Charity Law and NFP regulation
Leaders in Charity Law
Like any other business or organisation, charities, not-for-profit organisations (NFPs) and non-government organisations (NGOs) follow a life-cycle. This means they have a start-up phase; ongoing operational requirements, and many will come to an end in one form or another. Charity law places specific obligations on charities and not-for-profits at each stage of their life-cycles.
Regardless of where your charity, NFP or NGO sits along that continuum there are going to be legal issues that arise in relation to, for example:
- the establishment of the organisation
- the registration and endorsement of the organisation with various regulatory authorities
- employment and ongoing relationship and association issues with staff and volunteers
- ongoing agreements, licences, leases, and other matters
- reporting, investigations and regulatory compliance.
At all stages, the charity laws and regulatory compliance associated with operating a charity, not-for-profit or NGO can be a minefield to navigate. We at Neumann & Turnour Lawyers have significant experience and expertise with charities and not-for-profits and in all aspects of their operations; regardless of where they sit along that continuum.
In all circumstances, we apply our legal knowledge and practical experience to identify and develop solutions which are tailored to your specific needs and circumstances, taking into account those nuances relevant to the not-for-profit sector are not readily apparent to commercial advisors.
The start-up phase and charity law
What constitutes a ‘charity’ at law may not necessarily accord with everyday usage. For most organisations, the more important issues arise when navigating the taxation consequences arising as a result of being registered as a charity or classified as a not-for-profit organisation. This may include:
- income tax exemption
- endorsement as a deductible gift recipient
- GST concessions
- fringe benefits tax rebate or fringe benefits tax exemption
- charitable exemptions for land tax, stamp duty and other state-based taxes.
Tailoring the structure to meet your needs
We know that not all organisations are the same. Therefore, we take your aspirations, considered in light of the legal framework in which charities and not-for-profits operate, and develop a structure which is uniquely designed to suit your circumstances. This may require multiple structures to be established in order to meet your objectives including obtaining and retaining all desired registrations and endorsements.
The simplicity or complexity of your structure will depend upon the nature and scope of your organisation and its operations and the extent to which they are consistent with the legal framework in which charities and not-for-profits operate. Regardless of where your organisation falls within that spectrum, our solution will be uniquely adapted to you and your organisation.
Our experience includes many successes in negotiating with the Australian Charities and Not-for-Profits Commission (ACNC), Australian Securities and Investments Commission (ASIC), Office of the Registrar of Indigenous Corporations (ORIC), and the Australian Taxation Office (ATO). This measn that we can guide you through the many issues you will face to ensure that you obtain the various endorsements and registrations to which you are, or may be, entitled – even in out-of-the-ordinary situations.
Charity law obligations for ending operations
At the other end of the spectrum, there are issues unique to charities and not-for-profits which arise when the organisation reaches the end of its life cycle. This may result in the winding up and closure of the organisation itself but it may also entail the transfer of operations to another organisation which is pursuing similar purposes and objectives. Charity law imposes specific requirements on organisations seeking to end operations.
We have experience in working with charities and not-for-profits in these circumstances to achieve an outcome which is in the best interests of the purposes and objectives for which the organisation exists.
Operational charity law Issues
For charities and not-for-profit organisations, legal issues will arise at various junctures throughout the life-cycle of the organisation. All charities and not-for-profits have ongoing compliance, reporting and operational requirements which arise as part of the day-to-day operation of the charity. This may give rise to issues concerning:
- policies and procedures
- employment matters
- volunteer issues
- antidiscrimination issues
- property transactions including buying, selling and leasing property
- commercial and licencing agreements
- funding agreements
- mergers and acquisitions, including selling all or part of your operations
- litigation and dispute resolution.
Legal Services
Our experience is broad and varied, which helps us to be flexible in assessing your needs and assisting you to achieve your desired outcomes. Some of the more common issues we deal with include:
Structuring
Structuring and restructuring of organisations as any one or more of the following:
- company limited by guarantee
- incorporated association
- indigenous corporation
- charitable trusts
- letters patent
- unincorporated association
- public ancillary fund
- private ancillary fund
- other public funds
Charitable registrations:
- ACNC applications and registrations under any head of charity including:
- the advancement of education
- the advancement of religion
- the advancement of social or public welfare
- public benevolent institutions (PBI)
- health promotion charities (HPC)
- ACNC reporting and investigations
- ATO endorsements including:
- income tax exemption
- endorsement as a deductible gift recipient
- fringe benefits tax exemptions and concessions
- Charitable fundraising licencing, reporting and renewals
- Transfer Duty, Stamp Duty, Land Tax charitable concessions and exemptions.
Charity law and commerce
Commercial Transactions pertaining to Charities and Not-for-Profits:
- buying and selling property
- leasing (as tenant or as landlord)
- commercial and licencing agreements
- funding agreements
- mergers and acquisitions between or involving charities and/or not-for-profit organisations
Litigation and disputes
Assistance and advice to handle disputes or litigation, including:
- internal dispute resolution strategies
- membership and corporate disputes
- disputes over the handling of trust property
- investigations
- responding to historical abuse claims
Legal Services
Our experience is broad and varied, which helps us to be flexible in assessing your needs and assisting you to achieve your desired outcomes. Some of the more common issues which we have seen include:
Structuring and restructuring of organisations as any one or more of the following:
- company limited by guarantee
- incorporated association
- indigenous corporation
- charitable trusts
- letters patent
- unincorporated association
- public ancillary fund
- private ancillary fund
- other public funds
Charitable registrations:
- ACNC applications and registrations under any head of charity including:
- the advancement of education
- the advancement of religion
- the advancement of social or public welfare
- public benevolent institutions (PBI)
- health promotion charities (HPC)
- ACNC reporting and investigations
- ATO endorsements including:
- income tax exemption
- endorsement as a deductible gift recipient
- fringe benefits tax exemptions and concessions
- Charitable fundraising licencing, reporting and renewals
- Transfer Duty, Stamp Duty, Land Tax charitable concessions and exemptions
Commercial Transactions pertaining to Charities and Not-for-Profits:
- buying and selling property
- leasing (as tenant or as landlord)
- commercial and licencing agreements
- funding agreements
- mergers and acquisitions between or involving charities and/or not-for-profit organisations