Public Benevolent Institutions (PBIs)

A PBI is one type of DGR

The ATO defines a Public Benevolent Institution(PBI) as a non-profit institution organised for the predominant purpose of the direct relief of poverty, sickness, suffering, distress, misfortune, disability or helplessness.

Key markers of a PBI are that:

• it is an “institution“
• it directly delivers the aid (not via other agencies)
• it is carried on for the public benefit not for the benefit of a small sub-group of the public
• The condition or misfortune relieved by a PBI must be such poverty, sickness, suffering, distress, misfortune, disability or helplessness as arouses pity or compassion in the community.

Our lawyers regularly advise PBI on issues such as:

• Establishment and formation
• Qualification for initial endorsement
• Tax Endorsement Risk Reviews (Are you dominantly “benevolent”? Are you still entitled to your PBI endorsement? If you are not the ATO has the power to revoke it and to do so retrospectively.) PBI tax endorsement is a key asset that is worthy of investment to protect.
• Preparing for and responding to ATO reviews and audits
• Governance
• Constitutions, Rules and By-laws (review, modernisation, amendment)
• Reporting
• Receipting

We can help. Contact our Client Services Manager to make an appointment (face to face or via teleconference) with one of our Not for Profit sector specialist lawyers.