The decision to start a charity is a significant one, driven by the desire to serve an important social purpose. While this path is rewarding, registering a charity in Australia involves a process that is subject to increasing scrutiny from the Australian Charities and Not-for-profits Commission (ACNC). Successfully navigating the application requires careful planning to ensure your organization has the capacity to comply with its legal obligations from day one.

Achieving registered status with the ACNC unlocks significant benefits, including public recognition and access to tax concessions, which can be vital for your mission’s success.

Last updated 10 October 2025

Are You Eligible for Registering a Charity in 2025?

Before beginning the process of registering a charity, you must meet four key eligibility requirements.

1. Be a Not-for-Profit: Your organization cannot operate for the profit or personal gain of its members. You must explicitly state this in your governing document through a ‘not-for-profit’ clause, which specifies how the organisation will use its assets and income during operation and upon winding up.
2. Have a Charitable Purpose: Your governing document must clearly state your organization’s ‘charitable purpose’. This purpose must be for the public benefit.
3. Benefit the Public: Your charity must direct its purpose toward benefiting the general public or a sufficient section of it. The law presumes that certain purposes—such as advancing education, advancing religion, or relieving poverty—serve the public benefit.
4. Comply with ACNC Rules: Your organization must have an ABN and cannot be an individual or a partnership. It must also be able to meet the ACNC’s Governance and External Conduct Standards (if operating overseas).

Understanding ACNC Governance Standards

A critical part of registering a charity is demonstrating that your organization can meet the five ACNC Governance Standards on an ongoing basis.

• Standard 1: Purposes and Not-for-Profit Nature: Your charity must be not-for-profit and work towards its stated charitable purpose. This requires having the right policies and processes in place to ensure you stay focused on your mission.
• Standard 2: Accountability to Members: If your organization has members, you must be accountable to them. This involves clear communication, allowing them to participate in decision-making, and responding to any complaints.
• Standard 3: Compliance with Australian Laws: Your charity must comply with all applicable Commonwealth, State, and Territory laws. This includes laws affecting how you run the organization, collect donations, and treat your staff and volunteers.
• Standard 4: Suitability of Responsible Persons: You must have processes to ensure the people on your governing board are fit and proper persons with the right skills and experience to fulfill their duties.
• Standard 5: Duties of Responsible Persons: Your charity must take reasonable steps to ensure its leaders understand and carry out their legal duties.

Questions to Ask Before Registering a Charity

Before you lodge your application, it’s vital to think through the practical realities of running your organization. Answering these questions will help you build the strong foundation needed for a successful registration.

• Governance: How will your charity be governed, and who will be responsible for day-to-day operations? What legal structure is best—a company limited by guarantee, or something else?
• Operations: Do you plan to operate in other states, territories, or even internationally? How will the governing body meet and make official decisions?
• Resources: How will you fund your operations? Potential sources include grants, public appeals, selling goods or services, or membership fees. It is a director’s legal duty to ensure the charity does not trade while insolvent.
• People: Will you rely on volunteers, paid staff, or a mix of both?

Next Steps in Your Mission

The process of registering a charity is thorough for a reason—it ensures that organizations are well-prepared, compliant, and accountable. Providing false or misleading information to the ACNC carries significant penalties, so it’s essential to get things right from the start. Getting professional advice before you apply is the best way to ensure you are ready.

If you are planning to register a charity or have questions about your current organization’s compliance, please get in touch for a confidential discussion with the Birchgrove Legal NFP Team today. We can help you design and develop a compliant charity that meets the ACNC’s requirements and gives your governing body peace of mind. Talk to us.