NFPs can be set up under a number of different structures. What is right for one organisation might be unsuitable for another.
So many options
An unincorporated association may be a good option for a small group of people who have come together with a passion for a particular cause. However, as they grow, they might want to look at other structures that provide greater protection and more flexibility. Examples include charitable trusts, companies limited by guarantee and incorporated associations. A deductible gift fund might also be an option for your organisation. There are a myriad of factors that may need to be considered before deciding on the best structure, including size of operations, membership base, regulatory obligations, location of operations and source of funds.
Regardless of the structure chosen, it is important to carefully consider the wording in your governing documents. The governing documents will significantly impact on whether or not you are a charity and whether or not you are entitled to the various tax concessions, including income tax exemptions.
Dealing with a specialist
We are specialists in the NFP area and can guide you through the maze of establishing and registering a NFP entity. We can also work with your major donors so they can give in the most tax effective way possible. This might include the establishment of a private ancillary fund or a charitable trust.