Incorporating a non-for-profit

It’s a good idea to establish some kind of formal structure to manage responsibilities for the community. It is not always necessary to register an incorporated not-for-profit association. An incorporated association does have certain advantages, as well as obligations.

On the plus side.

• An incorporated association is a requirement to apply for grant funding. This ensures all money and assets are not held by any one individual.

• It allows the community to shift legal responsibility away from members onto the association.

• And it gives the community activities a greater sense of purpose and structure.

But like most good things, an incorporated association also comes with obligations and responsibilities.

It’s a requirement to hold at least 4 meetings a year. These can be for the whole membership or just the executive. But you cannot allow the association to remain dormant waiting for the next reason to get involved again.

Like any business, there will be formal records to be kept. This is particularly the case when managing a grant. As a part of records, there are also ATO returns to be lodged.

While not-for-profit associations are generally not legally required to have insurance, it is highly recommended, due to potential liability risks, such as personal injury and property damage. Most funding bodies will probably require insurance coverage. Although this can place a financial burden on members, it  is strongly recommended

The Executive Committee

People with skills and experience to fulfil important roles

President – Leader/Strategist/Spokesperson

Vice President - Project Manager/Organiser/ Assistant President

Treasurer - Financial Controller/Bookkeeper/Accountant

Secretary – Meetings/Election/Legals/Compliance

Committee - Valued opinions/Relevant experience/Team Leaders

The biggest requirement is the appointment of Office Bearers via a membership nomination process and election. Like all good elections, the candidates should not be determined just by the person who is popular or has the loudest voice. Office Bearers need to be experienced and capable of shouldering the responsibilities that come with the Office, President, Vice President, Treasurer, Secretary and Committee Members. People who are committed and have the time to invest.

Ideally the President should be someone who is a good leader. A person who can motivate the members and keep the agenda moving constructively forward. They should have a clear vision for the community and understand the importance of achieving an Outcome through implementation of specific Actions, and not allow the Action to dictate the Outcome.

The Treasurer is responsible for the money. They need to be someone everyone can trust. A person comfortable with the discipline and routine of bookkeeping.

The Secretary manages the meetings, the agenda and the minutes. They also manage the nomination and election of Office Bearers at the Annual General Meeting (AGM).

Committee Members should each have a specific responsibility and not just give out opinions and criticism. Usually, it’s a good idea to tie the role to an action or project under the leadership of a Project Manager.

On larger, or more complex projects, the Project Manager is a key role. They are the Action Organiser and Accountability Officer. We found people under estimated the scale and complexity of the Project Manager role and how it was pivotal in achieving an Outcome.

In principle, the Project Manager’s job can be encapsulated in eight points. 

• This is what needs to be done

• This is how it needs to be done

• This is who will do it and when. 

• They keep everything on track.

Then;

• Was it done? 

• Was it done correctly? 

• If not, why not? 

• How to get the project back on track.

In our case, incorporating our Not-For-Profit association allowed us to apply for the grants and manage the project successfully ourselves. Without it, we would have had to go through an incorporated third party. By having our own incorporated association saved us a lot of headaches and placed the responsibility in our hands. 

Before you follow us down that path, decide if it’s the right thing for your community.