Incorporation allows for clubs/associations to be established as legal entities and allows it to be separate from individual members
There is no legal obligation for a club or association to become incorporated. However, if a club or association is not incorporated, legal rights and obligations can fall on to the individual member and place you at risk.
Therefore, many not-for-profit clubs and associations choose to incorporate. Some benefits include:
- Club or Association members are protected
- Improving fundraising ability and eligibility for grants
- Easier to enter into leases, open and operate bank accounts and borrow money
Not-for-profit clubs and associations generally incorporate under the State or Territory legislation known as the Incorporations Act.
To view the relevant legislation for your state click the links below and seek legal advice if required.
Australian Capital Territory