Please note that the e-bulletin 'Tip of the Month' below has been updated to clarify any ambiguity for groups.

Dear subscribers

Since sending the e-bulletin today, we have had an unprecedented response from Victorian incorporated associations looking for assistance to update their rules. 

Although our rules review training has sold out, PilchConnect will use its best endeavours to run a further session to assist groups to update their rules later this year.

Next week PilchConnect will be meeting with a group of pro bono lawyers who have volunteered to assist incorporated associations to update their rules.  If your group is eligible to apply with PilchConnect for help from a lawyer (see below) we encourage your group to apply sooner rather than later so as not to miss out on this opportunity.

Remember that there are many resources on our website to assist groups to understand the changes that apply in light of the new legal framework for incorporated associations that came into effect in November last year:

• for information on the new laws and transition issues, go to: www.pilch.org.au/newlawsincassoc/
• for more information on the Rules Review Project, go to: www.pilch.org.au/rulesreviewproject/

The PilchConnect team

PilchConnect announced a new Rules Review Project for Victorian incorporated associations in the previous Special Edition Bulletin.

Recent changes to the laws for Victorian incorporated associations mean that many groups who use their own rules will need to review and update their rules to bring them in line with the new Associations Incorporation Reform Act 2012 (AIR Act). Groups using the model rules will automatically transition to new model rules in November, and should now consider whether the new model rules suit their needs, and whether other options are more appropriate for their needs (like drafting their own rules). 

PilchConnect has three options to assist groups to bring their rules in line with the new requirements of the AIR Act:

1. Online information pack
An online information pack is available for free to help groups review and change their own rules, with step-by-step guidance and checklists. PilchConnect has drafted a set of simple rules for incorporated associations designed to meet the requirements of the new AIR Act using simple language and minimal detail.

2. Rules Review training
PilchConnect's Rules Review training workshop has sold out.  We may hold further sessions and will advertise these in the e-bulletin.  You can express an interest in attending future sessions here.

3. Referral to a law firm
Eligible groups can apply with PilchConnect for a referral to a law firm to have their rules reviewed and updated by a lawyer for free.  The eligiblity criteria is limited to public interest groups.  There is an online application form on the Rules Review Project page. 

For more information about these three options, go to:

May Seminar - Fundraising for Victorian community organisations 
Raffles, gala dinners, direct appeals for donations - fundraising is an ongoing necessity for many community organisations, and an occasional task for others. The detailed legal and regulatory requirements surrounding fundraising are often not well understood. Help to make sure that your event is a success by ensuring that you comply with fundraising laws as a part of your preparation.

Details of the seminar are as follows:

Date: Thursday 30 May 2024
Time: 9.30 - 12.30 (registrations open 09:15am)
Venue: Gilbert + Tobin Lawyers, Level 22/101 Collins Street Melbourne

To register for this Seminar, please visit our website:

June Seminar - Internal disputes: handling conflict in community organisations
Healthy debate is good for your organisation, but if internal conflict and disputes are stopping your organisation achieving its goals, it's time to take action.

This seminar will cover strategies for handling disputes and conflict involving members of community organisations effectively AND legally. Topics covered will include:

• dispute resolution/grievance procedures under your Rules or Constitution
• special laws about dispute resolution for community groups, and
• other pathways for dispute resolution.

Details of the seminar are as follows:

Date: Wednesday 12 June 2013
Time: 9.30 - 12.30 (registrations open 09:15am)
Venue: Maddocks, Level 6/140 William Street Melbourne

To register for this Seminar, please visit our website:

Sentencing Act Amendment - preserving the 'poor box'
Last year PilchConnect appeared in the Supreme Court, making submissions as a 'friend of the court' in the case of Brittain v Mansour.  In the case, Melbourne City Council challenged the sentencing practice whereby courts order offenders to make payments to charities.  PilchConnect made arguments in support of this practice, but Justice John Dixon ultimately found that the Sentencing Act did not allow for these payments to charities.  Following this result, PilchConnect urged the Victorian Government to amend the Sentencing Act to ensure the sentencing practice of requiring offenders to make a payment to charities could survive. 

The Attorney General has now announced proposed changes to the Sentencing Act in line with PilchConnect's recommendations. Debate on the amendments is scheduled to occur in Parliament today. PilchConnect congratulates the Victorian Attorney General for taking swift action to preserve this historic sentencing tradition that helps both offenders and the charities that receive the payments.

PilchConnect Director Juanita Pope and
Manager of Legal Information Kate Fazio 

Read the Government's media release:

Consultation - Charities Bill 2013 (Cth)
The Commonwealth Government is currently seeking feedback on its draft Charities Bill 2013 - Exposure Draft  (Charities Bill).  The purpose of the Charities Bill is to introduce a statutory definition of 'charity' and 'charitable purpose' to apply across Commonwealth legislation. This consultation is your opportunity to comment on the Charities Bill and the definitions proposed.  PilchConnect is currently preparing a submission which will highlight, amongst other things, that:

• the proposed definition of charitable purpose is too narrow and requires greater clarity.  This could be achieved by expanding on the meaning of each listed charitable purpose and ensuring a broad head for purposes benficial to the community is included
• the Charities Bill is too reliant on the accompanying explanatory material, and
• the Charities Bill should require the Australian Charities and Not-for-profit Commission to issue guidance that it is bound by (in line with the approach taken by the Australian Tax Office).

The closing date for submissions is 3 May 2024. 

For further information or to download a copy the Charities Bill and the explanatory material, please visit:

ACNC Draft 2014 AIS
PilchConnect recently provided comments to the Australian Charities and Not-for-profit Commission (ACNC) on the Draft 2014 Annual Information Statement (AIS) for registered charities. The consultation paper released by the ACNC sought feedback on information that groups will be required to provide to the ACNC in the 2014 AIS.

PilchConnect provided brief responses to the questions posed by the ACNC, including the following key points:

• the draft question regarding related party transactions is unlikely to be an effective or useful tool for identifying the activities of organisations that provide private benefits to individual members
• the Consultation Paper does not adequately explain the need for charities to separately disclose information specific to their business activities in the draft AIS. PilchConnect has some concerns about the need for (and potential difficulties with) asking about a charity's business activities, and
• PilchConnect supports requiring all registered charities to undertake some level of financial reporting. Whilst we acknowledge that many small charities may not have had reporting obligations before, if our suggested changes are adopted, the AIS reporting for small charities will not be overly onerous.

PilchConnect considers that where the AIS requests exceed existing reporting requirements for charities, a clear and compelling justification for those requests should be articulated by the ACNC.

Note that from 30 June 2013, all registered charities need to submit an AIS to the ACNC within six months of the end of their reporting period, but only non-financial information will be required in the 2013 AIS. From 2014 onwards, registered charities will be required to provide financial and non-financial information to the ACNC.

Guide: Insurance and risk management for community organisations
PilchConnect's Guide: Insurance and risk management for community organisations is designed to help groups understand 'risk management' and legal issues relating to insurance, including:

• when your organisation should think about risk and insurance
• some of the processes and practices your community organisation can put in place to avoid or minimise the risks associated with running a community organisation
• basic information about insurance options for your organisation
• tips to consider when investigating and purchasing insurance for your organisation, and
• the circumstances in which a community organisation may be required by law or a contract to get insurance or should otherwise consider getting insurance.

The Guide has been updated to reflect the new indemnity that Victorian incorporated associations provide to the office holders, and includes discussion of the new risk this creates and risk mitigation options.

AIR Act indemnity Fact Sheet
The new AIR Act introduces a compulsory indemnity that associations must provide to their office holders.  This has been a subject of concern and confusion amongst community groups.  The fact sheet What is the new indemnity for office holders of incorporated associations explains the indemnity and issues your group should consider.

Trade Promotions Fact Sheet
A trade promotion lottery occurs when an organisation, whether it is a business, community or charitable organisation, promotes its products or services or purpose by offering prizes to winners. There is normally an element of chance, like a random draw from entries.

Organisations running trade promotions need to consider key issues like where their promotion is running, whether they need a permit in the states where the promotion is running, and whether they are meeting other requirements like having appropriate competition terms and conditions.

The PilchConnect fact sheet on Trade Promotions covers the following information:

• what is a trade promotion lottery?
• when is permit needed and how do we get one?
• issues to consider when running online trade promotions
• national trade promotions, and
• a trade promotions checklist.

Information for Victorian incorporated associations
When people eligible to vote on a motion abstain from voting, the approach to counting votes can be different depending on whether the vote is at a general meeting of members (annual general meeting or special general meeting), or is at a committee meeting.

Voting at a general meeting (for Victorian incorporated associations)
When holding a members' vote at a general meeting, groups will generally need to calculate whether a majority (more than 50%) of votes are cast in favour of a motion to pass a normal resolution. To pass a special resolution at general meetings, groups need to calculate whether at least 75% of votes are cast in favour of a motion.

Generally, when counting votes, only votes that are actually cast for or against the motion need to be counted. Therefore, if someone abstains from voting, their vote is not counted. You should check your rules to confirm how your group's votes are counted.

Example: if you have 10 members eligible to vote on a normal resolution (either present or voting by proxy) and 5 members vote in favour of a motion, 4 members vote against, and 1 member abstains, then only the votes actually cast are counted (ie. 9 votes). The resolution would pass because 5 voted in favour, which is more votes than the 4 votes that opposed the motion.

The Association Incorporation Reform Act 2012 (Vic) requires that any vote of members on a special resolution be calculated based on this method.

Voting at Committee meetings (for Victorian incorporated associations)
When holding votes at a committee meeting, there is sometimes a slightly different approach to counting votes where someone has abstained from voting.

This is the case under the new model rules, which states that a majority of committee members present at the Committee meeting must vote in favour of the motion to pass the motion. If your group uses the new model rules or your rules are silent about voting at Committee meetings then this general principle will apply.

Example: if you have 10 committee members present at a committee meeting, and 5 vote in favour, 4 vote against, and 1 abstains, the motion cannot pass because only half of members present voted in favour and this is not a majority of the 10 members (note that groups' rules often say that where committee votes are tied, the President has a casting vote).

This means that members who are present at the committee meeting but who abstain from voting will be included in the total number of voters (essentially making up a portion of the 'no' votes). Groups can modify their rules if they do not want abstaining votes to count towards the total number of votes on motions at committee meetings.

Note that for most groups, where a committee member does not attend a meeting, they do not need to be considered when counting votes, however you should check your rules to confirm this.

Remember! you still need a quorum present for general meetings and committee meetings to be validly held - you should check your rules to find out what your quorum requirements are.

The Australian Charities and Not-for-profit Commission (ACNC) has published a guide for people who are, or are thinking of becoming, board members of a charity registered with the ACNC. This guide focuses on good governance and the responsibilities of board members. 

To read the guide online or download a copy, go to:

The Victorian Equal Opportunity and Human Rights Commission (VEOHRC) have produced a new handbook and online resource about Victorian Discrimination Law.  The resources provide an overview of the Equal Opportunity Act and analyses the case law that guides the application of the Act in practice. It also provides guidance on the scope of, and interaction between, exceptions and exemptions under the Equal Opportunity Act.

To access the resources go to:

Victorian Council of Social Service (VCOSS) has announced that nominations for the annual Ben Bodna Award are open for 2013. The Ben Bodna Award will provide grants of up to $10,000 a year for individuals seeking to advance knowledge and practice in the fields of social justice, community, disability or bio-ethics.

The Ben Bodna Award has been established in the memory of Victoria's first Public Advocate Ben Bodna (1935 - 2008), who was a passionate supporter of the rights of people who were disadvantaged.

Submit applications electronically by Friday 31 May 2024 to Claire Bauska at VCOSS. For more information, please contact Claire Bauska on  0392351007 or  claire.bauska@vcoss.org.au or go to:

PilchConnect is a specialist legal service that provides legal help to not-for-profit community organisations.

The service provides free and low cost legal information, training, advice and legal referrals for Victorian not-for-profit community organisations. We also undertake law reform and advocacy work about the wide range of legal issues that affect the not-for-profit sector.

To find out more about our legal services, visit our website below:

 PilchConnect - Legal help for community groups. 

View our staff profiles here. 

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