Do all banks offer not-for-profit bank accounts in Australia?

No – whilst almost all banks have free bank accounts for children , students and pensioners , not all banks or financial institutions have the same facilities for NFP organisations. Online building societies, credit unions and banks tend to offer the highest interest rates to charities, so it may be worth comparing accounts from these institutions to find the best one for your organisation.

Can I claim the donations I make through my charity savings bank account as a tax deduction?

Yes – as long as you have a receipt for the money you’ve donated, and the organisation you’ve donated to is a registered Deductible Gift Recipient (DGR), you can claim that donation as a tax deduction.

What is the ACNC and what powers does it have?

The Australian Charities and Not-for-Profits Commission (ACNC) was established in 2012 to protect and support NFP organisations and charities. All organisations claiming DGR status must be registered with the ACNC to claim they are a ‘registered charity.’

My registered not-for-profit organisation has a revenue of less than $100,000. Do I have to get our financial records and bank account audited?

No – charities with a revenue of less than $250,000 per year do not have to have their accounts audited. Medium-sized organisations, which are classified as having a revenue of over $250,000 but under $1 million per year, can either submit financial records which have been reviewed or audited. Large charities with revenues of over $1 million must have their accounts audited by an ACNC-approved auditor.

Do the requirements for not-for-profit organisations to produce financial reports vary from state to state in Australia?

Yes, they do – whilst all charities fall under the jurisdiction of the ACNC, there are also state government regulations which may govern the formation, conduct and accountability of charity organisations. Check with both your state government and the ACNC to find out which regulations may apply to your particular NFP organisation or charity.

What happens to the money if a charity’s bank account is lost when treasurers or office bearers change or move on?

If a small charity dissolves or becomes inactive, its bank account may sit unused for several years. If there hasn’t been any activity in that account for seven years, it will be declared lost and the funds transferred to the Commonwealth of Australia Consolidated Revenue Fund, which is administered by the Australian Securities and Investments Commission (ASIC). Lost not-for-profit bank accounts can be searched for on ASIC’s unclaimed money database.