Franking credits and your NFP investments...

Most nonprofit finance staff we work with have either never heard of 'franking credits' or think that they are some form of high-end finance manipulation.. (and then there are those who think they are what you get when you return the unused hot dogs from the fundraiser)...

However nonprofits which place their reserves or surplus cash through shares in Australian companies may be entitled to receive some of the tax paid by those companies on their profits as income.

The ATO has an explanation of franking credits for nonprofits and sets out which organisations are eligible and how to ensure they can claim the refund...

Go here.