Practice area
Not-for-Profit, Charities & AssociationsNot-for-profit, charities and associations
Define the intended work in Not-for-Profit, Charities & Associations, confirm the applicable requirements and select a task to plan the necessary review.
Key facts
- Tasks covered
- 26
- Tasks with a step-by-step checklist
- 12
- Local differences
- 3 jurisdictions where this area changes
Jurisdiction
Tasks
GreenLawyer reviewYellowClose supervisionRedLawyer-led
| Task | How AI is used | Human involvement | What the lawyer must review |
|---|---|---|---|
| Build a charitable-purpose and public-benefit table | From the proposed objects, map each purpose to the charity heads the lawyer has listed and list activities that may not fit. | YellowClose supervision |
|
| Build a charitable-purpose table under s 5 of the Charities Act 2013 (Cth) | From the proposed objects, map each purpose to the s 5 charity heads and list activities that may be disqualifying under s 11. | YellowClose supervision |
|
| Compare entity structures for a not-for-profit | Compare association, company limited by guarantee, nonprofit corporation, trust and unincorporated structures against the client's objects, fundraising and growth plans. | YellowClose supervision |
|
| Compare association, CLG, trust and unincorporated structures for an NFP | Compare an incorporated association, CLG, unincorporated association and charitable trust against the objects, ASIC and ACNC reporting, fundraising and DGR plans. | YellowClose supervision |
|
| Draft a constitution or rules from the model and the client's objects | Produce a first-draft constitution from the model the lawyer has named, adapting membership, committee powers, quorum and winding-up. | YellowClose supervision |
|
| Draft a charity-registration application narrative | Produce the purpose, governance and activities narrative from the constitution and the client's description, mapped to the registration criteria the lawyer has listed. | YellowClose supervision |
|
| Draft a deductible-gift or tax-concession endorsement application | Identify the candidate concession category from the objects and activities, and draft the application narrative and winding-up clause checklist. | YellowClose supervision |
|
| Draft a DGR endorsement application to the ATO under Division 30 | Identify the DGR category under Division 30 of the ITAA 1997 from the objects and activities, and draft the application narrative and winding-up clause checklist. | YellowClose supervision |
|
| Build a tax-exempt self-review file for a non-charitable NFP | From the accounts and objects, list the self-assessment category, mutuality facts and documents still needed for the return. | YellowClose supervision |
|
| Build an ATO NFP self-review file for a non-charitable NFP | From the accounts and objects, list the Division 50 self-assessment category, mutuality facts and documents still needed for the annual NFP self-review return. | YellowClose supervision |
|
| Build a multi-jurisdiction fundraising-licence matrix | From the campaign description, list places, licence or exemption paths, and online-fundraising issues against the rules the lawyer has named. | RedLawyer-led |
|
| Build a fundraising-licence matrix for the states and territories in the campaign | List licence or exemption paths in each state and territory, including online fundraising, against the National Fundraising Principles and named state rules. | RedLawyer-led |
|
| Draft board-governance materials against the charity standards | Produce a governance checklist, conflicts register template and a first-draft training outline against the standards the lawyer has listed. | YellowClose supervision |
|
| Draft the narrative for an annual charity information return | Produce a first-draft activities narrative and a preparation checklist from last year's return and this year's papers. | YellowClose supervision |
|
| Build a winding-up and surplus-distribution checklist | List the steps, notices and surplus-asset clauses from the constitution and the charity or tax rules the lawyer has named. | YellowClose supervision |
|
| Build a winding-up and surplus-distribution checklist for an ACNC charity | List steps, notices and surplus-asset clauses from the constitution against the ACNC Act, Charities Act 2013, state associations Act and, for DGRs, the ITAA 1997. | YellowClose supervision |
|
| Draft an advocacy policy against the charity-political-activity line | Produce a first-draft policy and a table of the client's planned campaigns mapped to the permitted/impermissible line the lawyer has named. | YellowClose supervision |
|
| Draft an advocacy policy against s 11 of the Charities Act 2013 (Cth) | Produce a first-draft policy and a table of the client's planned campaigns mapped to the ACNC advocacy line and the s 11 disqualifying-purpose boundary. | YellowClose supervision |
|
| Draft bequest-program clauses and a gift-acceptance checklist | Produce model bequest clauses, tax or charity-number disclosure language and a checklist for the charity when a gift in a will arrives. | YellowClose supervision |
|
| Build an overseas-activities due-diligence file | Produce a country-risk register, partner-diligence checklist and board-reporting template from the external-conduct rules the lawyer has named. | YellowClose supervision |
|
| Map fringe-benefit, goods-and-services or equivalent tax concessions | From the entity type and activities, list candidate concessions and the caps or conditions that appear to apply, with documents still needed. | YellowClose supervision |
|
| Compare the constitution with the model rules and the last special resolution | Compare the constitution to the model and list non-model clauses, plus any mismatch with the last filed special resolution. | YellowClose supervision |
|
| Draft a conflicts-of-interest register from the related-party papers | From minutes, related-party contracts and the membership list, list overlapping offices and dealings that may need disclosure. | YellowClose supervision |
|
| Build a grants and restricted-funds table from the accounts and grant deeds | Extract grant conditions, reporting dates and restricted balances into a table with deed references. | YellowClose supervision |
|
| Draft a merger or successor-entity paper for two charities | Compare objects, membership, assets, bequest clauses and regulator consents into a steps paper for a merger or transfer of incorporation. | YellowClose supervision |
|
| Draft an AI-use policy for a charity | Draft a policy matched to the charity's actual AI use and risk. | YellowClose supervision | Lawyer checks privacy obligations. |
| Advise a charity board on AI governance duties | Map ACNC governance standards to AI use. | YellowClose supervision | Lawyer settles advice. |
| Review a grant application drafted with AI | Check accuracy and funder conditions. | YellowClose supervision | Charity verifies facts. |
| Assess privacy risk of a charity chatbot | Map chatbot data flows to APPs. | YellowClose supervision | Lawyer confirms. |
| Advise a legal-services charity on an AI triage tool | Assess triage tool risks. | YellowClose supervision | Lawyer reviews. |
| Draft an AI policy for a not-for-profit | Draft policy using NFP Law template guidance. | GreenLawyer review | Lawyer adapts. |
| Advise a charity on AI governance duties under ACNC standards | Map AI use to governance standards. | YellowClose supervision | Lawyer advises. |
| Review AI-generated fundraising marketing for copyright and ACL risk | Flag ownership and misleading claims. | YellowClose supervision | Lawyer reviews. |
Firm-wide obligations
| Obligation | What it covers |
|---|---|
| Trust accounting & handling client money | Checks that apply across files. |
| Costs, billing & litigation funding | Checks that apply across files. |
| Client-facing & access-to-justice AI tools | Checks that apply across files. |
| Incoming evidence — deepfakes & synthetic documents | Checks that apply across files. |
| AI decision systems | Checks that apply across files. |
| Confidentiality & client information | Checks that apply across files. |
| AML/CTF — the practice as a reporting entity | Checks that apply across files. |
What changes in Australia
| Topic | What changes |
|---|---|
| Legal framework | ACNC Act 2012, Charities Act 2013, ITAA 1997 Divisions 30 and 50 and the ACL, plus state and territory associations and fundraising laws, and ASIC for companies limited by guarantee. |
| Which jurisdiction | Advice right for one state can be wrong for the client's. Confirm every place the client operates and fundraises before relying on a draft. |
| Recent reforms | 2024 DGR reforms, the NFP self-review return from 2024–25, the governing-document deadline extension, and fundraising harmonisation (NSW from 1 April 2026; WA in 2026). |
| Limits on AI assistance |
|
What changes in New Zealand
| Topic | What changes |
|---|---|
| Registers | The Companies Office administers the Charitable Trusts Act 1957 and the Incorporated Societies Act 2022. |
| Not Australian law | No ACNC and no ATO DGR endorsement. |
| Tax | Confirm charity registration and tax treatment on the New Zealand registers and Inland Revenue material. |
- Companies Office: legislation for our registers · 2026-09-23
- Income Tax Act 2007 · 2026-09-23
What changes in United States
Known here as: Not-for-profit, charities and associations
| Topic | What changes |
|---|---|
| Tax exemption | IRC 501(c) and IRS exempt-organisation practice. IRS OPR Issue 2026-19 covers tax practitioners using generative AI. |
| State law | State nonprofit corporation and charitable-solicitation statutes are separate. |
- IRS Office of Professional Responsibility, Issue 2026-19, Introductory Guidelines for Responsible AI Use in Federal Tax Practice · 2026-09-23
- ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024) · 2026-09-23
- 26 U.S.C. § 501: exemption from tax · 2026-09-23
- IRS: Exemption requirements, 501(c)(3) organizations · 2026-09-23
Precedents for this area
- Conflict of interest policy for a registered charity (adapted from the ACNC template) (Policy, AI use Yellow). The ACNC's openly licensed conflict of interest policy, adapted with numbered clauses, a standing-notice clause and a register of interests table, so a charity board can identify, disclose and manage conflicts under Governance Standard 5.
- Constitution for a charitable company limited by guarantee (ACNC templates): selection and adaptation guide (Other, AI use Yellow). Links to the ACNC's five template constitutions for charitable companies limited by guarantee, with a guide to choosing the right variant, adapting membership and board clauses, and checking not-for-profit, DGR and winding-up provisions.
- Model constitution for NSW incorporated associations: adoption and review guide (Other, AI use Yellow). Links to NSW Fair Trading's current model constitution for incorporated associations, with a guide to adopting it, the effect of section 25, comparing a bespoke constitution, and making changes by special resolution.
- Letter of appointment for Responsible People (board members), with AI oversight paragraph (adapted from the ACNC template) (Letter, AI use Green). The ACNC's openly licensed appointment letter setting out the Governance Standard 5 duties for a new board member, adapted with optional paragraphs on governance documents, oversight of AI and data, and acknowledgement of receipt.
- Charity board AI governance and acceptable use policy (Policy, AI use Yellow). Original board-approved policy for a charity's use of AI: risk tiers, an AI register, rules for beneficiary and donor data, human review of outputs that affect vulnerable people, transparency, vendor checks, incidents and board reporting.
- Donor and supporter privacy collection notice (including AI profiling and personalised fundraising) (Notice, AI use Yellow). Original plain-language collection notice for donors and supporters that explains data collection, any AI-based profiling or personalised appeals, direct marketing choices, overseas disclosure and how to opt out, matched to APP 5 and APP 7.
All precedents for Not-for-Profit, Charities & Associations. Signed-in accounts can read the full text.