Case Study

Establishment of charitable activities in Australia

by Bill d'Apice
23 November 2015
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Client: Anonymous

Issue:

Our client is a well-established international animal welfare organisation. They undertake animal welfare activities in a number of countries around the world and were looking to establish animal welfare activities and fundraising in Australia.

Our role:

Our client was unfamiliar with the laws in Australia as they had not previously operated here.  This meant it was crucial for us to understand the goals of the new entity so the correct structures were established, objectives were specified and endorsements were obtained and to ensure that they understood the legal framework in which Australian companies operate. 

Solution:

The new entity intended to undertake animal welfare activities in both Australia and overseas.  However, as these activities did not fit neatly within a taxation category that would provide donors with a deductible gift receipt (DGR), we recommended and established two separate entities. This first is intending to register as an international environmental organisation which will entitle it to DGR status and the other as an income tax exempt charity to carry out the animal welfare activities in Australia.  Through two separate entities we were able to maximise the taxation benefits that could be obtained. 

In addition to providing advice and establishing these two separate entities, we continue to support the entity by providing assistance on a wide range of issues including drafting employment policies, services agreements and privacy policies, reviewing commercial leases, and other issues related to starting a charity, such as registering with the ACNC and ATO.  We continue to provide ongoing updates regarding the "in Australia" legislation which intends to limit the operation of Australian charities overseas to ensure that the entities operate within the scope of the Australian law.