Do not-for-profit organisations have to pay tax? Do they have to specifically be charitable, or do are all NFPs tax-exempt?
Posted by netjunkie, Tuesday, 30 September 2008 10:35:48 PM

Obviously not, netjunkie. Not for profit organisations doesn't mean that the organisation can make more money than it spends. It means that the members are the "owners" of the organisation and none of the profit is distruted to its members. A not for profit organization must also declare in its constitution what happens to its assets in the event of the organisation closing down. In the event of a non profit organization closing down, the assets are generally transferred to organization with similar operations. Churches are run on these lines and are therefore not for profit.

Most sports clubs are run on the same lines. They are not for a specific charity.

Staff that work for not for profit organisations pay the same taxes on their salaries as everyone else.

Great, then I see no reason why Churches should pay taxes, unless they're hoarding their resources for some reason.