NFP Organizations

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).

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Income Tax and Fundraising for Non- Profit Organization

As an NFP organization, whether you have to give income tax on proceeds you get from your fundraising activities or can maintain a deduction for expenses incurred while fundraising depends on whether your organization is exempt from income tax.

Exempt organizations

If your NFP organization is exempt from income tax, you:

  • do not give income tax on proceeds you receive (your receipts) from your fundraising behavior
  • do not need to lodge a tax return if not we specifically ask you to do so.

Organizations that are registered charities must be authorized by us to be exempt from income tax. If your organization falls in both a registered charity and non-charity group, it still wants endorsement.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au