Not-for-Profit
Simplifying compliance, reviews, and governance for organisations of every size, so you can focus on your mission, not the paperwork.
Key messages
Due dates
Annual Information Statements and Financial Reports (if required) are due 6 months after the end of the charities reporting period. Therefore charities that report to the standard financial year (1 July to 30 June) are required to lodge with ACNC by 31 December.
Review or audit
If you are a small or medium charity, you can choose to have your Financial Reports reviewed instead of audited. This can reduce costs and the compliance burden on the entity. See the table below for more information.
New reporting requirements
Accounting Standard AASB 1061 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities has been released with a required effective date from 1 July 2029, and is designed to simplify and reduce the reporting burden on not-for-profit entities. Earlier adoption of the Standard is permitted. Please use the contact form on this page if you would like to discuss how you can transition to the new Tier 3 reporting standard.
*Discounts may be available for Not-for-Profit compliance work.
Preparation of Financial Reports
In order to maintain their registration, charities are required to report annually to the ACNC.
Where a charity is considered 'medium' or 'large' in size (see table below), the charity must submit an annual financial report along with their AIS submission to ACNC. 'Small' charities are not required to submit an annual financial report, however ACNC still encourages them to do so.
This annual report (financial statements) must meet relevant Australian Accounting Standards, and as such are prepared by an accountant.
A charity must prepare their financial statements as either General Purpose Financial Statements (GPFS) or Special Purpose Financial Statements (SPFS). As a minimum, most medium and large charities will require a statement of profit or loss, a statement of financial position, a statement of cashflows, and notes to the financial statements, however more may be required depending on your charities specific reporting circumstances (ACNC Annual Report Checklist).
If you are thinking about preparing an annual report or financial statements for your charity, lets discuss how we can work together.
Review of Annual Reports
While a review only provides limited assurance (comfort), the Reviewer states that as a result of their review, they do not know of anything to suggest your organisation's financial report is non-compliant.
If you are a small or medium charity by definition, you can choose to have your annual report (financial statements) reviewed instead of audited.
A Chartered Accountant can complete a review of your organisation's financial statements as required by the ACNC. A Reviewer will look at your charity’s financial statements and accounts but in less detail than an audit as the process is generally cheaper and less time consuming. The process includes will speak to your charity’s staff, including those responsible for finance and accounting.
A reviewer also evaluates whether your charity has kept good financial reports so a financial report could be prepared and reviewed, and kept other records as required under the ACNC Act.
Annual Reporting Thresholds
All charities are required to submit an Annual Information Statement
each year, and medium and large sized charities also need to submit an
annual Financial Report.
Information submitted through your Annual Information Statements and annual Financial Statements are published on the ACNC website for the public to view. This maintains and protects the public trust and confidence in the sector through increased accountability and transparency. It is for this reason that although small charities are not required to submit an annual financial report, the ACNC still encourages them to do so.
| Small | Medium | Large |
|---|---|---|---|
Annual Revenue | Under $500,000 | $500,000 to $3,000,000 | $3,000,000 or more |
Annual Information Statement | Yes | Yes | Yes |
Annual financial report | Optional, but encouraged | Yes | Yes |
Type of financial statement | Small charities can choose to submit financial statements. The type of financial statement can be the same as a medium or large charity |
Note that Accounting Standard AASB 1061 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities has been released with an effective date from 1 July 2029. Earlier application is permitted. Please use the contact form if you would like to discuss whether the new standard impacts your NFP and any transition or early-adoption requirements for Tier 3 reporting. | |
Review or audit for annual financial report | No ACNC obligation for review or audit, although this could increase transparency and trust in your organisation. | The ACNC requires your financial reports to be either reviewed or audited. | The ACNC requires your financial reports to be audited. |
Meet ACNC Governance Standards
Appropriate and effective record-keeping is generally reflective of good governance, decision-making, financial management and risk management.
Charities must ensure they continue to be entitled to registration under the Australian Charities and Not-for-profits Commission Act 2012 (Cth) (the ACNC Act). This involves meeting all of the criteria for both initial registration and ongoing registration, including that it complies with the Governance Standards.
Keeping up to date and accurate records of how your organisation is run can help you understand whether your charity is in good financial health, assess whether the right kinds of decisions are being made, communicate about your charities finances, and met your reporting obligations to the ACNC and other stakeholders
I can help make meeting ACNC Governance Standards easy by reviewing you current financial processes and procedures and ensure the accounts are accurate.
How do we work together?
How do we work together?
I offer fixed fees for defined projects, and monthly retainers for clients who want high-level advice without the overhead of a full-time hire.
*Discounts may be available for Not-for-Profit compliance work.
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Let's get in contact
If you're facing a challenge that needs clear, independent thinking, reach out. I'd love to help you move forward with confidence.
Let's get in contact
Every good decision starts with the right conversation.
If you're facing a challenge that needs clear, independent thinking, reach out. I'd love to help you move forward with confidence.
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Trade mark of Chartered Accountants Australia and New Zealand and used with permission.
© T Veca Advisory Pty Ltd (ABN 98 698 897 933). All rights reserved.
We acknowledge the traditional custodians of Country throughout Australia. We recognise their continuing connection to land, waters and culture and pay our respects to their Elders past, present and emerging.
Liability limited by a scheme approved under Professional Standards Legislation.
Trade mark of Chartered Accountants Australia and New Zealand and used with permission.
© T Veca Advisory Pty Ltd (ABN 98 698 897 933). All rights reserved.
We acknowledge the traditional custodians of Country throughout Australia. We recognise their continuing connection to land, waters and culture and pay our respects to their Elders past, present and emerging.