A not-for-profit organisation is an organisation that does not operate for the profit, personal gain or another benefit of particular people. Whilst a not for profit organisation can make a profit, that profit must be reinvested into the organisation to enable it to fulfil its purpose. Profit can also be retained if there is a genuine reason to do so, and that reason is linked to its purpose. Below we outline the difference between a not-for-profit organisation and a not-for-profit charity.
Save The Children has been championing children's rights for over 100 years. We believe every child deserves a bright future and our vision is a world in which every child lives, learns and is safe from harm. We help millions of children and their families in over 100 countries across the globe through our evidence-based programs that focus on putting children first and emergency aid for children & their families when disaster strikes. Here is more information on not-for-profit organisations and how not for profit charities differ from other not-for-profit organisations:
Examples Of Not-For-Profit Organisations
- Churches
- Public schools
- Public not for profit charities
- Public clinics and hospitals
- Political organisations
- Legal aid societies
- Volunteer services organisations
- Labour unions
- Professional associations
- Research institutes
- Museums
- Some governmental agencies
How Not For Profit Organisations And Not For Profit Charities Differ
As you can see there can be many different types not for profit organisations. A not for profit charity is a type of not-for-profit organisation. A not for profit charity differs from other not for profit organisations though as there are very specific and strict requirements it must meet before it is deemed a charity.
In addition to being classed as a not-for-profit organisation, requirements include:
- Not-for-profit charity organisations must only have charitable purposes (as deemed by Australian law) for the public benefit
- A not for profit charity must not be a government entity, individual or political party
- A not-for-profit charity must register and comply with the Australian Charities and Not-for-profits Commission (ACNC)
- A not-for-profit charity must not have a disqualifying purpose (e.g. a purpose that goes against these requirements)
When a not-for-profit charity successfully achieves a charitable status, it then qualifies for charity tax concessions (other not-for-profit organisations can qualify for tax concessions but these do differ from not-for-profit charity concessions). If a not-for-profit charity is registered as a Deductible Gift Recipient (DGR) then donations made to that charity are also tax deductible.
Donate To Our Not For Profit Charity Today
Save The Children is a registered not for profit charity. To support one of the world’s leading children's not for profit organisations you can make a single donation today or become a regular giver. Over 80% of your donation to our not for profit charity goes directly to program expenditure and because we registered as a Deductible Gift Recipient (DGR), donations over $2 are tax deductible.