mj
New Member
Posts: 31
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Post by mj on Jan 9, 2023 12:45:01 GMT 10
Been thinking that at least two clubs may be trading as commercial enterprises and not as community based not for profit organisations.
Running a six a side competition for the wider community is not consistent with the ‘Objects’ of a Club Constitution or for the direct benefit of its memebership. HFA is responsible for this type of activity as a governing body. A club operating a competition of this nature would be considered a commercial enterprise that is evidenced by the huge profit that is returned to the club.
Being a not for profit is important as a commercial enterprise cannot be a member of HFA, needs to pay taxes to the ATO, is not eligible to be registered as a incorporated sporting Club, and is the last of the priority of allocations for sporting fields by Hills Council.
Will be interesting to see who will investigate this first? HFA, Hills council, the ATO, or NSW Fair Trading. If proven, the club may be deregistered from HFA and NSW Fair Trading, required to pay substantial back taxes and penalties, and potentially have fields allocated to other clubs that are trading as a not for profit.
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Post by whenwillwec on Jan 10, 2023 11:01:50 GMT 10
I would have thought as long as funds are put back into the club and those funds are used for equipment, jerseys, ground rentals etc then its well within the meaning of not for-profit. No different to running a canteen as long as the funds are going back into the club for its membership.
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