Bookkeeping & Payroll for Not-for-Profits & Charities

The Social, Community, Home Care and Disability Services Industry Award 2010—usually called the SCHADS Award—covers a large share of the not-for-profit and community sector: social and community services workers, home care, disability support and many crisis and community programs. If your organisation delivers community, disability, home-care or social services, much of your workforce is likely covered by it. It's a detailed award with provisions for broken shifts, sleepovers, on-call, recall and client cancellations, so it's worth confirming coverage role by role rather than assuming.

SCHADS has specific provisions for these. A sleepover (where a worker stays overnight to be available) attracts a set allowance plus payment for any work actually performed during the night. Broken shifts—a shift split into parts across the day—have rules about how many breaks are allowed and what allowance applies. On-call and recall provisions cover being available outside ordinary hours and being called back to work. Each has its own conditions and rates that are usually updated annually, which is why SCHADS payroll needs careful handling rather than a flat hourly approach.

Registered charities must lodge an Annual Information Statement (AIS) with the ACNC each reporting period. Small charities generally lodge the AIS with limited financial information; medium and large charities also have to submit financial reports that are reviewed or audited, depending on size. The thresholds and exact requirements are set by the ACNC and can change, so it's important to confirm which tier you fall into. Keeping accurate books through the year makes the AIS and any review or audit far easier to complete on time.

Deductible Gift Recipient (DGR) status means donors can claim a tax deduction for eligible gifts to your organisation. It's a specific endorsement—being a charity doesn't automatically make you a DGR—and it comes with conditions you have to keep meeting. Practically, you need to issue proper receipts for deductible gifts, keep records of donations received, and ensure funds are used for the purpose your DGR status relates to. We can help keep donation and receipt records in order so your DGR endorsement stays well supported.

It depends on your endorsements. Many charities and NFPs are endorsed as income-tax exempt by the ATO, and some are eligible for fringe benefits tax (FBT) concessions such as an exemption or rebate, which is what makes salary packaging attractive in parts of the sector. But these depend on your specific registrations and endorsements—not every NFP qualifies for every concession. Because payroll, benefits and FBT treatment all flow from your exact status, we set things up around your actual ATO endorsements rather than general assumptions.

The key is keeping restricted funds separate and tagged to the grant and program they belong to, then tracking spending against the grant's budget and conditions. That way, when it's time to acquit—report back to the funder on how the money was used—you can show clearly that funds went where they were meant to. Mixing grant money into general accounts makes acquittals painful and can risk clawback or future funding. We set up tracking so each grant can be reported on individually and on time.

Because a single bottom line hides what a board actually needs to govern. Fund accounting separates restricted funds (tied to a grant or purpose) from unrestricted funds the organisation can use freely, and can show results program by program. That lets a board and treasurer see whether each program is sustainable, how reserves are tracking, and whether restricted money is being used as intended. It's also the view funders and the ACNC tend to expect. We produce reporting in this form so governance decisions rest on a clear picture.

Yes. Being a not-for-profit or a registered charity doesn't change your obligations as an employer. Eligible staff are entitled to superannuation (currently 12% of ordinary time earnings) and to the National Employment Standards—minimum leave, notice and so on—on top of any applicable award such as SCHADS. Volunteers are different and generally aren't paid wages or super, but the line between a volunteer and an employee matters and should be clear. We make sure paid staff entitlements are handled correctly regardless of your tax status.