What structure should I use?
If you are starting with a new charity or not-for-profit organisation, once you have worked through the questions of what do I want to do, how do I want to do this and why, the next question is what legal structures need to be in place which will enable the organisation to operate and thrive. Put in other terms: Should we incorporate or not? If so, what form should we take? Should a trust be considered?
The most common structures are as follows:
* State-based Incorporated Associations;
* Commonwealth-based Companies Limited by Guarantee;
* Charitable trusts; and
* Unincorporated associations.
There are, though, a list of other options. For example, in some states there is legislation enabling parent organisations to incorporate subsidiary bodies.
Each of these structures has its own benefits and disadvantages. There is no one-size-fits-all in this regard. Accordingly, the best structure for your objectives will depend upon what you want to do, how you want to do it and where you want to do it. The costs involved with both establishing the entity and ongoing compliance will also shape the decision.
Neumann & Turnour Lawyers would be please to assist in providing advice as to the appropriate legal structure to suit your particular circumstances.