Governing documents are a core part of good governance for all not-for-profits (NFPs). They set out your organisation’s purpose and how it operates and is governed, and they help demonstrate that your organisation genuinely operates on a not-for-profit basis.
If your NFP doesn't have governing documents in place or your documents are missing the required clauses, you must update them by 30 June 2026.
An important step for self-assessing NFPs
For NFPs that self-assess as income tax exempt, governing documents must include rules that prevent profits or assets being distributed for the benefit of specific people, both while operating and on winding up, except as genuine reimbursement for services provided or expenses incurred on behalf of the NFP.
If you manage an NFP with an Australian business number (ABN) that self-assesses as income tax exempt, you must confirm your governing documents are in order when lodging the annual NFP self-review return. We’ve simplified question 3 in the 2025–26 NFP self-review return to make this clearer.
From 1 July 2026, an NFP that does not have governing documents containing the required clauses cannot self-assess as income tax exempt. NFPs that aren't eligible to self-assess as income tax exempt and aren't a charity are taxable and must lodge an income tax return.
If you are responsible for an NFP, it's good practice to review your governing documents regularly. The lead up to your annual general meeting (AGM) is a great opportunity to check they continue to reflect your organisation’s purpose, activities and not-for-profit status, and before you lodge the NFP self-review return.
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