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 Parents and Citizens Associations Incorporation Act 1976.
Incorporation makes a P&C Association a legal entity separate from its members. This means that:
- Debts or liabilities would normally be held against the P&C Association, not its individual members
- Legal action typically would not be taken against a P&C Association’s individual members (unless they have been personally negligent or broken the law)
Yes. The P&C Federation suggests all P&C Associations incorporate. Incorporation is especially important for P&C Associations that:
- Apply for grants, as grants often require applicants to be an incorporated organisation.
- Operate a service at the school (such as a school canteen, uniform shop, etc.)
- Employ paid staff
- Host large fundraising events
- Own assets
- Wish to meet online (such as via Zoom), as the constitution for unincorporated P&C Associations does not allow for remote meetings.
The main requirements for incorporating are:
- that your P&C Association has current membership with the P&C Federation, and;
- has public liability insurance.
No. If your P&C Association is currently a member with the P&C Federation and has current public liability coverage, then there is no cost to applying to become incorporated.
- Move a motion to become incorporated at a properly convened general or special meeting. Decision is made by a simple majority vote of members.
- Download the Incorporation Application Information below and complete the two application letters. One letter is addressed to the P&C Federation CEO and the other is addressed to the NSW Minister for Education, send both of them to the P&C Federation.
Once the P&C Federation receives the application letters, we will handle the rest. We will notify your P&C Association when it is approved by the NSW Minister of Education, and provide you a Certificate of Incorporation.
In applying to become incorporated, you have agreed to adopt the Prescribed Constitution for incorporated P&C Associations. This constitution can be accessed and downloaded here.
This constitution has been endorsed by the Minister for Education and cannot be amended.
- Update your ABN entity type to “Other Incorporated Entity”. You can read more at this link about how to do that.
- If you are registered as a charity with the Australian Charities and Not-for-profits Commission (ACNC), update your governing document to the Prescribed Constitution. You can do this via the ACNC Charity Portal
No. There are two main requirements that incorporated P&C Associations must meet each year
- Maintain public liability insurance/membership with the P&C Federation.
- Send a copy of your audited annual financial statements to the P&C Federation within one month of your annual general meeting.
No. Only organisations incorporated under the Associations Incorporation Act 2009 register with NSW Fair Trading. P&C Associations incorporated under the Parents and Citizens Associations Incorporation Act 1976 have no affiliation with NSW Fair Trading. You are not required to send any material to NSW Fair Trading.
No. Only organisations registered with NSW Fair Trading receive an incorporation number. As a P&C Association, you will receive a copy of the Government Gazette as well as a Certificate of Incorporation from P&C Federation.
Yes. By-laws are a set of rules that assist your P&C Association in conducting their business. By-laws cannot contradict the constitution.
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.
Yes. Your books must be audited annually. However, under the Prescribed Constitution, incorporated P&C Associations do not necesarily have to use a qualified Chartered Accountant as their auditor.
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.
No problem. You can contact P&C Federation’s office and request a copy of your Incorporation Certificate to be sent to you.