In Australia, the not-for-profit industry is a profitable sector in the economy. According to the Australian Bureau of Statistics 2006 – 2007 report, the not-for-profit sector contributes $43 billion to gross domestic product annually and employs approximately 890,000 people nationally. To ensure that your organisation hits the ground running we have compiled a list of questions you should ask when considering hiring an not-for-profit lawyer for your organisation. This guide provides five questions to ask Not-For-Profit lawyers, useful when searching Law Path’s Lawyer Directory.
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1. Is my organisation a not-for-profit?
It is important to consider whether the organisation you have or are considering starting is a true
not-for-profit . In order to be considered a not-for-profit, any profits the organisation makes must be put back into the organization to continue to pay for its activities and operations to achieve its mission. When you are hiring an experienced not-for-profit lawyer you should outline your mission, goal, objectives and business plan to ensure you meet the compliance requirements of a not-for-profit.
2. Can we register as a charity?
The difference between a not-for-profit and a charity in Australia is complex and nuanced. When seeking clarification around whether your organisation should register as a charity you should ask your legal representative to outline the advantages and disadvantages. Charities are entitled to a number of tax concessions which could be useful to your organisation. However, registering as a charity means that you have more compliance requirements. When assessing whether your organisation should undertake the process of registering as a charity make sure you have all the facts before you make a decision.
3. What structure should my organisation have?
You have a range of legal structures you can use when forming your organisation. To make a determination on the best structure for your Not-For-Profit you need to think about how you want to run this organisation. You need to consider a number of factors like
- Where do you want to operate? Do you want to be a local, state or territory or federal not-for-profit?;
- How will your organisation raise money?; and
- What will be the size of your Not-For-Profit organisation?.
The type of structure you select will impact the way you run your business and will alter the way you hold meetings, your reporting requirements, tax obligations and other considerations as well. So you need to choose carefully. You should discuss with your legal representative what the best options are based on your organisation’s objectives.
4. What are our employment obligations?
To ensure the ongoing success of your organisation it is vital you understand your obligations to your employees, contractors and/or volunteers and to know which category of ‘worker’ is going to be undertaking activities in your organisation. You should seek clarification on your compliance obligations regarding the Workplace Health and Safety laws in Australia. You should make sure that you seek legal advice to outline your obligations and to establish effective practices for your organisation.
5. What are the costs?
You need to make sure you understand the cost associated with hiring the lawyer you have instructed. There are two common methods of payment that allow you to estimate how much the legal fees will cost and whether it is worth proceeding.
Billable hours
Billable hours are when the lawyer charges for every hour spent on your issue. You should try and get an idea of how many hours the lawyers expect to take. Keep in mind that even a short five-minute conversation can add much more to your final bill.
Flat Fee
A flat fee can provide a better idea of what you’re paying. The flat fee, however, may not cover all legal costs such as applying for a hearing with the fair work commission.
Conclusion
All not-for-profit organisations are driven by their desire to make an impact on the community and the members they serve. To ensure you make an impact it is crucial to dot your I’s and cross your T’s so you are complying with all the rules and regulations. Hiring an experienced not-for-profit lawyer is a way to ensure your business survives and thrives in this competitive landscape.
Need specialised advice regarding your Not-For-Profit organisation? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents, obtaining a fixed-fee quote from our lawyer marketplace or any other legal needs
.
