[wlug_org] FWD: To incorporate or not to incorporate, info on ramifications.

[Wood Brent]

--- Jamie Baddeley <jamie.baddeley@vpc.co.nz> wrote:

> I think it's an excellent summary of facts, and I certainly appreciate
> Tony taking the time to do it.
> 
> I agree with your summary Brent of the meeting outcome, that's what I
> thought the conclusion was.
> 
> The only question that pops into my head having read it is what the
> ins&outs of being a not-for-profit....

As I understand it, from my roles as 2020 Trustee & committee member in other
groups over the years (so feel free to correct me if I'm wrong):


If we don't incorporate there is no legal entity capable of owning anything.
Any "assets" such as hardware or $$ are simply held by someone(s) on an
informal basis. So "trust in whoever" is the situation, as it is now.
  
If we incorporate as not-for-profit, we cannot organise activities for a
profit, but can take in monies to cover costs & accept donations. Unless the
annual income is over some minimum set by IRD (dunno what at present, but not
likely to be an issue) no tax is payable. We would need to abide by the
conditions described in Tony's summary, which require a constitution and
suitably authorised individuals to implement what is required by the
constitution, along with a clearly defined way of defining membership and
determining who is on the committee.

Note that more than one form of membership can be specified, so we could have
wellylug list members, website members, wiki members, etc. These may be
alternative/equivalent, rather than distinct, in effect, we could have more
than one way to become a generic member.

I'm not sure if it is required, but it is certainly customary to also have a
specified way of expelling a member for inappropriate behaviour, and a code of
conduct specifying when this is applicable. (Just thinking of implications we'd
need to consider....)


Brent