Document ID: chunk:federal_register_of_legislation:F2025L00184:reg:20
Version: federal_register_of_legislation:F2025L00184
Segment Type: reg
Provision Reference: reg 20
Character Range: 29384–30606

20  Uncommercial transactions and benefits to founders and donors

 (1) A community charity must ensure the charity does not enter into any transaction that is uncommercial when entered into, unless the transaction is in the direct course or furtherance of a purpose of the charity as covered by paragraph 30-110(3)(c) or subsection 30-110(4) of the ITAA 1997.
Penalty: 30 penalty units.

 (2) However, subsection (1) does not prevent the charity from entering into an uncommercial transaction on terms each of which is more favourable to the charity than would otherwise be expected under an *arm's length transaction.

 (3) A community charity must ensure the charity does not provide any benefit (except as set out in section 21), directly or indirectly, to:
 (a) the trustee; or
 (b) a *member, director, employee, *agent or officer of a trustee or a *community charity corporation; or
 (c) a donor to the charity; or
 (d) a founder of the charity; or
 (e) a *relative of an individual covered by paragraph (c) or (d); or
 (f) an *associate of any of those entities (other than an eligible *deductible gift recipient or a *registered charity).
Penalty: An amount equal to the amount or value of the benefit provided.