- Introduction
- Do unincorporated groups need a statement of objectives and rules?
- Do you need to register your group’s name?
- Can you register as a charity with the ACNC?
- For how long should you remain unincorporated?
- What are the dangers of remaining unincorporated?
- the purposes of the group
- the membership of the group, including eligibility and method for accepting and removing members
- the appointment and replacement of key members to govern and make key decisions for the group
- the manner in which funds are to be managed and assets are to be held by the members
- the conduct of meetings including frequency, voting procedures and rights and quorum numbers
- delegation of authority or responsibilities among members
- dispute resolution procedures among members
- procedures for amending the rules in the future, and
- procedures for ending the group including the distribution of any remaining assets
More information
Go to our resources on rules or constitutions.
More information
Go to our resources on registering as a charity.
More information
The ACNC has published template rules that may be used by unincorporated associations that would like to be registered as a charity with the ACNC. You can find further information on the development of these rules on the ACNC website. The template can be amended to address a particular unincorporated association’s specific needs and circumstances.
- small groups with low-risk activities (like a book group)
- groups that are focussing on short-term issues which require urgent attention (but which again are low risk), or
- groups that don’t want to disclose any information (for example, their annual revenue) on a publicly-available register
- an inability to enter into contracts or agreements under the group’s name. Instead agreements need to be entered into by all the members or by an individual member on behalf of the unincorporated group. An individual member signing for the group will therefore be responsible and liable for performance of the group's obligations under the agreement and possibly liable for any breach. Further, the unincorporated group will not have legal standing to enforce the obligations of any other party to the agreement and will be dependent on the individual member to enforce the relevant agreement
- an inability to own or lease property in the group’s name. Proprietary interests will need to be held by an individual member on behalf of the unincorporated group
- an inability to sue or be sued, or bring a legal action in the group’s name. The relevant members of an unincorporated association may be sued in a dispute involving the unincorporated association, because the unincorporated association itself can't be sued, and
- difficulties in receiving benefits or gifts bestowed on the group as a whole. It is not possible for an unincorporated association to receive goods in the group’s name. An individual member can receive a gift on behalf of the unincorporated association and this possibly creates an informal trust arrangement. When this occurs, that individual must act as trustee and use those goods for the benefit of the unincorporated association (that is, must use it to advance the purposes of the group).
Most grants from both government or philanthropic trusts and foundations require groups to be incorporated to be eligible – they will not give grants to individuals even if they agree to hold the money on behalf of the group.
- the group’s objects or its purpose
- risks associated with the group’s activities, and potential individual liability of members involved
- the number and type of agreements the group will need to enter into (for example, leases, bank accounts, insurance contracts)
- the importance of securing a binding commitment by members to the group’s objects or purpose
- the scale of the group’s activities
- the assets to be owned by the group
- the number of members and the criteria for admitting people to membership
- the intended timeframe of the association, and
- the additional legal and reporting obligations involved in incorporation
More information
To assist community groups with preliminary questions that arise when starting out, or looking to formally incorporate, see our resources on getting started.