In this month’s social sector spotlight, we highlight the following observances from the United Nations:
World Art Day (15 April) – encouraging greater awareness of the diversity of artistic expressions and highlighting the contribution of artists to sustainable development.
Earth Day (22 April) – highlighting global environmental awareness and taking action for nature.
In honour of the significant international celebrations mentioned above, our feature article delves into the recent updates regarding the deductible gift recipient (DGR) categories of ‘cultural organisations’ and ‘environmental organisations’.
In addition, we provide important updates within the charity and not-for-profit (NFP) sector, including guidance and reminders from the Australian Electoral Commission (AEC), Australian Taxation Office (ATO), Australian Charities and Not-for-profits Commission (ACNC) and New South Wales (NSW) Fair Trading.
Research and resources
Deductible gift recipient update – environmental and cultural organisations
Environmental and cultural organisations play crucial roles in building a more sustainable and culturally rich future. The general community benefits greatly in their efforts to protect and enhance the natural environment and to promote art and culture.
As part of the changes brought by the Treasury Laws Amendment (Refining and Improving our Tax System) Act 2023 (Cth) which came to effect from 1 January 2024, the eligibility criteria and application process for DGR endorsement for environmental organisations and cultural organisations categories changed.
In this month’s feature article, we explore the updated DGR categories of environmental and cultural organisations. Click here to read our article ‘Deductible gift recipient update – environmental and cultural organisations'.
ACNC public consultation on updated template constitution for charitable companies limited by guarantee
The ACNC is inviting the public to provide comments and feedback on its revised draft template constitution for charitable companies limited by guarantee (CLBG).
Together with the ACNC’s draft template, the ACNC has also included four new variations to the CLBG constitutions:
With deductible gift recipient (DGR) endorsement as a whole.
With DGR endorsement for the operation of a fund, authority, or institution.
Which are Health Promotion Charities (HPCs).
Which are Public Benevolent Institutions (PBIs).
The ACNC template constitution will assist charities incorporated as a CLBG with the Australian Securities and Investments Commission, or those who wish to establish a charitable CLBG, to have a suitable governing document. That being said, care should be taken to ensure any constitution used appropriately reflects the governance framework for the charity and is tailored to its unique circumstances.
If you are looking to establish a new charitable CLBG or review your governing document, our team are able to assist.
Submissions and enquiries regarding the ACNC template constitution should be directed to consultations@acnc.gov.au by close of business Friday 9 May 2025. Further information is contained in the consultation paper (together with all five draft templates) which can be accessed here: ACNC - Public Consultation on template constitution for charitable CLBG.
ACNC and NSW Fair Trading warns of scam appeals following floods in Queensland and New South Wales
After recent storms and floods which hit various communities in Queensland and New South Wales, the ACNC and the NSW Government issued warnings to remain vigilant against potential fundraising scams following media reports of incidents where scammers have tried to take advantage of the community’s generosity.
The ACNC and NSW Fair Trading provides the following tips when considering donating to various appeals:
Check credentials: look for established, registered charities running verified appeals. A quick way to do this is by checking the charity register to see details about the charity’s activities.
Avoid unsolicited requests: beware of calls, texts, emails and social media posts which may have links taking you to a scam website or socials page. Instead, find the charity’s website on the charity register.
Be cautious about handing out details in unverified platforms: do not give your credit card and bank account details on social media and be cautious if you do so online. If you get a call claiming to be from a charity, say you’ll call back. Search the ACNC charity register and call back on the number shown there.
Report suspicious activity: visit Scamwatch and NSW Fair Trading for more information.
To check if a charity holds a charitable fundraising licence in NSW, the Verify NSW website can assist. Further information can be found on the ACNC website and the NSW Government webpage.
ACNC and AEC reminds charities of obligations regarding political advocacy
Further to the ACNC’s updated guidance on ‘Charities, Campaigning and Advocacy’ published in February this year, the ACNC has issued a reminder for charities to be aware of their obligations regarding political advocacy, campaigning and disclosing electoral spending as required by the AEC.
Charities may engage in advocacy and make valuable contributions to national policy conversations but only in furtherance of their charitable purpose. Moreover, charities who spend money on electoral matters during this federal election should be mindful of potential reporting requirements with the AEC.
The AEC has published guidance for charities which explains when a charity is required to report electoral spending, how to report it and related information. The ACNC’s reminder may be accessed here: Charities and the federal election: ACNC and Australian Electoral Commission rules.
Announcements and reminders
Is your non-charitable NFP self-review return overdue?
Non-charitable NFPs with an active Australian business number must lodge an NFP self-review return with the ATO for the 2023–24 income year. The 31 March 2025 due date has now passed, so if your organisation has not lodged your NFP self-review return yet, take action now.
The ATO is supporting NFPs who have missed the deadline and are genuinely trying to get things right. This includes suspending penalties as part of the transitional support arrangements for the first year of the NFP self-review return lodgement. However, from July 2025 the ATO will start to review NFPs who intentionally ignore their obligations to submit a self-review return.
Find out more on how to lodge your NFP self-review return here: ATO - Is your self-review return overdue? You must lodge now.
Logging in to ATO services is now a little different
The ATO has recently updated its login process now using the ‘Australian Government Digital ID System’ to verify identification when using digital ID to access the following:
Online services for business
Relationship Authorisation Manager
Access Manager
Australian Business Register.
The above services are used when updating an NFPs details, lodging an NFP self-review return or lodging an NFP’s activity statement. Once you log in to your account, you will be prompted with two new screens – the first allowing you to select a Digital ID provider, e.g., MyID and the second requesting your consent for your information to be shared with the online service.
The updated login process ensures personal information is more secure and better safeguarded. The ACNC has also recently rolled out measures (although currently optional) enabling multi-factor authentication adding an extra layer of security to an account.
To find out more about the ATO login update you can access the ATO’s guidance here: ATO - Logging in to our services is now a little different.
Upcoming events and webinars
Event – the Education Network’s 13th annual charities and not-for-profits conference
TEN the Education Network’s two-day conference features expert speakers who will unpack the latest regulatory changes, offer strategies for strengthening governance and share critical insights into financial sustainability and future-proofing operations within the Charities and NFP sector.
Event details
Date: 15 -16 May 2025
Venue: Marriott Hotel Melbourne or online
For legal practitioners: Earn nine CPD units in Substantive Law for attending the one and a half day conference. All delegates will receive a CPD certificate confirming attendance.
Tickets: Conference registration fee is $1925. Multiple registration discounts are also available.
Registration: Click this link to register for the conference.
Darren Fittler will also be presenting on strategic mergers in the charities and NFP landscape at the conference. He will unpack key considerations for charities and NFPs exploring mergers, including when it is the right move, the benefits and challenges of merging and navigating competition law issues unique to the sector.