You’re running a not-for-profit, doing important work, and making a real difference. The last thing on your mind? Record-keeping.
But, if your records aren’t in order, everything you’ve worked for could come crashing down. Lost funding, tax penalties, legal trouble—it happens more often than you’d think.
So, before you brush off record-keeping as “just admin,” ask yourself this: If someone audited your organisation today, would you be ready? If not, it’s time to get serious about it.
Why Record-Keeping Is More Than Just a Legal Obligation
Sure, keeping records is a legal requirement. But beyond the rules and regulations, solid record keeping is about protecting your organisation. It’s about avoiding financial chaos, ensuring transparency, and making life easier for your team.
Poor records can mean overpaying tax, missing out on grants, or facing fines. Worse, they can damage your credibility—something no not-for-profit can afford.
So, what do you actually need to keep?
The Non-Negotiables: What Your Organisation Must Record
Not-for-profits have to maintain clear, accessible records of their financial and operational activities. The Australian Taxation Office (ATO) and the Australian Charities and Not-for-profits Commission (ACNC) expect no less.
1. Governing Documents
These set the foundation for how your organisation operates. Keep copies of:
- Your constitution or rule book
- Articles of association
- Trust deeds (if applicable)
These documents help prove that your organisation operates within its intended purpose.
2. Financial Records
Money in, money out—it all needs to be tracked. Essential records include:
- Financial statements
- Annual budgets
- Audit reports
- Reconciliations
- Accounts payable and receivable
Not only does this keep you compliant, but it also helps when applying for funding. No one wants to invest in an organisation with messy books.
3. Tax and Super Records
Even if your not-for-profit is tax-exempt, you still need to keep records for:
- Income tax obligations (if applicable)
- PAYG withholding for employees
- Superannuation payments
- Fringe benefits provided to staff
These records need to be kept for at least five years. Failing to do so could land you in hot water with the ATO.
4. Banking Records
Think of this as your financial trail. Keep:
- Bank statements
- Cheque books
- Deposit records
- Bank reconciliations
If the numbers don’t add up, missing banking records could be the reason.
5. Grant and Funding Documentation
If you receive funding, you need a clear record of:
- When funds were received
- How they were used
- When reports or acquittals were submitted
Many grants come with strict reporting conditions, and failing to provide proper documentation could mean having to return funds—or worse, losing future opportunities.
6. Employee and Volunteer Records
If your organisation has staff or volunteers, you’ll need:
- TFN declarations
- Payroll records
- Volunteer agreements
- Records of benefits or reimbursements
These records protect both your organisation and the people who work for it.
7. Contracts and Agreements
Not-for-profits often rely on service providers for cleaning, maintenance, insurance, and leasing. Keep copies of all contracts to ensure transparency and legal compliance.
The 5-Year Rule (And When It’s Longer)
For most financial and tax-related records, five years is the magic number. That’s the minimum period the ATO requires you to keep them. But if your organisation is a registered charity, the ACNC requires you to hold onto records for seven years.
DGRs must also retain records for at least five years to prove compliance. And some lease agreements, funding documents, and contracts may have their own retention rules. When in doubt, keep it longer.
The Cost of Getting It Wrong
Think missing a few documents isn’t a big deal? Think again.
ATO Penalties: Incomplete records can mean unexpected tax debts, audits, and financial penalties.
Funding Risks: Grants and donations often come with reporting requirements. Poor records can mean losing funding.
Legal Trouble: Non-compliance can put your organisation at risk of fines—or worse, deregistration.
And if you’re thinking, “We’ll deal with it if something happens,” remember—by then, it’s too late.
How to Stay on Top of Record Keeping (Without Losing Your Mind)
Go Digital – Cloud-based accounting and document storage make life easier. No more lost receipts or last-minute scrambling.
Keep It Simple – Set up a clear system and stick to it. Categorise records and store them securely.
Do Regular Checks – Don’t wait for an audit to discover gaps. Schedule internal reviews.
Train Your Team – Everyone involved in finances or administration should understand what needs to be recorded and why.
Get Professional Help – An accountant or bookkeeper can save you headaches in the long run.
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