There are a number of benefits for nonprofits who register with the Australian Charities and Not-for-profits Commission (ACNC). Most of these benefits are tax related, such as nonprofits that are listed with the ACNC being able to qualify for various services tax concessions and income tax exemptions. Other benefits of ACNC registration include waived of ASIC filing fees if your nonprofit belongs to both, and some donors being more willing to contribute to charities and associations that are registered.

Double Default Charities Lose Access to Favourable Tax Status and Other Benefits

Your nonprofit could be at risk of losing these benefits, however, if you have neglected to file your Annual Information Statements in the past two years, or more. Known as double defaulting, since failing to file the statement on time for two years shows that your nonprofit has been non-compliant on a persistent basis, the ACNC is likely to revoke the registration, which makes nonprofits ineligible for these important money saving benefits.

Are You Disclosing All of the Required Information in Your Annual Statements?

Most nonprofits will report on their operations from July 1 through June 30^th of the following year, with each annual statement due to be submitted within 6 months of the end of the reporting period. The information that must be included in your Annual Statements does differ based on the size your charity or association.

Small charities, for example, only need to submit an Annual Information Statement, and don’t have to have their financial statements reviewed or audited prior to the submission. They can also choose whether or not to use the cash or accrual method of accounting. These requirements are in stark contrast to those of a large charity, which must submit audited financial reports along with their Annual Information Statements.

You can check with the ACNC here to learn more about what information you are required to report in your NFP’s Annual Statements. You can also check the ACNC’s charity register to find the most up to date information about the status of your NFP and other nonprofit organisations that are registered with the ACNC.

With so many benefits of ACNC registration at stake, take action to file your NFP’s Annual Information Statement today, if you haven’t already done, and prevent your charity from losing its registration and access to benefits!