Many people want to start a charity to receive donations and help others. Good planning makes the process faster and lowers your legal risk. This guide explains how to set up a charity in Australia, from checking your purpose to meeting your ongoing duties. It works as a checklist you can follow before you start.
Step 1: Check That a New Charity Is the Right Answer
Start with research. An existing charity or not-for-profit might already pursue your goals, and it could take on your idea. Joining it may save you time and money.
Registering a charity has clear benefits. Registered charities can apply for tax concessions. They also take on ongoing obligations. Registration with the Australian Charities and Not-for-profits Commission (ACNC) is voluntary. However, the ATO says an unregistered charity cannot apply for endorsement or access income tax exemption. Weigh the benefits against the work before you commit.
Step 2: Confirm Your Purpose Is Charitable
A charity needs a charitable purpose. Under the Charities Act 2013 (Cth), a charity must be not-for-profit and have only charitable purposes that benefit the public. The ACNC explains the legal meaning of charity on its website.
The Act lists 12 charitable purposes. They include advancing health, education, social or public welfare, religion, culture and the natural environment. They also include promoting human rights and preventing the suffering of animals. A purpose that promotes unlawful activity or supports a political party disqualifies you.
Write down your objectives, your activities, your services and your target audience. Identify who benefits and why they need your charity. Decide whether the charity will run indefinitely or for a set period, because that choice shapes your governing document.
Step 3: Plan Your Resources
Count the setup and ongoing costs early. ACNC registration is free. Incorporation has a fee, and the price varies by structure. In 2026-27, Consumer Affairs Victoria charges $86.40 to incorporate an association with model rules and $518.10 with your own rules.
Then think about people. Decide whether you will hire staff or rely on volunteers. Budget for insurance, accounting and legal advice. A not-for-profit must also register for GST if its GST turnover reaches $150,000. This planning shows whether the charity is viable.
Step 4: Choose a Legal Structure
Pick a structure that suits the charity now and in the long term. The ACNC lists the common legal structures. An incorporated association is the most common choice, and a company limited by guarantee comes second. Other options include a trust, an unincorporated association and, in some cases, a co-operative.
An unincorporated association has no separate legal identity. Its members may have to act in their own names. In Victoria, an incorporated association registers with Consumer Affairs Victoria under the Associations Incorporation Reform Act 2012 (Vic). It needs at least five members. A company limited by guarantee registers with ASIC. A charity with both ASIC and ACNC registration skips the ASIC annual review and annual fee.
Consider the size of the charity and the complexity of its activities. Think about staff, members’ personal liability, grant plans and whether you will operate in more than one state. The ACNC offers governing document templates for small charitable companies and unincorporated associations. Specialist advice at this stage helps you compare the trade-offs.
Step 5: Set Up Management and Governance
Decide who will govern the charity. It may need a board, a committee or trustees, and clear rules for how they act. A company limited by guarantee needs at least three directors. The ACNC does not set a minimum number of Responsible People, but it says more than one supports good governance.
Registered charities must meet six ACNC Governance Standards. They cover your purposes and not-for-profit nature, accountability to members and compliance with Australian laws. They also cover the suitability and duties of your Responsible People, and the need to maintain public trust. Your Responsible People must act with care and diligence, avoid conflicts of interest, and never let the charity trade while insolvent.
Step 6: Register With the ACNC and Seek Tax Concessions
You apply online through the ACNC Charity Portal. You need an ABN, a governing document with a suitable not-for-profit clause, and details of each Responsible Person. The ACNC also asks for policies, including conflict of interest and financial management. Read the ACNC registration checklist and guide before you apply.
The same application lets you request income tax exemption, GST concessions and the FBT rebate, which the ATO decides. You can also request deductible gift recipient (DGR) endorsement if you want donors to claim a tax deduction. Allow several weeks for the process, because the ACNC says allocation may take up to 12 weeks. Our guide to DGR endorsement explains that step.
Step 7: Plan Your Fundraising and Gaming Compliance
Fundraising rules depend on where you raise money. Each state and territory has its own regime. In Victoria, Consumer Affairs Victoria regulates fundraising. An ACNC-registered charity must notify it before fundraising. Our guide to fundraising for charities covers every state.
Raffles and similar activities have separate rules. The Victorian Gambling and Casino Control Commission now regulates them. Larger raffles need a permit, so check the current threshold before you sell tickets.
Step 8: Prepare for Ongoing Duties and Promotion
Registered charities report every year. All of them submit an Annual Information Statement within six months of year end. Small charities, with revenue under $500,000, do not file a financial report. Medium charities, from $500,000 to under $3 million, and large charities, at $3 million or more, do. The ACNC explains the thresholds in its Annual Information Statement guide.
Promotion matters too. Plan how you will reach your audience and which channels you will use. If you run a website or collect donor details, you may need website terms and a privacy policy. See our guide on website terms and conditions.
Frequently Asked Questions
1. Do I have to register with the ACNC to be a charity?
Registration is voluntary. However, an unregistered charity cannot apply for ATO endorsement for tax concessions, so most new charities register.
2. How much does it cost to set up a charity in Australia?
ACNC registration is free. You pay a fee to incorporate, which depends on your structure. In Victoria in 2026-27, an association pays $86.40 with model rules or $518.10 with its own rules.
3. What is the best legal structure for a charity?
It depends on your size, activities, staff and plans. An incorporated association is the most common choice, and a company limited by guarantee comes second. Get advice before you choose.
4. How long does ACNC registration take?
The ACNC says allocation may take up to 12 weeks, and it aims to decide within 15 business days once it has everything it needs. Timeframes vary.
5. Do I need DGR status?
Only if you want donors to claim a tax deduction. DGR endorsement is separate from ACNC registration, and you can request it in the same application.
6. What counts as a charitable purpose?
The Charities Act 2013 (Cth) lists 12 purposes. They include advancing health, education, social or public welfare, religion, culture and the natural environment. The purpose must also benefit the public.
7. Can I fundraise before I register?
Fundraising rules apply from the day you start. Check your state regulator before you ask the public for money.
Our not-for-profit lawyers help you plan and set up a charity. We advise on your legal structure, draft your governing document, and prepare your ACNC application. We also explain your fundraising and governance duties. If you are ready to register, see our charity and not-for-profit registration service. For privacy questions about donor data, speak to our data and privacy team. Call us on 03 8691 3111 or email hello@alliedlegal.com.au to discuss your charity.
This article is provided for general information only and does not constitute legal advice. You should obtain legal advice specific to your circumstances before acting on any information contained in this article.
