The defining characteristic.
WHAT DISTINGUISHES IT
Surplus is applied to the purpose rather than distributed to owners.
WHAT IT DOES NOT MEAN
That it cannot generate surplus That staff are unpaid That it need not be run properly
WHY THAT NEEDS SAYING
Nonprofits fail more often from poor management than from lack of funding.
WHAT LEGAL FORMS EXIST HERE
Incorporated trustees, under the companies legislation A company limited by guarantee An unincorporated association
WHAT INCORPORATED TRUSTEES PROVIDES
Legal personality The ability to hold property Continuity beyond the individuals
WHAT IT REQUIRES
Trustees A constitution Publication of the intention to register Approval
WHAT A COMPANY LIMITED BY GUARANTEE REQUIRES
Ministerial consent, in addition to the usual requirements.
WHAT THAT ADDS
Substantially to the timeline.
WHAT AN UNINCORPORATED ASSOCIATION IS
A group with no separate legal identity.
WHY IT IS RISKY
Members may be personally liable, and it cannot hold property in its own name.
WHAT TO ESTABLISH BEFORE CHOOSING
What you will do Whether you will hold property or employ people What funders will require
WHY FUNDERS MATTER
Many will only fund registered entities.
WHAT TO TREAT THIS CATEGORY AS
General operational guidance, to be verified.
