Accumulated income of registered non-profits requires timely purpose disclosure, limited retention, prescribed investment, and approved redirection or dissolution transfer. Section 342 permits a registered non-profit organisation to accumulate regular income for up to five years by timely furnishing a prescribed statement ... Summary
Accumulated income of registered non-profits requires timely purpose disclosure, limited retention, prescribed investment, and approved redirection or dissolution transfer.
Section 342 permits a registered non-profit organisation to accumulate regular income for up to five years by timely furnishing a prescribed statement specifying the purpose and period. The accumulated income must be invested in permitted modes or applied for the stated purpose. Transfers to another registered NPO are not treated as application of income. Court-imposed restrictions are excluded from the accumulation period. Approved changes of purpose are permitted where consistent with the organisation's objects, and accumulated income may be applied to another registered NPO on dissolution.
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