Definition of Charity
The Federal Government has released a consultation paper on a
statutory definition of charity with the intention of changing the
definition. The consultation paper sets out the components of the
proposed definition and various issues that may arise.
This new definition of charity will be applicable for all
Commonwealth laws and the Government will consult with the States
and Territories in order to try to obtain greater uniformity amongst
The intention is to change the requirement for a charity to have
purposes that are exclusively charitable. Under the definition
previously proposed in 2003, a charity was only going to be required
to have a dominant purpose that was charitable.
Submissions on the consultation paper close on 9 December 2011.
We anticipate that the changes will have very significant
ramifications for many organisations in the not-for-profit sector.
The Government has now created a website for the Australian Charities
and Not-for-profits Commission Implementation Taskforce. The website
provides some interesting statistics on the Australian
not-for-profit sector and shows how extensive and important the
sector is. It also shows the enormity of the task for the Government
of bringing the sector under one regulator.
Visit the website.