Is Your Not-For-Profit Meeting Its Compliance Obligations?

Navigating compliance is vital for not-for-profit (NFP) organisations to build trust, achieve their mission, and secure critical funding. Meeting legal and regulatory obligations isn’t just a box-ticking exercise—it’s the foundation of transparency, ethical governance, and long-term success. Is your organisation ready to meet the latest requirements?

NFPs face unique compliance challenges that differ significantly from for-profit entities. While for-profit compliance focuses on profit generation and shareholder responsibilities, NFP compliance prioritises regulations that protect the mission. This includes ensuring the proper use of funds, fulfilling reporting obligations, and maintaining accountability.

Key compliance areas for NFPs are governed by the Australian Taxation Office (ATO) and the Australian Charities and Not-for-profits Commission (ACNC). These requirements encompass:

Failure to meet these obligations can result in severe consequences, including financial penalties and reputational damage among members and stakeholders.

To maintain compliance, NFPs should establish and regularly review a detailed compliance checklist. This tool ensures that all legal and regulatory requirements are met. A well-maintained checklist strengthens governance and demonstrates accountability to stakeholders and helps organisations stay proactive in addressing compliance risks.

If you are interested in receiving Accru Melbourne’s sample copy of a detailed compliance checklist, please complete the form below.  

The importance of maintaining an up-to-date compliance checklist is underscored by the ATO’s introduction of an annual tax-exempt self-review lodgement. Starting from the 2023-2024 income year, ABN-registered non-charitable NFPs must lodge an annual NFP self-review return. Submitting this return is essential for confirming your income tax exemption status and ensuring your NFP continues to meet the necessary criteria.

Staying compliant with ATO and ACNC requirements is more than a legal obligation. It’s a cornerstone of maintaining trust, transparency, and the integrity of your NFP. Non-compliance not only risks financial penalties but can also undermine your organisation’s reputation and capacity to attract funding.

If you have concerns about compliance for an NFP you’re involved with or wish to discuss these matters further, contact our experienced NFP team at Accru Melbourne. We’re here to help ensure your organisation meets its compliance obligations with minimal risks.

Please be aware that this is a sample checklist. It does not cover all the obligations your charity may have. There may be specific requirements under other Commonwealth, state, and territory regulators that apply only to certain organisations. For instance, if your charity is an incorporated association, you will still need to report to your state or territory regulator for incorporated associations.

For support in developing a customised checklist, please reach out to the experienced team at Accru Melbourne.

References include data taken from the ATO and ACNC online resources.