Setting Up A Not For Profit In Australia - PART 1/4

[@RightSource]

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[@Insightlyapp]

You're conflating two things here. Your talking points relate solely to charities but you're referring to all not for profits. Not all non-profits are charities. A charity is just one type of not-for-profit organisation however the main difference between a nonprofit and a charity is that a nonprofit doesn't need to reach a 'charitable status' whereas a charity, to qualify as a charity, needs to meet very specific or strict guidelines. Only charities need to register with the ACNC - not all non-profits. In addition to being not-for-profit, a charity must only have charitable purposes (as deemed by Australian law) for the public benefit, not be a government entity, individual or political party and not have a disqualifying purpose (e.g. a purpose that goes against these requirements). Another difference between a nonprofit and a charity is that a charity must register and comply with the Australian Charities and Not-for-profits Commission (ACNC) - but other types of non-profits do not. Once a charity has a charitable status it then qualifies for charity tax concessions (not-for-profits can qualify for tax concessions but they differ from concessions for a charity).

[@Sandgalah]

Useful information- perhaps a KZbin from you?

[@thoughts-words-actions4165]

thanks for sharing this! I am not clear on definitions ue Charity vs NFP , etc...much to learn, this video series will be very beneficial.

[@laeniz]

Thank you so much. Finally someone who talks simple terms. Looking foward to the series

[@frances852]

Thankyou I have been developing a not for profit idea. Just learning what I can and Thankyou I’m very keen to learn more as I believe I have an idea that can help others. I can’t wait to try

[@RightSource]

I've emailed you, Frances.

[@pj85438]

This has been extremely helpful Thank you so much for putting the time into making this

[@Kirsty-LeaSavage]

This was a really helpful guide. Thanks so much!

[@LindaHeartisan]

Love your way of sharing - I've subscribed and am looking forward to the next. :)

[@daniellemccormick3539]

Thank you so much!

[@arian693]

Thank you for the information

[@omarmacintyre]

Thanks Justin! Very insightful. Subscribed.

[@sonogong9923]

Legend 👏👏👏 Thank you!

[@DrTexx]

Thank you!! :)

[@snoweh1]

Is this similar to a 'PMA' (Private Membership Association) in America, where: "Generally, those in a private membership association are not under the jurisdiction of the state, local, and federal governments’ laws and regulations, the exception being, when a private membership associates’ activities present a clear and present danger." If not, does such a thing exist in Australia?

[@Hafufvahfshla]

I’m on a student visa. How does that work? Thank you

[@anais269]

Thanks a lot for those great videos! I'm thinking of transitioning from being a sole trader to a not-for-profit organization (something pretty small to start, with just me) but I'm a bit confused about how to pay myself. I want to deliver workshops in schools and for communities. Could I pay myself a percentage of the income from the workshops?

[@RightSource]

You can definitely pay yourself a wages from a NFP. In setting up a NFP you would also need at least two others to be involved, as something additional to think about.

[@PreranaMallaNembang]

Hey, I am thinking of something similar & had similar questions. Want to help each other with research?

[@sara_s_]

What's the difference between a social enterprise and not for profit? Can a social enterprise be a one person business?

[@RightSource]

A not for profit is one type of social enterprise. One where there is no benefits derived by "owners". And a social enterprise can be a one person business. Anyone can make an impact.

[@frances852]

I’d like to know more about a social enterprise. I have the idea and some volunteers that will help I just need to know what to do to get started

[@PreranaMallaNembang]

@@frances852 hey Francis, I had some questions abt this. I hope you have had success with your plan.

[@kenacm364]

This is great, thank you. Can you tell me if it is possible to open a NFP nationally and not just in a particular state? I am in WA

[@RightSource]

It is possible to open a charity nationally. One way is to set-up a company limited by guarantee rather than an association.

[@kenacm364]

@@RightSource Thank you!

[@Trex_ropes]

Why do NFPs need to be set up with a group of people? Why can't they be set up solo?

[@RightSource]

There are technical reasons behind this, but my take on the reason this is the case is the purpose of a NFP should be bigger than any one person. Plus it is hard getting a NFP off the ground, so a team from the start gives it a better chance of success.

[@Trex_ropes]

@@RightSource ok thanks for the reply. That's good to know. Is there somewhere I can find the technical reasons. I like to know this stuff. Thanks

[@yindiwild-rose9619]

Hare Krsna fam

[@tomslee2003]

Thanks for the info, Justin. Very helpful. I've been thinking about starting a recurring competition as a way to generate funds to donate to a charity like GiveWell. IE: Entry fees go into a pool that is split between eventual winners, the donation and admin costs. I've been having trouble figuring out where a project like this (ie an activity that is ostensibly an independent fundraising initiative for another, established charity) would sit on the NFP/Charity spectrum, and how best to get it set up for a minimum of effort. Would appreciate your insights :)

[@RightSource]

Hi Tom, It sounds like it could be a NFP and set-up that way. The challenge is whether it would be defined as a charity and would depend on clarifying the purpose and who this entity would ultimately help.

[@tomslee2003]

@@RightSource Thanks Justin. I agree, I don't really think it would meet the definition of a charity, as it wouldn't be directly helping anyone, rather it would act as a mechanism to turn the creativity of a community group into both recognition for the competition winners, as well as generate funds to hand over to charities already set-up and delivering programs. It's frustrating that NFPs can't be set up by a single person, because this type of project could be set-up and run by one person initially, and then grow as the project grows. It seems to be a real barrier to entry.