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AES provides support services to not-for-profit organisations.
In a recent meeting with a CEO of an AES member association, the issue of obtaining a quorum to run the Annual General Meeting (AGM) was discussed. At the member association's recent AGM, there were not enough members present to constitute a quorum because the association had adopted the Model Rules. The President was very anxious that the Model Rules allowed only members to attend, rather than a quorum, which he believed posed some risks to the association.
For many associations, the Annual General Meeting (AGM) is not the most popular meeting—it tends to be a very dry and formal process that does not allow for a lot of debate regarding the management of the association.
The majority of associations produce some type of magazine, usually included as part of a member benefit package. And, unfortunately, for the majority of associations, the task of compiling their quarter magazine can be arduous, and seemingly without return.
AES members include both Board members and executives such as CEOs and Executive Officers, all of who may need to obtain legal advice at some stage. For the last 15 years, I have been a friend of John Crosby a very experienced Barrister and Solicitor and former General Council for Shell Australia. He has been my legal mentor since then and I would like to share in this newsletter some of what I have learnt when seeking legal advice.
Associations can be very dynamic organisations. They can bring together like minded members to share information, ideas, and best practice processes within their industry or area of interest.
Have you recently been appointed to a mangement position within an Australian association? Do you have questions about finance and tax? Not sure if you need to complete a self assessment? Don't understand the difference between an audit and a review? Or unsure as to how much surplus you should generate per annum?
Outdated rules and conditions—documented within an association’s constitution generations ago—are one of the major barriers for associations. Restrictive constitutions can stifle the activities of an association, preventing the organisation from becoming successful and vibrant, and meeting the needs of its members.
The requirements for an association to have an audit or review will depend on a number of factors, including:
There are over 25,000 associations in Australia, covering all types of human pursuits—there really is an association for just about everything. Most associations are classed as small businesses, employing less that 20 staff. Many of their administrative functions rely on a combination of full-time, part-time employees and volunteers managing the needs and expectations of members.
Over the last twelve months, a number of AES members and clients have been the focus of both print and social media—they have either been involved in Royal Commissions, or other high-profile events that have attracted media and social commentary.
Association leaders often want to know when and how to engage government. Any time is good, as long as you are prepared, but some times are better than others. Different stages in the political cycle provide different opportunities.
Most member-based associations have an annual renewal event. Renewal notices are sent out to members with the general letter from the President inviting member to renew. This letter usually contains a generic script outlining the reasons as to why the member should renew and the benefits offered by their membership fee.
For the last 60 years, the Logies has been an annual event that recognises individuals who have achieved excellence within the Australian Television Industry. The major prize is the Gold Logie, which is awarded to the personality who receives the greatest number of votes from the general public. This year, the Gold Logie was taken out by comedian Tom Gleeson. In his acceptance speech, Gleeson stated, “I’m in a terrible spot because I like it and I hate it as the same time.”
Last week the Victorian Government sacked the South Gippsland Council and appointed an administrator. According to the Weekly Times, the sacking occurred as a result of a report commissioned by the Victorian Government around the disruption of the Council.
Managing an association can be a highly rewarding and exciting experience. There are some fantastic opportunities within not-for-profit associations for leaders who can steer their organisation in the right direction, helping their organisation achieve its goals and objectives.
We recently covered some of the types of associations and organisations that may be eligible for a full income tax exemption under Australian tax law, and are therefore not required to lodge an income tax return.
In Australia, an exemption from income tax is available for qualifying not-for-profit organisations, including associations formed for certain purposes. If an organisation is exempt from income tax, it does not have to lodge income tax returns or pay income tax. Where a full exemption is not available, special rules may apply to determine a not-for-profit’s taxable income and rates of tax.
Most associations have a Code of Ethics (also known as a Code of Conduct) by which their members must abide, which is referred to in the Constitution, by-laws or Board policies. Unfortunately, over the years, the team at AES has witnessed several breaches of codes of ethics, including their fall-out. Increasingly, associations that fail to act quickly and efficiently in response to breaches of codes of ethics are leaving themselves open to public scrutiny. We asked AES Adviser Val Smith, former head of Crime Stoppers Victoria and Detective Sergeant of Victoria Police, about the importance of ethics within a member-based association.
Most associations struggle to maintain and grow their membership. The old membership model that offers a list of benefits works in some sectors, but has no impact in others. As such, it is important to stop and consider why people or organisations join an association.
Nearly every year, associations create conferences and events that enable their members to come together, learn new ideas, increase their knowledge, and build collaborative relationships.
Managing a not-for-profit association can have its ups and downs but there are rewards for leaders who are able to facilitate change. New leaders in any association, from the President through to the Executive Officer, are often in the spotlight. The best way to win the acclaim of the members whilst in this spotlight is to achieve the goals and objectives of the association.
The Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019 (whistleblower legislation) received assent on 12 March 2019 and will come into effect as of 1 July 2019. This new Act provides a unified, strengthened whistleblower protection regime. As the Act applies to all public and large proprietary companies, it is likely to impact many Australian not-for-profit organisations and associations.
Managing an association or a not-for-profit organisation carries significant risk of liability to both individuals and the organisation itself. In different circumstances, board members and senior managers can be held personally liable for a failure to act or their actions.
Most associations hold events or conferences for their members. In some instances, the annual conference may be the only activity an association conducts for their members, and is one of the main reasons members join the association.
Association Executive Services (AES) recently commenced work on a project for the South Gippsland Shire Council. The project includes the development of a Good Governance Toolkit. The Toolkit will be an online governance resource, designed to empower the business community in South Gippsland by helping local associations effectively and efficiently manage and grow their membership base.
Charities and fund raising drives are in the news constantly. The majority of us receive constant requests for donations for worthy causes. However, most not for profit organisations and industry associations are not charities. As such, they rely very heavily on government funding, membership subscriptions and payment for services to remain viable.
Most not-for-profit Boards and Committees are made up of volunteer members. As such, it can be difficult to encourage members to join your association’s Board or Committee—everyone is time poor these days. But, having a diverse, experienced Board offers many benefits to an association. Volunteer Board members bring with them a range of skills, abilities, expertise and experience, all of which contribute to the overall management of the association.
Are you about to send out your membership renewals? If you are, then be prepared for your association to come under scrutiny from your members. Regardless of how much growth you may have experienced in the past year, members who are undecided as to whether to renew their membership will critically assess whether your association is doing a good job.
In my many years of experience reporting to, providing advice to, and being a member of, not-for-profit Boards, one of the most common issues I’ve experienced is a lack of understanding when it comes to governance.
We recently spoke with Genevieve Newton (Chief Executive Officer, Victorian Music Teachers’ Association) about her experience with the AES Best Practice Association and Not for Profit Benchmarking Self-Assessment.
It saddens me to hear of any association experiencing financial crisis. Unfortunately though, financial crisis occurs all too often in the not-for-profit sector—associations are often forced to lay off staff, restructure or move into smaller, cheaper office space.
At one of our recent AES member meetings, the issue of membership—particularly member retention and growth—was discussed. Most associations realised their membership was either failing to grow or, even worse, declining. As such, there needs to be a simultaneous focus on both member retention and member growth, which can often be difficult with limited resources.
Associations can be very dynamic organisations. They can bring together like minded members to share information, ideas, and best practice processes within their industry or area of interest.
One of the services that AES has offered to associations for a number of years is the provision of an interim CEO. Often, this service is utilised by association boards that are in a transition phase, defined by the recruitment of a new CEO.
In the 2014 AES Association Best Practice Survey, we asked over 300 association leaders in Australia about the effectiveness of their strategic plan. The survey demonstrated that 74% of association leaders who had a strategic plan did not use, or refer to, this strategic plan in their decision making and review meetings. My experience as a CEO (or senior executive) managing a not for profit organisation has taught me the importance of an effective strategic plan, not only as a means of measuring an association’s performance, but as a crucial tool in assisting in communication between the Board and its employees.
How we help membership based, not-for-profit associations now and into the future.
