How to start a non-profit organisation in Australia

Published Tuesday 21 April 2026

Table of contents

• What is a non-profit organisation?
• Can you make money from a non-profit?
• Before you start: Research and planning
• Types of non-profit organisations
• Choose your non-profit structure
• Ways to generate revenue as a non-profit
• How do I start a non-profit organisation?
• FAQs on starting a non-profit organisation

Key takeaways

• Define your organisation's specific purpose and mission statement clearly before you register, as this guides all future decisions and helps you identify the unique community need your non-profit will address.
• Choose the right legal structure for your non-profit, such as an incorporated association or a company limited by guarantee, based on your operational scope, and seek professional advice to stay compliant and access available tax benefits.
• Develop multiple revenue streams, including donations, grants, fundraising events, program service fees, and corporate partnerships, so your organisation does not rely on any single source of funding.
• Keep up with annual reporting, maintain accurate financial records, and hold regular governance meetings to protect your non-profit status and stay eligible for tax concessions.

Key takeaways

• Define your organisation's specific purpose and mission statement clearly before you register. This guides all future decisions and helps you identify the unique community need your non-profit will address.
• Choose the appropriate legal structure for your non-profit, such as an incorporated association or company limited by guarantee, based on your operational scope. Seek professional advice to ensure you comply and can access tax benefits.
• Develop multiple sustainable revenue streams including donations, grants, fundraising events, program service fees, and corporate partnerships so you don't depend on any single funding source.
• Keep complying with annual reporting, keep accurate financial records, and hold regular governance meetings to preserve your non-profit status and stay eligible for tax concessions.

What is a non-profit organisation?

A non-profit organisation is a business that operates to serve charitable or socially beneficial purposes rather than generate profits for owners. In Australia, all charities are non-profits, but not all non-profits are charities. Charities must have exclusively charitable purposes and register with the Australian Charities and Not-for-profits Commission (ACNC). Responsible people must be guided by the ACNC's governance standard 5. Other non-profits like sporting clubs or professional associations can operate without charity status.

Non-profit status provides several financial advantages that can help your organisation grow sustainably:

• Tax exemption: Charities registered with the ACNC and endorsed by the ATO may access charity tax concessions, while some other non-profit categories can self-assess as income-tax-exempt.
• Grant eligibility: Many grant programs are open to incorporated non-profits or charities, though eligibility depends on the specific grant's criteria.
• Donation incentives: Donors may be able to claim a tax deduction for gifts to organisations endorsed as deductible gift recipients (DGRs).

The definition of a non-profit, and the taxes you need to pay, depends on your location. Check with your local tax authority or charities regulator to find out what benefits you're entitled to and what non-profit accounting practices you need to follow.

Can you make money from a non-profit?

Yes, non-profits can make money. Non-profit organisations can generate revenue and even turn a profit to support their mission. The key difference from for-profit businesses is how you use that money.

Earning revenue reduces dependence on grants, donations and government funding. Key restrictions include:

• No owner distributions: You can't pay profits to shareholders or owners
• Mission reinvestment: You must reinvest all profits in the organisation
• Approved uses: Fund new projects, hire employees, or expand services

Before you start: Research and planning

Planning before you register helps you avoid costly mistakes and increases your chances of long-term success. Take the time to research thoroughly so you can start with confidence.

Complete these steps:

• Outline your purpose: Identify the specific community need your organisation will address. A clear and compelling mission will guide every decision you make.
• Do background research: Look into other organisations working in the same space. Understanding the landscape helps you find your unique angle and opportunities for collaboration.
• Consider the resources required: Think about what you'll need to get started, including funding, people, and any physical assets. Keep in mind that over half of directors spend more than three days per month on a single not-for-profit. A realistic view of your needs will help you build a sustainable plan.
• Estimate your costs: Factor in fees to register, potential legal advice, accounting setup, and ongoing compliance costs. Many non-profits underestimate their startup expenses.

Types of non-profit organisations

Non-profits come in several forms, each with different purposes and structures.

Charities

Charities provide services and support to the public. Rules for qualifying as a charity differ between places, but they typically include religious, educational, and scientific organisations.

The Australian Taxation Office also lists cultural, health, sporting, and community service organisations among the groups that can self-assess their income tax status if they satisfy legal requirements. From 1 July 2023, they must lodge an annual NFP self-review return. Examples include schools, disease research centres, and animal rescue shelters.

Foundations

Foundations have a humanitarian outlook. They give funding or grants to other non-profit causes rather than raising money for their own initiatives.

Wealthy individuals with particular interests or for-profit companies often set them up to fund good causes. Examples include the Coca-Cola Foundation and private family foundations supporting specific causes.

Social advocacy

Social advocacy groups advocate for a social issue or cause. They may promote the interests of large groups, like human rights organisations, or focus on specific communities and issues.

Membership organisations

Membership organisations promote the collective interests of a particular group. They represent professions, locations, hobbyists, or industries.

Examples include professional associations like the Australian Medical Association. These organisations typically charge membership fees to fund their activities.

Choose your non-profit structure

Your legal structure affects how you govern, what you're legally obliged to do, and whether you're eligible for tax concessions. Choosing the right one from the start saves time and money later.

In Australia, the two most common structures are:

• Incorporated association: Best for smaller, community-based groups operating in one state or territory. It's simpler and cheaper to run, and you register at the state level.
• Company limited by guarantee: Best for organisations operating nationally or with more complex operations. Charities most commonly use this company structure. You register it with the Australian Securities and Investments Commission (ASIC), and it requires at least three directors and one secretary.

If you're unsure which structure suits your needs, get advice from a legal or financial professional before you register.

Ways to generate revenue as a non-profit

Non-profit revenue streams provide the cash flow needed to keep operating and fund your mission. Five primary ways to generate revenue include:

Donations

Donations can come from individuals and corporations. Individuals often give to causes they believe in, while tax relief and brand alignment with your mission may motivate corporations.

Grants

Grants from government bodies or private foundations can provide essential funding for non-profits. They often require extra administrative work, including being financially transparent and reporting regularly.

If you're not familiar with applying for grants, consider asking an experienced grant writer for help.

Fundraising

Fundraising events can boost both your finances and your non-profit's profile. A successful event can also increase ongoing donations after it's over.

Fundraisers come in all shapes and sizes, from 5 km runs to silent auctions to extravagant galas. Because events can be costly to organise, make sure the benefits outweigh the time and money involved.

Program service fees

Program service fees let you charge for specific services your non-profit provides. This might include membership fees, fees to register for workshops, or service charges like a dog shelter's adoption fee.

Arts organisations, professional associations, and community groups commonly use this approach to fund how they operate.

Corporate sponsorship and partnership

Corporate sponsors and partners benefit both your non-profit and the business involved. A corporation may sponsor an event, provide ongoing funding, or offer in-kind support that saves you money.

In return, they expose their brand and demonstrate they're committed to social causes.

How do I start a non-profit organisation?

Starting a non-profit involves six key steps, from initial planning through to building your public presence. Work through each stage as follows.

1. Research and plan

Researching and planning establishes how your non-profit will succeed. Complete these steps:

Define your purpose:

• Identify the social need: Determine what problem your non-profit solves.
• Research the landscape: Find out who else serves this need and how.
• Develop your mission statement: Explain your purpose in a clear and memorable way.

Set your framework:

• Establish goals: Define measurable outcomes for your organisation.
• Identify requirements: Research the permits and licences you need to operate.

2. Lay the groundwork

Laying the groundwork involves choosing your name and legal structure before you register.

Choose your name:

• Create brand recognition: Select something catchy and memorable so people recognise your brand.
• Check availability: Make sure no one has already registered the name.

Select your legal structure:

• Research your options, such as an incorporated association, company limited by guarantee, co-operative, or trust.
• Get professional advice: Consult accounting and legal experts to ensure you operate within the law and access all eligible financial benefits and tax amounts you can deduct.

Find a financial adviser using ASIC's professional registers.

3. Comply with the law

Complying with the law officially establishes your non-profit and unlocks tax benefits. Follow these steps to register:

• Register your organisation: Obtain required numbers to identify your organisation (like an ABN in Australia).
• Apply to register as a charity and for tax concessions: Register with the ACNC if you're a charity, and apply to the ATO to access relevant tax concessions or to be endorsed as a DGR.
• Contact authorities: State or territory fair trading bodies handle incorporated associations, while ASIC handles companies limited by guarantee.

4. Create your governance structure

Set up your board and governance framework to ensure effective oversight and decision-making. This step establishes who will guide your organisation.

Build your board:

• Recruit board members: Find individuals with relevant skills, experience, and commitment to your mission.
• Define roles and responsibilities: Clearly outline what each board member and officer will do.
• Develop governance policies: Create policies for conflicts of interest, financial management, and decision-making processes.

5. Set up your finances

Establish robust financial systems from the start to maintain transparency and meet compliance requirements.

Open a bank account:

• Choose a suitable bank: Look for one that offers non-profit accounts with lower fees.
• Set up accounting systems: Implement software or processes to track income, expenses, and donations accurately.
• Plan your budget: Create a realistic budget that aligns with your goals and available funding.

6. Build your presence

Launch your organisation and start building awareness in your community.

Develop your identity:

• Create a website: Establish an online presence where supporters can learn about your work.
• Build marketing materials: Develop brochures, social media profiles, and other communications tools.
• Start networking: Connect with other organisations, potential donors, and community members who share your interests.

Begin operations:

• Launch your programs: Start delivering on your mission with pilot programs or initial services.
• Track your impact: Measure and document the outcomes you achieve.
• Communicate your progress: Share your successes and learnings with stakeholders and supporters.

FAQs on starting a non-profit organisation

Here are answers to common questions about starting and running a non-profit organisation.

Do I need to register my non-profit with the ACNC?

You only need to register with the ACNC if your organisation is a charity. Not all non-profits are charities. If you're a charity, you must register to access charity tax concessions and meet governance requirements.

How long does it take to register a non-profit?

The time varies depending on your structure and location. Registering an incorporated association at the state level typically takes two to four weeks. Companies limited by guarantee registered with ASIC can take similar timeframes, though applying for charity status and tax endorsements may add several more weeks to the process.

Can I pay myself a salary from my non-profit?

Yes, you can pay employees, including yourself, a reasonable salary for work performed. The key requirement is that profits can't be distributed to owners or members. Salaries must be appropriate for the role and hours worked.

What's the difference between a non-profit and a charity?

All charities are non-profits, but not all non-profits are charities. Charities must have exclusively charitable purposes and register with the ACNC. Other non-profits, like sporting clubs or professional associations, can operate without charity status but may not access the same tax benefits.

Do I need a lawyer to start a non-profit?

While it's not legally required, professional advice is highly recommended. A lawyer or accountant can help you choose the right structure, ensure you comply with regulations, and access all eligible tax benefits. The upfront investment often saves money and problems later.