Four things every not-for-profit arts board should know

29 Sep 2015

Directors of not-for-profit arts company boards are essential to a flourishing arts and cultural sector. Every week, many people volunteer their time, skills and experience to ensure the good governance of arts organisations. Even though they are mostly volunteers, directors are held to similar standards as well paid directors of publicly listed companies. Committee members of incorporated associations face similar obligations. Of the more than 4000 pieces of legislation that may impact on a board, below are four statutory requirements that not-for-profit directors should know about.

1. Collections Act 1966

Fund raising in Queensland is regulated by two government agencies: the Office of Liquor, Gaming and Regulation for fund raising through raffles and gaming, and the Office of Fair Trading (OFT) which is responsible for registering and regulating organisations undertaking fund raising. The latter administers the Collections Act 1966. Under this Act, before you can fundraise for a charity or for a charitable purpose (which includes arts organisations registered with the Australian Charities and Not-for-profit Commission), it must be registered with the OFT. It is an offence to fundraise for a charity or for a charitable purpose in Queensland unless the OFT has registered the charity or the appeal. The requirements under this Act are in addition to registration under the Register of Cultural Organisations and with the Australian Charities and Not-for-profit Commission. You can search to see if your charity is registered to fund raise on the OFT charity register. 

2. Corporations Act 2001 Sect 251A – Minutes

Under Sect 251A(1) of the Corporations Act 2001, a company must keep minute books in which it records within one month, minutes of meetings of members or directors and resolutions of members or directors passed without meetings. Breaching the provisions of this section is an offence of strict liability so it is important that every director ensures there are systems in place to comply with this section. 

3. Workplace Health and Safety Act 2011

Under the Workplace Health and Safety Act 2011 , the main duty of the board is to ensure the health and safety of workers by eliminating or minimising risks in the workplace. Directors should inform themselves on the provisions of the Act. In particular, they should understand the risk profile of the organisation and have systems in place to monitor the organisation’s compliance with the law.

4. Australian Charities and Not-for-profit Commission Act 2012

The Australian Charities and Not-for-profit Commission Act 2012 established the Australian Charities and Not-for-profits Commission (ACNC), which is the independent national regulator of charities. The ACNC has been set up to achieve the following objects:

• maintain, protect and enhance public trust and confidence in the sector through increased accountability and transparency,
• support and sustain a robust, vibrant, independent and innovative not-for-profit sector, and
• promote the reduction of unnecessary regulatory obligations on the sector.

Failure to comply with obligations under the Act may lead to charities being deregistered and losing Deductible Gift Recipient Status and other tax concessions.

This is general information only and is offered to assist directors in understanding some of the legislation that impacts on them but it is by no means comprehensive nor is it legal advice. Arts Organisations should seek their own legal advice about how these Acts may specifically impact on them.