If an organisation becomes incorporated, it is recognised as a legal entity with an existence separate from that of its members.

An incorporated organisation can:

When an incorporated organisation has liabilities, its own assets can be used to pay those liabilities but assets belonging to a member cannot be taken. If an incorporated organisation is sued, its members will generally not be personally liable. If the organisation does not have enough assets to pay its debts, it can be wound up but members will not have any personal financial responsibility.

It is important to consider incorporation if your organisation:

To become incorporated, South Australian associations can use the process provided for in the Associations Incorporation Act 1985 (SA) . The majority of non-profit community organisations incorporate using this Act.

Associations with gross receipts greater than $500,000 per year (other than money received as subscriptions, gifts under a will or from the sale of assets not originally bought for the purpose of resale) are prescribed associations and have strict controls imposed on them [s 3 and Associations Incorporation Regulations 2023 (SA) reg 4]. For more information, see Prescribed associations.