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BrimbankCommunityGovernanceHandbook

TABLE OF CONTENTSWELCOME ........................................................................................................................................................ 1ACKNOWLEDGEMENT ............................................................................................................................................... 2STRUCTURE OF THIS MANUAL .................................................................................................................................... 3NAVIGATING THIS MANUAL ...................................................................................................................................... 3LIST OF ABBREVIATIONS ............................................................................................................................................ 4WHAT IS GOVERNANCE? .......................................................................................................................................... 5CHAPTER ONE: GETTING STARTED .................................................................................................................. 6WHAT IS AN INCORPORATED ORGANISATION? .............................................................................................................. 6WHAT DOES NOT-FOR-PROFIT MEAN? ....................................................................................................................... 6WHY BECOME INCORPORATED? ................................................................................................................................. 6Options ............................................................................................................................................. 8New Laws for Victorian Incorporated Associations .......................................................................... 8THE PROCESS OF SETTING UP .................................................................................................................................... 8Nominate a Secretary ....................................................................................................................... 9Decide on a Name for Your Organisation ......................................................................................... 9Display an Association Name ......................................................................................................... 10Draft a ‘Statement of Purposes’ ..................................................................................................... 10Draft or Adopt a Set of 'Rules' for the Association ......................................................................... 10Vote to Incorporate the Association ............................................................................................... 11Complete Consumer Affairs Victoria (CAV) 'Application for Association Incorporation' Form ....... 12Send in Form, Documents and Fee to CAV ..................................................................................... 12Await Notice from CAV ................................................................................................................... 13REGULATORY AND LEGISLATIVE REFORM .................................................................................................................... 13Changes to the Incorporations Act 2012 ........................................................................................ 13Australian Charities and Not for Profits Commission (ACNC) ......................................................... 14REGULATORY AUTHORITIES ..................................................................................................................................... 15The Office for the Community Sector ............................................................................................. 15Consumer Affairs Victoria .............................................................................................................. 15Other Authorities ............................................................................................................................ 16A NOTE ABOUT PATRIOTIC FUNDS............................................................................................................................ 16RESOURCES AND LINKS ........................................................................................................................................... 17Naming ........................................................................................................................................... 17Intellectual Property ....................................................................................................................... 17Model Rules .................................................................................................................................... 17CHAPTER TWO: RUNNING THE ORGANISATION ......................................................................................... 18UNDERSTANDING RELATIONSHIPS ............................................................................................................................. 18GOOD GOVERNANCE ............................................................................................................................................. 19Policies and Procedures .................................................................................................................. 19Governing Shared Community Facilities ......................................................................................... 19BOARDS AND COMMITTEES OF MANAGEMENT ........................................................................................................... 20Financial Responsibilities ................................................................................................................ 20Board Insurance ............................................................................................................................. 20Legal Responsibilities ..................................................................................................................... 21EFFECTIVE PLANNING ............................................................................................................................................. 21INCORPORATED ASSOCIATIONS ................................................................................................................................ 22Brimbank Community Governance Handbook Page i of 99

Overview of Accountability Processes ............................................................................................ 22Committees of Management in Incorporated Associations ........................................................... 22Administrative Roles of the committee of management ............................................................... 23Declaration of Conflict of Interests ................................................................................................. 24Legal Duties of Committee or Board Members in Victorian incorporated associations ................. 24Other Legal Obligations of Committee of Management Members ................................................ 24Office Holders ................................................................................................................................. 25MEETINGS ........................................................................................................................................................... 26Annual General Meeting ................................................................................................................ 26Apply for an extension of time to hold an annual general meeting ............................................... 27Holding Ordinary Meetings ............................................................................................................ 27Conducting Meetings ..................................................................................................................... 28A Note about Minutes .................................................................................................................... 29PROTECTING YOUR NAME, IDEAS AND MATERIAL ........................................................................................................ 30INTERNET AND SOCIAL MEDIA ................................................................................................................................. 30What is Social Media? .................................................................................................................... 31LAND, BUILDING AND EQUIPMENT............................................................................................................................ 31INSURANCE AND RISK MANAGEMENT ........................................................................................................................ 32HEALTH AND SAFETY .............................................................................................................................................. 32For Committees of Management ................................................................................................... 32For Employees ................................................................................................................................ 33RESOURCES AND LINKS ........................................................................................................................................... 34Governance Structures ................................................................................................................... 34Governance – Legal Issues ............................................................................................................. 34Positions in Community Organisations .......................................................................................... 35Role of the Treasurer ...................................................................................................................... 35Good Governance References ........................................................................................................ 36Risk Management and Insurance Resources .................................................................................. 37Occupational Health and Safety ..................................................................................................... 39Related Legislation ......................................................................................................................... 41Model Rules .................................................................................................................................... 41CHAPTER THREE: MANAGING PEOPLE ..................................................................................................... 42PEOPLE INVOLVED IN COMMUNITY ORGANISATIONS .................................................................................................... 42DEFINITIONS......................................................................................................................................................... 42EMPLOYEES – AT A GLANCE ..................................................................................................................................... 43In Case of a Dispute ........................................................................................................................ 43INDEPENDENT CONTRACTORS – AT A GLANCE.............................................................................................................. 43In Case of a Dispute ........................................................................................................................ 44VOLUNTEERS ........................................................................................................................................................ 44Definition and Principles of Volunteering ....................................................................................... 44Rights and Responsibilities of Volunteers ....................................................................................... 46UNDERSTANDING THE DETAILS OF WORKING WITH VOLUNTEERS.................................................................................... 47Legal Obligations to Volunteers ..................................................................................................... 47Volunteer Health and Safety in Community Organisations ............................................................ 48Written Agreements with Your Volunteers .................................................................................... 48Liability for the Conduct of Volunteers ........................................................................................... 48Discrimination and Equal Opportunity ........................................................................................... 48Payments and Volunteers .............................................................................................................. 49Page ii of 99Brimbank Community Governance Handbook

Managing Disputes ........................................................................................................................ 49BACKGROUND CHECKS ON EMPLOYEES, CONTRACTORS AND VOLUNTEERS ....................................................................... 49Working with Children Checks ........................................................................................................ 49RESOURCES AND LINKS ........................................................................................................................................... 50Employees ...................................................................................................................................... 50Contractors and Consultants .......................................................................................................... 50Volunteers ...................................................................................................................................... 50Legal Issues Regarding Volunteers ................................................................................................. 51Working with Children Check ......................................................................................................... 51Safety ............................................................................................................................................. 51CHAPTER FOUR: MANAGING YOUR FINANCES ........................................................................................ 52NOT-FOR-PROFIT DOES NOT MEAN NOT MAKING MONEY ........................................................................................... 52RESPONSIBILITY FOR OVERSEEING THE FINANCES ......................................................................................................... 52RECORD KEEPING, AUDITING AND REPORTING ............................................................................................................ 53TAX ISSUES .......................................................................................................................................................... 54Annual Tax Returns ........................................................................................................................ 54SUPPLIER DISCOUNTS ............................................................................................................................................. 55RESOURCES AND LINKS ........................................................................................................................................... 56Australian Taxation Office (ATO).................................................................................................... 56Legal and General Information on Managing Your Finances ......................................................... 56Record Keeping, Auditing and Reporting ....................................................................................... 57CHAPTER FIVE: RAISING MONEY ............................................................................................................... 58OVERVIEW ........................................................................................................................................................... 58FUNDRAISING OPTIONS .......................................................................................................................................... 59GRANTS .............................................................................................................................................................. 60Before Applying for Grants ............................................................................................................. 60Read and Understand the Conditions............................................................................................. 61Agreeing to the Conditions ............................................................................................................. 61Using the Grant or Funding ............................................................................................................ 62Non-compliance with the Conditions of the Grant or Funding ....................................................... 62Applying for Grants and Funding ................................................................................................... 62Tax Considerations ......................................................................................................................... 62FUND RAISING ACTIVITIES ....................................................................................................................................... 63SPONSORSHIP ....................................................................................................................................................... 65GIFTS, WILLS, BEQUESTS AND ENDOWMENTS ............................................................................................................. 65Understanding the Different Types of Money or Property Given to the Organisation ................... 65RESOURCES AND LINKS ........................................................................................................................................... 66Grants ............................................................................................................................................. 66Fundraising ..................................................................................................................................... 67Gifts, Wills, Bequests and Endowments ......................................................................................... 68CHAPTER SIX: ORGANISING EVENTS ....................................................................................................... 69OVERVIEW ........................................................................................................................................................... 69PERMITS FOR EVENTS ............................................................................................................................................. 69Events and Activities which Generally Require Permits or Licences ............................................... 69Ways To Identify Which Permits May Be Needed .......................................................................... 70VENUE OR EQUIPMENT HIRE ................................................................................................................................... 71EVENT INSURANCE ................................................................................................................................................. 71Brimbank Community Governance Handbook Page iii of 99

Getting your own insurance ........................................................................................................... 71Insurance Cover for Rides and Entertainment ................................................................................ 72Insuring Workers at the Event ........................................................................................................ 72Insuring Against Problems Caused By Food You Serve ................................................................... 72LEGAL OBLIGATIONS AROUND EVENT SAFETY ............................................................................................................. 72ACCESSIBLE EVENTS AND ACTIVITIES ......................................................................................................................... 73EVENT SPONSORSHIP ............................................................................................................................................. 73FUNDRAISING EVENTS ............................................................................................................................................ 74EVENTS SERVING FOOD .......................................................................................................................................... 74Council Permit ................................................................................................................................ 74SERVING ALCOHOL ................................................................................................................................................ 75Providing Alcohol at an Event ........................................................................................................ 75FUNDRAISING ....................................................................................................................................................... 75ROAD CLOSURES ................................................................................................................................................... 75USING VOLUNTEERS AT EVENTS ............................................................................................................................... 76WHAT MAKES A GOOD EVENT? ............................................................................................................................... 76Criteria for a “Good” Event ............................................................................................................ 76RESOURCES AND LINKS ........................................................................................................................................... 80Related Legislation and Regulations .............................................................................................. 80Legal and General Issues ................................................................................................................ 81Licences for Events ......................................................................................................................... 81Organising Events........................................................................................................................... 81Insurance and Risk Management ................................................................................................... 82Serving Alcohol and Food Safety .................................................................................................... 82CHAPTER SEVEN: PROVIDING SERVICES ................................................................................................... 83LEGAL ISSUES ....................................................................................................................................................... 83Duty of Care and the Standard of Care When Providing Services .................................................. 83Privacy When Providing Services .................................................................................................... 83Discrimination and Human Rights When Providing Services ......................................................... 84Australian Consumer Law .............................................................................................................. 84Unsolicited Selling Provisions in the Australian Consumer Law ..................................................... 85RESOURCES AND LINKS ........................................................................................................................................... 86General Information ....................................................................................................................... 86Privacy Issues ................................................................................................................................. 86Discrimination and Human Rights .................................................................................................. 86CHAPTER EIGHT: MANAGING EXTERNAL RELATIONSHIPS........................................................................ 87MARKETING AND COMMUNICATION ......................................................................................................................... 87UNDERSTANDING EXTERNAL RELATIONSHIPS .............................................................................................................. 87WORKING WITH THE MEDIA .................................................................................................................................... 87Appointing a Spokesperson ............................................................................................................ 87Developing a Media Policy ............................................................................................................. 88RESOURCES AND LINKS ........................................................................................................................................... 88CHAPTER NINE: MANAGING DIFFICULTIES AND CHANGE ........................................................................... 89WHEN THINGS GO WRONG .................................................................................................................................... 89HANDLING CONFLICT IN YOUR ORGANISATION ............................................................................................................ 89Using Mediation to Resolve Conflicts and Disputes ....................................................................... 89Conflicts within Victorian Incorporated Associations ..................................................................... 89Page iv of 99Brimbank Community Governance Handbook

Court Action ................................................................................................................................... 90FINANCIAL PROBLEMS AND INSOLVENCY .................................................................................................................... 90INCIDENTS AND ACCIDENTS ..................................................................................................................................... 91CRIMINAL CONDUCT .............................................................................................................................................. 91WHEN THINGS CHANGE ......................................................................................................................................... 91CLOSING OR WINDING UP ...................................................................................................................................... 91Winding up and Finances ............................................................................................................... 92RESOURCES AND LINKS ........................................................................................................................................... 93Resolving Disputes.......................................................................................................................... 93Financial Problems ......................................................................................................................... 93Managing Changes ........................................................................................................................ 93Closing or Winding Up .................................................................................................................... 94CHAPTER TEN: WHO TO TURN TO WHEN YOU NEED ADDITIONAL ADVICE............................................... 95ORGANISATIONS ................................................................................................................................................... 95SEARCHING FOR CURRENT LEGISLATION ..................................................................................................................... 96Victorian Legislation and Regulations ............................................................................................ 96Commonwealth Legislation ............................................................................................................ 97TRAINING ............................................................................................................................................................ 97List of TablesTABLE 1 INCORPORATION CHECKLIST ...................................................................................................................... 9TABLE 2: RESPONSIBILITIES OF KEY REGULATORY AUTHORITIES ................................................................................... 16List of FiguresFIGURE 1: KEY ELEMENTS OF GOVERNANCE .............................................................................................................. 5FIGURE 2: THINGS TO CONSIDER IF YOU WANT TO INCORPORATE ................................................................................... 7FIGURE 3: GOVERNANCE - INTERNAL AND EXTERNAL ENVIRONMENTS ........................................................................... 18FIGURE 4: STRATEGIC PLANNING PROCESS .............................................................................................................. 21FIGURE 5: GOOD MEETINGS ................................................................................................................................ 29FIGURE 6: STEP BY STEP PROCESS TO ACCESS INFORMATION ON LICENCES FOR EVENTS .................................................... 70AttachmentsATTACHMENT ONE: TEMPLATES FOR AGENDA AND MINUTES…………………………………………………………………………………….…98Brimbank Community Governance Handbook Page v of 99

WELCOMEWelcome to the Brimbank Community Governance Manual. This manual is designed to assist localcommunity groups and organisations to function well. The information will help you to betterunderstand your legal responsibilities and how to get the most out of your organisation. It is aresource which you can refer to when you need to. Importantly, this manual will help to get on withthe purpose for which your organisation was set up, feeling confident you have done what you canto operate effectively.Group and community organisations make an important contribution to the life of our community.There are over 300 operating in the Brimbank municipality. This includes sporting clubs,environmental groups, neighbourhood houses, kindergartens and groups for older people. Thesegroups are important in supporting people across the whole of the community to be engaged incommunity life. They contribute to improving and maintaining people’s health and wellbeing andencourage people to have a voice in decisions which impact on their lives.The manual uses information which is readily available from a number of sources, but particularlythe Not-for-Profit Compliance website, a one-stop shop site operated by the Office for theCommunity Sector, Consumer Affairs Victoria (CAV) and the Public Interest Legal Clearing House(PILCH). We have also used the Indigenous Governance Toolkit extensively. Developed byReconciliation Victoria, this manual is written in everyday language and provides all the informationyou need to ensure that your organisation runs smoothly.A reference section has been included at the end of each chapter. Each section contains links torelevant websites, enabling you to access the most up-to-date information. This resource is alsoavailable online on the Brimbank City Council website; www.brimbank .vic.gov.auShould you require any further information or assistance regarding this governance handbookcontact the Brimbank City Council:Brimbank City CouncilPO Box 70SUNSHINE VIC 3020Tel:+613 9249 4000Fax:+613 9249 4351Email: info@brimbank.vic.gov.auBrimbank Community Governance Handbook Page 1 of 99

ACKNOWLEDGEMENTThis handbook was a result of the ‘Building Capacity for Community Governance in Brimbank’Project carried out by Council’s Community Participation and Inclusion Team. Community groupsand small community organisations in Brimbank identified the need for a resource to support andstrengthen the governance of their groups. This occurred within community consultations for theBrimbank Community Strengthening Policy and more recently with the Brimbank Community GroupsNetwork.Thanks and appreciation to Nola Tudball of n.l.t consulting who researched and developed thishandbook.Thanks also to:Brimbank Community Groups NetworkCommunity Focus Group members who provided feedback and suggestionsBrimbank Leadership and Governance Internal Reference Group© Brimbank City Council 2013This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced byany process without written permission from the Manager, Community Planning and Development, Brimbank CityCouncil.DisclaimerAny representation, statement, opinion or advice, expressed or implied in this publication is made in good faith buton the basis that Brimbank City Council, its agents and employees are not liable (whatever by reason ofnegligence, lack of care or otherwise) to any person for any damages or loss whatsoever which has occurred or mayoccur in relation to that person taking action in respect of any representation, statement, or advice referred to above.Page 2 of 99Brimbank Community Governance Handbook

STRUCTURE OF THIS MANUALFrameworks developed by the Office for the Community Sector, PILCH and the IndigenousGovernance Toolkit (developed by Reconciliation Victoria) have been used to structure this manual.Information from the websites of these organisations has been used extensively throughout thismanual and in many instances directly quoted from these sites.A list of abbreviations is provided on page 3. Throughout this document there is reference to a vastrange of resources and organisations, and to simplify abbreviations have been used whenappropriate.This manual also contains templates that you can use for a range of different functions andchecklists. These are contained at the end of each section to which they relate.NAVIGATING THIS MANUALSection One:Section Two:Section Three:Section Four:Section Five:Section Six:Section Seven:Section Eight:Section Nine:Section Ten:Getting StartedManaging Your OrganisationManaging Your PeopleManaging Your FinancesRaising MoneyOrganising EventsProviding ServicesManaging External RelationshipsManaging Conflict and ChangeWho to Turn to When you need additional adviceBrimbank Community Governance Handbook Page 3 of 99

LIST OF ABBREVIATIONSACLAustralian Consumer LawACNCAustralian Charities and Not for Profits CommissionAGMAnnual General MeetingASICAustralian Securities and Investments CommissionATOAustralian Taxation OfficeBLISBusiness Licence Information ServiceCATSI Act Corporations Aboriginal and Torres Strait Islander Act 2006CAVConsumer Affairs VictoriaCEOChief Executive OfficerCFACountry Fire AuthorityCSAChartered Secretaries AustraliaDARUDisability Advocacy Resource UnitDDLSDisability Discrimination Legal ServiceDGRDeductible Gift RecipientDoJDepartment of JusticeDPCDDepartment of Planning and Community DevelopmentDSCVDispute Settlement Centre VictoriaFAQFrequently Asked QuestionsFBTFringe Benefits TaxGSTGoods and Services TaxICAAInstitute of Chartered AccountantsICTInformation and Communications TechnologyITEFIncome Tax Exempt FundLCISLocal Community Insurance ServicesLIVLaw Institute VictoriaMFBMetropolitan Fire BrigadeNESNational Employment StandardsNFPNot-For-ProfitOCSOffice for the Community SectorOHSOccupational Health and SafetyORICOffice of the Registrar of Indigenous OrganisationsPAYGWPay As You Go WithholdingPILCHPublic Interest Legal Clearing HouseQUTQueensland University of TechnologySESState Emergence ServiceTCCTax Concession CharityVAVolunteering AustraliaVCGRVictorian Commission for Gaming RegulationVCOSSVictorian Council of Social ServicesVEOHRVictorian Equal Opportunity and Human Rights CommissionVICCSOVictorian Council of School OrganisationsVMIAVictorian Managed Insurance AuthorityWorksafeVictorian Worksafe AuthorityWWCWorking with Children CheckPage 4 of 99Brimbank Community Governance Handbook

WHAT IS GOVERNANCE?This definition of governance was developed by the Indigenous Community Governance ResearchProject, 2004.It is useful to think of governance as being about people and how they organise themselves asa group to manage their own affairs to achieve the things that matter to them. To do thatthey need to have in place processes, structures, traditions and rules so they can:determine the membership of their group;decide who has authority, and over what;ensure that authority is exercised properly;enforce and implement their decisions;hold their decision makers accountable;steer their future direction;negotiate their rights and interests with others; andestablish the most effective and legitimate arrangements for getting those thingsdone.The framework used in the Indigenous Governance Toolkit, developed by Reconciliation Victoria,provides a useful way to consider governance and has informed the structure of this Manual.Governance is made up of many different, but equally important elements. These allneed to work well together if a group or organisation are going to be effective. Each ofthese different parts have to work together in order to create strong effective andlegitimate governance. (Indigenous Governance Toolkit).Some of the key parts of governance are illustrated in Figure One.FIGURE 1:KEY ELEMENTS OF GOVERNANCEYour processes(how you do it)Yourstrategies(what you do)Your People(who does it)Your resources(what youneed)Your culture(the way youdo things)Your wideenvironment(outsideinfluences) Rules Laws Powers Procedures Roles andresponsibilitiesSource: Plans Goals Milestones Programs FunctionsIndigenous Governance Toolkit Community Members Leaders Managers Staff InfrastructureTechnology Funding Capital –cultural,social,economic Natural assets Values World view Traditions Behaviour Networks Other groups Othercommunities Governmentdepartments LocalGovernment Organisations InstitutionsBrimbank Community Governance Handbook Page 5 of 99

CHAPTER ONE: GETTING STARTEDWHAT IS AN INCORPORATED ORGANISATION?Incorporation is the legal structure of a club or community group, operating as a Not-For-Profit(NFP). An incorporated association can be recognised by the word ‘Incorporated’ or theabbreviation ‘Inc.’ after its name. When a club or community group incorporates, it becomes a ‘legalperson’ – that is, a legal entity that stays the same even if its members change.Victorian incorporated associations are registered with Consumer Affairs Victoria under theAssociations Incorporation Reform Act (2012).WHAT DOES NOT-FOR-PROFIT MEAN?Not-For-Profits (NFPs) are organisations that exist to benefit their members. A NFP can actuallymake a profit but it is required to re-invest any profits into the organisation or use them to pay foractivities and functions.WHY BECOME INCORPORATED?A NFP organisation can be incorporated or unincorporated. If you want to set up a communitygroup or other membership-based NFP organisation, you are not legally required to becomeincorporated. A NFP organisation can exist simply as a group of people with a common interest anda common purpose.The main reasons for incorporation are normally to do with:funding: grants from government or philanthropic trusts and foundations may only beavailable to incorporated associationstaxation: an unincorporated group may not be eligible for the same tax concessions as anincorporated grouplegal action: the committee of management and membership of an unincorporatedassociation can be more at risk of being sued if something goes wrong. Incorporating theorganisation as a NFP can also allow a group to take legal action as a group. Incorporationalso protects the individual members of the association from legal liabilities. It also enablesthe organisation to enter into contracts in its own name; for example, to borrow money orbuy equipmentFigure 2 provides an overview of the main things which you need to consider if you want to becomeincorporated.Page 6 of 99Brimbank Community Governance Handbook

FIGURE 2:THINGS TO CONSIDER IF YOU WANT TO INCORPORATEThings toconsiderMembershipNot-forprofitstatusLegal statusLegalprotectionformembersStatutoryobligationsCostsDisputesContractsandagreementsGrantsSource:If you incorporateYour organisation must have at least fivemembers.Your organisation must operate not for profit,and can trade only if: its main purpose is charitable its rules ensure its assets will bedistributed for charitable purposes if it iswound up or dissolved its rules contain a clause authorisingtradingYour organisation becomes a ‘legal person’(that is, a legal entity that stays the same evenif its members change). It can do the followingthings in its own name: accept gifts or bequests buy and sell property invest and borrow money open a bank account sue and be sued take out public liability insurance.Members and office bearers are protectedagainst personal liability for the organisation’sdebts and other legal obligations.Your organisation must comply withrequirements for accounting, auditing andannual reporting. Failing to do so can result inprosecution, penalties or deregistration.Your organisation must pay fees forincorporating and lodging some administrativeforms. There are also costs involved inmeeting ongoing statutory obligations, such asauditing.Your organisation must either have its ownprocedure for resolving internal disputes, oruse the procedure in the model rules forincorporated associations (see CAV website).Your organisation can enter into contracts andagreements in its own name. This offers morecertainty to potential contracting parties suchas lenders, lessors, employees and suppliers ofgoods and services.Your organisation will be eligible to apply for alarger range of government and nongovernmentgrants.Consumer Affairs VictoriaIf you do not incorporateYour organisation can have anynumber of members.Your organisation is not restrictedfrom trading or doing business forprofit.Your organisation cannot do any ofthe things described under ‘if youincorporate’, at left.Members could be personally liableif the organisation incurs debts orhas legal problems.Your organisation will not have theexpense of meeting statutoryobligations.Your organisation will not have theexpense of meeting statutoryobligations.Your organisation is not required tohave or use a dispute resolutionprocedure.Your organisation cannot enter intocontracts or agreements in its ownname.Your organisation will not be able toapply for grants that requireapplicants to be incorporated.Brimbank Community Governance Handbook Page 7 of 99

OPTIONSThere are a number of legal structures for NFPs. These include incorporated associations,incorporated co-operatives, public companies limited by guarantee or indigenous corporations. Allof these types of NFP legal structures are governed by a State or Commonwealth Act. The NFPcompliance support centre website provides useful information about which structure may suit yourgroup (link in last section of this chapter).NEW LAWS FOR VICTORIAN INCORPORATED ASSOCIATIONSNew laws for Victorian incorporated associations came into effect on 26 November 2012.PilchConnect reports the following:In 2009 and 2010, the Victorian Government passed legislation which made a number of changes tothe Associations Incorporation Act (1981) the legislation that regulates all incorporated associationsin Victoria. The changes never came into effect. More recently, the Victorian Parliament passed theAssociations Incorporation Reform Act 2012. This new Act incorporates the changes previouslypassed, in a 're-write' of the Act. While the name of the new Act and some other provisions areslightly different, the key changes made by the 2009 and 2010 legislation will come into force asplanned. Explanations of these changes are on the PilchConnect website:http://www.pilch.org.au/community_org/THE PROCESS OF SETTING UPThis information is taken from the PilchConnect website. They advise:While setting up an incorporated association is a relatively simple process, there are a few importantdecisions that your organisation will need to make (and may need to get advice about). In particular,the wording of your organisation’s ‘statement of purposes’ and ‘rules’ need to be chosen carefully sothat your organisation can apply for tax concessions, fundraising registration and other benefits inthe future. It is worth getting these documents right at the start, as it can be time-consuming anddifficult to change them later on.The information here is an overview of the main requirements for setting up an incorporatedassociation. As PILCH points out, it is not legal advice. If you or your organisation has a specific legalissue, you should seek legal advice before making a decision about what to do.Here is a check list of the things your organisation will need to do before you can apply to ConsumerAffairs Victoria (CAV) to be incorporated.Page 8 of 99Brimbank Community Governance Handbook

TABLE 1: INCORPORATION CHECKLISTCHECK1. Nominate a secretary2. Decide on a name for your organisation3. Draft a statement of purposes4. Draft or adopt a set of 'rules' for the association5. Hold a pre-incorporation meeting6. Complete Consumer Affairs Victoria (CAV) 'Application for Association Incorporation'form7. Send in form, documents and fee to CAV8. Await notice from CAVSource: www.consumer.vic.gov.auNOMINATE A SECRETARYThe Victorian Association Incorporation Reform Act (2012) requires an organisation to nominate a‘Secretary’. This person is the ‘contact person’ for the organisation and they agree to give theirdetails (name and address) to CAV for this purpose. The Secretary must be over 18 years of age, livein Victoria and consent to being the organisation's Secretary.The Secretary is the person that the organisation authorises to apply to CAV for incorporation. TheSecretary also has an ongoing, administrative role in the organisation, particularly in relation toproviding information to CAV. The Act sets out a number of the duties and requirements for the roleof Secretary. An incorporated association must have a Secretary at all times (the position must befilled within 14 days of it becoming vacant).To find out more about the Secretary, Committee of Management and other people involved in aVictorian incorporated association, see PilchConnect (link in the last section).DECIDE ON A NAME FOR YOUR ORGANISATIONThe Associations Incorporation Reform Act (2012) requires that an organisation choose and that CAVapprove a name for the incorporated association.You need to make sure that the name chosen is not being used by (or too similar to) any otherorganisation. Check Victorian and national business name registers for this purpose (links in lastsection of this chapter).To find out if your proposed name can be registered, you must lodge an application with the CAV.The fee is fully refundable if your application is unsuccessful. You cannot use the company namesBrimbank Community Governance Handbook Page 9 of 99

egister to confirm the availability of a name for registration. There might be other restrictions thataffect your application.When you decide on a name and it is approved by CAV, your organisation may also wish to look intothe laws that are available to protect the intellectual property rights in that name (see AssociationsIncorporation Reform Act (2012) which places restrictions on incorporated association's registering adifferent business or trading name.DISPLAY AN ASSOCIATION NAMEYour association’s name, including the word ‘Incorporated’ or the abbreviation ‘Inc.’, must appearon all its notices, advertisements, publications and business documents. This indicates to otherorganisations and businesses that your organisation is incorporated and has limited liability. The Actrequires that you use the full name on all business documents. Your organisation may use acommon seal (stamp) but this is no longer legally required.If, after incorporation, your organisation wants to change its name, your organisation must pass aspecial resolution at a meeting, and then the secretary must apply to CAV for approval.DRAFT A ‘STATEMENT OF PURPOSES’The Associations Incorporation Reform Act (2012) requires that an incorporated association have astatement of purposes. (This is similar to an 'objects clause' in a company constitution.)The Act does not say what this ‘statement’ must include. In general, the statement is a short writtendocument which sets out the main objectives that the organisation is trying to achieve and theplanned activities of the organisation.While writing a statement of purposes sounds like a simple task, your organisation should be awarethat the wording of your organisation’s statement may have significant legal implications in thefuture.For example, there are laws that provide certain, eligible, not-for-profit organisations with quitesignificant tax concessions (such as exemptions from income tax and deductible gift recipient status).For more information about tax concessions, see Section Four of this Manual).To decide whether your organisation may be eligible for these concessions, the Australian Tax Office(ATO) will look at your organisation statement of purposes (and its rules – see below).If, once it is set up, your organisation intends to apply for some of the concessions and benefits thatare available to charities and other not-for-profit organisations, you should seek advice about themost suitable wording of your organisation’s ‘Statement of Purposes’. Advice at this early stage willsave your organisation from having to amend the statement in the future.DRAFT OR ADOPT A SET OF 'RULES' FOR THE ASSOCIATIONPage 10 of 99Brimbank Community Governance Handbook

The Associations Incorporation Reform Act (2012) requires that an incorporated association have aset of ‘rules’ for the association (sometimes also called a ‘constitution’). These are designed togovern the internal affairs of the incorporated association.The Schedule to the Associations Incorporation Reform Act 2012 found near the end of the Act, setsout a list of 23 matters that an incorporated association rules must cover (for example, membershipqualifications and fees, powers of the management committee, rules about sources of funds, disputeresolution processes, among many other matters).To help organisations wishing to become incorporated associations, the Victorian Government hasdrafted a set of ‘Model Rules’ which are set out in Schedule 5 to the Association IncorporationRegulations 1998 (Vic). The Model Rules have clauses that address all 17 issues required by the Act.They are available as an option for newly forming incorporated associations to use for their rules.These rules are attached in Appendix Two of this Manual.Here is a really important piece of advice from Pilchconnect:Beware! While it may seem easier (and initially less costly) for your organisation to just adopt theModel Rules, it is recommended that your group seek advice as to whether these rules aresuitable for your organisation. Although called 'model' rules, the rules do not have all of thewording that many organisations need when they try to register for fundraising or minor gaminglicences (needed to conduct a raffle) or to apply for tax concessions or a grant in the future. Thereare certain clauses that your organisation will need to change or add to the Model Rules for thesepurposes.For example, the Model Rules do not include the 'not-for-profit' and 'winding-up' clauses thatmany government departments and funders will look for when deciding whether to give yourorganisation funding or assess you as eligible for tax concessions. For more information aboutthese clauses, see 'Frequently Asked Questions (FAQ): “What does not-for-profit mean?” on thePilchConnect website.The CAV scrutinises the 'rules' submitted by incorporating associations carefully, so yourorganisation may need to get help with drafting new or modified clauses to make sure they complywith the legislation.Your organisation should note that the Association Incorporation Act provides rules which act as a‘contract’ between the incorporated association and its members.VOTE TO INCORPORATE THE ASSOCIATIONIn order to incorporate, the association must hold a meeting to vote on whether to do so. Allmembers must be given at least 21 days’ notice of the meeting.At this meeting, a majority of votes cast by members, whether personally or by proxy if proxies areallowed, must:authorise a person, who is at least 18 years old and resides in Victoria, to incorporate theassociation (the ‘Secretary);Brimbank Community Governance Handbook Page 11 of 99

approve a proposed ‘Statement of Purposes’;approve proposed rules that comply with the Act or approve the adoption of the modelrules.The person who lodges the application for incorporation becomes the first secretary of theincorporated association, unless another secretary has been nominated. The committee membersof the unincorporated association form the first management committee of the incorporatedassociation, unless the rules specify otherwise.COMPLETE CONSUMER AFFAIRS VICTORIA (CAV) 'APPLICATION FOR ASSOCIATIONINCORPORATION' FORMThe person authorised to apply for incorporation must complete and lodge:the Application for Association Incorporation;a copy of the proposed ‘Statement of Purposes’;a copy of the proposed Rules of the Association (unless your association is adopting themodel rules without any changes);copies of any trusts that affect the association;the application fee (see CAV website).SEND IN FORM, DOCUMENTS AND FEE TO CAVAfter you have completed the Application for Association Incorporation Form, you will need to send(or deliver in person) to CAV, along with the organisation's approved ‘Statement of Purposes’ andrules.You will also need to pay the fee which is set out in the Association Incorporation Regulations 1998(Vic). As at 1 December 2011, the charge for incorporation of an association was:around $60 if your organisation is using the model rules (see above for details); oraround $120 if your organisation has drafted its own rules (or has amended the modelrules).PilchConnect advises (as noted above) that it is worth getting your organisation's rules right at thestart, even if it means paying the higher fee. If your organisation needs to change its rules, it willhave to go through the process of applying to CAV again, and paying another fee (around $70) (seeCAV website for details and up-to-date fees).Page 12 of 99Brimbank Community Governance Handbook

include a definition of the term 'office holder' and clarify the duties required of anassociation to provide indemnity for committee members;clarify the minimum rights of members, in particular attendance and voting at meetings, andto access financial and other records;require an association to maintain a register of members and ensure information aboutthem will not be used or disclosed inappropriately;replace the term 'public officer' with 'secretary';improve grievance and dispute resolution procedures;allow an association to keep its records in any language, provided an English translation isavailable on request;enable committee meetings and general meetings to be held in different locations throughthe use of technology.Consumer Affairs Victoria is also developing new Associations Incorporation Reform Regulations,which detail forms, fees and fines. Refer to the Consumer Affairs Victoria website for furtherinformation.The Act came into effect after the Regulations were finalised, and all incorporated associations werenotified in writing.AUSTRALIAN CHARITIES AND NOT FOR PROFITS COMMISSION (ACNC)This commission is a Commonwealth authority and was established in July 2012. It has theresponsibility to register and regulate NFP entities seeking Commonwealth support including accessto tax concessions and NFP specific grants, and includes:Determining the charitable status of individual organisations, including public benevolentinstitution status, for all Commonwealth purposes. This ruling is accepted by the AustralianTaxation Office (ATO) which will, in turn, manage the legislation in relation to individualorganisations;Providing education and support to the NFP sector;Administering a regulatory and reporting framework; andBeing a ‘one-stop shop’ for the sector. This means that registered organisations will onlyneed to put in one application with the ACNC. The ACNC will then manage the interactionwith other Australian Government agencies.Page 14 of 99Brimbank Community Governance Handbook

REGULATORY AUTHORITIESNot-for-profit community organisations are required to comply with Commonwealth and State taxlaws and other legislative and regulatory responsibilities. A number of regulatory bodies have arange of responsibilities for monitoring the performance of NFPs.The two key agencies which have the most significant roles in compliance, accountability andsupport for community organisations in Victoria – Consumer Affairs Victoria (CAV) and the Office forthe Community Sector (OCS) – undertake significant work to support the development of goodgovernance in community organisations. This includes specific resources to ensure compliance aswell as providing a range of resources to support skill development.THE OFFICE FOR THE COMMUNITY SECTORThe Office for the Community Sector (OCS) was established within the Department of Planning andCommunity Development to support the Victorian NFP sector to be sustainable into the future. TheOCS has two key responsibilities:Driving cross-government activity that reduces unnecessary burden related to governmentaccountability and compliance requirements; andSupporting the sector to build capacity to continue to be responsive to the needs ofVictorians.Importantly, the OCS runs a great website which has lots of information to assist community groupsand to help you with compliance (link below).CONSUMER AFFAIRS VICTORIAConsumer Affairs Victoria (CAV) is the Victorian Government's consumer affairs regulator, and abusiness unit of the Department of Justice. This is the primary agency to which NFP incorporatedassociations are accountable. An incorporated association must report certain information toConsumer Affairs Victoria as set out in the Associations Incorporation Reform Act (2012). The CAVhas responsibilities for monitoring compliance of incorporated associations and for imposingpenalties, including prosecuting breaches of the Act.In addition to its online resources and a ‘Help Line’, CAV runs free sessions for groups wanting toincorporate their association, and for those wanting to learn more about the requirements ofrunning an incorporated association. The sessions provide information on:Setting up an incorporated association;Defining the rules of a incorporated association;Members rights;Dispute resolution;Responsibilities of committee members; andStatutory obligations.Brimbank Community Governance Handbook Page 15 of 99

OTHER AUTHORITIESEffective monitoring and regulation of businesses, whether non-profit or for-profit, is undertaken bya number of other authorities. Table 1 provides an outline of the responsibility of some of the otherkey regulatory authorities to which NFPs are accountable.TABLE 2: RESPONSIBILITIES OF KEY REGULATORY AUTHORITIESAuthorityRoleAustralian Competitionand ConsumerCommission (ACCC).Australian Taxation Office(ATO)Australian Securities andInvestments Commission(ASIC)Has primary responsibility to ensure that individuals andbusinesses comply with the Commonwealth competition, fairtrading and consumer protection laws;Has an established Memorandum of Understanding with otherregulatory authorities, to facilitate access to information andcoordination in regulation. These authorities include theAustralian Taxation Office (ATO) and Australian Securities andinvestments Commission (ASIC)Has responsibility for administering the tax system, including taxconcessions for NFPs, as the Australian Government’s principalrevenue collection agency;All incorporated NFPs must lodge tax returns with the ATO;Tax obligations for NFPs may cover income tax, fringe benefits tax(FBT), Goods and Services Tax (GST), land tax, stamp duty and taxdeductibility on the gifts received.An independent Commonwealth Government body withresponsibility to regulate Australia’s corporate, markets andfinancial services. This includes ensuring that Australia’s financialmarkets are fair and transparent and that investors and consumersare well-informed.Source: Consumer Affairs VictoriaA NOTE ABOUT PATRIOTIC FUNDS 1The other category of not-for-profit organisations is a ‘patriotic fund’. Patriotic funds are a type oftrust fund created after the First World War, when Victorian communities raised money to assistsoldiers and their families. They provide welfare services and clubrooms for returned servicepersonnel and their dependants.You must establish a patriotic fund if you intend to collect funds, receive subscriptions, or requestdonations for any purpose related to any military service or duty.It is illegal to do any of these things without approval from Consumer Affairs Victoria. The VeteransAct 2005, outlines the relevant legal requirements.1 Consumer Affairs Victoria. For more information about Patriotic funds, refer to their website.Page 16 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSFor more information about helping you to decide whether to become incorporated and whatstructure best suits your group, look at the following sites:Not-For-Profit Compliance Support Centre: refer to the “Starting a Not-for-Profit” section.Choosing a legal structureChoosing and registering a nameChoosing a location and premisesRegistering a Not For ProfitChecklist for starting a Not For ProfitConsumer Affairs Victoria: www.consumer.vic.gov.auAll the information you need to complete the registration process is on their website. You can do allthe paper work on line as well –click on the “Clubs and not-for-profits” tab on the home page.PILCH: www.pilch.org.auThis site includes a checklist with questions to help you make the decision about incorporation. Thissite also has lots of general legal information. Should your organisation need specific legal advicecontact them directly. Additional links to related resources are available on their site.The Department of Planning and Community DevelopmentRefer to the guide: “Setting up a Community Managed NFP OrganisationFitzroy Legal Service: The Law Handbook. Refer to the ‘Community Organisations’ section of thishandbook which discusses ‘choosing a structure’ (i.e. incorporated or unincorporated).NAMINGASIC: Business name registration site.INTELLECTUAL PROPERTYPilchConnect: Intellectual PropertyMODEL RULESModel Rules 20-30: an example of provisions relating to a committee of managementBrimbank Community Governance Handbook Page 17 of 99

CHAPTER TWO: RUNNING THE ORGANISATIONUNDERSTANDING RELATIONSHIPSIt is important to understand and manage the relationships within your organisation and therelationships which your organisation has with the wider community. Figure 3 shows therelationships between your organisation and the wider community. This has been reproduced fromthe Indigenous Governance Toolkit. While cultural issues and networks of people may have greatersignificance for Indigenous organisations than others, it provides a useful way to look at how yourorganisation fits into the broader community.FIGURE 3:GOVERNANCE - INTERNAL AND EXTERNAL ENVIRONMENTSYour working environment(political, legal, economic, funding,)Your community(networks of people &organisations linked together)Your organisation(coming together to pursue agreed,collective goals)Your people(abilities, roles, values, leadership,motivations, knowledge,relationships, responsibilities)Source:Indigenous Governance ToolkitYour governance culture(beliefs, values, behaviours,institutions, responsibilities. ForIndigenous Australians & otherspecific cultural groups this alsoincludes families, relationships,laws, traditions & identities)Page 18 of 99Brimbank Community Governance Handbook

GOOD GOVERNANCEThe 'governance' of an organisation generally refers to the processes by which an organisation isdirected, controlled and held to account (PilchConnect – governance issues). This section providessome guidance on the nuts and bolts of governance - authority, accountability, stewardship,leadership, direction and control - exercised in the organisation.Good governance practices are crucial to the organisation's ability to function, to achieve its objectsand to comply with all of the legal, ethical and operational requirements of a communityorganisation. A major issue that community organisations often face is working out:the role and responsibility of an organisation's board or committee (to govern theorganisation); andthe role and responsibility of the management or executive team (to manage theorganisation).This is a particularly difficult issue for small organisations that have no (or very few) paid staff. Forthese organisations, and even medium community organisations, the size of the organisation canmake it challenging to be able to separate issues of strategic governance and day-to-daymanagement.There is a lot of information about good governance in community. A list of references is containedat the end of this chapter.POLICIES AND PROCEDURESPolicies and procedures help make a workplace run smoothly by ensuring staff and volunteers knowhow things are done and how decisions are made. They provide guidelines for resolving conflict andminimising risk and they enable staff to get on with the job of delivering quality services. There are anumber of examples around to help you develop policies and procedures which suit yourorganisation. The Victorian Council of Social Services (VCOSS) has a couple of very affordablepublications available as well as links to some good sample policies (see reference at the end of thechapter). These resources help you identify a set of key policies that your organisation should havein place as a minimum to ensure good governance and management.GOVERNING SHARED COMMUNITY FACILITIESCommunity organisations are often co-located with other organisations in a shared facility. Yourorganisation may have responsibility for governing the facility, or as a sporting club, haveresponsibility for the maintenance of the grounds and/or hiring of the facility to others.Brimbank City Council has developed a guide for the management of sporting facilities, which isavailable for all groups using Council facilities. The Department of Planning and CommunityDevelopment (DPCD), in partnership with the Growth Areas Authority, have developed a guide tosupport the development of integrated community infrastructure across Victoria. The link is in thelast section of this chapter.Page 19 of 99Brimbank Community Governance Handbook

BOARDS AND COMMITTEES OF MANAGEMENTBoards and committees are the leadership teams and decision makers of NFPs. This governing bodymay be known by a variety of different terms - a ‘committee of management’, ‘board ofmanagement’, ‘board of governance’ or a ‘council’. We have referred to this body as a ‘committeeof management’ throughout this manual.The role of the committee of management is to look after the affairs of the organisation. Thecommittee has a range of statutory obligations and responsibility for governing the organisation.They have additional responsibilities and may also be liable under the Wrongs Act 1958 for theactions of volunteers and other workers in the organisation.The exact legal responsibilities and compliance considerations vary depending on the legal structureof the organisation.PilchConnect advises that when you have questions about the board, committee of management ordirectors of your organisation, first check the Rules of Association, constitution or rule book. Theexact name of the document will vary depending on your organisation's legal structure, butwhatever it is called, the rules or constitution are legally binding and will include the answers tomost governance questions. If you need more information, ask the agency or authority thatregulates your type of organisation. Links to information about the role and responsibilities for yourparticular structure are contained in the last section of this chapter.It is important for you to understand the legal responsibilities of the members of boards andcommittees of management. PilchConnect has specific information on these. The links arecontained in the Resources and Links section at the end of this chapter.FINANCIAL RESPONSIBILITIESYour leadership team (board, committee of management or directors) also has responsibilities forthe organisation's finances. While a board member might not be involved in day-to-day transactionsor maintaining the accounts, they are responsible in the eyes of the law. This means that theleadership team has an obligation to understand the organisation's finances. The DPCD website hasmore information about this (see link in last chapter of this chapter and chapter 4 of this manual).BOARD INSURANCEAlthough public liability insurance will cover your organisation against claims for wrongful acts,individual board members, committee members or directors are not covered, and would need to becovered with directors insurance.Unfortunately, if something goes wrong, individual board members, committee members anddirectors of NFPs can be sued for acts of negligence. For example, if a board member negligentlygives wrong advice or dismisses a staff member without following proper processes, they may besued. If this happens, and the case against them is proven, the law says personal assets of thenegligent board or committee members can be seized to meet any damages.Page 20 of 99Brimbank Community Governance Handbook

LEGAL RESPONSIBILITIESPilchConnect, in conjunction with the Victorian Council of Social Services (VCOSS), has produced aguide to the legal duties of Committee or Board members of not-for-profit community organisationsin Victoria. It outlines the key legal duties of all people who hold a position on the governing body ofa not-for-profit community organisation, including incorporated associations, companies limited byguarantee, cooperatives and indigenous corporations as well as unincorporated groups. (refer tolink at end of this chapter).EFFECTIVE PLANNINGThe committee of management, as the governing body, has responsibility to define the purpose,goals and priorities of the organisation. These need to be developed in consultation with thebroader membership and reflect the overall wishes of the community group. Any staff employedneed to be engaged actively in this process also. The committee of management should officiallyadopt such a plan at a meeting, and the managers and staff should then proceed to carry it out andreport on progress to the governing body.The best plans are those that are short, flexible, made part of the daily work of the organisation andare regularly reassessed.There are some good resources available to assist you with the process. Two in particular, theIndigenous Governance Toolkit and the Victorian Council of School Organisations, are really useful.The links to these sites are in the last section of this chapter. The “Quick governance health checkup”contained in the Indigenous Governance Toolkit is a good resource to see how you are going asan organisation. (refer to link at end of this chapter). This Toolkit identifies a number of steps tohelp you in the strategic planning process. These are illustrated in Figure 4.FIGURE 4:STRATEGIC PLANNING PROCESSSource: Indigenous Governance ToolkitPage 21 of 99Brimbank Community Governance Handbook

INCORPORATED ASSOCIATIONSThis information is specifically for community organisations which have been incorporated under theAssociations Incorporation Reform Act (2012). It is extracted from the PilchConnect website whichhas extensive information to support incorporated associations to understand their roles,responsibilities and legal obligations. This section provides more details about these processes, andthe information comes from Consumer Affairs Victoria (CAV), PilchConnect and Our Community(OCS).OVERVIEW OF ACCOUNTABILITY PROCESSESThe accountability processes of incorporated associations, regardless of size, include:Developing and adhering to the rules and purposes of the organisation, which detail the proceduresfor running the organisation;Appointing a Committee of Management or Board of Governance which is responsible for overseeinghow the organisation operates and fulfilling a range of statutory responsibilities under theAssociations Incorporation Reform Act (2012);Appointing a secretary who has legal responsibilities for submitting documents to Consumer AffairsVictoria, including the Annual Statement, and who is the official contact person for the organisation(you need to do this is the process of becoming incorporated – see Section 3);Holding an Annual General Meeting (AGM) within five months of the end of the association’s financialyear; andSubmitting a financial statement that covers the full financial year to members at the annual generalmeeting.There are penalties for breaching these responsibilities, with CAV having responsibility formonitoring and administering penalties, either directly through fines or through judicial prosecution.COMMITTEES OF MANAGEMENT IN INCORPORATED ASSOCIATIONSThe Associations Incorporation Reform Act (2012) requires an incorporated association to have rulesrelating to a ‘committee or other body having the management of the incorporated association’.Most Victorian incorporated associations call this governing body a ‘committee of management’ butyour organisation may call its governing body by some other name (for example a 'board' or a'council'). Whatever it is called (we will use the term ‘committee of management’) it is the groupresponsible for running the affairs of the incorporated association in accordance with theAssociations Incorporation Act and the organisation’s rules.The Schedule to the Victorian Associations Incorporation Act requires that an incorporatedassociation’s rules set out certain requirements for the committee of management. For moreinformation about the rules of an incorporated association and Model Rules (the provisions relatingto a committee of management), refer to the links at the end of this chapter.Page 22 of 99Brimbank Community Governance Handbook

A useful Fact Sheet, produced by PilchConnect, which outlines the duties of members ofmanagement committees is on their website (link at the end of this chapter).If your organisation has adopted the Victorian Model Rules for an incorporated association, ModelRules 20-30 contain the basic requirements for a committee of management. A link to the ModelRules has been included in the section below, however, you should look at your organisation's rules,which may differ from this. In General Model Rules 20-30 set out that:the affairs of an association shall be managed by a committee of management;the committee of management shall have the power to control and manage the businessand affairs of the association, and exercise all the powers and functions of the association inaccordance with the rules;the committee of management of the association shall be made up of:oofour office holders: being a President, Vice-President, Secretary and Treasurer; andtwo ordinary members of the association;that the committee of management shall be elected at the Annual General Meeting of theassociation each yearcertain rules for nominating, electing and removing committee members and provisions fordealing with committee vacancies; andcertain rules for committee of management meetings and voting rights.You should check your organisation’s rules to see what the requirements are for your organisation’scommittee of management because it is possible for the 'Model Rules' to be modified.ADMINISTRATIVE ROLES OF THE COMMITTEE OF MANAGEMENTThe committee of management looks after the affairs of the incorporated association and hasstatutory responsibilities under the Associations Incorporation Reform Act (2012). There arepenalties for breaching these responsibilities.Committee of management members must:ensure an annual general meeting is held within five months of the end of the association’sfinancial year;submit a financial statement that covers the full financial year to members at the annualgeneral meeting;appoint a new secretary within 14 days, if the position becomes vacant;return all documents that belong to the incorporated association within 28 days of ceasingto be a committee member.Page 23 of 99Brimbank Community Governance Handbook

Members have a duty to act in the best interests of the incorporated association and to not takeadvantage of their position. They must not make use of their position (or information acquiredbecause of their position) to:gain any financial benefit for themselves or any other personharm the association.DECLARATION OF CONFLICT OF INTERESTSIt is a conflict of interest if, as a member of a Committee of Management, an individual(s) has aprivate financial (pecuniary) interest, directly or indirectly, in a contract that the organisation isconsidering. If this occurs, the conflict of interest must be disclosed to the Committee as soon as themember becomes aware of it. The member will be permitted to take part in discussions about thecontract but must not take part in any decision of the Committee with respect to that contract.This does not mean that your organisation cannot have business dealings with committee members.But, it does mean that the conflict of interest must be disclosed to the rest of the Committee ofManagement and that the committee member with the conflict should not vote on the contract.For more information, see PilchConnect website (links at the end the chapter).LEGAL DUTIES OF COMMITTEE OR BOARD MEMBERS IN VICTORIAN INCORPORATEDASSOCIATIONSThe law requires committee of management members to meet certain standards of conduct whilemanaging the affairs of the organisation. If you are (or are considering becoming) a member of acommittee of management (or governing body) of an incorporated association, you need tounderstand what your legal duties are. These are covered really well in the guide produced byPilchConnect.OTHER LEGAL OBLIGATIONS OF COMMITTEE OF MANAGEMENT MEMBERSA committee of management is responsible for running an organisation, which includes making surethat the organisation is complying with the law generally.PilchConnect provides this information regarding the legal obligations of community organisationsthat are incorporated under the Associations Incorporation Reform Act (2012).1. The Act contains some sections that mean committee of management members may be held liable forcertain breaches of the Act. For example, section 13A of the Act states that if an incorporated associationdoes not notify Consumer Affairs Victoria (CAV) of a change to its registered address, each member of thecommittee may be liable to pay a fine (not exceeding approximately $600). There is a similar provision forfailure to comply with the Annual General Meeting requirements (section 30). In practice, it appears thatthese provisions are rarely enforced by CAV.Page 24 of 99Brimbank Community Governance Handbook

2. The Act states that the association’s rules are a contract between the association and its members. Intheory, this means that any member of the association can take a court action to prevent or remedy a‘breach of contract' (i.e. non-compliance with the rules of an incorporated association) by anothermember (including a committee of management member). Again, in practice these kinds of actions arerarely taken.3. Under the Occupational Health and Safety Act 2004 (Vic), 'officers' of an incorporated body, like anincorporated association, can be liable for breaches of the Act. However volunteer (unpaid) committee ofmanagement members are exempted from these provisions (although the incorporated association itselfwill still be liable). For further information about occupational health and safety (OHS) laws, seePilchConnect.4. The normal criminal and other laws that apply to the public in Victoria can apply to committee ofmanagement members.OFFICE HOLDERSOften people on the committee of management hold certain ‘offices’ or ‘positions’. This generallymeans that they have responsibility for monitoring certain aspects of the community organisation’sactivities, or performing certain functions. It is also possible to have office holders who are notcommittee of management members. As mentioned above, the governing body of yourorganisation will largely be determined by your organisation’s rules.The only 'office' required by the Associations Incorporation Reform Act (2012) is that of Secretary.The Act states that the Secretary can also hold another office (such as President or Treasurer).Whether your incorporated association will have other ‘offices’ will be determined by yourorganisation’s rules. The normal types of ‘offices’ that an incorporated association may have are:President / ChairpersonSecretary (who can also hold another office)Treasurer / Financial OfficerSome organisations might also have assistant (or ‘vice’) positions such as a Vice-President orAssistant Treasurer.You should check your organisation's rules for the 'offices' and their duties (see PilchConnect formore information).The committee of management must appoint a secretary, who is the main point of contact betweenthe association and Consumer Affairs Victoria. The secretary must be at least 18 years old andreside in Victoria.The secretary is responsible for doing the following things on behalf of the association:lodging an annual statement with the Registrar (the Director of CAV) within a month afterthe annual general meetingPage 25 of 99Brimbank Community Governance Handbook

notifying the Registrar of:oooa change to the incorporated association’s registered address within 14 daystheir appointment as secretary or any changes to their detailsa special resolution to wind up the association or distribute its assets.applying to the Registrar to:ooalter the association's statement of purposes or ruleschange the association's name.If the position of secretary becomes vacant, the committee of management must fill the vacancywithin 14 days. The new secretary must notify CAV within 14 days of their appointment bycompleting and submitting a ‘Change of association details’ form, available online at CAV.MEETINGSANNUAL GENERAL MEETINGIncorporated associations must hold an annual general meeting (AGM) each calendar year. The firstAGM can be held at any time in the 18 months following incorporation. The second and anysubsequent AGM must be held within the five months following the end of the incorporatedassociation’s financial year.At the AGM, the association must submit to its members a financial statement that gives a true andfair view of the association’s financial position during and at the end of its last financial year. Thestatement must detail:the income and expenditure of the association during its last financial year;the assets and liabilities of the association at the end of its last financial year (a balancesheet);any mortgages, charges and securities affecting any of the property of the association at theend of its last financial year;for each trust of which the association was a trustee during all or part of the last financialyear:ooothe income and expenditure of the trust;the assets and liabilities of the trust;any mortgages, charges and securities affecting any of the property of the trust.any trust held on behalf of the association by a person or body other than the association, inwhich funds or assets of the association are placed.Page 26 of 99Brimbank Community Governance Handbook

APPLY FOR AN EXTENSION OF TIME TO HOLD AN ANNUAL GENERAL MEETINGIf there are exceptional circumstances that prevent your association from holding its AGM by thedue date, you can apply to the Registrar for an extension of time by either:lodging an ‘Application for extension of time’applying online for an extension of time (CAV website).Extensions of time are subject to Registrar approval.HOLDING ORDINARY MEETINGSMeetings are an important part of the operations of any effective NFP community organisation.Depending on the size and structure of your community organisation, there are a number ofdifferent meetings that may be held including:meetings of the organisation's management committee or board;meetings of members of your community organisation;management meetings; andan annual general meeting.It is important for your organisation to conduct meetings in accordance with the requirements setout in any legislation (for example, incorporated associations must comply with the AssociationsIncorporation Reform Act (2012) and companies limited by guarantee must comply with theCorporations Act 2001 (Commonwealth). However, for many organisations, much of the detail ofthe requirements for holding valid meetings will be set out in an organisation's rules or constitution.The main legal issues that can arise around meetings involve:requirements to hold meetings and rights to call a meeting;proper notice of the meeting (time periods, content of notice);quorum (minimum number of people present to make meeting valid);adjournments;voting rights (and proxy rights);resolutions;minutes.Page 27 of 99Brimbank Community Governance Handbook

CONDUCTING MEETINGSRole of the ChairpersonIt is the role of chairperson to run the meeting. The chairperson ensures (as outlined in theIndigenous Governance Toolkit) that:the board members take part and behave as set out in the Model Rules of the organisation;every member can express their view and vote;board discussions are inclusive, open and thorough;how the board makes decisions is fair, relevant and of a high legal standard; andmeetings are effective and orderly.An important decision-making process for meetings is ‘majority rules’. Individual board membershave the right to have their say, but once a decision has been put forward (a resolution), secondedand passed by a majority of the members, it is binding. The minority who voted against theresolution or abstained must respect and abide by the decisionThe Indigenous Governance Toolkit provides information on how to conduct good meetings. Theimportant elements are illustrated in Figure 5. These are:A proper notice period is provided to members of the committee, allowing enough time before themeeting date;A clear, informative agenda is sent to members prior to the meeting;Minutes of the previous meeting are sent out prior to the next meeting;A quorum is met at each meeting. This is the minimum number of members who have to be present,for the decisions of the meeting to be binding. This number will be specified in the rules of yourorganisation;Meetings are well chaired (see note about the role of the chairperson above);Meeting procedures are followed sensibly: this means ensuring that processes are followed butbalanced with the opportunity for everyone to have a say.Page 28 of 99Brimbank Community Governance Handbook

FIGURE 5:GOOD MEETINGSSource: Indigenous Governance ToolkitA NOTE ABOUT MINUTESA governing body must keep minutes of all its official meetings—it is the law. The minutes are anaccurate record of the previous meeting’s discussions, decisions, recommendations and actionsproposed.Meeting minutes should:be accurate and a complete record of the meeting, including the main points of decisionsand discussions, and a formal record of resolution, seconding and passing the decision;focus on the matters set out in the agenda;reflect the board as a whole, not individual personalities or comments;be objective and not have offensive comments or inappropriate discussion;be consistent in format and style;be professional by being proof-read with no errors;be readable and clearly laid out with main points highlighted so that they can be easilyunderstood and followed by members;be made understandable if necessary using translation or visual aides to those who cannotread English;Page 29 of 99Brimbank Community Governance Handbook

e properly filed and available at subsequent meetings; andbe sensitive to cultural protocols (e.g. not mentioning recently deceased indigenous peopleby name) Source: Indigenous Governance Toolkit.Attachment One contains some useful templates for conducting meetings. This includes templatesfor agenda and minutes.PROTECTING YOUR NAME, IDEAS AND MATERIALYour organisation’s intellectual property is what makes you different from other organisations. It isimportant, valuable and worth protecting Your organisation’s intellectual property includes therights it may have in its:namelogothe names or logos of any programs or services developed by your organisationpublicationstraining materialswebsite design and contentdomain namecomputer applications, programs, or databases it has developed, andany ideas, innovations and inventionsPilchConnect has produced a guide to assist people involved in Victorian NFPs to understand thebasics of intellectual property law. It also covers what to do if you think your organisation’sintellectual property rights have been infringed, and how to avoid infringing the rights of others.INTERNET AND SOCIAL MEDIA 2The internet, and especially social media, are increasingly becoming vital communication andmarketing tools for not-for-profit community organisations. They can be a great way for yourorganisation to promote its cause and services, and to communicate with your community cheaplyand quickly.However, there are risks both legally and to the organisations reputation with social media use -especially because of the speed with which information travels on the internet, its global reach, andthe lack of control that your organisation has once something goes online.PilchConnect provides information to help you understand the context of social media and how bestto use it to your advantage. The definition of social media is from their website.2 Downloaded from PilchConnectPage 30 of 99Brimbank Community Governance Handbook

WHAT IS SOCIAL MEDIA?‘Social media' usually means a website, mobile application or technology that allows users to shareand communicate information (‘content') online - either privately or publicly. Examples of socialmedia include:social networking sites (such as Facebook, Twitter and LinkedIn)blogsinformation sources (such as wikis)video-sharing sites (such as You Tube)photo sharing sites (such as Flickr), andother sites with user generated content elements (such as news sites which invite customersto post reviews).PilchConnect and DPCD have both developed useful guides to using social media (see link at end ofthis chapter).Storing documents you need to keep good records of the decisions made in your organisation andtransaction records. PilchConnect has a section on document retention, which covers the mainissues which you need to consider. They advise that you check:Your organisation's rules (constitution) to see if there is any provision about clients havingthe right to inspect their own files or have their records retained;The organisation's rules, policies or resolutions passed by members requiring that theorganisation's records be retained for a specified period; andFunding agreements to see if they require records to be kept and retained.LAND, BUILDING AND EQUIPMENTPilchConnect indicate that there are a range of legal issues about land, buildings or equipment, andmay include:hiring a venue or equipment;leasing a building or land for your community organisation;letting or sub-letting a building or land that is owned by your community organisation;buying or selling property;being gifted property;vehicles; andrelated insurance and tax issues.Their website includes links to advice which may assist you (see end of this chapter for a link).Page 31 of 99Brimbank Community Governance Handbook

INSURANCE AND RISK MANAGEMENTAccording to the law, risk must be managed to a reasonable level of care, with insurance as a backupto this duty of care. The PilchConnect website provides information about insurance and riskmanagement. It advises that you need to understand the risks involved in the activities undertakenby the organisation, and your legal position should any of those risks happen to occur. Importantly:Thinking about risks, insurance and related legal issues do not have to be a scary ornegative process. All activities in life involve risk and, of course, there are some risksassociated with the activities undertaken in all community organisations. If yourcommunity organisation understands these risks, there are many things that the peopleinvolved in your organisation can do to eliminate risks or minimise the chance of themoccurring.Where the potential risks cannot be avoided, your community organisation can look atthe insurance options that may be available to protect it. (PilchConnect)PILCH have produced a guide, “Insurance and risk management for community organisations”,specifically on insurance and risk management, and it is attached to this manual. However, as PILCHcontinually update their material, it is a good idea to check their website. The guide is designed tohelp Victorian community organisations understand 'risk management' and legal issues relating toinsurance, including:some of the processes and practices your community organisation can put in place to avoidor minimise the risks associated with running a community organisation;basic information about insurance;information about the different types of insurance available; andtips to consider before getting insurance for your organisation (PilchConnect).An information sheet prepared by PilchConnect is contained on their website (see link at the end ofthis chapter).HEALTH AND SAFETYFOR COMMITTEES OF MANAGEMENTIf you are a board member, director or member of a committee of management you have health andsafety obligations to others – even if you are a volunteer yourself. The WorkSafe publication “Moreinformation about - Community service volunteer boards and committees” includes up-to-dateinformation about these and other responsibilities for members of boards and committees ofmanagement in NFPs.As a volunteer who is a member of a board or committee of management in the community servicessector, you have health and safety responsibilities as part of the leadership team. You may also haveconcerns about your own health and safety as a volunteer. This fact sheet addresses both aspects.Page 32 of 99Brimbank Community Governance Handbook

The nature of the obligations depends on the type of organisation you are involved with. If yourorganisation has employees (i.e. it is an employer), it has health and safety duties towards thoseemployees. These duties are set out in the OHS Act and the Occupational Health and SafetyRegulations 2007 (the Regulations). Under the OHS Act, employers have obligations to make surevolunteers are not exposed to risks to their health and safety, so far as reasonably practicable.Volunteer board members of companies and other bodies and associations are not liable forprosecution under the OHS Act for anything they do or fail to do as a volunteer. This acknowledgesthe important contribution of volunteer members of boards. However, the organisation, as a legalentity, may be liable if a volunteer or paid employee suffers a work-related injury or illness. You alsohave an obligation to protect the health and safety of anyone, including service users, who enterpremises that you occupy.FOR EMPLOYEESIn Victoria, occupational health and safety (OHS) in the workplace is regulated by the OccupationalHealth and Safety Act 2004 (Vic) - the OHS Act, and the Occupational Health and Safety Regulations2007 (Vic) - the OHS Regulations. There are different laws in other States and Territories and yourorganisation will need to check these if it operates outside of Victoria.The purpose of the OHS laws is to protect the health, safety and welfare of employees and otherpersons who are at, or come into contact with, a workplace in Victoria. The laws set out variousduties that organisations and individuals must comply with in the workplace. The laws are regulatedand enforced by a Victorian government authority known as the Victorian Worksafe Authority(WorkSafe). Worksafe may prosecute organisations that breach (do not comply with) the OHS lawduties that they are required to comply with.Because a lot of the information and advertisements about Victoria’s OHS laws mention or depictbusinesses, some people think that the OHS Act only applies to for-profit, business organisations.This is not correct. The OHS Act is very broad and has the potential to apply to all Victoriancommunity organisations (both incorporated and unincorporated). The OHS Act will apply to allcommunity organisations that have employees, but may also apply to community organisations thatare completely volunteer-based where they operate in a 'workplace'.Information on the Worksafe website is intended as a guide only, and is not legal advice. If you oryour organisation has a specific legal issue, you should seek advice before making a decision aboutwhat to do.Page 33 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSThese links have been sourced from PilchConnect, Consumer Affairs Victoria, the NFP compliancesupport centre website and other sources. Many are websites which PilchConnect identified ashaving great resources. They have provided a description of each site. We have checked them outand added to the comments. When viewing websites consider Australian resources in particular,Victorian resources, in relation to legislation issues.GOVERNANCE STRUCTURESConsumer Affairs Victoria: Incorporated associationsThis site, http://www.consumer.vic.gov.au/clubs-and-not-for-profits/incorporated-associationsprovides information on incorporated associations in Victoria.Australian Securities and Investment Commission (ASIC): Company officeholder dutiesThis site provides information on companies limited by guarantee.Consumer Affairs Victoria: co operativesThis site provides information on co-operatives in Victoria.Office of the Registrar of Indigenous Organisations (ORIC): Directors guide.This link to the Office of the Registrar of Indigenous Organisations (ORIC) provides information fordirectors of registered Indigenous organisations.Victorian Associations Incorporation Reform Act (2012)GOVERNANCE – LEGAL ISSUESPilchConnect: legal help for community groupsPilchConnect is really the “go-to” place for legal information for NFPs in Victoria. It is easy tounderstand and provides a comprehensive guide on the legal duties of committee or boardmembers. It is regularly updated.Consumer Affairs Victoria: clubs and not for profitsConsumer Affairs Victoria is the organisation responsible for monitoring incorporated associations inVictoria.Page 34 of 99Brimbank Community Governance Handbook

The Our Community website includes a section on governance for boards and committees whichincludes regulatory and non-regulatory information. The Boards section of the Our Communitywebsite includes information on governance issues in not-for-profit community organisations. OurCommunity also run training for boards and committees, with information of the sessions on thewebsite.Volunteer Victoria: Legal issues for community organisationsThe ‘I can do it’ volunteering website has easy-to-understand information regarding legal issues withlinks to other sites.Australian Institute of Company Directors: Support for not-for-profit directorsThe Not For Profit organisations section of this website, has useful information about understandingthe NFP sector, the contribution and duties of NFP directors, the role of the NFP board, governancetools and characteristics of good NFP governance.Australian Securities and Investment Commission: running your companyThe Australian Securities and Investment Commission (ASIC) website has information aboutofficeholder duties and how to make changes to your organisation details.POSITIONS IN COMMUNITY ORGANISATIONSPilchConnect: positions in an incorporated associationThis link to the PilchConnect website provides more details on the governance positions within anincorporated association and information on the different committee roles.PilchConnect: positions in a company limited by guaranteeThis link to the PilchConnect website provides more details on the governance positions within acompany limited by guarantee and information on the different committee roles.Guide to the Legal Duties of Committee of Management members in Victorian incorporatedassociationsThis is a link to a booklet developed by PilchConnect which provides information about the legalresponsibilities of committee of management membersROLE OF THE TREASURERInstitute of Chartered Accountants (ICAA) - Voluntary Treasurer's HandbookThis is a link to an Institute of Chartered Accountants (ICAA) publication which is intended to helpsmall non-profit organisations. It covers, in broad terms; matters that honorary or voluntarytreasurers need to know about financial matters and includes checklists at the back. The booklet waspublished in 2000 and some figures and references in it may need updating.Page 35 of 99Brimbank Community Governance Handbook

Our Community - Guide for Community Treasurers (Westpac)This is a link to the Our Community site which has developed a Guide for Community Treasurers incollaboration with Westpac bank.Not-For-Profit Compliance Support Centre: Financial reporting and auditingThis website provides information about financial reporting. More references and information arecontained in Chapter 4 of this manual.GOOD GOVERNANCE REFERENCESQueensland University of Technology (QUT): developing your boardThe Centre for Philanthropy and Non-profit Studies at the Queensland University of Technology(QUT) has a wiki on board and committee issues. This site provides useful information on the rolesand responsibilities of boards and resources to help you evaluate your board’s performance. Anyreferences to the law may be to Queensland law and not relevant for Victoria, so be careful.Chartered Secretaries Australia: Not-for-profit governance initiativeThese CSA resources for not-for-profit community organisations look at the relationship between aboard (or committee of management) and management in not-for-profit organisations. It alsoprovides some useful material for committees of management on developing policies.The Victorian Council of School Organisations (VICCSO): How to improve governanceThe Victorian Council of School Organisations (VICCSO) website has some great resources aboutgood governance and developing effective strategic plans. These can be adapted to otherorganisations.Australian Securities Exchange (ASX): Corporate Governance Principles and Recommendations with2010 AmendmentsThis is a link to the 2010 update of the guide to good corporate governance provided by theAustralian Securities Exchange (ASX). This publication is aimed at for-profit companies (and useslanguage like 'shareholders' not members) but the key principles of good governance are useful fornot-for-profit organisations.VCOSS: GovernanceThe VCOSS's Board Governance Policy uses as a base the UK Good Governance Code for theVoluntary and Community Sector (2nd edition 2010), and adapts it for Australia and VCOSS’s owncircumstances. It provides a useful general model, although it needs to be adapted for eachorganisation’s individual circumstances. VCOSS also has a range of other resources available to helpyou with developing policies and understanding the difference between governance andmanagement. Check out the Clearinghouse page on this website.Page 36 of 99Brimbank Community Governance Handbook

Reconciliation Australia: Indigenous Governance ToolkitThis is a link to the Indigenous Governance Toolkit. It is an online resource developed to assistIndigenous individuals, organisations, communities and enterprises to improve their governance.From the basics of governance like rules and regulations to examples of ideas that work from otherorganisations, the Toolkit aims to provide useful guidance and information. While it has beendeveloped to support Indigenous organisations, it is really useful, easy to understand and easy touse. You can use the toolkit to answer quick questions about governance, or go through it like atext-book. It even has quizzes at the end, to help you remember the information.Department of Planning and Community Development: A Guide to Governing Shared CommunityFacilitiesThis resource is intended to be particularly useful for those who have not governed such facilities inthe past. It covers facility vision and type; size and catchment; governing bodies; facilitymaintenance; and operations and integration.Community Sector Governance Capability Framework Tool KitPeople on Boards or Committees of Management in community sector organisations will be able todevelop flexible and transferable skills that can be used in a range of governance contexts. Itincludes a Board Review Tool, a Board Member Self-Assessment Tool, and a Self-Assessment Tool forPotential Board Members and a template for developing a Board Acton Plan.RISK MANAGEMENT AND INSURANCE RESOURCESThere are also a number of other organisations which can help you with insurance. PilchConnect hasincluded the contacts for these on its website. Here are the links:LEGISLATIONAccident Compensation (WorkCover Insurance) Act 1993 (Vic)This is a link to the legislation that requires almost all employers in Victoria to take out workerscompensation for their employees.Transport Accident Act 1986 (Vic)This is a link to the legislation that requires community organisations to have motor vehicleinsurance for third party injury liability. The charge for this insurance is paid for at the same time asregistration renewal.Insurance Contracts Act 1984 (Commonwealth)Insurance Contracts Act 1984 (Commonwealth) is the Commonwealth legislation that regulates mostinsurance contracts in Australia.Page 37 of 99Brimbank Community Governance Handbook

RISK MANAGEMENT RESOURCESVolunteering Australia: Running the risk? A risk management tool for volunteer involvingorganisationsVolunteering Australia: Running the Risk - a risk management tool for volunteer involvingorganisations: This publication outlines why it is important to manage risk and provides a simple 4-step guide to identifying and treating risks in organisations that have volunteers. It includestemplates and other tools that your organisation can use as well as case studies.Volunteering Australia: Insurance & Risk Management For Corporate VolunteersThis is a guide about skilled volunteering and insurance but mainly from the employer’s point of view(for example the employer that allows its employees to do corporate volunteering).ourcommunity: community insurance and risk management centreThe 'Insurance' section of the Our Community website provides sponsored resources aboutinsurance and risk management issues, including checklists and tools for different kinds of activitieswhich often occur in the community sector.Business Victoria: Managing risk in your businessThis Victorian Government website is to help people who are setting up a small business but the sitealso has some useful information about risk management and insurance that may be relevant for acommunity organisation.Page 38 of 99Brimbank Community Governance Handbook

INSURANCEThe Victorian Managed Insurance Authority (VMIA) - Community Services Organisation InsuranceManual and PoliciesVMIA provides insurance information for the nominated Community Service Organisations whoreceive recurrent funding for services from the Department of Human Services, the Department ofEducation and Early Childhood Development, the Department of Justice or the Department ofPlanning and Community Development.Australian Securities and Investment Commission: MoneySmartThis link is to an ASIC website MoneySmart. It includes information on consumer rights underinsurance contracts. ASIC regulates the consumer aspects of insurance contracts. This information isnot written specifically for not-for-profit organisations but is generally relevant for all insurancecontracts.Business Victoria: Insurance for businessThis Victorian Government website is to help people who are setting up a small business but the sitealso has some useful information about insurance that may be relevant for a communityorganisation.Local Community Insurance Services (LCIS)This is a link to Local Community Insurance Services (LCIS), a specialist insurance provider establishedto manage the insurance needs of NFP clubs and community groups within Australia. This initiativeis supported by the Municipal Association Victoria (MAV).OCCUPATIONAL HEALTH AND SAFETYLEGISLATIONOccupational Health and Safety Act 2004 (Vic)This is a link to the legislation that sets out Victoria's occupational health and safety laws.Occupational Health and Safety Regulations 2007 (Vic)These are the regulations which set out many of the requirements for employers to keep theworkplace safe.Page 39 of 99Brimbank Community Governance Handbook

WORKSAFE VICTORIA RESOURCESThis is a link to the WorkSafe Victoria website. Worksafe is the Victorian government authority withresponsibility for occupational health and safety laws in Victoria. The 'Safety and Prevention' and'Publications' section of their website has resources for identifying and minimising risks in theworkplace.WorkSafe Victoria - Law and regulationsThis page of the WorkSafe Victoria website provides an overview of the main legal obligations underVictoria's occupational health and safety laws. It has links to a page of the main employer obligationsand main worker obligations under the Act.WorkSafe - Workplace safety assessment toolThis WorkSafe publication is written for small businesses but can be adapted for use by communityorganisations to assess safety in the workplace.WorkSafe - Working safely in community servicesThis publication covers health & safety basics, managing OHS in your workplace, checklists & tools,managing accidents & claims, and resources & links for the community services sector.These WorkSafe publications are specifically designed for community organisations:Publication: A handbook for community service organisations - Volunteer health and safetyThis WorkSafe handbook includes general health and safety information for people who managevolunteers in community services organisations.Work Safe: More Information About - Community Service Volunteer Boards And CommitteesThis WorkSafe fact sheet outlines the health and safety responsibilities of volunteers who aremembers of a board or committee of management in the community services sector.Work Safe: What You Need To Know About Health And Safety - Volunteers In Community ServicesThis Worksafe publication provides information about health and safety rights and responsibilitiesfor volunteers in community service organisations.Page 40 of 99Brimbank Community Governance Handbook

OTHER OCCUPATIONAL HEALTH AND SAFETY INFORMATIONVCOSS: Occupational Health and Safety for Community OrganisationsThis Community OHS website developed by VCOSS, contains information on the main OHS hazardsfacing the NFP sector as well as a range of OHS tools and resources.Volunteering Australia: Occupational Health and Safety Laws and VolunteersThese Volunteering Australia (VA) quick guides provide information for volunteer-involvingorganisations on their obligations in ensuring the occupational health and safety of their volunteers.The VA has a guide for each state.RELATED LEGISLATIONAssociations Incorporation Reform Act (2012This link is to the legislation that regulates incorporated associations in Victoria. The Schedule nearthe end of the Act sets out the issues that the rules of an incorporated association must cover (seeclause 4 for committee of management).Associations Incorporation Regulations 2009 (Vic)This link is to the regulations that set out some of the detail of the laws about incorporatedassociations in Victoria. Schedule 4 contains the Model Rules - which some organisations have usedfor their rules.MODEL RULESVictoria's 'Model Rules' of an incorporated associationSee Model Rules 20-30 for an example of provisions relating to a committee of management. NewModel Rules are currently being developed to include the changes of the new Act.SOCIAL MEDIAPilchConnect: technology, social media and your oganisationItango: Social media toolkitDPCD: Community organisations making the most out of Information Technology: An ICTimprovement guideOffice for the Community Sector: Improving ICT uptake in community sector organisationsPage 41 of 99Brimbank Community Governance Handbook

CHAPTER THREE: MANAGING PEOPLEPEOPLE INVOLVED IN COMMUNITY ORGANISATIONSPeople are an important resource for NFP organisations. Depending on the size and legal structureof your organisation, you will be working with a combination of people, contributing in differentways to specific tasks and the day-to-day running of your organisation. These include:a leadership team such as boards, committees or directors (see Section Two for moreinformation about boards and committees of management);paid employees;volunteers; andindependent contractors.Regardless of the type of worker or contributor, your organisation has responsibilities to the peoplewho work with you. You are required to keep the workplace safe, ensure that your members areprotected and ensure that you are complying under the applicable Act/s (refer to the not-for-profitcompliance support centre on the DPCD website).DEFINITIONSThere are legal differences between an employee, an independent contractor and a volunteer. It isimportant to understand these differences as the organisation has different legal rights andobligations in relation to all three.The main differences between employees and independent contractors will be to do with how theyare paid, what benefits they receive and how they approach the work. PilchConnect has developeda guide to help Victorian not-for-profit community organisations understand different kinds ofworking relationships - including that of employee/employer. It is important for your communityorganisation to know when you are 'employing' a person, because different legal entitlements andobligations apply, depending on whether the worker is regarded as an 'employee', an 'independentcontractor' or a 'volunteer'.The Guide outlines:the importance of correctly classifying different working relationships;the basic legal differences between employees, independent contractors and volunteers;andan overview of some of the main legal obligations an organisation owes to its employees,independent contractors and volunteers.The guide is available for download from the PilchConnect website (link in last section of thischapter).Page 42 of 99Brimbank Community Governance Handbook

EMPLOYEES – AT A GLANCEThis section is downloaded from the DPCD website – NFP compliance support centre (see link at theend of this chapter). It provides a brief overview of the obligations for NFPs in relation toemployees.1. Relevant Acts: employees are covered under the Fair Work Act 2009 (Commonwealth) and Long ServiceLeave Act 1992 (Vic). The Fair Work Act defines minimum standards of employment, known as theNational Employment Standards (NES).2. The work: an employee has a defined role within the organisation and does the assigned work under thecontrol, direction and supervision of the employer. They work hours set by the employer, a workplaceagreement or an industrial award.3. Entitlements: an employee is entitled to be paid and unpaid leave (e.g. sick leave, personal/carers' leave,annual or recreation leave, or any long service leave).4. Payment: an employee is paid for time worked and is paid regularly, e.g. weekly, fortnightly or monthly.As the employer you will need to withhold income tax from the employee’s pay.5. Insurance: an employee is not responsible for insurance. They are covered by professional indemnity,public liability and workers compensation insurance premiums paid by the employer.6. Superannuation: an employee is entitled to have superannuation contributions paid into a nominatedsuperannuation fund by their employer.7. Tools and equipment: you would generally need to provide an employee with the tools and equipmentthey need to do their work.The Fair Work Australia website has detailed information about employee entitlements and shouldbe your first point of reference.IN CASE OF A DISPUTEFair Work Australia is the national body concerned with workplace relations and they operate underthe terms of the Fair Work Act 2009. They can assist with resolving disputes between employers andemployees (see link at the end of this chapter).INDEPENDENT CONTRACTORS – AT A GLANCEThis section is downloaded from the DPCD website – NFP compliance support centre. It provides abrief overview of the obligations for NFPs in relation to independent contractors.1. Relevant Acts: independent contractors are covered under the Independent Contractors Act 2006(Commonwealth) and are also entitled to some general protections under the Fair Work Act 2009(Commonwealth) including protection from unlawful discrimination.2. The work: an independent contractor is usually responsible for doing a set piece of work or working for anagreed period of time. They will usually decide how they’ll do the work and they generally have theexperience and skill to do so without additional training. You should clearly define the work in youragreement with the contractor.Page 43 of 99Brimbank Community Governance Handbook

3. Operation and structure: an independent contractor may be operating as a registered business and oftenwill have their own registered business and Australian Business Number (ABN) and may also be doingwork for other organisations or businesses. They may accept or refuse additional work, outside the termsof your agreement with them.4. Payment: you would normally pay an independent contractor for results, e.g. when a project has beendelivered or they have completed an agreed number of hours’ work. To avoid misunderstandings anddisputes, your agreement with the contractor should clearly state when and on what basis you will pay thecontractor.5. Superannuation and GST: an independent contractor takes care of their own superannuation and GSTpayments and holds their own insurance policies.6. Tools and equipment: an independent contractor provides their own tools and the materials andequipment required to complete the work.IN CASE OF A DISPUTEIf a dispute arises with an independent contractor and they are performing work as a business entity(e.g. sole trader, company or partnership), you will be able to get help through the DisputeSettlement Centre Victoria, provided by the Department of Justice (link in last section of thischapter).The basis of your arrangement with an independent contractor is the agreement you have withthem. The independent contractor’s page on the business.gov.au website has sample agreementsand information about responsibilities, intellectual property, entitlements and resolving disputes(see link in last section of this chapter).Under the Independent Contractors Act 2006, a contractor or the organisation can apply to a courtfor an order to have the contract (or a part of it) revoked or varied on the grounds that it is ‘harsh’ or‘unfair’. This could happen if the independent contractor believes that he or she is being paid at arate that is, or is likely to be, less than an employee would get for performing similar work. For moreinformation, go to the business.gov.au website to see the process you should follow, includinginformation about going to court.VOLUNTEERSDEFINITION AND PRINCIPLES OF VOLUNTEERINGVolunteers are important to NFP organisations. Many community organisations are completelyvolunteer-run, or rely heavily on the commitment and support of their volunteers. While thedefinition of ‘volunteer’ may vary a little depending on who you ask, some things about volunteersremain true across all definitions:volunteers are working voluntarily. You cannot force a volunteer to work;either the volunteer or the organisation can stop the arrangement;an organisation is not required by law to make any kind of payment to a volunteer inexchange for their work;Page 44 of 99Brimbank Community Governance Handbook

whatever agreement is in place with a volunteer, it does not tie the organisation or thevolunteer into a legally binding arrangement;volunteers may be reimbursed for out of pocket expenses and may also receive paymentssuch as an allowance, or an ‘honorarium’, which is a payment made freely and with noobligation;volunteers can receive non-cash benefits, e.g. free tickets, free access to services but if thesetypes of benefits are accepted regularly and have substantial value, they may need to betaxed;volunteers are protected by the Equal Opportunity Act and have the right to work in a safeenvironment.Volunteering Australia has developed principles and definitions of volunteering, following extensiveconsultation. The link to this website is contained in the reference section at the end of this chapter.They are included here.Definition of Formal VolunteeringFormal volunteering is an activity which takes place through not for profit organisations or projectsand is undertaken:• to be of benefit to the community and the volunteer;• of the volunteer’s own free will and without coercion;• for no financial payment; and• in designated volunteer positions only.Principles of Volunteering• Volunteering benefits the community and the volunteer;• Volunteer work is unpaid;• Volunteering is always a matter of choice;• Volunteering is not compulsorily undertaken to receive pensions or government allowances;• Volunteering is a legitimate way in which citizens can participate in the activities of their community;• Volunteering is a vehicle for individuals or groups to address human, environmental and social needs;• Volunteering is not a substitute for paid work;• Volunteers do not replace paid workers nor constitute a threat to the job security of paid workers;• Volunteering respects the rights, dignity and culture of others; and• Volunteering promotes human rights and equality.Page 45 of 99Brimbank Community Governance Handbook

RIGHTS AND RESPONSIBILITIES OF VOLUNTEERSUnlike paid staff, volunteers are not covered by awards or work-place agreements. Volunteershowever do have rights, some which are enshrined in legislation and some which could beconsidered the moral obligations of an organisation involving volunteers.The following volunteer rights have been developed by Volunteering Australia (see also website linkat the end of this chapter).As a volunteer you have the right:• to work in a healthy and safe environment (refer various Occupational Health and Safety Act[s]);• to be interviewed and engaged in accordance with equal opportunity and anti-discriminationlegislation;• to be adequately covered by insurance;• to be given accurate and truthful information about the organisation for which you are working;• to be reimbursed for out of pocket expenses;• to be given a copy of the organisations volunteer policy and any other policy that affects your work;• not to fill a position previously held by a paid worker;• not to do the work of paid staff during industrial disputes;• to have a job description and agreed working hours;• to have access to a grievance procedure;• to be provided with orientation to the organisation;• to have your confidential and personal information dealt with in accordance with the principles of thePrivacy Act 1988; and• to be provided with sufficient training to do your job.Page 46 of 99Brimbank Community Governance Handbook

Check that:• The organisation is a not for profit;• The purpose of the organisation matches your own values and beliefs;• The organisation carries volunteer insurance;• Your role is clear and specific;• The organisation can provide you with written information about its purpose and activities; and• You are satisfied that the funds of the organisation are expended in accordance with its mission.UNDERSTANDING THE DETAILS OF WORKING WITH VOLUNTEERSThere are many organisations, like Volunteering Victoria, Volunteering Australia, VCOSS andVolunteer West that have extensive and practical resources for volunteers. Volunteering Victoriaand Volunteering Australia have online resources about volunteer recruitment and managementissues, including extensive information regarding rights and responsibilities. Volunteer West hasdeveloped a manual, “Volunteer Management Essentials: A Best Practice Toolkit for Not-For-ProfitOrganisations”, which has all the information which you need to help you work collaboratively withyour volunteers and get the best out of their contribution. We have provided links to some of themost useful resources (see Reference Section at the end of this chapter).LEGAL OBLIGATIONS TO VOLUNTEERSThe PilchConnect website has useful information about legal obligations in relation to volunteers.This covers legal issues that may arise when attracting, screening, selecting and managingvolunteers. PilchConnect indicates:Your organisation owes its volunteers certain legal obligations. These are sometimes hard to workout - the way that the law applies to volunteers is often very different from the way that it applies toemployees and independent contractors. Also, there are laws which provide that, in certainsituations, your organisation will be held legally responsible for the actions of its volunteers. Thismakes it crucial for your organisation to have good volunteer management practices and policies(and insurance) in place.The link to this section of the PilchConnect website is in the Reference Section at the end of thischapter.Page 47 of 99Brimbank Community Governance Handbook

VOLUNTEER HEALTH AND SAFETY IN COMMUNITY ORGANISATIONSWorkSafe has developed a booklet to help you provide a safe and healthy environment for yourvolunteers: “Volunteer Health and Safety: a handbook for community service organisations, 2008”.This handbook includes general health and safety information for people who manage volunteers incommunity service organisations. It may also be of use to volunteers themselves. (see WorkSafewebsite – link at end of this chapter).The NFP compliance support centre website has useful links and information regarding keepingvolunteers and workers safe. This is arranged by topic with appropriate links (see link at end of thischapter).WRITTEN AGREEMENTS WITH YOUR VOLUNTEERSThere is no legal requirement for a written agreement with a volunteer, supplier or contractor.However you may find that a written agreement, clearly defining roles and responsibilities so thatthe organisation and the volunteer understand what both parties expect of each other will assist ifthere is a dispute or may help prevent disputes taking place.LIABILITY FOR THE CONDUCT OF VOLUNTEERSUnder the terms of the Wrongs Act 1958 (Vic), there are some circumstances where an organisationis liable for something that a volunteer does. If this happens, the liability can extend to individualoffice bearers, committee members or directors (depending on the structure of your organisation).If you are unsure about whether your organisation is liable, get advice from a lawyer (Pilch).PilchConnect indicates that in Victoria, there are laws which do not hold volunteers personally liablefor anything done (or not done) in good faith while doing community work that is organised by acommunity organisation. These laws provide that any liability (legal responsibility) resulting fromthe actions of these volunteers may transfer to the community organisation, so that the organisationwill be held liable to injured parties, instead of the volunteer.These laws were introduced in Victoria in 2002 and are set out in the Wrongs Act 1958 (Vic).PilchConnect has developed a Fact Sheet which provides more details about liability and volunteers:“Volunteer civil liability protection in Victoria”. A checklist, to help you work out whether yourorganisation is responsible for the actions of volunteers is also useful - “Checklist: Is our organisationliable for its volunteers under the Wrongs Act 1958 (Vic)?” The link to the relevant part of thePilchConnect website is at the end of this chapter.DISCRIMINATION AND EQUAL OPPORTUNITYUnder the terms of the Equal Opportunity Act 2010 (Vic), the rights of volunteers are not alwaysclearly defined. No organisation is required to take on a person as a volunteer if they believe theywill be unable to do the tasks required. However, if a person applying for a volunteer role feelstreated unfairly on the basis of a personal characteristic covered by the Equal Opportunity Act, theymay decide to take action against the organisation that they believe treated them unfairly. TheVictorian Equal Opportunity and Human Rights Commission has a range of fact sheets and frequentlyasked questions about the rights of volunteers.Page 48 of 99Brimbank Community Governance Handbook

PAYMENTS AND VOLUNTEERSVolunteers can receive non-cash benefits, e.g. free tickets, free access to services, but if these typesof benefits are accepted regularly and have substantial value, they may need to be taxed. Yourorganisation may also pay 'one-off', 'honoraria', or 'ex gratia' payments. These are payments thatcarry no expectation of an exchange of work for pay. The Australian Taxation Office (ATO) websitehas information about when tax might become applicable for volunteers. They have produced aguide for organisations and volunteers (see link at the end of this chapter).MANAGING DISPUTESEven with the best of intentions, problems can arise. Your avenues for dispute resolution will bedifferent depending on the type of dispute, the legal structure of your organisation and whether youhave volunteer agreements in place. If there is a problem, first check your rules or constitution andany agreements you have with the volunteer.If the matter cannot be resolved easily, you may be able to access the Dispute Settlement CentreVictoria (DSCV), managed by the Department of Justice (DoJ) (see link at end of this chapter).BACKGROUND CHECKS ON EMPLOYEES, CONTRACTORS ANDVOLUNTEERSThis section has been downloaded from Not-for-profit compliance support centre website.When recruiting workers of any sort for your organisation, there may be some legally requiredbackground checks, as well as other checks that are recommended as part of the organisation's dutyof care. For example, if you have not completed background checks, the organisation may be liablefor damage incurred by someone working for your organisation.There are few hard-and-fast rules about background checks. The decision has to be about the riskthat applies for your organisation. You should take special care if employees or independentcontractors are working with children, the elderly, and people with disabilities or if a volunteer willhave responsibility for finances or driving a vehicle.WORKING WITH CHILDREN CHECKSA working with children check is a legal requirement for workers who will have contact with childrenduring the course of their work with your organisation. The Working With Children Check (WWC) isadministered by the Department of Justice (DoJ). This applies to employees, contractors andvolunteers.Page 49 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSEMPLOYEESFair Work Australian websiteFair Work Australian - DisputesNFP Compliance Support CentrePILCH – a guide for Victorian NFP organisations; “Employee, contractor or volunteer?”CONTRACTORS AND CONSULTANTSDispute Settlement Centre VictoriaAustralian Governments principle business resource: Independent contractor’s pageVOLUNTEERSVolunteering AustraliaDepartment of Planning and Community Development: Volunteering Victoria portalBoth of these sites have extensive resources and information for organisations as well as volunteers.Volunteers and the Equal Opportunity Act 2010 - Information for organisations:This page on the Victorian Equal Opportunity and Human Rights Commission website provides anumber of fact sheets in relation to volunteers and different aspects of the Equal Opportunity Act2010.Australian Taxation Office: Volunteers and TaxThis is a link to a guide produced by the ATO in relation to tax matters and volunteers: “Guide fornon-profit organisations and individuals: Volunteers and tax Treatment of transactions betweennon-profit organisations and volunteers”Volunteer Australia: Best PracticePage 50 of 99Brimbank Community Governance Handbook

LEGAL ISSUES REGARDING VOLUNTEERSPilchConnect: VolunteersNot-For-Profit Compliance Support CentrePILCH Fact Sheet: Volunteer civil liability protection in VictoriaPILCH Checklist: Is our organisation liable for its volunteers under the Wrongs Act 1958 (Vic)?Dispute Settlement Centre of Victoria (DSCV)WORKING WITH CHILDREN CHECKWorking with children checkSAFETYNot-For-Profit Compliance Support Centre: Keeping-your-workers-safeA Handbook For Community Service Organisations - Volunteer Health And SafetyPage 51 of 99Brimbank Community Governance Handbook

CHAPTER FOUR: MANAGING YOUR FINANCESNOT-FOR-PROFIT DOES NOT MEAN NOT MAKING MONEYFinances are an important consideration for NFPs. The term ‘Not-For-Profit’ can be misleading – itcan give the impression that a NFP organisation should not make any money. A NFP will generallyneed to make money, if only to cover the costs of day to day operations and to run events and otheractivities.‘Not-For-Profit’ simply means that any surplus funds must not be used for the profit (gain) of anyindividual member.This definition is also true if a NFP winds up – the way that any surplus funds at that time will bedistributed will depend on the organisation type; they are not to be distributed to directors, officebearers or members of the organisation that is winding up (Not-for-profit compliance supportcentre).RESPONSIBILITY FOR OVERSEEING THE FINANCESThe golden rule is that the committee of management (or board) of an incorporated association isultimately responsible for managing the finances of the organisation. And, importantly, you cannotleave it up to the Treasurer or the auditor – the law is clear that all members of the managementcommittee and directors of corporations are directly responsible for making sure that the financesare accurate, up-to-date and for managing the association’s finances. This is clear in theAssociations Incorporation Reform Act (2012), as well as a lot of case law on this issue(PilchConnect).Under the Associations Incorporation Act, the powers of incorporated associations in relation tofinancial management include:If not immediately required, investing money of the incorporated association from time totime;Raising or borrowing money on terms and in the manner it thinks fit; andSecure the repayment of moneys so raised or borrowed or the payment of a debt or liability of theincorporated association by giving mortgages, charges or securities upon or over all or any of theproperty of the incorporated association; andDo all such other things as are incidental or conducive to the attainment of the purposesand the exercise of the powers of the incorporated association.PilchConnect has developed a really useful Fact Sheet about the financial reporting obligations for aVictorian Incorporated association (see link at the end of this chapter).PilchConnect indicates that the rules (constitution) of an incorporated association must state thepowers of the committee of management (see Schedule of the Associations Incorporation Act). Anassociation's rules will often state that the committee of management must manage and control thePage 52 of 99Brimbank Community Governance Handbook

usiness and affairs of the association. Courts have often determined that duties of the committeemembers are similar to those of the board of directors of a company, and include:A duty to exercise reasonable care and skill in managing the affairs of the association(including the financial affairs); andA duty to prevent insolvent trading by the association.See the list below for information for the most common types of NFP organisations:responsibilities in an incorporated associationresponsibilities in a company limited by guaranteeresponsibilities in an indigenous corporationresponsibilities in a co-operative.For more information about the duties of committee of management members, see PilchConnect’s“Guide to the Legal duties of Committee and Board members of Community Organisations” (see linkin last section of this chapter).RECORD KEEPING, AUDITING AND REPORTINGYour obligations around record keeping, reporting and auditing will depend on what type oforganisation you are (your legal structure), the types of transactions you do and your annualturnover. However, regardless of the type of organisation, your NFP should keep accurate and upto-daterecords of financial transactions. The NFP compliance website provides the followingsummary with links for further information:Incorporated associations: If your NFP is an incorporated association, you will need tomaintain accurate accounts. According to Section 89 of the Associations IncorporationReform Act (2012), financial records must be kept for seven years. See information on theConsumer Affairs Victoria (CAV) website (link at the end of chapter) about accounting andauditing for incorporated associations.Companies limited by guarantee: If your NFP is a company limited by guarantee, there arespecific compliance considerations, detailed on the Australian Securities and InvestmentCommission (ASIC) website (link at end of chapter).Co-operatives: If your NFP is a co-operative, there is a range of records you need to keep,including financial records. The complete list and additional information is available on theCAV website.Indigenous corporations: If your NFP is an indigenous corporation, you must keep financialand other records so that you comply with the Corporations (Aboriginal and Torres StraitIslander) Act 2006 (CATSI Act). Information about what financial records must be kept byyour corporations is available on the Office of the Registrar of Indigenous Corporations(ORIC) website (link at end of chapter).Page 53 of 99Brimbank Community Governance Handbook

TAX ISSUESNot-for-profit community organisations are required to comply with both Commonwealth and Statetax laws.In general, your community organisation may need to pay tax on things like the income it receives,and GST on goods and services supplied, or stamp duty on a purchased property.Some NFPs are entitled to exemptions, concessions or rebates in relation to certain taxes. An'exemption' is where the organisation does not have to pay the tax at all, a 'concession' is where theorganisation pays a reduced rate of tax, and a 'rebate' is where an organisation can claim back sometax paid.There are other tax benefits that not-for-profit community organisations may be eligible for. Forexample, organisations that apply for, and are endorsed as, deductible gift recipients (DGR) areentitled to receive tax deductible gifts and contributions.PilchConnect advises that it is best to get your organisation's tax issues right, at the beginning. Thisis because you may need to include special wording in your organisation's constitution (or rules) tobe eligible to apply for tax concessions or endorsements. Also, the way you set up an organisation(i.e. defining who the members are) may also have an impact on tax liability, as there are laws thatallow membership income to be treated as tax exempt in certain circumstances.You may need to seek specialist legal or accountancy advice on tax issues when establishing yourorganisation. See Section Two for information on setting up your organisation.ANNUAL TAX RETURNSThe Australian Taxation Office (ATO) is the most important source for information on tax matters forNFPs. It produces a guide each year to help taxable non-profit groups; societies and associationscomplete the company tax return and explains some common errors and their consequences.Tax obligations for NFPs cover income tax, fringe benefits tax (FBT), Goods and Services Tax (GST),land tax and stamp duty. Other issues which you may need to consider include:tax concessions, rebates and exemptions (FBT, Income Tax, Land Tax, Stamp Duty);receiving tax deductible gifts;GST;employer obligations (PAYGW, Super, FBT);ABN and TFN withholding.Relevant links to the Not-for-profit Compliance Support Centre are at the end of this chapter. TheATO website has an entire section for NFPs – see link at the end of this chapter.Page 54 of 99Brimbank Community Governance Handbook

SUPPLIER DISCOUNTSSome suppliers offer discounts to NFPs but they may ask you to provide evidence that you are a NFPorganisation before they will give the discount.A supplier may list endorsement by the ATO as the kind of evidence they need, but someorganisations do not receive endorsement from the ATO. The ATO will endorse eligible NFPs as:a tax concession charity (TCC) or income tax exempt fund (ITEF);a deductible gift recipient (DGR).If your organisation has not received endorsement from the ATO in one of the above categories,other documents that are evidence of your NFP status include your organisations:rules of association (for incorporated associations);constitution (for companies limited by guarantee);rules (for co-operatives);rule book (for indigenous organisations); andregistration with other regulatory bodies that require an organisation to be a Not For Profit.You will find information on supplier discounts on the ATO website (links at the end of this chapter).Page 55 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSAUSTRALIAN TAXATION OFFICE (ATO)Australian Taxation Office (ATO)The ATO is the government agency responsible for (federal) taxes in Australia.Australian Tax Office: Non-Profit HomepageThis section of the ATO's website is dedicated to providing not-for-profit organisations withinformation about the tax they must pay, as well as the tax concessions that they may be eligible for.ATO Guide: Tax basics for Non-Profit organisationsThis ATO guide provides an overview of tax obligations and concessions for not-for-profitorganisations, and may help to identify which taxes affect your organisation.ATO Guide: Objecting to a taxation decisionThis guide provides guidance on the steps that should be taken if you disagree with a decision by theATO which affects your community organisation.LEGAL AND GENERAL INFORMATION ON MANAGING YOUR FINANCESAustralian Institute of company director: Not-for-profit organisationsNot-or-Profit organisations section of their website has useful information about understanding theNFP sector, the contribution and duties of NFP directors, the role of the NFP board, governance toolsand characteristics of good NFP governance.PilchConnect: tax and financeLegal information on setting up, managing and reporting on your organisation’s financial and taxsituation. It also provided information about tax concessions and exceptions, as well as whatfinancial records need to be kept and who is responsible for them.PilchConnect: Guide to the legal duties of Not-For-Profit committee members in VictoriaPilchConnect: Financial reporting obligations for Victorian Incorporated associationsNot-For-Profit Compliance Support Centre: Managing-Your-FinancesConsumer Affairs Victoria: information on financial reportingPage 56 of 99Brimbank Community Governance Handbook

RECORD KEEPING, AUDITING AND REPORTINGNot-For-Profit Compliance Support Centre: financial reporting and auditingConsumer Affairs Victoria: Incorporated AssociationsAustralian Securities and Investment Commission: company limited by guaranteeOffice of the Registrar of Indigenous Organisations: indigenous corporationConsumer Affairs Victoria: Responsibilities of a Co-operativePage 57 of 99Brimbank Community Governance Handbook

OVERVIEWCHAPTER FIVE: RAISING MONEYAll community organisations need to raise money. As indicated in the previous section, yourorganisation will generally need to make money, if only to cover the costs of day-to-day operationsand to run events and other activities.Some really good information is available to help you with how to manage the process of raisingmoney. Many of you will also regularly receive lots of information from a variety of sources whichsupport fundraising activities, such as selling various goods.The ‘ourcommunity’ website is particularly useful. We have re-produced some of their advice here.The fundraising information here describes ‘The Six Pillars of Fundraising’. They advise that yourcommunity group's money needs to be coming from as many sources as you can manage and raisedby as many people as you can coordinate. Further, they indicate that most groups get into troublebecause they have only two or three sources of funding, or because they have only two or threepeople really involved in raising money. If any one of the sources or any of the people leave, theorganisation starts to slide into trouble.A good fundraising plan rests on six pillars. These areDonations;Grants;Community-Business Partnerships;Membership/Alumni/Friends;Special Events; andEarned Income.As the ‘ourcommunity’ website indicates, to survive and thrive in a changing world, you need to bedrawing from all six. This section provides some information about how to manage the fundraisingprocess and refers you to some useful websites so you can seek further information. We haveprovided an overview of the administrative and legal issues which you may need to consider(PilchConnect provides useful information – link at the end of this chapter).Page 58 of 99Brimbank Community Governance Handbook

FUNDRAISING OPTIONSThere are a number of sources of funds that your organisation might be able to tap into. Theseinclude:Grants - identify federal, state or local government, philanthropic and corporate grantprograms open to your group;Sponsorship - identify possible major and minor sponsorship arrangements your group couldpursue. This could include, but not limited to, naming rights for your team, building,uniforms, scoreboard, events, players, trips, newsletter and lunches. (Click here for moreinformation about sponsorships and other forms of community business partnerships.)Membership Fees - introduce different levels of membership or association fees such asstandard,family, non-playing, "friends of" or associate membership, "Angels" or "Gold"membership, lifetime members or three-game members. - and charge a fee for each.Bequests - provide general information or personal approaches to long-time benefactorsand supporters about how they can provide an ongoing gift for your organisation.In-kind Support - you might be able to get donations of everything from a venue or office tooffice supplies, printing and photocopying, transport, entertainment, pro bono work (legal,accounting, IT, marketing/public relations, auditing), gifts, subscriptions, uniforms and so on.Donations - set up your organisation to receive online donations. Pursue personaldonations, general appeals, direct mail, and appeals to your email database of all formerplayers, members and supporters.Special Events, including:‣ Sales, fetes.‣ Trivia nights, fashion parades, talent contests, art shows with a local retailer orgallery, dances and discos, film nights, restaurant functions;‣ Various 'athons’, with club members and players gaining sponsorship for awalkathon, readathon, skipathon, workathon or skillathon;‣ Games' nights using casino-type games and "play" money;‣ Sponsored record attempts or other similar quests;‣ Fun runs (carefully check legal requirements with local authorities); and‣ Raffles, competitions, auctions - major items, memorabilia, services, travel, gifts,tickets, etc.Merchandising - sell your club clothing, office products, sports products or glassware.Sales - sell your goods and services.Page 59 of 99Brimbank Community Governance Handbook

GRANTSMuch of the information in relation to grants is reproduced from the PilchConnect website (link is atthe end of this chapter). As they point out, the information is intended as a guide only, and is notlegal advice.The terms 'grant' and 'funding' are not technical terms although, in general, grant is usually used todescribe a one-off provision of money, whereas funding describes a longer term agreement.Organisations that give out grants or funding to community organisations (grant-makers) include:government bodies or statutory authorities (federal, state or local government).philanthropic or other grant-making organisations.corporate bodies (that is, businesses).BEFORE APPLYING FOR GRANTSPilchConnect recommend that you check a number of things before applying for a grant. Pleasecheck the PilchConnect website.YOUR ORGANISATION’S INTERNAL REQUIREMENTSCheck the constitution or rules to see if they contain any requirements about 'funding sources'. Ifthere are clauses that prohibit your organisation from receiving funds from outside bodies (or it isnot consistent with your organisation's objectives or purpose), your organisation will need to complywith its rules.Alternatively your organisation will need to make a change to its constitution / rules before applyingfor grants or funding from external sources.GRANT-MAKER REQUIREMENTSResearch the bodies to which you might apply to seek funding. Many have particular rules about thekind of organisations they will give money to. For example, most philanthropic organisations andmany government organisations will only give grants and funds to community organisations that areincorporated.Another example is that certain philanthropic organisations have a (legal) requirement that they canonly give grants or funding to organisations that have deductible gift recipient (DGR) tax status. Ifyour organisation wants to apply for grants from these bodies, it will need to apply to the ATO to seewhether it is eligible for this status first (see Section Four).It may be possible for you to receive a grant through another organisation (an Auspice), which isincorporated. This requires a good partnership with that organisation and a clear, writtenagreement in relation to the receipt and use of the funds. It is important that this arrangement beclearly understood and agreed to by the funding body.Page 60 of 99Brimbank Community Governance Handbook

GRANT AMOUNT AND CONDITIONSIn general, before applying for a grant or funding, your organisation should read the conditions ofthe grant and be sure that it can comply with them. It is common for grants to have a series ofconditions attached to them. These conditions may involve things like:how your organisation is to receive and spend the grant money;how often your organisation must report to the grant-making organisation;what kind of information your organisation must provide to the grant-making organisation inits reports; andwhether your organisation is required to prepare audited accounts (which can be costly,especially if these are not currently obtained by your organisation).Ensure that it is in the best interest of your organisation to accept the grant. In most cases, whenyou receive grant money, your organisation will be considered to be in a contract with the grantmaker.The grant conditions will be the terms of that contract and your organisation will be under alegal obligation to comply with them.READ AND UNDERSTAND THE CONDITIONSIt is important for your organisation to read and understand the conditions of the grant. While itmight be that the funding agreement is a standard form agreement, there may still be requirementsin the conditions your organisation can not comply with. As they say, read the fine print! Seekadvice if you do not understand the conditions before you sign anything.AGREEING TO THE CONDITIONSAfter your organisation has read and understood the conditions, the Committee or Board of yourorganisation then needs to decide whether the organisation should agree to them. Though it mayseem important for your organisation to receive the funding, there are several reasons why yourorganisation may not want to agree to all the conditions without further negotiation, including:the conditions are inconsistent with your organisation's goals, purposes, values orobjectives;the conditions are too administratively onerous;the conditions are too restrictive in terms of how you spend your money; and/orthe obligations under the conditions continue too far into the future.The funding agreements may also require you to comply with a piece of legislation, regulation orguide outside of the agreement itself. In this situation, your organisation will need to read,understand and comply with that legislation, regulation or guide. For example, an agreement with agovernment agency may require your organisation to comply with federal or state privacy laws. Inthis case, you must comply with the privacy legislation as it forms part of your contract with thegovernment agency.Page 61 of 99Brimbank Community Governance Handbook

USING THE GRANT OR FUNDINGIt is important to keep the conditions of the funding in mind. The funding agreement is considered acontract. That means that your organisation needs to comply with the conditions under the contractfor as long as the contract is in force. It is a good idea to periodically review the conditions to makesure that your organisation is complying with them.NON-COMPLIANCE WITH THE CONDITIONS OF THE GRANT OR FUNDINGFailure to comply with the conditions may be considered a 'breach' of the contract. Your communityorganisation may be required to repay the grant or funding. Common failures to comply with agrant agreement include:not using the funds as directed;not returning surplus funds;not reporting back to the grant-maker as required; andnot complying with any additional material outside of the contract itself (for example, otherActs or regulations).Failure to comply may also damage your reputation with grant-makers and make it difficult for yourorganisation to get other grants or funding.APPLYING FOR GRANTS AND FUNDINGThere are many websites available to assist community organisations to find out the variousgovernment grants available, and to help you with applications. Links to some of these websites arein the Related Resources section below.TAX CONSIDERATIONSGOODS AND SERVICES TAX (GST)PilchConnect indicate on their website that this is a difficult issue. Whether you are required to payGST will depend on the circumstances including:whether your organisation is registered or required to be registered for GST purposes; andwhether there are specific conditions attached to the grant Check with the ATO (link is listedbelow) and PilchConnect website for further information.INCOME TAXGenerally, unless the organisation is exempt from paying income tax, an organisation will berequired to pay income tax on grants or funding received.Check the PilchConnect website for more information.Page 62 of 99Brimbank Community Governance Handbook

FUND RAISING ACTIVITIESThe Fundraising Act 1998 (Vic) says a ‘fundraiser’ is any person or organisation that collects money,food, clothes or other items for a beneficiary or a cause, including collections on behalf of someoneelse. This includes collecting food, clothes and other items on behalf of a person or organisation. Anorganisation collecting for commercial benefit or for the profit of individual members is notconsidered to be fundraising. (refer to the CAV website for more information - link at the end of thischapter).Examples of fundraising activities include:doorknock appeals*;telephone appeals;traffic intersection and highway collections*;golf days, movie nights and trivia nights;dinner dances and balls;public auctions;clothing bins;sale of goods at opportunity shops;appeals run by commercial fundraisers;public appeals to support groups, associations, causes or people; andsale of goods where part of the sale price is donated to a charitable organisation or cause.*Requires a permitSource: CAV website information, last updated: 29/06/2012.EXEMPTION FROM REGISTRATIONThere are exemptions for some types of organisations and fundraising activities. A full list of exemptorganisations and exempt activities is available in the fundraising section of the CAV website.REGULATIONS APPLYING TO SPECIFIC FUNDRAISING ACTIVITIESThe following information is sourced from the NFP Compliance Support Centre. PilchConnect hasvery useful information about the legal issues regarding fundraising. It is worth checking out thisinformation prior to organising fundraising (links in last section of this chapter).COLLECTING MONEY ON ROADS AND AT INTERSECTIONSIn line with regulation 28 of the Road Safety (Traffic Management) Regulations 2009 (Vic), you willneed a permit to collect on a public road. The Road Policing Strategy Division at Victoria Police hasinformation on how to apply for a permit to collect on a public road. A link to the relevant website isat the end of the chapter.Page 63 of 99Brimbank Community Governance Handbook

COLLECTING ON THE FOOTPATH, NATURE STRIP OR OTHER PUBLIC AREAIf you are collecting on the footpath, nature strip, public car park or other part of the road or Councilland, you will need a permit from the local council. You should contact council with plenty of noticeto ensure there is enough time to process the application.COLLECTING MONEY OR OTHER DONATIONS DOOR-TO-DOORYou will need a permit from the local council if you want to collect door-to-door. You should contactthe council with plenty of notice to ensure there is enough time to process the application.Bingo, Raffles, Calcutta sweepstakes & Lucky EnvelopesRAFFLESYour organisation may only benefit from funds raised by a raffle if it has been declared ascommunity or charitable organisation by the Victorian Commission for Gaming Regulation (VCGR).You may require a permit to run a raffle. The raffle frequently asked questions page on the VCGRwebsite answers questions about raffles including special requirements for prizes, how long you cansell tickets for, and when to draw the winners.If a raffle is being run for your organisation by someone else, they will also have rules to follow. Theraffles frequently asked questions page on the VCGR website is also the correct place to go for thisinformation.CALCUTTA SWEEPSTAKESIf you plan to run a Calcutta sweepstakes for fundraising you will need to apply for a permit, asrequired by the Gambling Regulation Act 2003 (Vic). The Racing and Betting Permits and Licencespage on the Department of Justice (DoJ) website has information on applying to the Minister toconduct a Calcutta sweepstakes.BINGOIf your organisation has been declared (registered) by the Victorian Commission for GamingRegulation (VCGR) as a community or charitable organisation, you can conduct bingo or arrange fora licensed Bingo Centre Operator to run a bingo games on your behalf. You will also need to submita notification of commencement of bingo sessions to the VCGR at least seven days before the firstbingo session.PATRIOTIC FUNDSYou must establish a patriotic fund if you plan to collect funds, receive subscriptions, or requestdonations for anything related to any military service or duty. More information about patrioticfunds is available on the Consumer Affairs Victoria (CAV) website.Page 64 of 99Brimbank Community Governance Handbook

SPONSORSHIPPilchConnect has information you need to consider in relation to sponsorship (relevant links at theend of this chapter).GIFTS, WILLS, BEQUESTS AND ENDOWMENTSPilchConnect has useful information and links to other information and websites, to help youunderstand the legal issues about gifts, wills, bequests and endowments. The information is takendirectly from their website, as it is simple and easy to understand.Sometimes people will make a gift to your organisation, or leave a bequest or endowment justbecause they like your organisation’s work or have a connection with your organisation.Alternatively, rather than leaving it to chance, some organisations actively ask for people to makegifts to their organisation, or leave money to the organisation in their will.If your organisation is asking for bequests or endowments, it is useful to provide standard wordingto potential donors so that your community organisation can be assured that any bequests orendowments left by the donor will be legitimate in law. It may also be useful for your organisationto provide the wording for the bequest or endowment so that it can direct the way that funds can beused (that is, avoid difficult or impractical conditions).UNDERSTANDING THE DIFFERENT TYPES OF MONEY OR PROPERTY GIVEN TO THEORGANISATIONThe table below provides a description of the difference between the types of money or propertygiven to a community organisation.Legal termGiftWillWhat does it mean?A sum of money or an asset (property or goods) voluntarily transferred to yourcommunity organisation by someone that is to the advantage of your communityorganisation. The person giving you the money or an asset does not receive anythingin return.A document in which someone specifies how to deal with or allocate their assets aftertheir death. Wills can contain bequests or endowments to your communityorganisation.Bequest A sum of money or an asset that is given to your community organisation upon theowner's death as specified in the owner's will. The bequest can be given 'freely',which means that your organisation may choose to deal with it as it sees fit, or it canbe given with conditions, which must be honoured.Endowment An endowment is normally a fund (amount of money), which is established to providean income for 'beneficiaries' - your community organisation can be the sole or one ofseveral beneficiaries. The fund is usually invested in ‘perpetuity’, which means thereis no time limit for its end. Only the income is distributed, not the original capitalamount. So, the endowment fund will be set up with a sum of money, and thismoney is then invested by the trustees (managers) of the fund, and a ‘dividend’ or adistribution is paid to those beneficiaries under the terms of the fund.Source: www.pilch.org.auPage 65 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSGRANTSLegal and Other ResponsibilitiesPilchConnect: grants and government fundingPilchConnect: income tax and exemptions from income taxThis link takes you to the information on the PilchConnect website in relation to taxation and grants.FIND A GRANTVolunteer Victoria: GrantsPhilanthropy Australia's wiki: provides information about philanthropic giving in AustraliaGrantready: offers free assistance to community organisations to find, and apply for, relevant grantprograms.Volunteer Victoria: grants and fundingThis site provides links to the major funding sources. This includes:→→→→→Victorian government grantsFederal government grantsLocal government grantsPhilanthropic programsGrants and funding databasesourcommunity: the community funding centreOurcommunity provides extensive information about fund raising generally and also has a grantsdatabase to help you find grants and funding that may match your needs.TAX AND GRANTSAustralian Taxation Office: fundraisingThis is an ATO Guide which explains the income tax and GST treatment of grants and funding.Page 66 of 99Brimbank Community Governance Handbook

FUNDRAISINGConsumer Affairs Victoria: fundraisersThis link to Consumer Affairs Victoria (CAV) provides the information you need about regulationsand liability in relation to fundraising.Not-For-Profit Compliance Support Service: fundraisingThis links you to the information on fundraising on the NFP compliance support centre site.Permits for FundraisingPermit to collect on a public roadThis is a link to the relevant page on the Victoria Police website.Raffle FAQsThis link takes you to the relevant page on the Victorian Commission for Gaming Regulation (VCGR)website.Racing and Betting Permits and LicencesThis link takes you to the Racing and Betting Permits and Licences page on the Department of Justice(DoJ) website. It has information on applying to the Minister to conduct a Calcutta sweepstakes.BingoThis link takes you to the relevant ‘bingo’ page on the VCGR website. It includes all the informationyou need, including the forms to complete.RegistrationConsumer Affairs Victoria: exemptions from fundraising registrationThis link takes you to the Consumer Affairs website regarding registration exemptions.Patriotic FundsEstablish a patriotic fundIf you want to raise money for war veterans, you need to read this information about Patriotic funds.Page 67 of 99Brimbank Community Governance Handbook

GIFTS, WILLS, BEQUESTS AND ENDOWMENTSLegislationWills Act 1997 (Vic)This legislation governs wills in Victoria.Administration and Probate Act 1958 (Vic)This is the legislation that regulates the administration of a deceased person's estate.Tax and GiftsAustralian Taxation Office: fundraisingThis ATO Guide explains the income tax and GST treatment of gifts made to your organisation. Itincludes a definition of what is a 'gift' as well as examples and case studies to explain what is'voluntary' and a 'material benefit'.BequestsQueensland University of Technology (QUT): Practical guide for bequest officers - Family provisionand bequests in willsQueensland University of Technology (QUT): bequestsFitzroy Legal Service Law Handbook: provides a section on estates, wills and probate.Page 68 of 99Brimbank Community Governance Handbook

CHAPTER SIX:ORGANISING EVENTSOVERVIEWMost community organisations organise events of some kind. Your organisation may hold an eventto raise money for its activities or for a particular cause, or just to promote the great work it does.Or, it may be that your organisation organises a conference, operates a stall in a local market, holdsan annual dinner and awards night, or organises a weekend away for its members. Somecommunity organisations may be set up solely for the purposes of holding an annual event, like amusic festival (PilchConnect).Both the Not-for-profit Compliance Support Centre and PilchConnect have substantial informationon their websites about running events and the legal issues you need to consider. A summary fromboth of these organisations has been provided in this chapter.A checklist developed by the community arts staff in Council has also been included, to help you runthe best possible event.PERMITS FOR EVENTSThe permits that your community organisation may need to obtain prior to holding an event willdepend on:the type of event;the activities to take place;the facilities which will be provided to patrons and participants; andthe particular requirements of the relevant local council.It is recommended that your organisation checks with the local council to see what council-specificpermits may be required before running your event.EVENTS AND ACTIVITIES WHICH GENERALLY REQUIRE PERMITS OR LICENCESPermits are generally required for the following events and activities:holding an event on council or other public land;setting up a temporary structure or using a venue for a purpose it is not designed for;serving food to the public (more information on this is included below);serving alcohol to the public (more information on this is included below);playing live or recorded music;displaying signs and banners;using gas cylinders to cook or for other purposes;Page 69 of 99Brimbank Community Governance Handbook

using an open flame;using fireworks; andusing the footpath or closing a road.This is not an exhaustive list and there may be other permits required for your event.WAYS TO IDENTIFY WHICH PERMITS MAY BE NEEDEDOne way to identify local, state and federal permits, licences and registrations relevant to your eventis to access the Business Licence Information Service (BLIS) on the Business Victoria website.Permits may be required for the whole event or for aspects of it. You may need one or more permitsfor some events. The rules may vary from council to council where you are holding your event inand the type of event. For example, you will need a permit to hold fireworks, to sell food, to servealcohol or even for signage.You can use Business Victoria’s Business Licence Information Service (BLIS) to find many of thelicences and registrations that your NFP organisation requires throughout its life cycle. This site useslanguage which is suited to commercial businesses, which can be a bit confusing to relate to the NFPsituation. The Not-for-profit Compliance Centre developed some instructions on how to use thissite. We have included these to help you navigate the site. You may wish to check the Not-for-profitCompliance Centre website in case any changes have been made (link at the end of this chapter).FIGURE 6:STEP BY STEP PROCESS TO ACCESS INFORMATION ON LICENCES FOR EVENTSFollow these steps to access information on licences:1. Visit Business Victoria's Business Licence Information Service (BLIS) athttps://services.business.vic.gov.au/licences/prod/start and click ‘Start’ at the bottom rightof the screen2. When responding to the question ‘What type of business are you researching’, do not typein ‘Not For Profit’. Instead, enter in the core business of your NFP organisation (for example‘sport’, 'charity', ‘disability services’, ‘welfare’, or ‘conservation’ ) and click ‘Continue’3. On the next screen, in response to ‘How do you intend to operate your business’, select yourtype of NFP from the drop down menu (see the image below) and follow the prompts tocreate your Information Pack.Page 70 of 99Brimbank Community Governance Handbook

Source:www.nfpcompliance.vic.gov.auVENUE OR EQUIPMENT HIREAn agreement to hire a venue or equipment is usually a legally enforceable contract. It is importantto read the terms and conditions of the contract carefully and make sure your organisation cancomply with these. In particular, your organisation should be aware of the terms and conditionsrelating to insurance or indemnity (see below), and your organisation’s obligations to repair orreplace any damage to equipment or property. And remember, if you are not an incorporated body,you cannot enter into a contract!!!EVENT INSURANCEGETTING YOUR OWN INSURANCEAs the organiser of an event, it is likely your community organisation will need to take out publicliability insurance, particularly if your event is to be held on council or public land.Often the owner of land or venue you want to hire is likely to insist that your communityorganisation has public liability insurance of at least $20 million which is the new standardrequirement across most Victorian Councils. Some Councils and other organisations will also ask youto list them in your policy as an 'interested party' and will request a copy of the policy before givingpermission to hold your event. Your organisation should not ignore these requirements.Your organisation may already have public liability insurance for other activities, but you may needto increase your cover for the event. Check with your insurer. The amount of cover you need shouldbe specified in your agreement with the owner of the land or venue that you are using for yourevent.Page 71 of 99Brimbank Community Governance Handbook

INSURANCE COVER FOR RIDES AND ENTERTAINMENTIf you are engaging other individuals or organisations, such as entertainers providing rides or otheramusements at the event, you should check that their insurance is in order. It may be a condition ofyour agreement to use the land or venue that all parties providing entertainment are covered – readyour agreement for details.To be sure that these third parties comply with the insurance requirements, you can ask them toprovide copies of the insurance certificates for your records. If your community organisation isbooking amusements or other entertainment for an event, insist on a copy of that entertainer'scurrent public liability policy before the event. To better protect the interests of your communityorganisation, try to ensure that your event entertainers and participants have their own publicliability insurance. Even small stall holders should have their own public liability insurance.INSURING WORKERS AT THE EVENTIf you have volunteers, employees or independent contractors working for your organisation at theevent, they should be insured.volunteers: ensure you have personal accident insurance for your volunteers;employees: make sure your WorkSafe injury insurance is up to date and that you haveenough cover;independent contractors: check the agreements you have in place with your independentcontractors. These agreements should specify the cover you need your independentcontractors to have in place. Note: this also applies to musicians or other entertainers.Make sure your contract with third parties is clear about their obligation to take outinsurance and the level of cover your organisation requires them to have in place.INSURING AGAINST PROBLEMS CAUSED BY FOOD YOU SERVEYour public liability insurance is unlikely to cover your organisation if there is an injury resulting fromthe food you serve, for example if the food causes illness or if you have been negligent in handling it.You may need Product Liability Insurance. Check with your insurer.LEGAL OBLIGATIONS AROUND EVENT SAFETYYour organisation will have a legal obligation to make sure the event is safe. Your organisation willowe this obligation to people involved in organising the event, volunteers, employees, independentcontractors and anyone who comes to the event (for example, members of the public).The legal obligation to ensure the event is safe may arise under the common law of negligence.Generally, organisers of an event will owe a duty of care to participants in that event. Briefly, thismeans that an organisation must take reasonable precautions against any foreseeable risk of harmwhich may occur at an event. In determining liability, courts will assess whether your organisationshould have reasonably foreseen that its activities and actions (or inaction) could have caused loss,damage or injury to a participant.Page 72 of 99Brimbank Community Governance Handbook

The legal obligation to ensure the event is safe may also arise under occupational health and safetylegislation; (the Occupational and Safety Act 2004 (Vic), which applies to community organisationsand has a very broad definition of ‘workplace’ which may include the event location.For more information about occupational health and safety laws, see Chapter Two.Council can provide specific advice in relation to safety, security and emergency proceduresapplicable to your community organisation's proposed event.Depending on the nature of your event, you may need to ensure the safety of equipment, goods andpersons. You may wish to consider whether you need to notify or organise for some groups to be atyour event:the Policethe MFB, CFA or SESSt Johns Ambulanceprivate securitythe Victorian Worksafe Authority (WorkSafe)Worksafe has a number of tools that your organisation can use to undertake risk assessment of yourproposed event - see the links at the end of this chapter.ACCESSIBLE EVENTS AND ACTIVITIESEqual opportunity and anti-discrimination legislation apply in Victoria. These laws prohibitdiscrimination against people on the basis of a ‘protected attribute’ (protected attributes include aperson’s impairment or disability, age, sex, race, religious beliefs, status as a parent or carer,pregnancy or breastfeeding among many other attributes). Some exceptions to the laws apply.In general, equal opportunity laws apply to prevent discrimination when providing goods andservices to the public. They also apply in other circumstances (for example in employment, sportingactivities, and membership of clubs and groups).Your organisation could be covered by these laws should you put in place reasonable measures toensure that your event (and goods and services) are accessible to all people. Even if yourorganisation is not covered by these laws, it is best practice to attempt to be accessible to all. Wehave provided a link below to resources for running events which are inclusive to people withhearing and/or vision impairments.EVENT SPONSORSHIPIf your community organisation is intending to share the cost of staging an event via sponsorship, itis recommended that you and your sponsor partner enter a sponsorship agreement.Page 73 of 99Brimbank Community Governance Handbook

A sponsorship agreement will generally be a legally enforceable contract. Your organisation shouldbe sure that it can comply with the terms of the contract. If you have any concerns about aproposed sponsorship agreement, you should seek legal advice.FUNDRAISING EVENTSThere are laws that regulate fundraising in Victoria. If your community organisation is consideringholding a fundraising event in Victoria, you will need to comply with these laws. There are also lawsthat regulate raffles, bingo and gaming. More information about this is contained in Section 5,Raising Money.EVENTS SERVING FOODThis section is extracted from PilchConnect – link at the end of the chapter.In Victoria, there are laws that regulate the way that food is provided to the public. The mainobjective of the Food Act 1984 (Vic) is to ensure that food is safe and suitable for humanconsumption. No-one would want their community festival or local school fete to end in a majorfood poisoning episode.If your community organisation is planning to hold an event or activity involving the service of foodto the public, there are a number of legal issues that you should be aware of:PermitsRecord systems;Food Safety program;Requirements of food preparation;Labelling of food;Food storage, display and serving;Insurance issues.COUNCIL PERMITUnder the Food Act 1984 (Vic) the Victorian State Government requires all organisations regardlesswhether a NFP and for-profit, that supply food to the public, even a basic sausage sizzle, to applyonline at streatrader@health.vic.gov.au and go to Business Victorian Online. Alternatively call theStreatrader Hotline: 1300 085 767. The application will be automatically logged with the StateGovernments’ Health Department and the Council where the food premises, or basic sausage sizzle,will take place.Your event will be classified according the level of risk involved, class 1 being the highest risk andclass 4 the lowest. Stall holders intending sell anything more that low risk category 4 foods (i.e. abasic sausage sizzle with sauce on bread, uncut fruit/vegetables, pre-packaged confectionary anddrinks) will fall into a different, higher risk food category. The preparation, storing and sale of higherrisk foods now involves an annual registration, a substantial annual fee as well as a ‘Statement ofPage 74 of 99Brimbank Community Governance Handbook

Trade’ application for each stall and/or event. These also involve an online application which you willfind a streatrader@health.vic.gov.auMore details about the different classes are provided by Health Victoria on their website, whichincludes a food premises classification tool – see links at the end of this chapter.SERVING ALCOHOLVictoria has liquor licensing laws to regulate the supply and consumption of alcohol in the State. Themain piece of legislation that regulates how alcohol can be sold or provided to others is called theLiquor Control Reform Act 1998 (Vic). The Victorian Commission for Gambling and Liquor Regulationis responsible for regulating this Act. Their Responsible Alcohol Victoria website tells you whatobligations you have as a licensee and provides the information you will need to apply for a licenseand ensure that you comply with its terms. Victoria Police and your local council also have a role toplay.If your organisation operates a licensed venue, please note that recent changes to the law may applyto your organisation. As of 1 January 2011, there are new requirements for licensees and employeesof licensed venues to undertake compulsory Responsible Service of Alcohol training. It is also nowcompulsory for all venues serving alcohol on-site to provide free drinking water. Your organisationcan apply for an exemption in certain circumstances. For more information about these changes,see the Department of Justice website (link at end of chapter).PROVIDING ALCOHOL AT AN EVENTIf you are providing alcohol at your event, you will probably need a licence. Depending on yourrequirements, there are a number of different licensing options. For all licences, you will need towork out which licence you need, arrange for a licensee and apply for the licence. You will need topay a fee. The information you need is on the “Responsible Alcohol Victoria” website – link at theend of this chapter.In addition, use the Business Victoria Business Licence Information Service (BLIS) to find permits, orcheck with the local council (see access hints above).FUNDRAISINGIf your event is to raise money, you will need to comply with the laws that regulate fundraising inVictoria. The law may require that you register as a fundraiser or apply for a licence or permit forsome of your planned fundraising activities. See Section Four: Fundraising for more informationabout your legal obligations when raising money for your organisation.ROAD CLOSURESIf you need to close a road or disrupt traffic for your event, you will need to make an applicationthrough council. They will liaise with Victoria Police and Vic Roads if required. You may need toprovide a Traffic Management Plan from a certified traffic management provider. This will probablyinvolve a cost to your organisation.Page 75 of 99Brimbank Community Governance Handbook

Contact council for information about the requirements for your event. Events that may require astreet or road to be temporarily closed include: triathlons, street parties, street parades andfestivals.USING VOLUNTEERS AT EVENTSIt is important that volunteers who are helping to organise events understand their roles andresponsibilities and are easily identifiable at the event. Parkinson's Victoria, working with eventmanagement company Perfect Events, developed comprehensive and very user-friendly volunteerbriefing documents for its 2010 Unity Walk. This includes templates which you can download, viathe “ourcommunity” website (see link at the end of this chapter).WHAT MAKES A GOOD EVENT?This checklist has been developed by Brimbank City Council, to assist in the planning of events.Essentially, it focuses on the Why, When, Where, How and Who of event organising.CRITERIA FOR A “GOOD” EVENT1. A CLEAR RATIONALEa. Why do the event?i. Develop a clear Vision / Mission / objectives & goalsii.What evidence do you have to support the need for the event?Examples of objectives and goals (these need to be measurable):Run a safe event for a range of agesThe organising team works in an effective wayAttract a defined number of peopleProvide healthy foodPromote positive relationshipsb. Who is the intended audience?Specify:AgesCultural groupsPeople with a disabilitySocially isolatedPeople with limited incomePage 76 of 99Brimbank Community Governance Handbook

2. WELL PLANNEDa. What is the event?i. What is in the program? – what are the activities?ii.What infrastructure is needed? Where is it sourced?iii. What do you want to achieve?, for example:numbers of people attendingstronger relationships between peopleskills development for the organisersbroad cultural cross-section of attendees.iv. How will you know that these things have been achieved?b. How will the event be delivered?i. What kind of resources are needed?ii.How many volunteers are needed? What are their jobs? Who decides?iii. Do you have an adequate budget (and not overrun):What is in the budget?Can you get in-kind support?iv. GovernanceHow are decisions made?Does this need to be written down?How do you ensure effective and timely communication between the organisers?What happens when something goes wrong? Who solves it? Who can be called on foradvice?v. Effective consultationWho needs to have input to the planning, or other aspects, of the event?Who can you link into to find the audience?c. Wheni. Are there any major clashes with other events?ii.Are there any cultural considerations or celebrations that might conflict?iii. What is the best time to run the event?Page 77 of 99Brimbank Community Governance Handbook

iv. Develop a timeline3. EFFECTIVE PUBLICITY AND PROMOTIONa. What methods of publicity and promotion will you use? Consider:i. Media releases – who does them?ii.Flyers / postersiii. Textsiv. Website / Facebook / twitterv. Talking with groupsvi. Email listsvii. Information distributed through key community leaders and key groupsviii. Develop a promotional strategy4. RISK “FREE”a. Is the event outdoors?i. How do you protect people from the weather? Trip hazards? Water? Infrastructure?ii.Is there a “Plan B”?b. Will people travel by car?i. Is there enough parking to accommodate them?ii.Can people be encouraged to travel by public transport?c. What happens in an emergency?i. Do you know where the nearest hospital is?ii.Do you have an evacuation plan?iii. First Aid:Is there a first aid kit?Are any people on site first aid trained?Do you need first aid on site?d. Do you need an event permit? Consider the following:i. Does the building have an occupancy permit?ii.Is the site / grounds / building safe?iii. What is access like to the venue?Page 78 of 99Brimbank Community Governance Handbook

iv. Alcohol –Identify the risks and develop strategies to manage thesev. Food safety –Identify the risks and develop strategies to manage thesevi. Are toilets adequate and clean?5. EVALUATION (AT THE EVENT AND POST EVENT)a. Positive feedbacki. What methods will you use?Surveys of attendeesFeedback on websiteOrganiser surveyAnecdotalb. Measure against your objectives / goalsi. attendances numbersii.range of cultural groupsiii. age groupsiv. what was the working process like?Page 79 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSRELATED LEGISLATION AND REGULATIONSOccupational Health and Safety Act 2004 (Vic)This is a link to the legislation which sets out the laws relating to workplace health and safety inVictoria.Equal Opportunity Act 1995 (Vic)This is a link to the Victorian legislation that includes specific provisions prohibiting discriminationwhen providing goods and services.Fundraising Act 1998 (Vic)This is a link to the Victorian legislation that regulates certain fundraising activities and events inVictoria.Food Act 1984 (Vic)This is the main Act in Victoria that regulates the way food is provided at events.Legal Law Today LibraryLiquor Control Reform Act 1998 (Vic)Liquor Control Reform Regulations 2009 (Vic)Wrongs Act 1958 (Vic)These can be found through the following link:View Acts & RegulationsPage 80 of 99Brimbank Community Governance Handbook

LEGAL AND GENERAL ISSUESNot-For-Profit Compliance Support Centre: running an eventPilchConnect: organising events and activitiesPilchConnect has really good information about the legal issues of event organisations.LICENCES FOR EVENTSNot-For-Profit Compliance Support Centre: find a licenceAustralian Business Licence and Information ServiceThe Business Licence and Information Service (BLIS) is designed for businesses but can be used bycommunity organisations. For example click on 'tailored training', enter search term such as'festival' select 'event-related festival', choose your local council and then continue to answerquestions about the event. A report of licence and permit requirements will be generated.ORGANISING EVENTSPlanning Safe Public Events Practical GuidelinesThese guidelines were developed by the Commonwealth Attorney-General's Department in 2002.They are still useful, as they focus on issues such as managing alcohol use, how many staff you mayneed, and crowd management.Disability Advocacy Resource Unit: A Guide for Accessible Events for People with DisabilityThis page takes you to the Disability Advocacy Resource Unit (DARU) website and to guidelines tohelp you deliver events which are accessible for people with a disability. It uses a Canadian guide.The DARU is working currently with VCOSS to produce a simpler, home-grown version.ourcommunity: plans and toolsVolunteer briefings developed by Parkinson’s Victoria and Perfect Events.available for downloading from this link to the OurCommunity website.The templates arePage 81 of 99Brimbank Community Governance Handbook

INSURANCE AND RISK MANAGEMENTVolunteer Victoria: insuranceThis portal has information about the types of insurance that your NFP may require for events.Volunteering Victoria: Insurance and LiabilitySERVING ALCOHOL AND FOOD SAFETYResponsible Alcohol VictoriaThis website has the up-to-date information that you need about serving alcohol.Food Safety websiteFood Safety is a Victorian government site which provides information and tools to help you keepfood safe. This page includes information on the changes to the Food Act in relation to runningcommunity events. It has a link to assist you in working out what class your event will fall into.FoodSmart - Food safety programs websiteFoodSmart is a Victorian government website designed to help retail and food service businessesdevelop their Food Safety Programs.Department of Health Victoria: Food SafetyThis link takes you to the Department of Health website information for community groups onserving food. It contains lots of information about food safety and links to additional advice.Page 82 of 99Brimbank Community Governance Handbook

LEGAL ISSUESCHAPTER SEVEN: PROVIDING SERVICESPilchConnect has information on its website to provide guidance for community organisations whichprovide services. We have provided an overview of this information. There are several fact sheetson the PilchConnect website that are worth checking out.The key issues identified are:Duty of care and the standard of care when providing services;Privacy when providing services;Discrimination and human rights when providing services; andAustralian Consumer LawDUTY OF CARE AND THE STANDARD OF CARE WHEN PROVIDING SERVICESA community organisation may be liable for any acts or omissions made by the organisation, whichresults in an injury to a client or the public or damage to their property. There are a number of legaltests that must be satisfied before your organisation will be held liable for negligence (for moreinformation see the link at the end of the chapter to the Fitzroy Legal Service Law Handbook).PRIVACY WHEN PROVIDING SERVICESSome community organisations, including those that have contractual arrangements withgovernment (including funding agreements) may be required to comply with privacy laws (see theInformation Privacy Act 2000 (Vic) and Privacy Act 1988 (Commonwealth)).PilchConnect advises that where these Acts cover your community organisation, you must complywith the relevant Information Privacy Principles or National Privacy Principles which set out howpersonal information is to be collected, held, managed, used, disclosed or transferred. Even whereyour organisation is not covered, it is best practice to follow the relevant privacy principles as theyare not overly onerous and reflect public expectations on the way personal information ought to behandled.Information about health is covered by the Health Records Act 2001 (Vic), and this frameworkprotects the privacy of individuals’ health information. The act also regulates the collection andhandling of health information.Your community organisation should provide an opportunity for people that believe their recordsare inaccurate or out-of-date to have them amended as appropriate. See also the section onDocument Retention on the PilchConnect website.Page 83 of 99Brimbank Community Governance Handbook

DISCRIMINATION AND HUMAN RIGHTS WHEN PROVIDING SERVICESDiscriminationPilchConnect advises that the Equal Opportunity Act 2010 (Vic) protects a number of personalattributes from discrimination in various situations including in employment and in providing goodsand services. Your organisation needs to know about the personal attributes and the situationscovered by the Equal Opportunity Act and also the exceptions and exemptions that are available.Relevant links are on the PilchConnect website.As of 1 August 2011, when the new Equal Opportunity Act 2010 (Vic) came into force, there are anumber of new laws which affect community organisations - importantly, the sexual harassmentprovisions of the Act now applies to volunteers (in the same way that they apply to employees).The new Act also creates a positive duty on community organisations to eliminate discriminationwhere possible, and makes some changes to indirect discrimination.The Victorian Equal Opportunity and Human Rights Commission has created a series of fact sheets tohelp volunteer-involving organisations, and volunteers, understand the new Act. (See the links atthe end of this chapter).Human RightsVictoria also has a Charter of Human Rights and Responsibilities. PilchConnect has developed a FactSheet to assist community organisations with protecting and promoting human rights (see link at theend of this chapter).AUSTRALIAN CONSUMER LAWPilchConnect advises the following:The Australian Consumer Law (ACL) is a single, national law regulating consumer protection and fairtrading, which applies in the same way nationally and in each State and Territory of Australia. TheACL imposes obligations on both individuals and companies or organisations who engage in trade orcommerce or supply goods or services to consumers. The ACL obliges them to act fairly and honestlyand to ensure that the good and services they supply are safe.The ACL will apply to all not-for-profit community organisations when they engage in trade orcommerce or supply goods and services to consumers, and covers five main areas: unfair business practices; unfair sales practices; unfair contract terms; consumer guarantees; and product safety.Each area is addressed in the attached fact sheet on the PilchConnect website.Page 84 of 99Brimbank Community Governance Handbook

UNSOLICITED SELLING PROVISIONS IN THE AUSTRALIAN CONSUMER LAWIt is likely that your organisation will need to comply with the unsolicited consumer agreementprovisions in the ACL if your community organisation goes door-knocking, makes unsolicitedtelephone calls or approaches people in public spaces to:sell goods or services;seek donations in exchange for items such as chocolates, auction items or raffle tickets.It is important that your staff and volunteers know and understand these provisions, so that you canmake sure your practices and sales agreements are compliant with the ACL. The fact sheet on thePilchConnect website will assist you to understand when and how the unsolicited consumeragreement provisions in the ACL will affect your organisation.Page 85 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSGENERAL INFORMATIONFitzroy Legal Service Law Handbook: Negligence and InjuryThis is the link to the Fitzroy Legal Service Law Handbook. It takes you to the Chapter 18: Accidents,Injury and Compensation which provides an overview of the test for negligence and other relevantinformation on liability.PRIVACY ISSUESPrivacy VictoriaPrivacy Victoria regulates how Victorian government agencies and local councils handle personalinformation. This relates to community organisations if you are receiving funds from governmentagencies. Privacy Victoria does not deal with issues relating to the private sector and medical orhealth records, but has links to direct you.Other links in relation to privacy legislation:Privacy Victoria: Information Privacy PrinciplesInformation Privacy Act 2000 (Vic)Health Records Act 2001 (Vic)Commonwealth Office of Australian Information CommissionerOffice of the Privacy Commissioner: National Privacy PrinciplesPrivacy Act 1988 (Commonwealth)Images of children and young people online resource sheetDISCRIMINATION AND HUMAN RIGHTSVictorian Equal Opportunity and Human Rights Commission (VEOHRC)Disability Discrimination Legal Service (DDLS)Equal Opportunity Act 2010 (Vic)VEOHRC information on the Equal Opportunity Act 2010 (Vic)VEOHRC fact sheets for volunteer-involving community organisationsPage 86 of 99Brimbank Community Governance Handbook

CHAPTER EIGHT: MANAGING EXTERNALMARKETING AND COMMUNICATIONRELATIONSHIPSMarketing and communications involves a range of activities that essentially focus on getting peopleinvolved in your volunteer programs and promoting your organisation in the community. To getpeople involved, you need to ensure that there is a good fit between the programs you offer and theneeds of the people involved in them (for example volunteers, customers, staff and otherstakeholders). You also need to ensure that all these audiences know about your programs and howthey can be involved.Volunteer Victoria and the “ourcommunity” websites have has some really useful information aboutmarketing. They cover the range of activities involved in promoting your organisation and howthese are tied together through the development of a marketing plan and communications strategy.The “ourcommunity” website has a list of local media contacts and helpful hints on organising amedia campaign.The communications templates are particularly useful. The Volunteer Victoria website includestemplates in WORD format for items such as your Annual Report, badges, certificates, brochures,and newsletters. Use the links at the end of the chapter below to access the information.The “ourcommunity” website has some great images which you can use and play around withelectronically. Topics covered on both sites help you in the process of developing a communicationsstrategy and a marketing plan, how to work with the media and how to manage a range ofstrategies, including direct mail-outs and data base management.UNDERSTANDING EXTERNAL RELATIONSHIPSUnderstanding the broader context and the environment in which your organisation operates is acritical part of marketing your organisation and communicating with the range of stakeholders whichyou deal with every day. This includes the people who use your services, the members of theorganisation, funding bodies and the community at large.As part of the process of developing a marketing plan for your organisation, you need to considerwho your stakeholders are. Both the “ourcommunity” and Volunteer Victoria websites provideadvice and step-by-step processes for developing a marketing plan.WORKING WITH THE MEDIAAPPOINTING A SPOKESPERSONThe “ourcommunity” website has great tips for working with the media, including appointing aspokesperson for the organisation. This is really important. For most organisations, it is usuallyeither the chairman/president or the CEO/Executive Director or in some cases both. Other groupswill choose a senior manager who has the power and ability to get the message across.Page 87 of 99Brimbank Community Governance Handbook

DEVELOPING A MEDIA POLICYYou need to develop a media policy, which provides guidance for the spokesperson as to what he orshe can or cannot say. However, “ourcommunity” advises that you need a spokesperson that is anopinion leader and as such are expected to have opinions on a wide range of issues. Check out theiradvice on the website.PilchConnect advises that if you are intending to run a campaign or protest, it is a good idea to spendsome time (before your campaign or protest starts) to understand the laws that might apply to youractivities.Activist Rights is a specialist website developed to provide the Victorian community with informationabout activists' rights. The website was developed by the Fitzroy Legal Service, with support fromthe Victorian Law Foundation and the Reichstein Foundation. Its contributors include many lawyersfrom across the Victorian community legal sector.A link to the 'Activists Rights' website is provided at the end of this chapter.RESOURCES AND LINKSVolunteer Victoria: Marketing and Communications.Volunteer Victoria: the marketing, media and post centreFitzroy Legal Service Inc: activist rightsPage 88 of 99Brimbank Community Governance Handbook

CHAPTER NINE: MANAGING DIFFICULTIES ANDWHEN THINGS GO WRONGCHANGESometimes, despite your best efforts and plans, things go wrong. It is a good idea to get help assoon as you can – do not wait or hope the problem will go away. Many problems can be resolved ifdealt with effectively at an early stage (PilchConnect). There is lots of information about to help you.This section provides an overview of the types of problems and directs you to useful information.The links are contained in the last section of the chapter.This section relies on the information from the PilchConnect website and the Not-for-ProfitCompliance Support Centre (Office for the Community Centre, OCS).HANDLING CONFLICT IN YOUR ORGANISATIONHealthy debate in organisations is important and can help organisations to change, grow and adaptto changing environments. However, sometimes, the debates can become destructive and can getin the way of you achieving your goals. Specific information is available for disputes involvingemployees, volunteers and or occupational health and safety in the workplace. Links to assistanceare contained in the last section of this chapter. Criminal conduct needs to be referred to the police.USING MEDIATION TO RESOLVE CONFLICTS AND DISPUTESPilchConnect indicates that mediation is a useful way to try to resolve disputes within communityorganisations - and can be free for Victorian community organisations. A Fact sheet on usingmediation is attached. The Victorian Law Foundation has produced a booklet to assist you to resolvedisputes: “Working it out - a handbook with tips for successful resolution (and prevention) ofdisputes”. The link to this free publication is in the reference list at the end of this chapter.CONFLICTS WITHIN VICTORIAN INCORPORATED ASSOCIATIONSDisputes with Members and Committee MembersThe PilchConnect website has considerable information in relation to managing disputes inincorporated associations. This includes:Dealing with disputes and grievances with members;Removing or disciplining a member;Removing a committee member from the committee.The information on this website is regularly updated and thus it is worth checking – link at end of thechapter.Page 89 of 99Brimbank Community Governance Handbook

COURT ACTIONPilchConnect advises that the law provides some options for going to court about an ‘internaldispute' within a Victorian incorporated association. However, going to court is stressful, timeconsuming and expensive - it is a last resort. Attached is an information sheet prepared byPilchConnect to assist you. It contains information about:Things to try before going to court about an internal dispute,What kinds of internal disputes can be taken to court under the Associations IncorporationReform Act (2012), andWhat to do if someone takes legal action against your organisation.Before deciding to take court action about an internal dispute, think aboutwhat is really important about the dispute. Will going to court fix it? Also ask: Who, if anyone, is likely to get what they want by going to court? How much has the dispute cost so far, and how much more will our organisationspend if it goes to court? What will be the personal costs of going to court be (for example: time, impact onindividual's lives, relationships and stress levels)? Are there other alternatives (e.g., resigning or starting another organisation)?Seek legal advice before making a decision about what to do. (PilchConnect,updated 1/3/12)FINANCIAL PROBLEMS AND INSOLVENCYIf your organisation is having trouble with finances, e.g. unable to pay bills, you should seek adviceabout your rights and responsibilities.You must not continue to operate while insolvent – it is illegal.Australian Securities and Investment Commission (ASIC) have a whole section about insolvency ontheir website, including information about your responsibilities if you are a director of an insolventcompany. Pilchconnect also has information to help you. (refer to the last section of this chapter).Page 90 of 99Brimbank Community Governance Handbook

INCIDENTS AND ACCIDENTSThe information in relation to occupational health and safety and insurance covers the primaryissues in relation to incidents and accidents. A PilchConnect fact sheet: “Guide: Communityorganisations and Victoria’s occupational health and safety laws”, is helpful (link at end of chapter).CRIMINAL CONDUCTCriminal conduct in NFPs does not happen often. Please refer to the attached PilchConnect Factsheet for preliminary advice and information. It has a step-by-step process, providing guidance onwhat you might do if you suspect criminal conduct.If this is an emergency, call 000.WHEN THINGS CHANGEInevitably, things will change for your community organisation. There a number of factors which canlead to change. These include expanding, which may require a change in legal structure, growth infundraising to the point where you may wish to consider applying for Deductible Gift Recipienttaxation status, and requiring amendments to your constitution. You may even decide that you nolonger need to exist or that you wish to amalgamate with another NFP.The PilchConnect website looks at just some of the legal issues that Victorian communityorganisations should think about when things change (or preferable before things change!). Thetopics include legal issues to consider when:changing our organisation's constitution or rules;working with other organisations (including auspicing agreements, joint venturesagreements, and memoranda of understanding);changing your organisation's legal structure;amalgamating with another organisation (or many); andwinding up an organisation (either voluntarily, via de-registration or the courts).(PilchConnect).The link is in the last section of this chapter.CLOSING OR WINDING UPThe following information is downloaded from the NFP Compliance Support Centre. Links to thissite, Consumer Affairs and PilchConnect in relation to closing or winding up are contained in the lastsection of this chapter.Winding up, or ceasing to operate as a NFP can happen voluntarily or may be forced bycircumstances. For example, if your NFP is a company and you are insolvent (such as unable to payyour bills), ASIC might initiate deregistration.Page 91 of 99Brimbank Community Governance Handbook

If you’re faced with the responsibility of winding up your Not–For-Profit, there are specific processesyou need to follow, depending on the type of organisation; incorporated association, company,cooperative or Indigenous corporation (links in last section).WINDING UP AND FINANCESThis information is from the NFP Compliance Support Centre.If you need to wind up your NFP for any reason, you will need to consider finances.Finances may be the reason for winding up. If your organisation is unable to pay its bills by the duedate, this is also known as being insolvent.If you are winding up your organisation for other reasons, you are likely to have excess funds andthese will need to be distributed.Excess FundsNot-For-Profit organisations may not distribute funds to benefit individual members. Go to yourrules or constitution in the first instance for information about your obligations.Page 92 of 99Brimbank Community Governance Handbook

RESOURCES AND LINKSRESOLVING DISPUTESVictorian Law Foundation: working it out - your guide to dispute resolutionPilchConnect: handling conflict within your organisationThis section of the PilchConnect website provides information about legal issues in relation tomanaging conflict and disputes.Dispute Settlement Centre of Victoria (DSCV)Dispute Settlement Centre of Victoria (DSCV): A free dispute resolution service funded by theVictorian Government.Department of Planning and Community Development: community sector publicationsThe guide ”Developing Conflict Resilient Workplaces: A how-to guide for creating more positiveworkplaces in the Victorian not-for-profit sector” is published by the Victorian Office for theCommunity Sector and can be used by community organisations to assess information on conflictresilience for their organisation.Queensland University of Technology (QUT): when things go wrongThis is part of Queensland University of Technology’s “Developing Your Organisation Manual” whichprovides directions to help not-for-profits meet their governance, organisational and service deliveryresponsibilities.Law Institute Victoria: Find a Lawyer and Legal Referral ServiceThis is a link to the Law Institute of Victoria (LIV) referral service. This service allows you to locate alawyer that can provide legal advice on various topics.FINANCIAL PROBLEMSPilchConnect: financial problems or insolvencyConsumer Affairs Victoria: Incorporated AssociationsThis is a link to Consumer Affairs Victoria, the Victorian government agency responsible forregulating Victorian Incorporated Associations.MANAGING CHANGESPage 93 of 99Brimbank Community Governance Handbook

PilchConnect: when things changeThis link takes you to the section of the PilchConnect website relating to the possible changesreferred to in this chapter.CLOSING OR WINDING UPINCORPORATED ASSOCIATIONSConsumer Affairs Victoria: cancel wind up or amalgamate an incorporated associationFor wind up of incorporated associations, this link takes you to Consumer Affairs Victoria and guidesyou through the steps you need to follow.COMPANIESAustralian Securities and Investment Commission: closing down your companyThis is a link to the Australian Securities and Investment Commission (ASIC) website. It providesinformation in relation to voluntary and forced closure of a company.CooperativesConsumer Affairs Victoria: wind up a co operativeFor wind up of cooperatives, this link takes you to Consumer Affairs Victoria and guides you throughthe steps you need to follow.Indigenous CorporationsOffice of the Registrar of Indigenous Corporations: ClosingTo wind up an organisation, members will have to pass a special resolution and you will need toinform Office of the Registrar of Indigenous Corporations (ORIC), using the proper form. This linktakes you to the ORIC website for more information.Page 94 of 99Brimbank Community Governance Handbook

CHAPTER TEN:WHO TO TURN TO WHEN YOU NEEDADDITIONAL ADVICEORGANISATIONSThis manual is designed to provide you with the basic information to get you going and keep yougoing. However, there will be times when you need additional advice and information. So here arethe websites which we have found the most useful. These are located throughout this documentalso, in the references sections at the end of each chapter.Organisation What is available Website AddressConsumerAffairs VictoriaOffice for theCommunitySectorPublic InterestLaw ClearingHouse(PilchConnect)IndigenousGovernanceToolkitOurCommunityVolunteeringVictoriaVolunteeringAustraliaVCOSSRegulatory authority for NFPs inVictoria. You need to registerwith this organisation.On line resources and supportfor NFPs through the Not-for-Profit Compliance SupportCentre.Comprehensive legal and otherinformation for NFPs.Easy to understand guide togood governance.Range of information for NFPsincluding grants that areavailable. You need tosubscribe to get all theresources.“I can do that” portal: an easyto use site with a range ofinformation for volunteers andorganisations.Range of information includingadvice about insurance.Peak body for social services ofNFPs in Victoria. Have goodinformation about policies andprocedures and a range of otherresources.http://www.consumer.vic.gov.au/clubs-andnot-for-profitshttp://www.nfpcompliance.vic.gov.au/www.pilch.org.auhttp://www.reconciliation.org.au/governancehttp://www.ourcommunity.com.au/http://www.volunteer.vic.gov.au/http://www.volunteeringaustralia.org/http://www.vcoss.org.au/Page 95 of 99Brimbank Community Governance Handbook

SEARCHING FOR CURRENT LEGISLATIONVICTORIAN LEGISLATION AND REGULATIONSCurrent, authorised versions of Victorian Acts and Regulations are available at legislation.vic.gov.au.It is important to always view the current version of legislation, to ensure you are complyingcorrectly.This easy guide to searching for legislation is reproduced from the Not-for-Profit Compliance SupportCentre. website: www.nfpcompliance.vic.gov.au.To search for the current version of any Victorian Act or Regulation, follow these steps.1. Go to legislation.vic.gov.au.2. Click Victorian Law Today in the menu or the main page (see the image below)3. In the Victorian Law Today Library, select Acts or Statutory Rules in both locations on thepage (see image below). Note: If you are searching for Regulations, choose Statutory Rules.Page 96 of 99Brimbank Community Governance Handbook

4. Type all or part of the Act name in the search field, and then click Start Search. A list ofdocuments matching your search criteria appears.5. Click the document you want to view.COMMONWEALTH LEGISLATIONCurrent, authorised versions of Commonwealth Acts and Regulations are available at comlaw.gov.auThe home page of the ComLaw website has useful information on how to use the site.TRAININGThere are numerous courses available to help you gain more knowledge to work effectively in yourNFP organisation. The “ourcommunity” organisation offers training as does PilchConnect. BrimbankCity Council also offers training for community organisations.It is a good idea to work out what your skills are as an organisation and where your knowledge gapsmay be. Target your training to meet these needs.Page 97 of 99Brimbank Community Governance Handbook

AgendaType meeting title hereDate: Time: 00:00 to 00:00Chairperson:Location:Attendees:Guests:Apologies:ItemsNo. Topic Attach Presented by For Tabled? Time1.2.3.4.5.Next meeting:Page 98 of 99Brimbank Community Governance Handbook

MinutesType meeting title hereDate: Time: 00:00 to 00:00Chairperson:Location:Attendees:Guests:Apologies:ItemsNo. Item Action Who Date6.7.8.9.10.11.12.13.14.15.Next meeting:Page 99 of 99Brimbank Community Governance Handbook

Language linkArabic 9209 0131Croatian 9209 0132Greek 9209 0133Italian 9209 0134Macedonian 9209 0135Serbian 9209 0136Spanish 9209 0137Turkish 9209 0138Vietnamese 9209 0139All other languages 9209 0140English 9209 0141local call costs applyContact usTelephone: 9249 4000Email: info@brimbank.vic.gov.auPost: PO Box 70SUNSHINE VIC 3020Website: www.brimbank.vic.gov.auHearing or speech impaired?TTY dial 133 677 or Speak & Listen 1300 555 727 orwww.iprelay.com.au, then enter 03 9249 4000Find us on Facebook, Twitter and YouTubeFacebook:Twitter:You Tube:www.facebook.com/brimbankcouncilwww.twitter.com/brimbankcouncilwww.youtube.com/brimbankcitycouncilCustomer ServiceSydenhamStation Street, Taylors Lakes(located within Sydenham Library)Opening hoursM: 10.30am – 7pmTu: 1.00pm – 7pmW: 10.30am – 7pmTh: 10.30am – 7pmF: 10.00am – 5pmSa: 10.00am – 12.30pmMunicipal OfficesKeilor Offices704B Old Calder Highway, KeilorSunshine Offices6 –18 Alexandra Avenue, SunshineOpening hoursMonday to Friday8.45am – 5pmMonday to Friday8.45am – 5pmSunshine301 Hampshire Road, SunshineMonday to Friday8.45am – 5pmKeilor704B Old Calder Highway, KeilorMonday to Friday8.45am – 5pm