Can i set up a half charity half business organisation in Australia?

Question

Basically i plan to start a non-profit organisation but where only 50% of the profits go to charity and the other 50% goes to the company... Can i somehow do that? If i can then how do i go about doing it?

Answer 1

You are probably asking the wrong question.

Many not-for-profit (as it is called in Australia) organisations are in fact commercial organisations. For example, many private teaching and training organisations run on a not-for-profit basis.

Profit can be transferred to people through salary bonuses and so on.

Another way is to register 2 organisations. Work is contracted between the 2 organisations according to whichever produces the desired outcome.

This is rather complicated so the first thing you need is a good accountant. But for example one good approach is this. The commercial enterprise will make no profit, but will own any assets which might accrue value. For example, intellectual property. The not-for-profit organisation would lease the use of these materials (possibly at a token value).

When the organisation is sold, the commerical organisation then possesses everything that can be sold.