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  • Explanation of terms

    The following information gives definition of some terms which are important to NFP administrators.

    ACNC type of entity

    Several DGR categories require your fund, authority or institution to either:

    • be registered with the ACNC
    • not be an ACNC type of entity.

    For these categories, if the fund, authority or institution can be registered by the Australian Charities and Not-for-profits Commission (ACNC) it must be to fully meet the description of the category.

    A fund, authority or institution that is 'not an ACNC type of entity' does not need ACNC registration to meet the description of the category. Examples are:

    • entities that are not charities such as government authorities
    • funds, authorities and institutions that are part of an entity such as school building funds owned by parent and friends associations or public libraries operated by local councils.

    See also:

    Australian government agency

    Australian government agency means:

    • the Commonwealth, a state or a territory
    • an authority of the Commonwealth, a state or a territory.

    See also:

    • For information about what is the Commonwealth, a state or territory, refer to Goods and Services Tax Ruling GSTR 2006/5 Goods and services tax: meaning of 'Commonwealth, a State or a Territory'

    Gift condition

    For some DGRs, the law adds extra conditions affecting the types of deductible gifts they can receive. The gift may only be tax deductible if it was given either:

    • between certain dates
    • for a specific use.

    Non-profit

    An organisation is non-profit if it is not carried on for the profit or gain of its individual members. We accept an organisation as non-profit if it is prohibited, by law or its governing documents, from distributing profits or gains to individual members and its actions are consistent with the prohibition.

    Non-profit company

    The company must be:

    • not carried on for the purposes of profit or gain to its individual members, and
    • prohibited by its constitution from making any distribution of money or property to its members.

    Public authority

    A public authority is an agency or instrument of government exercising power or command for the public advantage. It has governmental authority for doing so. It possesses powers that are exceptional compared to ordinary individuals, but not necessarily coercive powers.

    Public fund

    A fund is a public fund if:

    • it is intended that the public will contribute to it
    • the public or a significant part of the public does in fact contribute
    • the public participates in administration of the fund.

    For non-government public funds, the fund must be administered or controlled by individuals or institutions that have a degree of responsibility to the community as a whole because of their tenure of some public office or their position in the community.

    See also:

    Registered charity

    Registered charity means an entity that is registered with the Australian Charities and Not-for-profits CommissionExternal Link (ACNC) as a charity.

    Several DGR categories may require the fund, authority or institution to be either of the following:

    • a registered charity
    • operated by a registered charity.

    For these categories, if your organisation is a charity it must be registered with the ACNC.

    Registered health promotion charity

    Registered health promotion charity means an institution that is both:

    • a registered charity
    • registered with the ACNC as a health promotion charity.

    See also:

    Registered public benevolent institution

    Registered public benevolent institution means an institution that is both:

    • a registered charity
    • registered with the ACNC as a public benevolent institution.

    See also:

      Last modified: 19 Jun 2017QC 52593