RDU - Expansion Aivmid reply
Hi Marty
To some extent it depends on how big the thing is likely to get. On the basis that it will never be really big, then the most appropriate way to go would be to incorporate as an association. If it is envisaged that the thing gets bigger, then it would be better, although more expensive, to register a company limited by guarantee (such things have to be not for profit).
There may be some issues about the group operating in multiple states of Australia, I'd have to check this as it used to be that meant you'd need a company. I think they've sorted that out recently and an incorporated association can operate across the states.
An incorporated association has to have a constitution,much the same as a company. In the constitution goes the groups objects, and can include that any money raised goes to x charity.
Either way it would not qualify as a registered charity.
But dependent on its objects it can do two things..the first is register for income tax exemption, so money raised is not taxable (relatively easy) and the second is apply for tax deductibility status (relatively difficult). The latter is so that donors to the group get a tax deduction for their donation.
My firm is currently doing a pro bono job for CRABS (cancer research advocate bikers..check out their web site). That group raises money for the cancer council and Can Assist (they've raised and donated $80,000 just from the Bermagui group by raffles and running a bike show- great group of hard working blokes). We're trying to get tax deductibility status for the group which is nowadays pretty hard, but if it can happen then you attract bigger and more donors. We had to do the same thing for CRABs, that is, set them up as an incorporated association and draft a constitution that will satisfy the tax office for both income tax exemption and hopefully deductible gift recipient status.
The other reason why you need to incorporate one way or the other is to protect the group organizers from personal liability ie getting sued for some sucker tripping over an electric lead at one of your functions. I'm a newby to the site, don't know if Hervey Bay is your first function or you've had them in the past. But if you've got any intention of organizing events of any description, incorporation is a must. As is public liability insurance.
When you have a constitution controlling where your money goes, then the thing is relatively unhijackable. The constitution would normally provide that officers can be reimbursed expenses, and employees can be hired if agreed by the Board, but above and beyond legitimate expenses all income has to go to the charity or charities that you desire.
I'm not sure on the status of Make a Wish, it may effect whether RDU could actually obtain DGR status. I can investigate hat easily subject to what follows.
I think the first thing to do is get a consensus amongst those interested whether they see RDU moving forward and continuing to fund raise. If they are, then consensus on where they'd like to money to go. After you get that, then I could give some formal advice on the best procedure, and would be more than happy to get it set up without charge.
Good on you for all the work you've done on this. The CRABs guys are a real example of how a small group of people can make a big difference- I'm sure RDU can do likewise. (only problem with the CRABs is that they're 90% HD riders and they give me grief about my Rocket)
ANyway, talk to the boys (and girls) and certainly feel free to be in contact if we can help.
Cheers
Andrew