Thankyou I have been developing a not for profit idea. Just learning what I can and Thankyou I’m very keen to learn more as I believe I have an idea that can help others. I can’t wait to try
You're conflating two things here. Your talking points relate solely to charities but you're referring to all not for profits. Not all non-profits are charities. A charity is just one type of not-for-profit organisation however the main difference between a nonprofit and a charity is that a nonprofit doesn't need to reach a 'charitable status' whereas a charity, to qualify as a charity, needs to meet very specific or strict guidelines. Only charities need to register with the ACNC - not all non-profits. In addition to being not-for-profit, a charity must only have charitable purposes (as deemed by Australian law) for the public benefit, not be a government entity, individual or political party and not have a disqualifying purpose (e.g. a purpose that goes against these requirements). Another difference between a nonprofit and a charity is that a charity must register and comply with the Australian Charities and Not-for-profits Commission (ACNC) - but other types of non-profits do not. Once a charity has a charitable status it then qualifies for charity tax concessions (not-for-profits can qualify for tax concessions but they differ from concessions for a charity).
Thanks a lot for those great videos! I'm thinking of transitioning from being a sole trader to a not-for-profit organization (something pretty small to start, with just me) but I'm a bit confused about how to pay myself. I want to deliver workshops in schools and for communities. Could I pay myself a percentage of the income from the workshops?
You can definitely pay yourself a wages from a NFP. In setting up a NFP you would also need at least two others to be involved, as something additional to think about.
I’d like to start a not for profit employment agency to help the long term unemployed, prospective immigrants and also those transitioning from prison to society. That way the profits can go back into improving the services we can provide people looking for work like training and education.
Is this similar to a 'PMA' (Private Membership Association) in America, where: "Generally, those in a private membership association are not under the jurisdiction of the state, local, and federal governments’ laws and regulations, the exception being, when a private membership associates’ activities present a clear and present danger." If not, does such a thing exist in Australia?
A not for profit is one type of social enterprise. One where there is no benefits derived by "owners". And a social enterprise can be a one person business. Anyone can make an impact.
There are technical reasons behind this, but my take on the reason this is the case is the purpose of a NFP should be bigger than any one person. Plus it is hard getting a NFP off the ground, so a team from the start gives it a better chance of success.
Thanks for the info, Justin. Very helpful. I've been thinking about starting a recurring competition as a way to generate funds to donate to a charity like GiveWell. IE: Entry fees go into a pool that is split between eventual winners, the donation and admin costs. I've been having trouble figuring out where a project like this (ie an activity that is ostensibly an independent fundraising initiative for another, established charity) would sit on the NFP/Charity spectrum, and how best to get it set up for a minimum of effort. Would appreciate your insights :)
Hi Tom, It sounds like it could be a NFP and set-up that way. The challenge is whether it would be defined as a charity and would depend on clarifying the purpose and who this entity would ultimately help.
@@RightSource Thanks Justin. I agree, I don't really think it would meet the definition of a charity, as it wouldn't be directly helping anyone, rather it would act as a mechanism to turn the creativity of a community group into both recognition for the competition winners, as well as generate funds to hand over to charities already set-up and delivering programs. It's frustrating that NFPs can't be set up by a single person, because this type of project could be set-up and run by one person initially, and then grow as the project grows. It seems to be a real barrier to entry.
thanks for sharing this! I am not clear on definitions ue Charity vs NFP , etc...much to learn, this video series will be very beneficial.
Thank you so much. Finally someone who talks simple terms. Looking foward to the series
This was a really helpful guide. Thanks so much!
Thankyou I have been developing a not for profit idea. Just learning what I can and Thankyou I’m very keen to learn more as I believe I have an idea that can help others. I can’t wait to try
I've emailed you, Frances.
This has been extremely helpful
Thank you so much for putting the time into making this
Love your way of sharing - I've subscribed and am looking forward to the next. :)
Thank you, subscribed. This is the info I'm after.
You're conflating two things here. Your talking points relate solely to charities but you're referring to all not for profits. Not all non-profits are charities. A charity is just one type of not-for-profit organisation however the main difference between a nonprofit and a charity is that a nonprofit doesn't need to reach a 'charitable status' whereas a charity, to qualify as a charity, needs to meet very specific or strict guidelines. Only charities need to register with the ACNC - not all non-profits.
In addition to being not-for-profit, a charity must only have charitable purposes (as deemed by Australian law) for the public benefit, not be a government entity, individual or political party and not have a disqualifying purpose (e.g. a purpose that goes against these requirements).
Another difference between a nonprofit and a charity is that a charity must register and comply with the Australian Charities and Not-for-profits Commission (ACNC) - but other types of non-profits do not. Once a charity has a charitable status it then qualifies for charity tax concessions (not-for-profits can qualify for tax concessions but they differ from concessions for a charity).
Useful information- perhaps a RUclips from you?
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Thanks a lot for those great videos! I'm thinking of transitioning from being a sole trader to a not-for-profit organization (something pretty small to start, with just me) but I'm a bit confused about how to pay myself. I want to deliver workshops in schools and for communities. Could I pay myself a percentage of the income from the workshops?
You can definitely pay yourself a wages from a NFP. In setting up a NFP you would also need at least two others to be involved, as something additional to think about.
Hey, I am thinking of something similar & had similar questions. Want to help each other with research?
Thanks Justin! Very insightful. Subscribed.
I’d like to start a not for profit employment agency to help the long term unemployed, prospective immigrants and also those transitioning from prison to society. That way the profits can go back into improving the services we can provide people looking for work like training and education.
I’m on a student visa. How does that work? Thank you
Is this similar to a 'PMA' (Private Membership Association) in America, where: "Generally, those in a private membership association are not under the jurisdiction of the state, local, and federal governments’ laws and regulations, the exception being, when a private membership associates’ activities present a clear and present danger." If not, does such a thing exist in Australia?
Thank you for the information
This is great, thank you. Can you tell me if it is possible to open a NFP nationally and not just in a particular state? I am in WA
It is possible to open a charity nationally. One way is to set-up a company limited by guarantee rather than an association.
@@RightSource Thank you!
Thank you so much!
What's the difference between a social enterprise and not for profit? Can a social enterprise be a one person business?
A not for profit is one type of social enterprise. One where there is no benefits derived by "owners".
And a social enterprise can be a one person business. Anyone can make an impact.
I’d like to know more about a social enterprise. I have the idea and some volunteers that will help I just need to know what to do to get started
@@frances852 hey Francis, I had some questions abt this. I hope you have had success with your plan.
Legend 👏👏👏 Thank you!
Why do NFPs need to be set up with a group of people? Why can't they be set up solo?
There are technical reasons behind this, but my take on the reason this is the case is the purpose of a NFP should be bigger than any one person. Plus it is hard getting a NFP off the ground, so a team from the start gives it a better chance of success.
@@RightSource ok thanks for the reply. That's good to know. Is there somewhere I can find the technical reasons. I like to know this stuff. Thanks
Thank you!! :)
Hare Krsna fam
Thanks for the info, Justin. Very helpful.
I've been thinking about starting a recurring competition as a way to generate funds to donate to a charity like GiveWell. IE: Entry fees go into a pool that is split between eventual winners, the donation and admin costs. I've been having trouble figuring out where a project like this (ie an activity that is ostensibly an independent fundraising initiative for another, established charity) would sit on the NFP/Charity spectrum, and how best to get it set up for a minimum of effort. Would appreciate your insights :)
Hi Tom, It sounds like it could be a NFP and set-up that way. The challenge is whether it would be defined as a charity and would depend on clarifying the purpose and who this entity would ultimately help.
@@RightSource Thanks Justin. I agree, I don't really think it would meet the definition of a charity, as it wouldn't be directly helping anyone, rather it would act as a mechanism to turn the creativity of a community group into both recognition for the competition winners, as well as generate funds to hand over to charities already set-up and delivering programs.
It's frustrating that NFPs can't be set up by a single person, because this type of project could be set-up and run by one person initially, and then grow as the project grows. It seems to be a real barrier to entry.