Forming a recognised group

[MadamePandora]

Just an update for the interested activists to be

 

I am currently reading and digesting all the stuff that the government requires in order to form a legitimate group, which will be a non profit organisation. This might take me a while as there is a lot to read before we can go further.

 

I am hoping to have a sample Mission Statement and constitution up for discussion soon, but can't give you an exact time frame at this point in time.

 

[Crunchy]

thanks for all ur effort pandora.

i look forward to participating in the future.

[MadamePandora]

I must say it's damn confusing so far

 

I think I will approach an accountant friend of mine and see if I can get some advice.

 

I think we need an ABN.

 

How will an ABN help your non-profit organisation?

 

A non-profit organisation can use its ABN to:

 

* register for goods and services tax (GST) and claim GST credits

* register for pay as you go (PAYG) withholding

* apply to the Tax Office for endorsement as a deductible gift recipient, tax concession charity or income tax exempt fund

* interact with other government departments, agencies and authorities, and

* interact with the Tax Office on other taxes, such as fringe benefits tax (FBT).

 

 

If we are planning to sell things to raise money and we turnover more than $150,000 we would also need to register for GST, and in some cases if the turnover is less than that it is also beneficial to register to claim back GST on items purchased for the benefit of the organisation.

 

 

The Tax Office accepts an organisation as non-profit where its constituent or governing documents prevent it from distributing profits or assets for the benefit of particular people – both while it is operating and when it winds up. These documents should contain acceptable clauses showing the organisation’s non-profit character. The organisation’s actions must be consistent with this requirement.

 

Acceptable clauses to indicate non-profit character are:

 

Non-profit clause

 

‘The assets and income of the organisation shall be applied solely in furtherance of its above-mentioned objects and no portion shall be distributed directly or indirectly to the members of the organisation except as bona fide compensation for services rendered or expenses incurred on behalf of the organisation.’

 

Dissolution clause

 

‘In the event of the organisation being dissolved, the amount that remains after such dissolution and the satisfaction of all debts and liabilities shall be transferred to another organisation with similar purposes which is not carried on for the profit or gain of its individual members.’

 

A non-profit organisation can still make a profit, but this profit must be used to carry out its purposes and must not be distributed to owners, members or other private people.

 

SO I am getting there ... but it might take some time to get the tax advice from my friend because it's her busiest time of year.

[Priceadon2]

yeah you need an abn and u ahve to register the org somewhere. I have the info somewhere I will paste it in one I hae time. I seem to remeber there was a fee somewhere along the line of around $450. Don't quote me on the exact amount but there is a fee. I think you also need an ARBN ( Australian registered bussiness number) though it is non profit u still need it and I beleive that is where the fee comes about. There is one that says its freeonline but I am under the impression it is actually a scam to get the name u want to register it and sell it back to u but that is what i heard and not what i know so don;t quote me on that either.

Give me a pm if I can help madam or who ever is org.

peace.

[smokinjoe]

http://www.business.gov.au/Business+Entry+...umber+(ABN).htm

 

all you'll ever need to know about registering an ABN, do it online. I'm not sure why anyone would entrust that process to an online 3rd party but if you would be inclined we need to discuss the sale of one bridge, including free troll.

[MadamePandora]

 

I have no intention of going through a 3rd party.... and as of when I worked for the ATO a decade or so ago they didn't charge for their services.

 

What I am trying to do at the moment is work out exactly what a group needs to register for, and with whom. The ATO is just one part of it as far as I know.

 

Some things might not be needed at this stage but might be required down the track, so I am looking at the overall picture where possible.

[smokinjoe]

Is your accountant friend prepared to use his practice address for service of official documents in relation to the NPO?

 

What's the intent of the organisation?

[jabez]

The whole thing seems very confusing to me.

 

Just an idea but how much do you think it would cost to get a accountant to write out a checklist or something of the things we need to do to get this thing off the ground? You'd think it would take them less than 20 minutes.

[jabez]

What's the intent of the organisation?

 

Firstly and most importantly we won't cannabis reconized as a medical herb in Australia.

 

Secondly, to end all criminal penalties for the use possession and cultivation of the cannabis plant.

 

That's my take on it anyway.

[dalex]

From my experience with not-for-profit organizations, there are a numer of points I can make.

 

1) Before establishing anything, the first thing we need to do is hold an inaugural meeting. The ABN, incorporation of the association and setting up of any bank accounts can only be done after our constitution and mission statement have been formally adopted, our directors and public officer appointed and formal motions passed to create the organisation under the name of CANA.

 

2) Getting an ABN is simple; it takes about 20 minutes and can be done overnight. We wil, however, need to have appointed our directors before this can be done, otherwise the applicant will be establishing the organisation on behalf of themself rather than our members.

 

3) Incorporating the association can be done over a matter of weeks. It requires a mission statement, a constitution including the internal rules (these can just be the Model Rules as set out in the Associations Incorporations Act Victoria with a few minor alterations), and at least 5 members, includong directors and one of these being a resident over the age of 18 to act as public officer to liaise with re Incorporations Registrar. From memory, this isn't all that expensive, however please note that I have assumed we are incorporating in Victoria - the rules relating to incorporation differ in every state and as such the organisation will technically only be incorporated in Victoria, but that is fine for our practices.

 

Basically, I can only stress that before tring to incorporate or register the name with the Australian Business Register, we need to actually exist, and this means getting our foundational dxuments together and holding our first meeting.