Charitable organisations act 2011



1. in order to classified as a Charitable Organisation an organisation must

meet the following criteria


(i) Have a written constitution that defines the purpose of its activities


(ii) Not transfer funds out of the organisation, except in payment of expenses,

	and to recipients of the charity services.


(iii) produce audited financial statements every twelve months if the revenue of

	the organisation is more than $10M per year.



2. Allowable expenses include salaries, payments for supplies, rent, etc.



3. The organisation must spend or distribute at least 90% of funds collected 

	during the year, and maintain reserves of no more than 5 times

	the annual collection rate, where it is reasonably possible to do so.

	
	Efforts must be made to ensure that applications for funding, grants
	
	etc. follow a simple process, amounts distributed must be generous not mean, 

	and amounts must not be denied to recipients that are within the scope

	of the intended purpose of the organisation.



4. If more than $1M in funding is available, facilities providing food services should 

	be open every day of the year.


5. Requests for grants must be approved, where the funds are for the purpose outlined

	in the organisation's goals, and the amount would provide the benefits 

	intended.



6. Examples of goals

	To assist homeless people and those in short supply of food

	To sponsor medical research in the field of older-age conditions

	To assist young people with their personal expenses while developing success

		in a sporting or artistic field



suggestion
