Most OUSA clubs start off and stay unincorporated. This works fine and rarely affects day-to-day running. Some clubs choose to become a legal entity. Here's how the options compare:

Not sure which you are? Check your constitution, or email cdo@ousa.org.nz.

Yes. If your club isn't a recognised legal entity, individual committee members, and sometimes other members, can be held personally responsible for the club's obligations and any court judgments against it. This is a big deal and shouldn't be skimmed over.

Before you commit your club to anything

• Get committee approval, and record it in the minutes
• Read contracts carefully, including cancellation terms, deposits and bonds, before anyone signs
• Know whose name is on the contract, and make sure they understand what they're taking on
• Think about what could go wrong and whether you need insurance (see Managing risk & insurance below)

Ask yourselves: do we have confidence in our club's operations and in each other when it comes to risk?

As good practice, an unincorporated group should write down its rules and processes for managing the group and making decisions. These can be based on how you've done things in the past, and should be agreed by your members.

There's no legal requirement to write them down, but it helps your club run smoothly, and it's really useful if disputes come up, especially where money or assets are involved.

Becoming a legal entity has pros and cons, and comes with extra legal obligations. We're happy to talk through whether it makes sense for your club on a case-by-case basis. Get in touch with the CDO.

Incorporated societies

An incorporated society is set up under the Incorporated Societies Act 2022. Once incorporated, a society can legally run its affairs as though it were an individual person. The NZ Companies Office runs the Incorporated Societies Register. Societies must have a constitution that includes the specific clauses the Act requires.

More info: How to set up an incorporated society (Community Resource Kit)

Charitable trusts

To become a charitable trust, you'll need to approach the Companies Office. Charitable trusts must act exclusively or mainly for charitable purposes: advancing education or religion, relieving poverty, sickness or disability, or another purpose that benefits the community. They need a constitution, but there's more flexibility in the individual clauses than for an incorporated society.

More info: How to set up a registered charitable trust (Community Resource Kit)

This Act aims to make sure alcohol is sold, supplied and consumed safely and responsibly. It applies to any exchange of money for alcohol, directly or indirectly.

If you have that kind of exchange, you'll need to either remove it or apply for a Special Liquor Licence through the DCC. Licences can be hard to get and involve a lot of paperwork. We recommend avoiding selling or indirectly exchanging alcohol altogether, and using licensed premises instead.

Club culture and host responsibility

Members can of course buy their own alcohol, but it becomes a problem when alcohol is tied into club activities and accepted as part of club culture. Culture doesn't have to be written down; it's the shared understanding of "how we do things". You can build a responsible culture using the host responsibility framework:

• Provide leadership and oversight at events
• Manage hazards (see the Health & Safety Planningpage)
• Get training, and share information with your members
• Prevent intoxication, and make sure food and non-alcoholic drinks are available
• Don't serve minors or anyone who's intoxicated
• Promote responsibly: model good behaviour, set clear expectations, and step in when behaviour doesn't match club or OUSA expectations

Remember: OUSA club events should never centre on alcohol.

If your club sells food, you must comply with the Food Act, which promotes food safety and is regulated by local councils. Even if food is free, following the Act's framework is good practice.

Sausage sizzles and food stalls for non-profit fundraising don't always need a permit, but you're still responsible for making sure the food is safe and suitable. Check with the Dunedin City Council to find out whether your activity falls under the Act.

Be mindful of noise and respect your surroundings. Dunedin and other areas have set limits for what's acceptable, and excessive noise can lead to intervention or penalties from noise control officers. Adjust your noise levels, and your behaviour, accordingly.

Personal information is anything that can identify someone, and it can include opinions about them, whether true or not. Your core obligations:

For practical tips on member lists and the Clubs Portal, see our Membership & Sporty Clubs Portal page. Read the full Privacy Act 2020.

Under the Health and Safety at Work Act, a club is only a PCBU, with legal duties, if it has one or more employees. Most of our clubs don't, so they have no legal obligations under the HSWA.

But you still have moral obligations to your members, and OUSA expects every committee to identify, assess and control hazards, keep members informed, monitor hazards, and make sure gear and equipment are safe and fit for purpose. The HSWA is also a great framework for best practice. Your affiliation may be at risk if there are reasonable grounds for concern about how your club manages safety.

Income tax

Whatever your legal status, your club may have to pay tax to IRD on its income. How much depends on your legal status (incorporated, unincorporated, charity, etc.), your turnover, and the type of income you receive.

Many clubs qualify for a $1,000 tax deduction because of their not-for-profit (NFP) status. NFP means no individual member benefits financially from the club. You'll still need the right paperwork to show you're non-profit.

GST

GST (Goods and Services Tax) is separate from income tax. If your club's turnover is over $60,000, you'll need to think about GST. It means extra paperwork, but it can also let you claim back GST on some costs.

Where to get help

• IRD's guidance for non-profits
• Clubs and Societies Tax Return Guide (IR9)
• Dunedin Community Accounting: free accounting advice for not-for-profits. The jargon can be overwhelming, so they're a great place to start.

No. Clubs are separate from OUSA and responsible for their own activities. There are two exceptions to be aware of:

Among other things:

A risk register is a great tool for working through this: what could go wrong, how likely it is, what the consequences would be, and how you'd manage it. See the templates on our Health & Safety page.

That's up to your club. OUSA can't make the decision for you, but we recommend giving it fair consideration so you make an informed choice. After working through your risks, your club will have its own "risk appetite":

Part of your due diligence could be talking to an insurance broker for professional advice.

All subject to the terms and conditions of individual policies.

What does it cost?

It varies from club to club. Cost generally rises with the amount of cover and the level of risk: the more likely and serious the risk, the higher the premium.