Author: Mim Dineen
Establishing an incorporated association is a great way to formalise your community group's aim and provides some legal protection to it's members. It is a good structure to use during the earlier phase when your primary aim is to get as many members as possible with a minimum of demands on those joining.
What is an incorporated association?
Incorporated associations are clubs or community groups, operating not for profit, whose members have decided to give their organisation a formal legal structure.
Associations do not have to be incorporated, however when a club or community group incorporates, it has its own legal identity separate from its members, providing protection to members in legal transactions. It's a simple and inexpensive way of providing membership protection and consistency during times of change. An incorporated association can enter into contracts in its own name; for example, to borrow money or buy equipment.
Although there are benefits to be gained from incorporation, there are also some obligations including membership and financial records and certain reporting requirements by the public officer and committee members.
How to start an incorporated association
Each state or territory oversee their own incorporated associations, through a government agency. Links to each state agency are listed at the end of this article for more information and considerations for incorporation.
A group must have at least 5 members and vote to establish an incorporated association. A minuted meeting is required whereby the the group is required to pass a motion to become incorporated and vote on the rules.
You may be required to register a business name, although this process varies across states. You are then ready to lodge an application form that includes a list of your group's assets and the proposed rules. Costs vary from state to state and are usually around $120.
Incorporated association requirements
Model rules or constitution
Most states and territories provide access to a set of model rules or constitution used by many groups when becoming incorporated. If you wish to modify these model rules to better suit a specific aim there is generally an additional cost. Groups should become familiar with the relevant Incorporated Associations Act in their state before making changes to the model rules.
Public officer and committee
As with most governing bodies the association is required to have a committee that oversees the affairs of the group and enables appropriate decision making and documentation. This committee of management includes officer bearers of president, vice president, secretary and treasurer. There may also be ordinary committee members. Most state governing agencies require that a public officer be appointed and their details lodged. The public officer is often the secretary of the committee but may also be a paid executive officer.
Records and reporting
Incorporated associations whilst providing legal protection to it's members, are also obliged to meet certain standards and reporting responsibilities. Generally the model rules or constitution detail the manner in which the group's affairs should be managed including how to hold an annual general meeting (AGM), how to appoint committee members and maintain member records. All states require that an association lodge a summary of the annual financial statement following the AGM.
More information
Read about how to form an incorporated association in your state:
Australian Charities and Not-For-Profit Commission