Click for Good Australia

The HYPERLINK "http://en.wikipedia.org/w/index.php?title=Charitable_organization&action=edit&section=2" \o "Edit section: Definition of charity" Click For Good Definition of charity

The definition of a charity in Australia is derived through English common law, originally from the Charitable Uses Act 1601, and then through several centuries of case law based upon it. In 2002, the Federal Government establish an inquiry into the definition of a charity. That inquiry proposed that the government should legislate a definition of a charity, based on the principles developed through case law. This resulted in the Charities Bill 2003. The Bill incorporated a number of provisions, such as limitations on charities being involved in political campaigning, which many charities saw as an unwelcome departure from the case law. The government then appointed a Board of the Taxation inquiry to consult with charities on the Bill. As a result of widespread criticism from charities, the Government decided to abandon the Bill.

As a result, the government then introduced what became the Extension of Charitable Purpose Act 2004. This Bill did not attempt to codify the definition of a charitable purpose; it merely sought to clarify that certain purposes were indeed charitable, whose charitable status had been subject to legal doubts. These purposes were: childcare; self-help groups; closed/contemplative religious orders.1

To publicly raise money, charities in Australia are required to register under the State jurisdiction within which they intend to raise funds and must be registered in each and any State within which they intend to publicly raise funds. For example, in Queensland charities must register with the QLD Office of Fair Trading.2 An example of a registered charity in Queensland, Australia is Sunnykids so whilst Sunnykids can publicly raise funds for charitable purposes, and whilst such donations are tax deductible in every Australian State and Territory - the funds themselves may only be raised in QLD as this is the only State within which the charity is registered to raise funds. In order for the charity to raise funds in the remaining seven Australian States and Territories it would need to register in each State or Territory individually. Needless to say, Many Australian charities are calling on Federal, State and Territory governments to unify legislation to allow registration in a single State or Territory to allow charities to raise funds in all 8 Australian States and Territories.

Below is all just page fill waffle

while we are building the Click For Good site

What are charities?

Charities are organisations set up for the benefit of the community. They enjoy some tax advantages from the government. While they can in certain circumstances trade for profit, they must use any such profit for the purposes of the charity. To qualify as a charity, an organisation has to meet strict conditions about its overall purposes, also referred to as its objects. The organisation also has to be set up with a constitution or rules which meet certain conditions. These rules are usually referred to as a charity’s governing document.

Some charities are set up to give direct help, advice, grants or support to people in various kinds of need, for instance older people, or those with a particular medical condition. Charities are also set up to carry out research, provide training or education, or to focus on meeting the wider needs of a particular deprived area. And some charities exist mainly to support other charities, by giving grants and other assistance to them.

Several kinds of organisation can qualify as a charity. For instance, some charities are also registered companies, while others are trusts. Some charities are also set up by special legislation. All are subject to the general principles of charity law.

Charities receive their money in various ways, such as donations from the public, payment for services provided, government grants and legacies.

Role of the Charity Commission

The Charity Commission is the independent regulator of charities in England and Wales. Their job as regulator is to work closely with charities to ensure that they are accountable, well run and meet their legal obligations in order to promote public trust and confidence. Most charities must register with the Commission, although some special types of charity do not have to register.

The Commission provides a wide range of advice and guidance to charities and their Trustees, and can often help with problems. Registered charities with an annual income or expenditure over £10,000 must provide annual information and accounts to the Commission. The Commission has wide powers to intervene in the affairs of a charity where things have gone wrong.

More information about the Commission together with a range of guidance for charities can be found on their website www.charitycommission.gov.uk.

As a Trustee, your skills and energy will help to make a difference to your chosen cause and charity. You will become responsible for the charity’s mission, for its property, finances and the employment of any staff or volunteers. Without good and committed Trustees, no charity can hope to succeed.

Being a Trustee of the PPEF can be hard work and is unpaid, except for expenses. But by contributing you should also gain. Trusteeship should be rewarding, providing many opportunities for personal development. As you give your skills to the running of the charity, you will at the same time gather new skills and experience.

For instance, you will need to plan the strategic future of the PPEF and its work. You will need to take the lead in developing and managing staff and volunteers – for most charities, their most important resource. You may also need to become involved in policy decisions within the PPEF. Innovation, problem solving and representing the charity in public may also be needed.

You will of course be joining a team of Trustees. To be effective, the team will need a range of people with a good mix of skills. It will also be diverse, with people who understand the needs to be served, and others with business and management experience. This should also be positive – you will be meeting and working with new people with different backgrounds, and from different walks of life.

Become a Click for Good Volunteer 

At Click for Good we provide laughter and support to seriously ill children and their families throughout Australia - and we simply couldn't do it without our generous-hearted volunteers. Since 1988 we’ve had thousands of volunteers help put smiles on children’s faces.

Click for Good is committed to ensuring we provide a positive experience for all our wonderful volunteers. In order for us to do this we look for passionate, skilled and committed people and match them to specific volunteering opportunities.

1. Click here for current Volunteer opportunities to identify something that best matches your skills and interest
2. Apply now and submit your application for a Volunteer opportunity

Due to the nature of the work that Click for Good carries out, our volunteer opportunities do not cater for one-off volunteer days, with the exception of Click for Good Day. However you may want to consider having a fundraiser at work or with your friends to help us continue delivering our programs to the children and their families.  

The Volunteer Recruitment Process:

For us to match volunteers to specific opportunities we need to complete a recruitment process. This helps us learn more about you, your current skills and experience, why you want to volunteer with Click for Good and to make sure we let you know what’s required of you as a volunteer. We will also have to complete police and working with children checks. This process can take from 4-8 weeks once your application has been received.

 

If we are not able to match you to a volunteering opportunity when you apply  we will keep your details on file and contact you when a suitable opportunity becomes available. 

lly meet four times a year.

A charitable organization is a type of non-profit organization (NPO). It differs from other types of NPOs in that its focus is centred around goals of a general philanthropic nature (e.g. charitable, educational, religious, or other activities serving the public interest or common good).

The legal definition of charitable organization (and of Charity) varies according to the country and in some instances the region of the country in which the charitable organization operates. The regulation, tax treatment, and the way in which charity law affects charitable organizations also varies.

Click For Good Canada

Main article: Canadian Charity Law

Charities in Canada must be registered with the Charities Directorate3 of the Canada Revenue Agency. According to the Canada Revenue Agency: HYPERLINK "http://en.wikipedia.org/wiki/Charitable_organization" \l "cite_note-3" 4

A registered charity is an organization established and operated for charitable purposes, and must devote its resources to charitable activities. The charity must be resident in Canada, and cannot use its income to benefit its members. A charity also has to meet a public benefit test. To qualify under this test, an organization must show that:

1. its activities and purposes provide a tangible benefit to the public
2. those people who are eligible for benefits are either the public as a whole, or a significant section of it, in that they are not a restricted group or one where members share a private connection, such as social clubs or professional associations with specific membership
3. the charity's activities must be legal and must not be contrary to public policy

To register as a charity, the organization has to be either incorporated or governed by a legal document called a trust or a constitution. This document has to explain the organization's purposes and structure.

Click For Good United Kingdom

Click For Good England and Wales

Click For Good Definition of charitable organization

Section 1 Charities Act 2006 provides the definition in England and Wales:

(1)For the purposes of the law of England and Wales, “charity” means an institution which—

(a)is established for charitable purposes only, and

(b)falls to be subject to the control of the High Court in the exercise of its jurisdiction with respect to charities.

The Charities Act 2006 provides the following list of charitable purposes.5

1. the prevention or relief of poverty
2. the advancement of education
3. the advancement of religion
4. the advancement of health or the saving of lives
5. the advancement of citizenship or community development
6. the advancement of the arts, culture, heritage or science
7. the advancement of amateur sport
8. the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity
9. the advancement of environmental protection or improvement
10. the relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage
11. the advancement of animal welfare
12. the promotion of the efficiency of the armed forces of the Crown or of the police, fire and rescue services or ambulance services
13. other purposes currently recognised as charitable and any new charitable purposes which are similar to another charitable purpose.

A charity must also provide a public benefit.6

Before the Charities Act 2006 the definition of charity arose from a list of charitable purposes in the Charitable Uses Act 1601 (also known as the Statute of Elizabeth), which had been interpreted and expanded into a considerable body of case law. In Commissioners for Special Purposes of Income Tax v Pemsel (1891), Lord McNaughten identified four categories of charity which could be extracted from the Charitable Uses Act and which were the accepted definition of charity prior to the Charities Act 2006.

1. the relief of poverty,
2. the advancement of education,
3. the advancement of religion, and
4. other purposes considered beneficial to the community.

English charities must comply with the Charities Acts 1992 (Part III), 1993, 2006 which regulate matters such as charity reports and accounts and fundraising.

Click For Good Charitable organization structure

In 2008 there are a number of types of legal structure for a charity in England and Wales.

1. Unincorporated association
2. Trust
3. Company limited by guarantee
4. Another incorporation, such as by Royal Charter

The unincorporated association is the most common form of organization within the voluntary sector in England and Wales.7 An unincorporated association is essentially a contractual arrangement between individuals who have agreed to come together to form an organization for a particular purpose. An unincorporated association will normally have as its governing document, a constitution or set of rules, which will deal with such matters as the appointment of office bearers, and the rules governing membership. The organization is not though a separate legal entity. So it cannot start legal action, it cannot borrow money, and it cannot enter into contracts in its own name. Also the officers can be personally liable if the charity is sued or has debts.8

A Trust is essentially a relationship between three parties, the donor of some assets, the trustees who hold the assets and the beneficiaries (those people who are eligible to benefit from the charity). When the trust has charitable purposes, and is a charity, the trust is known as a charitable trust. The governing document is the Trust Deed or Declaration of Trust, which comes into operation once it is signed by all the trustees. The main disadvantage of a trust is that, as with an unincorporated association, it does not have a separate legal entity and the trustees must themselves own property and enter into contracts. The trustees are also liable if the charity is sued or incurs liability.

A company limited by guarantee is a private limited company where the liability of members is limited. A guarantee company does not have a share capital, but instead has members who are guarantors instead of shareholders. In the event of the company being wound up the members agree to pay a nominal sum which can be as little as £1. A company limited by guarantee is a useful structure for a charity where it is desirable for the Trustees to have the protection of limited liability. Also, the charity has legal personality, and so can enter into contracts, such as employment contracts in its own name.9

A small number of charities are incorporated by Royal Charter, a document which creates a corporation with legal personality (or, in some instances, transforms a charity incorporated as a company into a charity incorporated by Royal Charter). The Charter must be approved by the Privy Council before receiving Royal Assent. Although the nature of the charity will vary depending on the clauses enacted, generally a Royal Chartered will offer a charity the same limited liability as a company and the ability to enter into contracts.

The Charities Act 2006 introduced a new legal form of incorporation designed specifically for charities, the Charitable Incorporated Organisation. This is not yet available for charities to use.10

The word Foundation is not generally used in England and Wales. Occasionally a charity will use the word Foundation as part of its name e.g. British Heart Foundation, but this has no legal significance and does not provide any information about either the work of the charity or how it is legally structured. The structure of the organization will be one of the types of structure described above.

Click For Good Charity registration

Charitable organizations that have an income of more than £5,000, and for whom the law of England and Wales applies, must register with the Charity Commission for England and Wales. For companies, the law of England and Wales will normally apply if the company itself is registered in England and Wales. In other cases if the governing document does not make it clear, the law which applies will be the country with which the organization is most connected.11

Where an organization's income does not exceed £5,000 it is not able to register as a charity with the Charity Commission for England and Wales. It can, however, register as a charity with HM Revenue and Customs for Tax purposes only. With the rise in mandatory registration level, to £5,000 by The Charities Act 2006, smaller charities can be reliant upon HMRC recognition to evidence their charitable purpose and confirm their not-for-profit principles.12

Some charities which are called exempt charities are not required to register with the Charity Commission and are not subject to any of the Charity Commission's supervisory powers. These charities include most universities and national museums and some other educational institutions. Other charities are excepted from the need to register, but are still subject to the supervision of the Charity Commission. The regulations on excepted charities have however been changed by the Charities Act 2006. Many excepted charities are religious charities.13

Click For Good Northern Ireland

Charities in Northern Ireland are registered with the UK HM Revenue and Customs. The Charity Commission for Northern Ireland 14 has now been established and has received the names and details of over 7,000 organisations that have previously been granted charitable status for tax purposes. The entering of these organisations onto a new and temporary list under the heading of “Organisations that have previously been known as charities” is continuing. This list is not the new register, but will be made publicly available on the CCNI website.

Click For Good Scotland

The 20,000 or so charities in Scotland are registered with the Office of the Scottish Charity Regulator (OSCR), which also publishes a Register of charities online. Scotland has the highest number of charities per capita in the world

Click For Good Taxation of Charities

Charitable organisations, including charitable trusts, are eligible for a complex set of reliefs and exemptions from taxation in the UK. These include reliefs and exemptions in relation to income tax, capital gains tax, inheritance tax, stamp duty land tax and value added tax.

Click For Good United States

In the United States a charitable organization is an organization that is organized and operated for purposes that are beneficial to the public interest, HYPERLINK "http://en.wikipedia.org/wiki/Charitable_organization" \l "cite_note-IRS_document_P557-14" 15 however a distinction is made between types of charitable organizations.

Every U.S. and foreign charity that qualifies as tax-exempt under Section 501(c)(3) of the Internal Revenue Code is considered a "private foundation" unless it demonstrates to the IRS that it falls into another category. In a general sense, any organization that is not a private foundation (i.e. it qualifies as something else) is usually a public charity as described in Section 509(a) of the Internal Revenue Code.16

In addition, a private foundation usually derives its principal fund from an individual, family, corporation, or some other single source and is more often than not a grant maker and does not solicit funds from the public. In contrast, a foundation or public charity generally receives grants from individuals, government, and private foundations and although some public charities engage in grant making activities, most conduct direct service or other tax-exempt activities.

This leads to another distinction: Foundations that are generally grantmakers (i.e. they use their endowment to make grants to other organizations, which in turn carry out the goals of the foundation indirectly) are usually referred to as "grantmaker" or "non-operating" foundations. These of course tend to be private foundations. Some private foundations however, (and most public charities) use their received funds to directly engage in service activities themselves and achieve their goals "personally," so-to-speak.

Examples of a non-operating private foundation would be the Rockefeller Foundation and the Bill & Melinda Gates Foundation.

Examples of operating foundations or public charities include the Elizabeth Glaser Pediatric AIDS Foundation, American Cancer Society, Inc., and the World Wildlife Fund.

The requirements and procedures for forming charitable organizations vary from state to state, as do the registration and filing requirements for charitable organizations that conduct charitable activities or solicit charitable contributions.17 So effectively in practice the detailed definition of charitable organization is determined by the requirements of state law of the state in which the charitable organization operates, and the requirements for federal tax relief set by the IRS.

Click For Good Federal tax relief

Federal tax law provides tax benefits to non profit organizations recognized as exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code (IRC). The benefits of 501(c)(3) status include exemption from federal income tax as well as eligibility to receive tax deductible charitable contributions. To qualify for 501(c)(3) status most organizations must apply to the Internal Revenue Service (IRS) for such status.18

There are several requirements that must be met for a charitable organization to obtain 501(c)(3) status. These include the organization being organized as a corporation, trust, or unincorporated association, and the organization’s organizing document (such as the articles of incorporation, trust documents, or articles of association) must limit its purposes to being charitable, and permanently dedicate its assets to charitable purposes. The organization must refrain from undertaking a number of other activities such as participating in the political campaigns of candidates for local, state or federal office, and must ensure that its earnings do not benefit any individual.15 Most tax exempt organizations are required to file annual financial reports (IRS Form 990) at the state and federal level. A tax exempt organization's 990 and some other forms are required to be made available to public scrutiny.

The types of charitable organization that are considered by the IRS to be organized for the public benefit include those that are organized for:

1. Relief of the poor, the distressed, or the underprivileged,
2. Advancement of religion,
3. Advancement of education or science,
4. Erection or maintenance of public buildings, monuments, or works,
5. Lessening the burdens of government,
6. Lessening of neighborhood tensions,
7. Elimination of prejudice and discrimination,
8. Defense of human and civil rights secured by law, and
9. Combating community deterioration and juvenile delinquency.

A number of other organizations, including those organized for religious, scientific, literary and educational purposes, as well as those for testing for public safety and for fostering national or international amateur sports competition, and for the prevention of cruelty to children or animals, may also qualify for exempt status.

The IRS, except in rare circumstances, refers to all organizations qualifying for exemption under 501(c)(3) as charities.19

Click For Good Australia

Interesting stuff

Globally, Google reported revenues of $US7.3bn in the most recent quarter, up 23 per cent on the comparable period a year earlier.

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Search Drives Digital Ad Spend in Australia

SEARCH continues to drive Australia's online marketing industry

The report, compiled by PricewaterhouseCoopers (PwC), showed that online advertising expenditure in Australia for the financial year ending June 30 2009 exceeded $1.8 billion and totalled $453 million for second-quarter 2009 (three months ended 30 June 2009).

Overall Q2 activity showed an increase of 9.8% from Q2 2008, with Search and Directories increasing 19% quarter on quarter, while General Display increased 10 percent and Classifieds decreased 5.9%.

Search Engine Room, August 10, 2009

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How Google Australia escapes the taxman

with a little help from Ireland

Stuart Washington

May 2, 2011

Google Australia paid tax of $1 million last year on its market-dominating Australian online search advertising business, which is estimated to reap more than $700 million in revenue annually.

A report by the industry analyst Frost & Sullivan on online search and directories, released late last year, estimated Google Australia booked $741 million in online search advertising in the year to June 30.

But Google Australia's accounts lodged with the corporate regulator show the industry leader booked only $151 million in revenues and recorded a $3 million loss in the year to December 31, including a $1 million tax bill.

The discrepancy between industry estimates of Google's revenue of more than $700 million and the $151 million in revenue reported are due to the way it accounts for advertising sold here.

In a statement, a spokesman for Google said yesterday: ''Google complies fully with all relevant tax legislation in all the countries in which it operates, including in Australia. That means that we contribute to all relevant local and national taxation schemes - as well as providing employment for over 400 employees in Australia.''

The Australian subsidiary's revenues consist almost entirely of ''service revenues'' paid by its US parent, Google Inc, and other subsidiaries.

The treatment means Google Australia acts as a services company, rather than booking revenue for advertising sales in its own right.

The accounts show a Google subsidiary, Google Ireland, paid Google Australia for ''sales and marketing services''. In practice, Australian customers using Google's online search advertising products are billed through Google Ireland. Ireland's corporate tax rate is 12.5 per cent, compared to Australia's corporate tax rate of 30 per cent, delivering a substantial tax benefit to revenues booked through Ireland.

The Frost & Sullivan report shows Google's revenue represented almost 90 per cent of the total Australian advertising spend of $831 million on online search advertising, putting the squeeze on the other major players, Yahoo!7 and Ninemsn.

An analyst with Frost & Sullivan, Phil Harpur, said yesterday he expected Google Australia's dominance of the online search advertising market would continue.

''I would not expect much to change in a hurry.''

Read more: http://www.smh.com.au/technology/biz-tech/how-google-australia-escapes-the-taxman-with-a-little-help-from-ireland-20110502-1e3os.html#ixzz1ZDL2W5B2

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Sample of Google pay per click cost

Sydney solicitor

Estimated traffic summary  

The following are approximations for the keywords above.

Based on max CPC: A$1,000.00 and budget: A$500.00/day.

Avg. CPC:

AU$3.15 - AU$4.76

Clicks/day:

81 - 100

Cost/day:  

A$315.13 - A$385.16

Cosmetic dentist

Estimated traffic summary  

The following are approximations for the keywords above.

Based on max CPC: A$1,000.00 and budget: AU$500.00/day.

Avg. CPC:

AU$4.79 - AU$7.14

Clicks/day:

77 - 94

Cost/day:  

A$450.00 - A$550.00

Plastic surgeon

Estimated traffic summary  

The following are approximations for the keywords above.

Based on max CPC: A$1,000.00 and budget: AU$500.00/day.

Avg. CPC:

AU$5.31 - AU$7.89

Clicks/day:

56 - 68

Cost/day:  

A$361.29 - A$441.58

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Google

“Employs 434 people and had a payroll of $111.6 million which is about $257,000 per person”

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Google maintains own revenue privacy

1. by: Karen Dearne
2. From: Australian IT
3. December 17, 2010 3:16PM

GOOGLE Australia has refused to reveal its local financial results to a Senate inquiry into online privacy.

Google policy head Iarla Flynn said net income globally was $US2.17 billion in the latest quarter, ended September 30, "but we do not break out Australian profits''.

The internet search and advertising giant was responding to questions posed by members of the Senate standing committee on Communications.

Google Australia is a wholly-owned subsidiary of Google Inc, and provides marketing and sales support for its web search engine and advertising services.

Google is among a number of corporations given an opportunity to address ``potentially adverse remarks'' made by the Australian Privacy Foundation in its submission to the inquiry. The committee withheld parts of the APF submission, but it plans to release the material, together with any responses. 

Replying to questions on notice, Mr Flynn said Google was unable to specify its R&D spend on enhancing privacy technologies, "because we embed privacy principles for our products and systems cross-functionally throughout engineering, product management, legal, public policy and communications''.

"This approach has led to the development of a number of industry-leading privacy tools for users, such as the Privacy Centre, Dashboard and Ad Preferences Manager, and we are continuing to invest in improving user control of information online,'' he said.

"Our Data Liberation Front helps people to export all their information in order to use a competing service, if they choose to do so.''

Worldwide, Google reported its R&D expenses were 13 per cent of revenue, compared with 9 per cent for sales and marketing.

The company said concerns over risks to personal privacy - even if unfounded - damaged both reputation and profits.

"As nearly all of our products are web-based, the amount of users data we store on our servers has been increasing,'' it said. "Any systems failure or security compromise resulting in the release of users data could seriously limit the adoption of our products, harm our brand and, therefore, our business.''

"We may need to expend significant resources to protect against security breaches.''

It noted considerable uncertainty over the liability of online service providers both within the US and abroad. Saying the situation was "unsettled'', it pointed to a raft of laws covering defamation, invasion of privacy, unlawful activity, copyright infringement and ``other theories based on the nature and content of the materials searched and ads posted by customers''.

Mr Flynn told the Senate inquiry Google applied industry-leading data protection standards universally, rather than responding to differing regulatory regimes at the national level.

"Our business model depends on earning, and keeping, users trust, and providing excellent products,'' he said. "Users have a number of choices between paid and free services across the web.

"Our services are mainly free to use, because we can support them through our advertising revenue.

"Without that revenue, we may not be able to offer such high quality services free of charge.''

Globally, Google reported revenues of $US7.3bn in the most recent quarter, up 23 per cent on the comparable period a year earlier.

Google-owned websites generated $US4.8bn, representing 67 per cent of total revenue.

Network partner sites earned $US2.2bn through AdSense programs such as paid clicks, when internet users look at the ads served alongside their search results.

The US market represents just under half of Googles earnings, with $US3.8bn - 52 per cent - coming from Europe, the UK and the rest of the world.