Steps to Affiliation – Neighbourhood Watch

Introduction

The Revised Rules and the Charter were approved at the Special Meeting of NHW Victoria held on 11 October 2018. This means that the following steps need to be followed by Local Government Area (LGA) Groups to enable affiliation with Neighbourhood Watch Victoria.

The Board recognises that the preferred structure may not suit every situation and a degree of flexibility will be adopted to enable all groups to continue to operate under the NHW banner.

Incorporation

It is strongly recommended that each LGA Group should incorporate.

The benefits include:

more legal protection is provided for the office bearers
a bank account can be opened in the name of the Group
the Group may apply for grants in its own name

It is necessary to obtain the views of the members of the local NHW on the proposal to incorporate and to adopt the (Model) Rules. It is up to individual groups to decide how to fairly obtain the views of the members on these questions. To date there has been minimal interest from members on this matter so canvassing the views by email and/or letterboxing may be better than going to the time and expense of holding a meeting for the few people who might attend.

NHW Victoria has provided a suggested set of Rules and detailed step by step instructions on applying for incorporation (copies are attached). It is strongly recommended that groups adopt these Model Rules with only the name of the group in Rule 1 altered. (Rules 2 and 3 have already been changed to meet NHW requirements). A considerably higher fee applies if any other rules are changed.

Currently, the cost of Incorporation is $36.10 if a NHW group adopts the Model Rules. Model rules for an incorporated association NHW Groups Aug 18 Final

If incorporation takes place at the LGA level, all local Areas/Sectors are included in the incorporated body and their annual financial statements must be consolidated with the accounts of the LGA for submission to the Australian Charities and Not-For-Profit Commission. Steps to Incorporate a NHW ChkdA

Obtain an ABN

An Australian Business Number (ABN) is required to apply to Australian Charities and Not-For-Profit Commission (ACNC) for charity status. It is also usually necessary if the group opens a bank account and submits applications for grants from Government Departments or private organisations. There is no cost to obtain an ABN.

Detailed instructions on applying for an ABN : Steps to Obtain An ABN ChkdA

Register with Australian Charities and Not-For-Profit Commission (ACNC)

LGA Groups should register with ACNC to obtain charity status, which provides income tax exemption and may be an advantage when applying for grants.

There is no cost.

Detailed instructions on applying for charity status : Steps to Obtain ACNC Charity Status22Feb19

Review Banking Arrangements

Newly incorporated Groups should ensure that their bank account name reflects this changed status. Discuss how this is to be done with your bank. In some cases it is as simple as adding “Incorporated” to the account name and resubmitting the form with the account signatories.

Review GST Arrangements

Although Groups would be exempt from registering for GST as their turnover is less than $150,000 per annum, each is encouraged to determine whether or not to register for GST based on their own circumstances.

Groups would only be required to submit an annual Business Activity Statement (BAS).

It is suggested that if a group has a turnover of more than $5,000, the possible reimbursement of up to $450 could make the additional paperwork involved, worthwhile. However, groups should obtain accounting advice on the merits or otherwise of them registering for GST.

Detailed instructions on applying for GST : Steps to Register for GST

Affiliate with NHW Victoria

Each Group would then be invited to affiliate with NHW Victoria which would entitle them to use the four faces logo and be provided with liability insurance cover, access to bulk purchases, including personal accident insurance and ongoing assistance.

Please notify us if you are ready to Affiliate

Groups would operate independently, but would be required to subscribe to the Charter setting out the rights and obligations of both parties.

A copy of the Charter : Revised Charter 29 Aug 18

Arrangements will be made for the signing of the Charter by representatives of both the local NHW group and NHW Victoria when your group has completed the incorporation process.