• Centre for Association Management

Do you know what’s involved with running an NFP organisation and what the penalties are if you get i


Running a successful Not for Profit (NFP) organisations requires much planning, dedication and well laid-out governance.

Alongside these key factors, all NFP organisations are governed by their states’ Not for Profit laws and must comply with them. If you are an incorporated association you have certain legislative requirements to follow which lay out how to run an NFP organisation.

Yet there is a good deal of legislation- so much so that it may appear confusing, as you try to identify what your NFP must do in order to remain legal and of good standing.

It is prudent to seek sound legal advice when at the stage of determining what legislative requirements apply to your NFP.

The legislation your NFP must adhere to depends on the type of entity your NFP is incorporated under, with some coming under state or federal legislation.

In Western Australia, many NFPs are incorporated under the Associations Incorporation Act 1987 (WA). In order to operate a compliant organisation you must be aware of, and follow, the legislation which applies to your NFP.

Every incorporated association must have its own constitution, which are the rules laid out by the NFP that are specific to the activities of the organisation. These rules should meet your organisational goals, yet they must simultaneously meet the requirements of the Associations Incorporation Act 1987.

Some of the key requirements also include ensuring that your organisation does not generate a profit for its members. Any surplus money the organisation generates must be invested back into the organisation for the purposes set out in its constitution. Another requirement states that every incorporated association must have more than five members and be governed by a management committee.

Additionally, there are fundraising requirements which vary by state. In Western Australia, any organisation that collects money or goods from the public for charitable purposes, needs to be licensed under the Charitable Collections Act 1946.

There are also a number of tax concessions available to NFP organisations, however the type of concession will depend of your organisation’s legal structure.

It is of vital importance that you understand and abide by the relevant laws and regulations applying to the structure you have been incorporated under.

If your NFP fails to maintain its legislative responsibilities, this can place the organisation at risk of legal repercussion, and of damaging its public persona.

But you do not have to worry…

CASM are experts at assisting NFP organisations to run their operation!

Good organisation and governance – the key to compliance

Employing a team that have several years of experience in working with NFPs and who have navigated the field of legislative requirements will provide your NFP with an invaluable advantage.

At the Centre of Association Management (CASM) we are highly experienced in helping NFP organisations meet their legislative requirements. In fact, we not only ensure that an organisation meets these requirements, but we also take an active role in monitoring the constitutional compliance of association activities.

Good governance that is part of the daily workflow is the cornerstone of any charity that is well-run. Being compliant protects your NFP and ensures that your organisation is not only organised and efficient but also highly regarded by the community.

If you would like to know more about how we can assist you, please contact me, Ron Adams directly by emailing or phone me on 08 9427 0800.

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