What is an incorporated association?
Incorporated associations are:
- not-for-profit organisations
- suitable for community based groups
- an inexpensive way to give associations a legal identity which continues despite any membership changes
- registered by CBOS under the Associations Incorporation Act 1964
An incorporated association has the word incorporated or the abbreviation Inc in its name.
Advantages of incorporation
An incorporated association:
- can operate regardless of changes to its membership
- can accept gifts and donations
- can enter into contracts
- can apply for government grants
- have the automatic approval to solicit for charitable donations in the state of Tasmania
Limitation of liability
One of the principal reasons for incorporation is to gain the benefits of limited liability.
Unless it is specified in the association rules, a member of an incorporated association is not liable to contribute towards the:
- associations debt payments and liabilities or
- costs, charges and expenses associated with winding up the association
Association members can be exposed to unlimited liability. Members should get their own legal advice if they are in doubt about the extent of their liability (see section 27 of the Act).
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