Charities - if unlawful actions occur

Introduction

If a purpose is unlawful, or a lawful purpose is to be carried out by unlawful means, it is not charitable. For example, a school for thieves might, in a sense, advance education, but it is not a charitable institution.

However, this is not to say that any breach of the law would cause a charity to lose its charitable status. In the course of carrying out their charitable purposes, actions may occur that are not in accordance with the law.

This webpage gives examples of situations where unlawful and other actions occur, but each organisation's charitable status is maintained. It is not an exhaustive list. There will also be many other instances.

The examples are grouped under these headings:

• unlawful actions
• other actions, and
• people connected with charities

Further resources are available which discuss the principles and legal considerations in relation to unlawful actions - see Taxation Ruling TR 2005/21 Income tax and fringe benefits tax: charities.