Legal Question in Business Law in Australia

Re: non profit foundation

Here's a short answer (and this is only one way of doing it - there are others) - this is also only sketchy, see websites mentioned for a more complete picture...

1. Get together seven people who share similar ideals and who you trust;

2. Incorporate an association using the model rules - see the Associations Incorporation Act (Qld)

3. State the objects of the association in accordance with the goals stated (for homeless kids or whatever)

4. If you want to be income tax exempt and maybe apply for DGR (deductible gift recipient) status, you should make sure your rules also contain the correct winding up provisions - the ATO site contains good information on this.

5. You will need to apply for an ABN if you want DGR status

6. There is a fairly small fee for incorporation (aroun $100 I think) plus any fee for registering an ABN.

That's the easiest way to do it. The reason is that an Incorporated Association can only ever exist as long as it is not run to make profit for it's members.

The ATO site (www.ato.gov.au) and the Office of Fair Trading site (www.consumer.qld.gov.au) contain the most useful information.

If in doubt - see a lawyer. In fact its a good idea to get an accountant and a lawyer involved from 'go'.