Starting a charity in Australia is a powerful way to address a need you see in your community. Whether you’re passionate about tackling homelessness, supporting mental health, or protecting the environment, knowing how to start a charity in Australia is the first step towards making a real impact.
The challenge? Navigating legal requirements, registration hurdles, and compliance obligations.
The good news is that you’re not alone. This guide breaks down every step of the process — from understanding the difference between a charity and a not-for-profit to choosing the right structure, registering with the ACNC, and setting up your compliance systems.
Read on to learn how you can make real change happen!
Table of Contents
Step 1: Understand the difference between a charity and a not-for-profit
Before you dive in, it’s crucial to understand the distinction between a charity and a not-for-profit. While all charities are not-for-profits, not all not-for-profits are charities.
A not-for-profit organisation in Australia is defined by its primary objective: to reinvest any surplus funds back into the organisation’s mission rather than distributing profits to owners or shareholders. These groups support communities, specific causes, or social groups but may not always qualify as charities.
A charity, on the other hand, is a type of not-for-profit specifically established to advance public benefit purposes. This could include relieving poverty, advancing education, or promoting health. Charities must meet strict criteria, including demonstrating a public benefit and adhering to governance standards set by the Australian Charities and Not-for-profits Commission (ACNC).
The main advantages of becoming a registered charity include eligibility for tax concessions (like Deductible Gift Recipient status), increased credibility, and access to broader funding opportunities.
Step 2: Choose your charity structure
Selecting the right legal structure is a foundational step in setting up your charity. Your structure will affect your legal obligations, reporting requirements, the documents you need for set up, and the level of protection for your members.
- Company Limited by Guarantee (CLG)
- Pros: Offers strong legal protection for members and is suitable for national or larger regional charities. It is the most common structure for charities seeking to operate across multiple states.
- Cons: Higher setup and ongoing compliance costs, including ASIC registration and reporting.
- Incorporated Association
- Pros: Best for state-based or smaller organisations. Lower setup costs and simpler compliance, regulated at the state/territory level.
- Cons: Limited to operating primarily in one state or territory. Expansion interstate requires additional steps.
- Unincorporated Association
- Pros: Lowest cost and simplest to establish, ideal for small, local groups just starting out.
- Cons: No separate legal identity, so members can be personally liable. Less credibility with funders and regulators.
Lawpath offers guided support to set up your chosen entity, including step-by-step help for registering a CLG or incorporated association, ensuring you get it right from the outset.
Step 3: Draft a governing document (constitution or rules)
Your governing document — commonly known as a constitution or rules — is the backbone of your charity. It outlines your purpose, how decisions are made, the rights and responsibilities of members, and how the organisation will close if needed.
This document is essential for registration with the ACNC and must include specific clauses to demonstrate your not-for-profit and charitable purpose. A well-drafted constitution ensures your charity’s operations align with its mission and meet all legal requirements.
Lawpath offers downloadable templates and lawyer-reviewed documents tailored for Australian charities, making it easy to create a compliant constitution without starting from scratch.
Step 4: Apply for an ABN and register with the ACNC
Once your structure and constitution are in place, you’re ready to make your charity official. Let’s go through charity registration in Australia. You’ll need to follow these steps to ensure legal compliance.
- Apply for an ABN:
- Just like any organisation in Australia, you’ll need to apply for an Australia Business Number (ABN). This is free and necessary for tax and banking purposes.
- Register with the ACNC:
- Next, complete your application through the ACNC Charity Portal. You’ll need your ABN and governing document handy. The ACNC does not charge a fee for registration.
- Wait for confirmation:
- Processing times can vary, but expect a few weeks for your application to be reviewed. The ACNC may request additional information.
- Ongoing obligations:
- Once registered, you must submit annual returns, keep proper records, and notify the ACNC of any changes to your charity’s details or governing document.
Lawpath can streamline this process, helping you avoid common mistakes and ensuring your application is complete and compliant from day one.
Step 5: Apply for tax concessions and DGR endorsement (optional)
Registered charities can apply to the Australian Taxation Office (ATO) for valuable charity tax concessions, including:
- GST concessions: Charities can access GST concessions that make some sales GST-free. For example, this applies to donated second-hand goods or non-commercial activities.
- Fringe Benefits Tax (FBT) exemptions: Eligible charities, like Public Benevolent Institutions or Health Promotion Charities, may be exempt from paying FBT on certain employee benefits up to a capped threshold, reducing employment costs.
- Income tax exemptions: Charities registered with the ACNC, or elgible for and compliant with the NFP self-reporting income tax exemption scheme do not pay income tax on their income, allowing more funds to be directed towards their charitable purpose.
- Deductible Gift Recipient (DGR): DGR status allows donors to claim tax deductions for their gifts, but only certain charities with eligible purposes and activities can obtain this endorsement.
Applying for these concessions can be complex, so it’s wise to seek help from Lawpath or a qualified accountant to maximise your chances of approval. We will also help you ensure non-for-profit compliance after setup.
Step 6: Set up your compliance and reporting systems
Compliance isn’t just crucial when you start your charity — it’s an ongoing process that you must ensure throughout your charity’s operations.
Your charity must:
- Keep accurate financial and operational records.
- Submit annual statements to the ACNC (and ASIC if you’re a CLG).
- Meet audit or review obligations, depending on your income level.
- Notify regulators of any significant changes (e.g., directors, constitution, address).
Robust systems for record-keeping and reporting are essential for maintaining your charity’s good standing and reputation. Lawpath and registered tax agents can provide ongoing support to ensure you meet all legal and financial obligations.
How much does it cost to start a charity in Australia?
Charity setup costs vary depending on your chosen structure and the level of professional support you need. The types of costs to consider include:
- ASIC registration fee for a CLG: Around $400–$500 (as of 2025)
- Incorporated association fees: Vary by state, generally lower than CLG
- ABN: Free on your own or varying fees through an agent
- Legal templates or professional advice: From $0 (using free resources) to several thousand dollars for tailored legal support
- Insurance: Public liability and management liability insurance are highly recommended; costs vary based on your activities and size
To simplify the process, you can work with an agent like Lawpath. Our transparent pricing model allows you to plan your expenses effectively while our services help you streamline everything from setting up your charity to running it with full compliance.
Here’s a simple comparison of costs depending on the type of support you choose:
| Approach | Upfront Cost | Ongoing Cost | Pros | Cons |
| DIY | Low | Low | Cheapest, full control | Risk of mistakes, time-consuming |
| Using Lawpath | Moderate | Moderate | Expert guidance, templates | Some cost involved |
| Full legal service | High | High | Bespoke advice, full support | Expensive for small charities |
Lawpath can help you start your charity, step by step
Numerous small Australian organisations have trusted Lawpath to help them get started legally and affordably. With Lawpath, you can:
- Access lawyer-drafted legal templates for constitutions and governance documents.
- Register your charity online with step-by-step guidance.
- Speak to a lawyer for tailored advice on structure, compliance, or tax.
- Get help with tax concessions and DGR endorsement applications.
Lawpath’s platform is designed to simplify the process, reduce costs, and ensure you launch your charity with confidence.
How can I start a charity with no money?
Starting a charity with limited funds is possible if you take a practical approach:
- Consider forming an unincorporated association for early-stage work — this is the lowest-cost structure.
- Recruit a volunteer committee instead of paid staff to keep expenses down.
- Use crowdfunding, grant applications, and community fundraising to raise initial capital.
- Even with minimal funds, ensure you have a compliant constitution, ABN, and ACNC registration — legal legitimacy is crucial for credibility and future fundraising.
Lawpath’s low-cost options and bundles can help you get started without breaking the bank, providing essential templates and legal support at a fraction of traditional costs.
FAQ
How long does it take to start a charity?
It usually takes several weeks to set up a charity in Australia, including time to prepare documents, register your entity, apply for an ABN, and wait for ACNC approval.
Do I need a lawyer to start a charity?
You don’t have to use a lawyer, but professional advice can save you time and help you avoid costly mistakes.
Start a charity, help your community
Starting a charity in Australia is a rewarding journey that can transform lives and communities. By understanding the process, choosing the right structure, and setting up solid compliance systems, you’ll lay the foundation for a sustainable, impactful organisation.
Lawpath is here to help you every step of the way. We offer free legal templates for charities, expert guidance, and ongoing support to ensure your charity launches smoothly and stays compliant.
Take the first step today and turn your vision for change into a lasting legacy.
