Starting a charity in Australia is a two-step process, not one: the ACNC registers you as a charity, and the ATO separately endorses you as a Deductible Gift Recipient (DGR) if you want donations to be tax-deductible.
- Not every community group needs to become a registered charity. Every charity is a not-for-profit, but not every not-for-profit needs ACNC registration to do good work.
- Choose your legal structure first: an incorporated association suits one state; a company limited by guarantee (registered with ASIC) suits operating nationally.
- ACNC registration does not make donations tax-deductible. That requires a separate ATO DGR application, and under half of registered charities hold it.
- Fundraising is regulated state by state, not federally. The 16 National Fundraising Principles agreed in February 2023 are harmonising this, slowly.
- You do not have to pay for help. Justice Connect's Not-for-profit Law publishes free guidance for Australian not-for-profits, and neither the ACNC nor the ATO charges for their own guidance.
Starting a charity in Australia is not a single act. It is a sequence of decisions: about whether you actually need to register, which legal structure fits your work, which regulator handles what, and how to make donations tax-deductible for your supporters. Getting the sequence wrong costs time and goodwill.
This guide covers every step, from the first question founders get wrong ("does our group need to be a charity?") through ACNC registration, ATO DGR endorsement, state fundraising authorities, and the practical infrastructure that lets you start raising money with confidence.
In this article:
Start with the question: charity, not-for-profit, or something smaller?
The most important decision you will make as a founder is also the one most people skip: do you actually need to be a registered charity?
In Australia, all charities are not-for-profits (NFPs), but not all not-for-profits are charities. A not-for-profit is any organisation that does not operate for the profit of its members. That covers an enormous range of groups: sports clubs, P&C associations, community gardens, cultural societies, book clubs, and neighbourhood support networks. Many of these operate perfectly well without ever registering with the ACNC.
To be a registered charity under Australian law, your organisation must:
- have charitable purposes as defined in the Charities Act 2013 (Cth), which lists 12 recognised charitable purpose types including advancing health, education, social or public welfare, religion, culture, human rights, and the environment
- operate for the public benefit, not a private benefit
- be a not-for-profit, with a governing document that locks assets to a charitable purpose on dissolution
- hold an Australian Business Number (ABN)
The upside of ACNC registration is real: access to tax concessions, a listing on the free public ACNC Charity Register (which donors and grant-makers use to verify your legitimacy), and the pathway to DGR endorsement for tax-deductible donations. The trade-off is ongoing governance obligations: annual reporting, compliance with the ACNC's six governance standards, and responsible-persons requirements.
If your group is small, local, and not yet ready for that overhead, you can operate as an unincorporated NFP in the interim. Many groups spend their first year building a track record before formalising. The structure should serve your work, not the other way around.
Understand the two-regulator reality: ACNC and the ATO
This is the AU spine. Get it right before you file anything.
The ACNC registers and regulates charities. The Australian Charities and Not-for-profits Commission was established under the ACNC Act 2012. It manages the national Charity Register, sets governance standards, and provides a 'report-once, use-often' framework with state and territory regulators. Read the ACNC's About page for the full remit.
The ATO separately administers tax concessions and DGR endorsement. The Australian Taxation Office endorses organisations as Deductible Gift Recipients under Division 30 of the Income Tax Assessment Act 1997. DGR endorsement is what makes a donor's contribution tax-deductible. ACNC registration does NOT make donations tax-deductible. These are separate decisions made by separate bodies.
Under half of ACNC-registered charities hold DGR endorsement. That is not a failing: many organisations do excellent charitable work without needing the DGR pathway. But if tax-deductible receipting is important to your donors and your fundraising plan, DGR endorsement must be on your to-do list from day one.
The good news: both the ACNC registration application and the ATO DGR endorsement application can be lodged together through the ACNC portal. They are assessed separately, but you do not have to wait for one before submitting the other.
For a detailed walkthrough of how DGR works, read our guide to DGR endorsement for Australian charities.
Choose your legal structure
Before you can register with the ACNC, you need a legal entity. There are two main NFP legal structures in Australia, plus a third option that is less common for new charities.
Incorporated association (state-registered)
An incorporated association is registered under state or territory legislation (for example, the Associations Incorporation Act 2009 in NSW, or equivalent acts in each state and territory). It gives the organisation its own legal identity, which limits the personal liability of members and office-bearers. It is simpler and cheaper to set up than a company, and it suits organisations that operate primarily within a single state or territory.
The drawback: an incorporated association that wants to operate across multiple states may need to register in each one, or re-incorporate as a company limited by guarantee.
Read our guide to incorporated associations in Australia for a state-by-state breakdown of the registration process and thresholds.
Company limited by guarantee (ASIC-registered)
A company limited by guarantee is registered with the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. It operates nationally from day one, which makes it the right choice for a charity with a national remit or multi-state programs. The governance load is higher: ASIC compliance obligations, annual review fees, and mandatory director duties under the Corporations Act. Read more on the ASIC NFP and charity obligations page.
Trust
A charitable trust is a third option, less common for start-up charities. It suits a situation where a donor or founder wants to endow assets for a specific charitable purpose. Most new community organisations do not need this structure.
Unincorporated association
An unincorporated association is legal but exposes individual members to personal liability for the organisation's debts and obligations. It is a reasonable interim arrangement while you build a track record, but you will need to incorporate before the ACNC will register you.
Zeffy does not provide incorporation services. For free, practical guidance on choosing the right structure, Justice Connect's Not-for-profit Law is the first place to go.
Write your governing document (rules or constitution)
Every NFP needs a governing document. For an incorporated association, this is typically called the 'rules'. For a company limited by guarantee, it is called the 'constitution'. This document is your operating manual: it sets out what your organisation exists to do, how it is governed, and what happens to its assets if it dissolves.
At a minimum, a governing document for an ACNC-registered charity must include:
- a clear statement of the organisation's charitable purpose (this is what the ACNC assesses against the Charities Act 2013 definitions)
- a not-for-profit clause (assets and income cannot be distributed to members)
- a dissolution clause (on winding up, remaining assets must be transferred to another charity with similar purposes, not distributed to members)
- membership rules (who can join, how membership ends)
- meeting rules (how decisions are made, quorum requirements, AGM requirements)
- the role and duties of office-bearers and responsible persons
State regulators publish free model rules for incorporated associations, and Justice Connect's Not-for-profit Law has free template constitutions and governing documents for different structure types. Use these before paying a lawyer to draft from scratch.
The ACNC's governance standards (Standards 1 to 6) apply from the moment you are registered. Standard 1 requires that purposes and NFP nature are clearly set out; Standard 2 covers accountability to members; Standards 3 to 6 cover responsible persons, conflicts of interest, and financial management. The governing document is where these standards start.
Register with the ACNC
Once you have your legal entity and governing document in place, you can apply to the ACNC for charity registration.
The eligibility test has five elements:
- 1. Your organisation is a not-for-profit (confirmed by your governing document's clauses).
- 2. It has a charitable purpose under the Charities Act 2013 (Cth): one or more of the 12 recognised purpose types.
- 3. It operates for the public benefit, not a private or restricted benefit.
- 4. It has no disqualifying purpose or activity (for example, it does not exist to benefit a political party).
The application is lodged via the ACNC portal. You will need to upload your governing document, provide details of your responsible persons (the people on your board or committee), and answer questions about your charitable purposes and activities.
Once registered, your organisation appears on the public ACNC Charity Register. Donors, grant-makers, and corporate partners routinely check this register before giving. Being listed builds instant credibility for a new organisation.
Do not quote a specific approval timeline from this article: the ACNC's own guidance on expected processing times is the right reference, and it changes. Check the ACNC website directly when you are ready to apply.
Apply to the ATO for DGR endorsement (if you want tax-deductible donations)
DGR endorsement is the mechanism that makes donations to your charity tax-deductible for your donors. The canonical line you will use on every receipt and donation page is: "Donations of $2 or more are tax-deductible." The $2 minimum is set by the ATO and has been stable for many years, but verify the current threshold on the ATO site before publishing your receipts.
There are 52 DGR categories under Division 30 of the Income Tax Assessment Act 1997. The ATO consolidated administration of all 52 categories from 1 January 2024, which means all DGR applications now go through the ATO (previously some categories were administered by other Commonwealth departments). Browse the full ATO DGR categories table to find which category fits your purpose.
When you are DGR-endorsed, your donors can verify your status via ABN Lookup using your ABN. Every receipt you issue for a tax-deductible donation must include:
- your organisation's name and ABN
- a statement confirming DGR status (the "Donations of $2 or more are tax-deductible" line)
- the donation amount and date
For a complete guide to receipt requirements for Australian charities, see our article on tax-deductible receipts in Australia.
What is not tax-deductible in Australia
Getting this right protects your donors and your reputation. The following are never tax-deductible, even if paid to a DGR-endorsed charity:
- raffle tickets (the buyer receives a benefit: the chance to win a prize)
- gala dinner or event tickets where a meal or entertainment benefit is received
- auction items where the buyer receives goods or services in return
- the value of volunteer time or services
- donations to charities that are not DGR-endorsed
The ACNC's DGR factsheet explains the distinction between ACNC registration and DGR endorsement in plain language and is worth sharing with your founding committee.
Sort out your state-based fundraising authority
Fundraising in Australia is regulated state by state. There is no single national fundraising licence. This is one of the most practically burdensome aspects of running a charity that operates across state lines, and it is the core focus of the Justice Connect Fix Fundraising campaign.
The 16 National Fundraising Principles, agreed by all Commonwealth, state, and territory governments in February 2023, are slowly harmonising this. Cross-border recognition (where ACNC registration is accepted as equivalent to a state licence) is rolling out, but at different speeds in each jurisdiction. Here is the current state of play:
New South Wales
Regulator: NSW Fair Trading under the Charitable Fundraising Act 1991. A fundraising authority is required if your appeal raises more than $15,000 in a financial year. From 1 April 2026, ACNC-registered charities are automatically deemed to hold a NSW fundraising authority: no separate application needed. Non-ACNC entities still need to apply. Check the NSW charitable fundraising page for current requirements.
Victoria
Regulator: Consumer Affairs Victoria under the Fundraising Act 1998. Gaming activities (raffles, bingo) are separately regulated by the Victorian Gambling and Casino Control Commission (VGCCC). ACNC-registered charities can notify Consumer Affairs Victoria and are recognised without a separate fundraising licence application.
Queensland
Regulator: Office of Fair Trading under the Collections Act 1966. Gaming activities (including 'art unions', the QLD term for larger raffles) are regulated by the Office of Liquor and Gaming Regulation (OLGR). ACNC-registered charities can use ACNC registration to obtain a QLD fundraising authorisation via the cross-border recognition scheme. See the ACNC's Queensland fundraising page for the process.
Western Australia, South Australia, Tasmania, ACT, Northern Territory
Each has its own regulator and thresholds. Cross-border recognition is at different stages of implementation. WA is actively adopting ACNC-recognition reforms. Tasmania's Charities and Associations Law Amendment Act 2025 also adopts ACNC cross-border recognition.
If you are a new charity operating in a single state, check with your state regulator first and confirm whether ACNC registration triggers automatic recognition before you invest time in a separate application.
Set up the practical infrastructure: ABN, bank account, insurance, and privacy
ABN
You need an ABN before you can apply to the ACNC. Apply via the Australian Business Register. Use your organisation's legal registered name exactly as it appears on your governing document: consistency across every system is critical (more on this in the common-mistakes section below).
Bank account
Open a bank account in the organisation's registered legal name, not a personal account and not an informal account in a founding member's name. This is a governance standard and a practical necessity for transparent financial reporting.
Insurance
At a minimum, consider public liability insurance (for events and activities involving the public), volunteer insurance (in case a volunteer is injured), and directors and officers (D&O) insurance for your board. Check the ACNC governance standards for what is expected.
Privacy obligations
The Privacy Act 1988 applies to NFPs with annual turnover greater than $3 million. Smaller NFPs can opt in to comply. Even if you are under the threshold, the OAIC guidance for NFPs is worth reading: it sets out best practice for collecting only what you need, storing donor data securely, setting retention limits, and vetting third-party providers. The Notifiable Data Breaches scheme applies to organisations of any size if they experience an eligible data breach. The ACNC's data guidance covers the charity-specific obligations.
Get free legal and governance help before you pay for it
The instinct when starting a formal organisation is to hire a lawyer and an accountant. That is sometimes necessary. But for most founders in the early stages, a great deal of the work can be done with free, high-quality resources designed specifically for Australian not-for-profits.
Justice Connect / Not-for-profit Law is the single most useful resource for new founders. It publishes free legal information on governance, structure choice, employment, fundraising, and data privacy, and offers (means-tested) free legal advice for eligible organisations. It also runs the Fix Fundraising campaign, which is the authoritative voice on state-harmonisation reform.
ACNC guidance library has factsheets, templates, model governing documents, governance standard summaries, and step-by-step registration guidance. All free.
Fundraising Institute Australia (FIA) is the national peak body for professional fundraising. More relevant once your fundraising program is up and running than at the founding stage, but worth knowing.
Philanthropy Australia is the sector peak body for organised giving and philanthropy. If your strategy includes major gifts or a grants program, Philanthropy Australia's resources and network are a good starting point.
None of these resources replaces a lawyer for complex questions (for example, if you are establishing a trust, or if your structure involves significant commercial activity alongside your charitable purpose). But they will help you ask the right questions before you pay for professional advice.
Start fundraising: what actually works for a brand-new AU charity
The biggest fundraising mistake a new charity makes is chasing grants first. Grants are a brutally low-yield channel for organisations with no track record: the competition is fierce, the reporting requirements are significant, and the odds are poor. Our AU grants guide covers this honestly. Build an engaged supporter base first; grants follow track record, not the other way around.
For a brand-new charity, the first year is about keeping it simple and building relationships:
Set up a donation page with DGR-compliant receipting from day one. If you are DGR-endorsed, every donation of $2 or more is tax-deductible for your donors. Issuing a proper receipt (with your name, ABN, and the "Donations of $2 or more are tax-deductible" line) builds trust and makes it easy for donors to claim their deduction. See the Zeffy donation page for a free option that handles DGR-compliant receipting automatically for endorsed charities.
Plan for EOFY, not December. Australia's giving peak is the end of the financial year: 30 June. Donors maximise tax-deductible donations before that date, which means May and June are your highest-conversion window. Build your first appeal around EOFY. Our EOFY fundraising guide walks through what works for smaller organisations.
Run a simple community event once your state fundraising authority is in order. A trivia night, a community sausage sizzle, a quiz night: these build your local profile, bring your first supporters into a room, and are low-risk if the numbers are modest. Make sure you understand your state's fundraising authority requirements before you collect money (see the state-by-state section above).
Try a small peer-to-peer appeal once you have 20 or more warm supporters. Ask your founding group to fundraise on your behalf: a walk, a ride, a challenge. P2P works because it extends your reach into networks you do not have yet. It does not require a large team to run a small campaign. For ideas on community-led fundraising, see our community fundraising ideas guide.
Consider workplace giving as a diversification channel. Once you are ACNC-registered and DGR-endorsed, your donors can contribute through payroll giving programs. Our workplace giving in Australia guide explains how the schemes work and who can access them.
This is where Zeffy fits: free donations, ticketing, memberships, and donor management in one platform, with $2 tax-deductible receipting for DGR-endorsed charities. No platform fee. No transaction fee. Ever. Explore the full Zeffy platform for Australian charities.
Common mistakes new AU charities make
These are the operational traps that cost founders time, money, and credibility. Most of them are avoidable with a little upfront discipline.
Using an inconsistent legal name across systems. The name on your ACNC registration, your ABN, your bank account, and every platform you use must match exactly. Downstream systems verify against this precise name, and mismatches trigger support pain and, in some cases, block automatic tax-receipt setup entirely. Use your full legal name consistently from the first day.
Assuming ACNC registration makes donations tax-deductible. It does not. Only ATO DGR endorsement does. This is the single most common misunderstanding among new founders, and it leads to either incorrect receipting (claiming donations are tax-deductible when they are not) or missed fundraising opportunities (not applying for DGR at all because you thought registration was enough).
Starting to solicit donations across state lines before checking each state's fundraising authority. Cross-border recognition is rolling out, but it is not complete. If you run an online appeal visible to donors in multiple states, you may need a fundraising authority (or a notification) in each state where you actively solicit. Check first.
Under-investing in the governing document. It is tempting to use the minimum viable template and move on. But your governing document is your operating manual for every governance challenge you will face: disputes about membership, board decisions, financial controls, and what happens when a founding member wants to leave. Spending time on it at the start costs far less than amending it later.
Using "mission" loosely in your public communications. In Australia, the word has a specific and harmful historical meaning: missions were institutions where Aboriginal people were detained against their will. Use "cause", "work", or "purpose" instead. This is not a style preference; it is a cultural-safety requirement.
Not getting free help before paying for it. Most new founders over-pay for legal and accounting work that Justice Connect's Not-for-profit Law covers for free. Start there.
Frequently asked questions
Do I need to register with the ACNC to call my group a charity?
Yes, in Australia the word "charity" has a specific legal meaning. Only organisations registered with the ACNC under the Charities Act 2013 (Cth) are legally charities. An unregistered group can be a not-for-profit (NFP) and do excellent community work, but it cannot call itself a charity or access charity-specific tax concessions.
How is ACNC registration different from ATO DGR endorsement?
ACNC registration makes your organisation a registered charity. ATO DGR endorsement makes donations to your organisation tax-deductible for the donor. These are two separate applications assessed by two separate bodies. ACNC registration does not automatically give you DGR status, and under half of ACNC-registered charities are DGR-endorsed.
Do I need a fundraising licence to raise money in Australia?
Fundraising is regulated state by state. Whether you need a separate fundraising authority depends on which state(s) you raise money in and how much you raise. ACNC-registered charities benefit from cross-border recognition schemes that are rolling out in each state: in NSW, for example, ACNC-registered charities are automatically deemed to hold a NSW fundraising authority from 1 April 2026. Check with your state regulator and the NSW charitable fundraising page for current requirements.
Are raffle tickets or event tickets tax-deductible?
No. Raffle tickets are never tax-deductible because the buyer receives something in return (the chance to win a prize). Event tickets for a gala dinner or fundraising event are also not tax-deductible where the attendee receives a meal or entertainment benefit. Only a pure donation, with nothing received in return, qualifies for the tax-deductible receipt.
What does Zeffy do for Australian charities?
Zeffy is a free fundraising platform: no platform fee, no transaction fee. Australian charities use Zeffy for donation pages, event ticketing, memberships, and donor management. For DGR-endorsed charities, Zeffy issues tax-deductible receipts automatically. Zeffy does not register, incorporate, or provide legal, tax, or accounting advice: for that, start with Justice Connect's Not-for-profit Law and the ACNC.
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