Click here for a printer friendly version.

Association

Corporate Status.

Unincorporated (Note that the unincorporated association is a particular legal form but the word "association" may be used in a wider context. Thus one may come across an organisation called "XYZ Community Association" which is, in fact, a limited company and not structured as an association.)

Terminology: governing document

Normally referred to as "the constitution" but may occasionally have some other title.

Terminology: governing body

Commonly called "the management committee" but there are no fixed rules about the name given to the governing body. If the association also has charitable status, they may be called "the trustees".

Management/governance structure

Generally two-tier, with a governing body accountable to a wider membership (sometimes referred to as a "participating membership"). Members will typically hold voting rights at general meetings and will elect all or some of the governing body.

Further embellishments may be added to this basic structure, e.g. an executive committee (smaller than the governing body, perhaps made up of honorary officers and senior staff), or a members' council, which may meet more frequently than the full membership and supervise the work of the governing body.

Membership

May comprise individuals or other organisations or a combination of the two. Eligibility for membership may be subject to specified criteria (e.g. living or working in the area of benefit, or sharing a common ethnic origin, or sharing an interest in a particular sport); or the constitution may simply say that "anyone who supports the objectives" may apply for membership. A lower age limit will commonly apply to individual members (16 or 18).

Admission to membership is usually at the discretion of the governing body, but an "open membership" system may apply where strict criteria are laid down, e.g. anyone who lives on such-and-such an estate is eligible to become a member. The constitution should always allow for the expulsion of members who act against the interests of the association.

Where there are members who have rather different interests in the organisation's work, the membership may be divided into two or more classes (e.g. representatives of statutory bodies, representatives of local business, community members, user-members and so on

An association must have a minimum of two members.

Governing legislation

Not governed by a specific statute (Act of Parliament). There is some case law establishing defaults applying to associations, but the governing document (constitution) is the main source of regulation.

May qualify as a registered charity if it meets the necessary criteria.

Profit distribution permitted?

No - one of the defining characteristics of an association is that it cannot distribute profits.

Examples of Use

The unincorporated association is a very common, relatively informal structure for voluntary and community organisations of all types. It will often be the starting point for a new organisation which may later adopt one of the more formal incorporated structures.

Because it features a participating membership, it is suitable for representative organisations such as tenants' associations, pressure groups and federations, where it is necessary for the governing body to be accountable to the people the organisation claims to represent.

The association is not generally recommended for use where there is a significant element of financial risk involved in the activity undertaken.

In the social enterprise sector the association is not much used, although there is a standard constitution available for unincorporated food co‑operatives which purchase and distribute nutritious foodstuffs in areas where shopping opportunities are limited, often accompanied by lessons in diet and cooking and promoted as part of an anti-poverty strategy.

Participation Issues

Associations are membership-based, so encouraging an active membership is an appropriate method of promoting participation - especially where the members share a common interest or condition.Otherwise associations are free to utilise most of the other common methods of encouraging participation, though not of course profit distribution

[Charitable Incorporated Organisation] [Trust] [Partnership] [Company Limited by Guarantee] [Company Limited by Shares] [Community Interest Company] [Industrial and Provident Society] [Limited Liability Partnership] [Organisational Types] [Resources] [Links] [Contact Us]