Should you incorporate your association?
A number of new groups ask us if there is a need for them to incorporate. Many groups can function without incorporation and without the need to become a legal entity.
However, there are certain benefits of becoming incorporated. An incorporated association or organisation becomes an independent entity, separated from its management committee and members. This allows for clarity and transparency at a practical level i.e. bank account is under the name of the entity and also allows the entity to apply for grants and sign contracts.
Another benefit is that incorporation also protects its members from legal liability unless the persons responsible acted negligently or dishonestly.
On the other hand there are a number of obligations that comes with incorporating the group. These obligations will depend on the group’s legal structure and revenue but would involve annual reporting at a minimum level.
Learn more about the Community Sector Program here.