What is an association

An association in Australia is typically a not-for-profit entity, structured as a collective of members united by a common objective, which could be cultural, charitable, sporting, educational, or for other community benefits.

What is an association

An association in Australia is typically a not-for-profit entity, structured as a collective of members united by a common objective, which could be cultural, charitable, sporting, educational, or for other community benefits.

Characteristics of an association

Associations are self-governing organisations founded on the principle of serving a particular ideal, political aim, or cause, rather than generating profit for distribution to members. While associations are permitted to make a profit, such earnings must be channelled back into fulfilling the association’s objectives or enhancing its activities rather than being distributed to members.

Reinvestment of profits

Profit generated within an association must be reinvested to sustain its operations and to further the cause for which the association was formed. This structure is designed to ensure that the focus remains on the collective benefit rather than individual financial gain.

Comparing organisational structures

For a comprehensive understanding of how an association fits within the broader context of organisational entities in Australia, one might examine all the various business and organisation structures recognised by the Australian government.