company must be established for one of the following purposes:
- advancing health;
- advancing education;
- advancing social or public welfare;
- advancing religion;
- advancing culture;
- promoting reconciliation, mutual respect and tolerance between groups of individuals in Australia;
- promoting or protecting human rights;
- advancing the security or safety of Australia or the Australian public;
- preventing or relieving the suffering of animals;
- advancing the natural environment;
- any other purpose beneficial to the general public that may be reasonably regarded as analogous to, or within the spirit of, the above purposes; and
- promoting or opposing a change to any matter established by law, policy or practice in the Commonwealth, a state, a territory or another country, in furtherance or protection of one or more of the above purposes.
