Many community organisations are not charities. An entity is not a charity if:
- it is primarily for sporting, recreational or social purposes
- it is primarily for political, lobbying or promotional purposes
- its purpose is illegal or against public policy, or
- it is primarily for carrying on a commercial enterprise to generate surpluses.
Government departments and instrumentalities carrying out the ordinary functions of government are unlikely to be charities.
Sporting, recreational or social
Entities that are primarily for sporting and recreational purposes are not charities.
Example: Non-charity
Organisations that are not charities include: rowing, football, dancing, bridge, card, athletic, horse racing, gem, boating and fishing, boxing, callisthenics, golf, ski, car, scuba-diving and motor-racing clubs, as well as model train societies and snooker centres.
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Entities that are primarily for social or entertainment purposes are not charitable.
Example: Non-charity
Organisations that are not charities include social clubs run by veterans organisations and religious institutions, ethnic cultural associations, wine societies, cinema, nudist, singles, friendship and fan clubs.
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Sporting, recreational or social activities can be carried out by a charity if they are merely a means used to achieve charitable purposes.
Example: Charity
A rehabilitation service organises swimming sessions to help its clients regain full use of their limbs. It is a charity as its swimming activities are a means of carrying out its sole purpose of helping people recover from their injuries.
An organisation has been set up to facilitate sporting programs run by universities in Queensland. The organisation is a charity if the sporting programs are a means of advancing education among the universities’ students.
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Political, lobbying or promotional
An entity is not charitable if its purpose is advocating a political party or cause, attempting to change the law or government policy, or promoting a particular point of view.
However, if an entity’s purpose is otherwise charitable, the presence of political, lobbying or promotional activity that is incidental to the charitable aims will not prevent it being a charity.
Example: Charity
An animal shelter’s main purpose is looking after sick, stray and unwanted animals. Around budget time it sometimes lobbies politicians for funding. As long as the lobbying remains no more than incidental to the charitable purpose, the animal shelter will continue to be a charity.
A group of state-based health charities form a national peak body having the same objects. The activities of the peak body are various means of coordinating and supporting the state charities’ activities, including by lobbying. As long as the lobbying is incidental to its charitable health purposes, the peak body can be a charity.
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Political parties and organisations promoting political parties or their policies are not charitable.
Example: Non-charity
An institute formed to educate people in the platform of a political party is not a charity.
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An entity whose purpose is to change the law or government policies is not charitable. This is so even if the subject matter of the change may be beneficial to the community or is of great concern to the community.
Example: Non-charity
A residents action group is formed to lobby against a proposed rubbish dump near a suburb. It is not a charity.
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An entity seeking to maintain existing law or government policy is also considered not charitable.
An entity that aims to promote a particular point of view or endeavours to convince the public of the correctness of such a view is not charitable. This is irrespective of whether the view seeks to change law or government policy, or uses educational means to achieve its aims.
Example: Non-charity
An organisation is set up to convince the public that pornography is detrimental to society. It is not a charity.
An organisation has been established to promote a 40-letter alphabet to be used by the community. It believes the alphabet will result in a great benefit to the community because it will be cheaper and easier to use. The organisation is not a charity.
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Illegal
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.
Commercial
The purpose of carrying on a commercial enterprise to generate surpluses is not charitable.
Charities can carry out commercial and business-like activities where they are only carried out for the sake of, or in aid of, or in furtherance of the charitable purposes.
There are incidental ways in which charities can raise funds to carry out their charitable purposes, and carry out their purposes using business-like opportunities and methods.
Examples: Charities
A youth development organisation regularly runs biscuit and chocolate sale drives. The biscuits and chocolates are purchased in bulk and packets are allocated to the children’s families for sale to the public.
A college’s hospitality students prepare and serve meals, while being assessed as part of their course, at the college’s campus restaurant.
An agricultural charity, which has developed a new vaccine to protect livestock, manufactures and sells the vaccine. The prices are set to cover costs and fund future research and expansion.
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If a company is controlled by a charity, it is not automatically a charity. The company itself will need to satisfy the requirements of being a charity. In determining this, the company’s integration with the charity could be relevant.
Example: Charity
A charity sets up and controls a non-profit company. The company’s purpose is to operate a shop located in the controlling charity’s museum. The shop is to sell souvenirs and collectibles of the museum. Surpluses from its operations are to be distributed to advance charitable purposes.
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More information
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Governmental
Government departments and instrumentalities are unlikely to be charitable institutions. They are simply carrying on the ordinary activities of a government department. This is so even if the activities are such that if carried on by private people they would be charitable.
Example: Non-charity
A state welfare department helps homeless people. The department is not a charity.
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However, charities frequently receive government funding. This does not stop them being charities.
Example: Charity
A migrant resource centre receives government funding and has a service agreement with a government department.
The centre is still a charity despite having been funded by a government department.
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Last Modified: Tuesday, 20 March 2007
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