By Joe Smith
As well as us being in tax season it is also time for incorporated associations and limited by guarantee companies to be audited. In our community there are a vast number of people involved in these organisations as volunteers or as committee members.
I volunteer as Treasurer for the Gladstone Chamber of Commerce and Industry and when I hear it called a not for profit I do not like it. These types of organisations should budget to make a surplus if possible as this will help build a sustainable organisation that will benefit the community for a long time.
While it may not able to be possible to generate a surplus every year, either due to the timing of funding received or expenses for projects spanning over more than one financial year, having a budget in place and monitoring it on a regular basis it essential.
The value of the time put into the organisations by committee members and volunteers is difficult to put a figure on however if it were wages in a business then that business would no doubt be running at a loss. So when thinking about attending the next event run by a Chamber of Commerce or sporting club it should be taken into account that the cost to you would be significantly higher if it were not for the time and effort put in by committee members and volunteers!
In conclusion, I take my hat off to all of the volunteers and committee members in our community. And if you do join a committee please keep it in mind that it is ok to make a surplus from activities and that a surplus is required to buy equipment or other items that the organisation could not operate or continue to operate with in the long term.
If you are on a committee and would like help setting up budgets or having an audit done please call UHY Haines Norton on 4972 1300 or email email@example.com