~ Foundation Center (http://foundationcenter.org) Information on grant-seeking and a direc-
tory of foundations, as well as useful statistical information, publications and training
courses.
~ Internal Revenue Service (www.irs.gov/charities) The IRS has all the details of tax exemp-
tions for US non-profits online.
~ National Council of Nonprofit Associations (www.ncna.org) This group offers a wide
range of assistance to up-and-coming organisations.
~ Starting a Nonprofit Organization (www.managementhelp.org/strt_org/strt_np/strt_np.htm)
Browse Carter McNamara’s excellent online guide to starting a charity in the US for
many useful resources.
Australasian Organisations
~ Australian Agency for International Development (AusAID; http://www.ausaid.gov.au)) The
latest information about Australia’s international development inputs and an ‘NGO
Package of Information’.
~ Australian Council for International Development (ACFID; http://www.acfid.asn.au)) Some
practical information under ‘Facts and Figures’ on how to start your own NGO, includ-
ing accreditation procedures and the ACFID Code of Conduct.
~ Australian Taxation Office (ATO; http://www.ato.gov.au/nonprofit)) The tax office’s non-profit
area is the place to learn more about charity tax concessions in Australia. You’ll also
find a guide for volunteers and not-for-profit organisations called Volunteers and Tax,
which looks at the treatment of certain payments and whether they are taxed or not.
~ Friends of the Earth Australia (%+61 (0)3-9419 8700; http://www.foe.org.au; 312 Smith St, Collingwood,
Victoria 3066, (Box 222, Fitzroy, Victoria 3065) Australia) A useful resource, FoE supports various en-
vironmental and social campaigns. There is also an FoE New Zealand (%+64 9 3034319;
[email protected]; PO Box 5599, Wellesley St, Auckland, New Zealand).
~ Inland Revenue New Zealand (http://www.ird.govt.nz/notforprofits) Tax information for New
Zealanders.
~ Pathways Australia (www.pathwaysaustralia.com.au) This group offers information, manage-
ment and marketing services to not-for-profit organisations.
~ Philanthropy Australia (www.philanthropy.org.au) The information hub for all things giv-
ing-related Down Under including the annual Giving Australia report.
Status
Should you go for registered charity status, limited company status, or not-for-profit
status? How about registering as a Non-Government Organisation (NGO)? Deciding
which form your organisation is going to take can be difficult. To legally register, and refer
to yourself, as any particular breed of organisation you’ll need to closely consider the re-
quirements of each. There can be benefits to some; for instance, registering as a charity can
give you favourable tax treatment and allow you to apply for funds not available to non-
charities. Depending on tax laws in your country and/or state, having charitable status can
also mean that donors can deduct their donations from their tax
liabilities, and this can make a massive difference to the amount of money people are
willing to give.
It’s a good idea to seek professional advice on which status to apply for. Often, the best
route is not the most obvious one. Catheryn Goodyer who established the Karmi Farm
Clinic (see the case study A Healthy Dose on p254) explains her company’s reasoning for
not registering as a charity:
We have not applied for charitable status. We enquired right at the beginning with the
Charities Commission. Reading between the lines, we discovered that if your application
is turned down, you, as an individual, are not allowed to apply again. The Charity Office
also recommended that we run the clinic for at least a couple of years so that we had
accounts to show. In addition, they recommended that we take on a charity lawyer to re-
duce the risk of having our application turned down, which is quite an expensive thing to
do. The only reasons we could see for registering were for fundraising and tax purposes.
As we have had no problems raising funds unregistered and most of our purchasing is
carried out in India (where costs are very low and no VAT applies) and the clinic only
needs a small amount of funding, we decided it wasn’t worth spending the money on a
lawyer at this point.
Catheryn isn’t alone in putting off applying for charitable status. In fact, for the reasons
she’s described, it’s often worth waiting until you’re established. In the interim, many
organisations choose to set up as a limited company. Alex Tarrant describes why they’ve
chosen this status for PoD:
When we first set up we looked at the various options and decided that becoming a pri-
vate limited company would give us the most flexibility, allow us to get up and running
immediately, and suited our business model the best. At the time we were working with
a single overseas project which was already registered as a charity in the UK, so we didn’t
see the need to duplicate.
However, one reason for wanting to register as a charity is for the credibility that comes
with it. For instance, a sending agency may be concerned that potential volunteers would
prefer to sign up with a charity, as they’re less likely to fear that profit motives might come
before the desire to help overseas. If charitable status isn’t quite on your horizon yet, an
alternative is to become a company limited by guarantee, also known as a not-for-profit
organisation. This means that the organisation’s earnings must be directed towards de-
fined, non-profit aims.
For some guided assistance in making your way through the status minefield, check out
some of the organisations under Getting Help on p252. If necessary, consider enlisting
the help of a lawyer familiar with non-profit law to assist with incorporation and tax
matters.10: Start Your Own Charitable Project :Getting It RollingPhoto: Paul PiaiaEast Timorese kids pose for the camera of an Australian Aid International volunteer