Unincorporated associations are a type of non-profit organization that community groups and voluntary organizations can use. Unlike incorporated organizations, unincorporated associations do not have a separate legal identity and their members are personally responsible for any debts or liabilities. Despite this, unincorporated associations offer several benefits that make them an ideal choice for many groups.
In this blog post, we’ll explore the benefits of unincorporated associations and provide a step-by-step guide on how to set up your own.
The Benefits of Unincorporated Associations
- Flexibility Unincorporated associations have a great deal of flexibility, which allows them to quickly adapt to changes and respond to the needs of their members. They are not bound by strict rules and regulations and can make decisions quickly without going through formal procedures.
- Lower Costs Setting up and running an unincorporated association is much less expensive than setting up and running an incorporated organization. This is because unincorporated associations do not have to pay for the legal and administrative costs associated with incorporation.
- Dissolving an unincorporated association is much easier than dissolving an incorporated organization. This is because unincorporated associations do not have a separate legal identity, and their members can simply agree to disband the organization.
- Informal Nature Unincorporated associations have an informal nature that makes them accessible and approachable to potential members. They are not bound by formal procedures and can have a more relaxed and friendly atmosphere.
- Quick Decision-Making Because unincorporated associations have a more informal structure, they are able to make decisions quickly without having to go through formal procedures. This makes them ideal for organizations.