Legal Responsibilities of Voluntary Organisations in New Zealand

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This information also appears as Brochure 2. Download a PDF copy (176kb).

Checklist for an unincorporated group

An unincorporated group is a voluntary organisation, with or without rules. Where there are rules, they can range from the most basic (for example, an informal group with some form of rules) to highly detailed (for example, a group that has all the structures and rules necessary for it to be incorporated).

All members of an unincorporated group should be aware that, although there are fewer rules and reporting requirements, committee members and possibly all members will be personally liable for the organisation’s debts and other obligations.

In New Zealand, most organisations established for sport, recreational, cultural or other non-commercial purposes tend to favour establishing themselves as an incorporated society (except where they’ve been established by the government). Charitable organisations are divided between incorporated societies and charitable trust boards.

Answer the following questions about the relevant features of your group for deciding on an appropriate legal form and about good practice for operating successfully. If you answer any of them with “No” or “Unsure”, make it a priority to find out the relevant information as soon as possible.

Yes Unsure
/No
Is your group clear about its purpose, kaupapa, aims and objects?Learn more: Getting started
Are there other groups working in your field of interest in the community with which you might combine? Are there other groups working in your field of interest in the community with which you might combine?Learn more: Getting started
If your group is just starting out, has it considered:

  • membership size?
  • to whom it will be accountable?
  • who will make decisions?
  • how your activities will be funded?
  • whether your group will make a profit?
  • whether Māori-owned land is involved?

Learn more: Unincorporated groups
Does your group have:

  • recorded rules?
  • processes for managing finances?
  • processes for decision-making?

Learn more: Unincorporated groups
Is your group aware of the limitations that unincorporated status imposes in the following areas?

  • membership and membership rights
  • owning property and borrowing money
  • personal liability for debts arising from the group’s actions

Learn more: Unincorporated groups
Do your members understand the benefits of incorporating?Learn more: Unincorporated group
Has your group considered going under the umbrella of another organisation?Learn more: Unincorporated groups
Do you understand that unincorporated groups cannot enter into contracts in their own name?Learn more: Contracts
Is your group considering registering with the Charities Commission?Learn more: Charities Commission, Taxation

Remember to print this checklist out once you’ve completed it.