Money Doesn’t Come Without Guidance ...
Not-for-profit organisations are those which do not operate for making profit for their owners and other members, rather they operate for meeting its purposes only. However, ATO recognises an organisation as NFP if it justifies the following:
For tax purposes, NFP organisations are categorised into two broad categories –
Charities can be further broken down into following categories –
However, charities are the receiver of highest tax concessions. Some charities, clubs, societies and associations are also deductible gift recipients. Here are some examples of NFP organisations: