Why are sports clubs required to be incorporated associations?
The club becomes its own 'seperate legal entity' meaning the club can open its own bank account
The members and office bearers are protected against personal liability for the clubs debts
The club may be eligible to apply for more government and non-government grants
When you incorporate -
Members: The club must have at least 5 members
Not-for-profit status: The club may trade, but not in order to distrubute profits to members
Legal status: The club becomes a ‘legal person’ (a legal entity that stays the same even if its members change).
Legal protection: Members and office bearers are protected against personal liability for the organisation’s debts.
Statutory Obligations: The club must comply with requirements in the Associations Incorporation Reform Act 2012. This includes accounting, auditing and annual reporting requirements.
Costs: The club must pay fees for incorporating and lodging some administrative forms. There may also be costs involved in meeting other obligations, such as financial reporting.
