Legal Updates

Not for Profit

Companies Limited by Guarantee

Many charities and other not-for-profit organisations are incorporated under the Associations Incorporations Act 1985 of South Australia or under an equivalent Act of another State. We are now seeing a number of such organisations who wish to convert to a company limited by guarantee (CLG). There are a number of reasons that may drive an…

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Tax Deductible Gift Recipient Reform

Deductible Gift Recipient (DGR) status is a vital element of the charitable and not-for-profit (NFP) sector in Australia. In June the Treasury Department issued a Discussion Paper to consider potential reforms, outlining a number of proposals to strengthen DGR governance arrangements, reduce administrative complexity, and ensure that an organisation’s eligibility for DGR status is up…

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Contested Estates: Charities v Relatives

When a charity is left a gift in a will and the will is contested by a relative of the deceased, how does the law view the charity’s claim to the gift against the relative’s? Firstly, the relative contesting the will needs to be an eligible claimant under the Inheritance (Family Provision) Act. That is…

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Saving a Charitable Gift

Our last update looked at some of the issues that arise when a Not for Profit Group (NFP) receives a gift in a will which they have to use on certain conditions.  An NFP risks losing this gift if they are unable to carry out the will maker’s conditions. However, if this situation arises, the…

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The trouble with Specific Charitable Gifts

It is always preferable for a Not for Profit Group (NFP) to receive a gift from a deceased estate for their general purposes rather than for a specific purpose.  The reason why is because if the NFP cannot carry out the specific purpose as directed by the will, they risk losing the gift altogether.  A…

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