NFP organizations that are not accepted are taxable and are generally treated as companies for income tax purposes whether or not they are integrated. Non-profit companies have special rules for lodging tax returns and special rates of income tax.
When these organizations conduct fundraising activities the receipts may be treated as assessable income of the group. For NFP organizations that are taxable, examples of assessable receipts include:
- commissions received from vending machines
- proceeds from fundraising drives to the public (for example, sale of lamingtons, cakes or chocolates)
- Amounts non-members pay to attend dinners, parties, dances or social functions prepared by the organization.
Organizations that are not charities can self charge their right to income tax exemption.
Being exempt from income tax means that your organization will not be assessed on its receipts and it does not need to lodge an income tax return (unless specifically asked to).