Consultation Paper - Scoping study for a national not-for-profit regulator.

PilchConnect welcomes the Federal Government's recent release of a public consultation paper on the design of a new national regulator for the not-for-profit sector.

Following numerous inquiries, including the 2010 Productivity Commission study into the contribution of the NFP sector and the 2008 Commonwealth Parliament Senate (Economics Committee) Inquiry into disclosure regimes, the consultation paper provides a valuable opportunity for the sector to directly influence the future of a ‘one-stop shop' regulator for incorporation, fundraising and charitable endorsement, as well as having a key role in providing support to the sector. 

In light of the importance of a viable, independent regulator for the not-for-profit sector, we strongly encourage community organisations and interested stakeholders to seize this opportunity to submit for consideration comments on the goals of national regulation, the scope of national regulation and the functions and form of a national regulator.

The closing date for submissions is Friday February 25 2011. Full details of the consultation paper can be found by following the link below.

'Board Members: Roles, Responsibilities, Liabilities and Protections'

**Final call for registrations**

Throughout 2011, PilchConnect and the VCOSS Clearinghouse will continue to work together to run governance training for people involved in not-for-profit organisations throughout Victoria.

This month we will be running a seminar entitled ‘Board Members: Roles, Responsibilities, Liabilities and Protections', to be delivered in Geelong and Melbourne CBD.

This training is suitable for new not-for-profit board/committee of management members - or existing board or committee members that are seeking a refresher on the roles and legal responsibilities that come with helping to run an effective community organisation in Victoria. Attendees will work in small groups on practical, hypothetical scenarios which are common to many community organisations. We encourage multiple board members to attend this seminar.

Geelong : Tuesday 15 February

Date:               Tuesday, 15 February 2025
Time:               1.00pm to 4.00pm
Venue:             City Hall, Gheringhap Street, Geelong
Cost:               $40 incl. GST
Refreshments:  Afternoon tea will be provided.

Melbourne CBD : Wednesday 16 February

Date:               Wednesday, 16 February 2025
Time:               11.00am to 2.00pm
Venue:             Victoria Room, Queen Victoria Women's Centre, 210 Lonsdale Street, Melbourne
Cost:               $40 incl. GST
Refreshments:  Light refreshments will be provided for lunch.

To register, or for further information and details of other community training throughout regional Victoria in 2011, please visit the VCOSS Clearinghouse website below.

2011 not-for-profit seminar - 'Navigating the Maze: an introduction to legal issues for not-for-profit community groups'

PilchConnect's legal seminar series for not-for-profit community organisations kicks off in 2011 with a 'back to basics' introduction to legal issues for Victorian not-for-profit community groups - especially useful if you are just getting started!

Hosted by the University of Melbourne and presented by PilchConnect lawyers, the session will present a basic, practical overview of legal issues in the following areas:

• getting your community organisation started - why, where, when, how;
• incorporating your organisation - the process, the consequences, pros and cons;
• duties of board / committee of management members; and 
• risk management and insurance.

This seminar will encourage questions and active participation from attendees. We encourage multiple representatives from community groups to attend.

Date:               Wednesday, 23 February 2025
Time:               9.30am to 12.30pm
Venue:             Melbourne Law School (room TBC.)
Cost:               $40 (incl. GST) administration fee per person
Refreshments:  Light refreshments will be provided for morning tea.

Registrations for this seminar are now open, and it is filling fast. For more information, or to register please visit:

Legal issues in managing volunteers (full day training session)

Volunteers are a critical part of most NFP community organisations. Whether it's driving the vehicles, assisting with client needs, providing advice, planting trees or answering phones, the value of volunteers in this sector is immeasurable. Yet, despite the importance of volunteers to the effective operation of their NFP, few organisations fully understand how the law applies to its volunteers.

This newly-designed one-day seminar is designed to help participants systematically analyse the ‘life-cycle of a volunteer', to identify the key legal risks at each stage and to learn simple procedures to minimise or avoid the risks. Run by PilchConnect lawyers, the seminar will draw on current case law, hypothetical examples and common questions, as well as provide participants with template documents for use in their volunteer programs, and, of course, time for Q&A.

Date:       Wednesday 16 March 2025
Time:       10.00am - 4.00pm (registrations open at 9.30am)
Venue:     National Australia Bank (NAB)
               800 Bourke Street, Docklands (room TBC.)        
Cost:       $75 for small NFP organisations (less than 10 full time employees)
               $200 for large NFP organisations (more than 10 full time employees)

To register, or for further information, please visit our website:

New PilchConnect Guide: Working with Children Checks.

We are constantly updating the PilchConnect web portal to reflect developments within the not-for-profit sector. We are also working hard to generate new fact sheets and legal guides for Victorian community organisations on those issues that are relevant to the sector.

A new PilchConnect guide helping community organisations on how to comply with the Victorian Working with Children Check scheme is now available on our web portal. This latest publication adds to the growing amount of legal information and resources available for not-for-profit community organisations via the  PilchConnect web portal.

Depending on the type of organisation you represent, or the type of clients your organisation has contact with, there may be legal obligations to perform certain levels of checks before recruiting. The Working with Children Act 2005 (Vic) identifies certain roles and responsibilities which cannot be undertaken until a Working with Children Check has been undertaken. Failure to comply with these requirements can result in serious penalties for both the organisation and the employee or volunteer that has failed to undertake the check.

PilchConnect has composed this guide to assist Victorian not-for-profit community organisations to understand their obligations in relation to these checks. For further information, or to view this new resource, see our website below:

Can a member gain or profit from an organisation's activities?

The term 'not-for-profit' is sometimes misunderstood. Not-for-profit organisations are certainly allowed to make a profit, in fact, this is preferable for most organisations. What a not-for-profit must not do is distribute those profits to its members (with limited exceptions). Instead, profits should be put back into the running of the organisation to allow it to fulfil its objects.

The ability for an individual member of a not-for-profit organisation to gain or profit from an organisation's activities was recently addressed in the Federal Court Case Commissioner of Taxation v Co-operative Bulk Handling Limited [2010] FCAFC 155. Although the case centred on the application of the Income Tax Assessment Act 1997 (Cth), it nevertheless provides a timely reminder that members of not-for-profit organisations are prohibited from securing pecuniary benefits for themselves.

In Victoria, the Associations Incorporations Act 1981 (Vic) (AI Act) states that an association is unable to secure a financial benefit for its members, and is unable to distribute any surplus assets to its members (or former members) upon winding up.

Limited exceptions to this general rule have been provided for in the AI Act. For example, an incorporated association may not be deemed to be securing a pecuniary profit for its members where:

• A member receives a pecuniary benefit from the association by way of bona fide payment of remuneration;
• A member derives a benefit through the enjoyment of facilities or services provided by the association;
• The benefit received by the member is as a result of competition for prizes in contests directly linked to the purposes of the association; or
• The member derives a pecuniary benefit to which they would be entitled if they were not a member of the association.

The important point to remember is the underlying policy of the prohibition. Building and preserving public confidence is fundamental to the sustainability of not-for-profits, particularly given the impact this confidence has on securing donations and public support. These provisions are in place to ensure that the public can donate to, or buy products from, an incorporated association and be confident that the proceeds will be put back into the organisation's activities - rather than being distributed to individual members for their personal gain.

Further information on the rules around what can be deemed a 'not-for-profit' can be found on our website:

PilchConnect is a specialist legal service which has been set up to provide legal help to Victorian, 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.

If you would like to subscribe or unsubscribe to this e-bulletin please email connect@pilch.org.au.

If you would like to contribute to, or provide feedback about this e-bulletin, please email connect@pilch.org.au

To find out more about the legal services we provide, see:

Have you missed an earlier edition of PilchConnect's e-bulletin and want to get up-to-date? All of our previous newsletters are available on the PilchConnect website at the link below, including this month's edition!