Incorporation

Incorporation is the creation of a legal entity which has rights and liabilities separate from its members. P&C Associations are able to become incorporated under the Federation of Parents and Citizens Associations Incorporation Act 1976.

Why become incorporated? Becoming incorporated gives a P&C Association a ‘legal personality’. Incorporated entities can enter into legal agreements such as grants, own assets and borrow money from financial institutions. If an Association is incorporated, any debt or liability will be held against the Association itself, rather than individual members. Also action typically cannot be taken against individual members of an incorporated entity unless they have been personally negligent.

Does P&C Federation recommend incorporation for school parent bodies? Yes. Incorporation is essential for P&C Associations that wish to apply for funding grants, operate an OOSH, Before and After School activities, Vacation Care, employ staff or enter into legal agreements.

The decision to incorporate should be made by majority vote at a general or special meeting.

Is there a cost? Yes. There is a one-off administration fee of $100.00.

Do I have to register with NSW Fair Trading? No. Once you are incorporated with P&C Federation you are required to send to the Federation of P&C Associations of NSW a copy of their audited annual financial statements within one month of the annual general meeting. You are not required to send any material to NSW Fair Trading.

Can we change the Constitution? No. In applying to become incorporated you have agreed to adopt the Prescribed Incorporated Constitution. This constitution has been endorsed by the Minister for Education and cannot be amended.

Do we still have by-laws? Yes. By-laws are a set of rules that assist your P&C Association in conducting their business. By-laws cannot contradict the constitution.

Will we get an incorporation registration number? No. As you are incorporated under statute (an Act of Parliament) you will not receive a registration number. You will receive a copy of the Government Gazette as well as a Certificate of Incorporation from P&C Federation.

Will our P&C Association name change? No. You will not change your name, the title of your P&C Association will be the name of the school followed by P&C Association.

Do we need to have our books audited if we are incorporated? Yes. Your books must be audited annually however incorporated P&C Associations do not have to retain a qualified Chartered Accountant.

Do we need an Australian Business Number (ABN)? Yes. Whether incorporated or not, all associations require an ABN. Without one they will not be regarded as an income tax exempt, not for profit charity and may be liable for income tax on all profits.

What do we do to become incorporated? You should download and complete the materials under the “Publications” tab and send them to P&C Federation, our friendly staff will handle the rest.

We are incorporated but cannot find our Certificate? No problem, contact P&C Federation’s office and request a copy of your Incorporation Certificate to be posted out to your P&C Association for a small $30 replacement fee.

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