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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.
đź’ˇ 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.
đź’ˇ 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.
đź’ˇUnfortunately, 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.
đź’ˇWe are noticing that some not-for-profit organisations are now fined by regulators for not complying with their constitutions.
đź’ˇIf 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.
One of the main revenue streams for many associations is their annual or biannual conference. Anyone who has planned one knows that securing sponsorship is often the most time-consuming and frustrating task.
Hiring a consultant for a specific task is fundamentally different from engaging one to drive organisational transformation.
Boards often recognise the need for change when membership stagnates, governance weakens, strategy stalls, or momentum declines. Engaging a
consultant at this point is a sound decision.
We’re seeing a growing trend. More and more groups are reaching out to start new associations.
In most cases, the reason is the same: "Our current association isn’t delivering."
That may well be true. Starting a new association is a serious commitment, not just a reaction. Let me be clear:
How we help membership based, not-for-profit associations now and into the future.
