Types of Community Groups
Community groups can be formal or informal groups of people coming together and are organised in some way. They usually have some structure, rules or legal entity but sometimes community groups can be just an informal association.
A not-for-profit organisation does not operate to benefit members or make financial gain. All profits made are put back into the organisation to fund activities, functions and to achieve its mission.
Incorporated v’s Unincorporated
Incorporation is a voluntary means of creating a legal identity. A group becoming incorporated provides legal protection for its members. Through incorporation, the organisation becomes in the eyes of the law a legal body.
|Not a legal entity||Legal entity|
|Members are liable for debts||Organisation is liable for debts|
|Operates in accordance with a constitution||Responsible to abide by the Associations Incorporations Act|
|Cannot apply for grants||Can apply for grant funding|
|Cannot own assets in the group name||Can own assets, borrow money, invest money and employ staff|
A charity is an organisation that is set up to provide help and raise money for those in need. Charity’s aims have to fall into categories which the law says are charitable – such as the prevention or relief of poverty, or the advancement of the arts, culture, heritage or science.
Co-operative is a legal entity owned and controlled by the people for whom it was established and who benefit from using its services. A registered co-operative is a body corporate and in Western Australia, may be formed by a minimum of five individuals or corporations.
Further information can be accessed via the OurCommunity website.