Charities, Profit and Tax – What does Charity mean? - Murray Baird. The Australian Taxation Office is very keen to tax profits raised from so called ‘commerical activities’ such as a lamington drive or a church fete, even if all the profit is used to fund charitable causes, like overseas mission or assisting those less fortunate in the community. Charities with tax exemptions and currently involved in ‘raising funds’ will be nervously awaiting the High Court’s ruling on the Commissioner of Taxation v Word Investment Ltd case. Charities make a significant contribution to civil society. To equate their purposes with those of for profit entities and to press them for government revenue will weaken the fabric of a coherent, caring society.