Created: July 23, 2013 at 3:26 PM | Updated: August 29, 2018 | By Community Resource Kit
Another way for groups to work successfully in their communities without incorporating themselves is by going under the wing of an umbrella group. An umbrella group is usually a larger organisation that is an incorporated body and can provide resources and backing to smaller groups that work in similar areas and/or share similar goals.
Working with an umbrella organisation allows a smaller group to get on with projects without having to take on the costs and responsibilities of being incorporated. It can help with obtaining funding and the umbrella group may also receive and pass on any money to a group within its structure, possibly charging a handling or administration fee for its services.
By using an umbrella organisation:
Tip: Make sure the umbrella group is a legal entity and get a written agreement to ensure the relationship is clear. Both parties should seek legal advice before signing any agreement between them. For more information visit: http://communitylaw.org.nz/legal-information/browse-all-topics/