Not-for-profit (NFP) organisations do a lot of good for their communities, providing important services and support for those in need.
In the same way, directors have a range of key steps they must take, to ensure they do good by their organisations.
Director ID requirements
All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation are required by law to have a director identification number (director ID)External Link. Once you get your director ID, it is something you will keep forever.
Director ID is a unique 15-digit identifier given to a director (or someone who intends to become a director), who has verified their identity with the Australian Business Registry Services (ABRS).
By law, all directors must verify their identity with us before receiving a director ID. This is important to:
- prevent the use of false or fraudulent director identities
- help external administrators and regulators trace directors’ relationships with companies over time
- identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Ongoing good governance
It is good practice for those responsible for an NFP to run through a governance checklist at regular board or committee meetings as a standing agenda item.
The annual general meeting (AGM) is a great opportunity to review your NFP’s activities and finances from the previous year, elect new committee members, and update any outdated Australian business number (ABN) registration details.
Use our NFP tax, super and registry responsibilities checklist to identify any actions you may need to take to keep on top of your organisation's tax, super and obligations. Doing so will help your NFP run smoothly and reduce the chances of your organisation being subject to compliance activity or penalties.
Failure to report and pay goods and services tax (GST), Pay As You Go (PAYG) Withholding and Superannuation Guarantee Charge (SCG) can result in directors of an organisation being held personally liable and issued with a director penalty notice.
Be sure to review and update your registration details so they remain current. This includes notifying us within 28 days of any changes to associates, postal and email addresses. This will ensure you are compliant with ABN registration requirements and that your NFP receives important reminders and notifications.
Winding up an NFP
If your NFP is no longer operating, you need to complete all outstanding reporting and lodgment obligations, before notifying us and cancelling your ABN.
When winding up, directors must ensure any surplus assets, including any deductible gifts or money received where the NFP is a deductible gift recipient (DGR), are distributed strictly in accordance with the NFP’s governing documents. This will generally require distribution to another NFP with similar purposes or to another DGR.
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