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By Nick Koerbin
According to a recent Association Executive Services' webinar
with Jennifer Moltisanti from the Australian
Taxation Office,
most associations or not-for-profit organisations in Australia must soon review their governing documents as part of their self-assessment
process for claiming not-for-profit status.
💡 This includes your organisation's constitution, known as governing rules, memorandum of association, or charter. It is not just a set of
guidelines; it is a legal document, a contract, and its terms must always be adhered to by all members, including the Board.
💡 In the ever-evolving NFP sector, organisations often find themselves on a different trajectory. Their current objectives and activities
might not align with those stated in their constitutions. Regular reviews are not just important, they are crucial to ensure alignment.
💡Unfortunately, this is often one of the jobs that gets kicked down the road. The number of constitutions our consulting team has reviewed
that need to be updated or aligned with the organisation's direction and purpose is alarming.
💡We are noticing that some not-for-profit organisations are now fined by regulators for not complying with their constitutions.
💡If your constitution looks like it was written on a typewriter, it is time for an update.
However, it's not only constitutions written before the invention of the computer that would benefit from a review.
Updating your constitution is not just a task; it's a responsibility. It's an opportunity to ensure the document reflects contemporary legal
requirements and your current operations.
This can lead to better governance and a more effective organisation, and it's up to you to make it happen.
Most association leaders face a persistent challenge: growing and retaining members. It’s not uncommon to hear stories of
members who join for a year, drop off, and then rejoin two years later. While this cycle may seem harmless, it carries hidden costs—such
as staff time, marketing expenses, onboarding resources, and software overhead—that
can quietly drain your association’s budget.
Running an association or not-for-profit (NFP) is no small feat. Whether you're leading a professional body, a community group, or a
national peak organisation, one question always lingers:
“How do we know we’re doing well?”
It’s a fair question—and an important one.
How we help membership based, not-for-profit associations now and into the future.
