From oil dependence to local resilience

Legal Status & Bank accounts

Hi fellow TTers

Here on the Kapiti Coast we have had a funding win. We have been given a $500 grant by the Paraparaumu/Raumati Community Board. This brings up an issue that I am guessing a number of other TT groups are facing, what's our legal status, with whom do we open bank accounts?

Judith from our steering group found www.keepingitlegal.net.nz

Which list the different types of organisations we can be, Unincorporated groups, Incorporated societies, Trusts, Charitable Trusts and Companies.

When choosing a bank we looked at Kiwibank (doing our best to support a NZ bank) but Kiwibank don't have any free accounts, whereas we can get a free account with most of the other banks.

My question is

What have other groups found out about Legal Status and Bank accounts?

In the interest of us not all inventing the same processes.

Andrew
Kapiti Steering Group.

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Replies to This Discussion

Permalink Reply by Christoph Hensch on June 15, 2008 at 15:21

Keeping it Legal (http://www.keepingitlegal.net.nz/) is an excellent resource that will give you about all the info you'll ever need if you want to open a legal entity for you local group. The question is: do you need a legal entity? You can run an unincorporated group and you can easily fundraise up to a level of $5,000 from many donors. The question of having a legal entity is not that important in the short term - it just depends on how you'd like to set yourself up.

Another question that might be more pertinent is if you like to register with the Charities Commission! Also unincorporated groups can register - it'll give you charitable status - good if you'd like to attract more funds. But will also put some burdens on you, like the obligation to present your financial accounts every year, etc.

I cannot tell you much about bank accounts. I think it depends on how much money you have - the higher the balance, the greater the chance that you don't have to pay charges (as it usually goes). A short term alternative would be to find an umbrella organisation that could administer the money for you in the meantime. Think about if there is any point in setting up a large structure for just $500. If, however, you plan on doing more fundraising, it will be well worth doing through all those processes.

Good luck!