Resolution to amend the constitution
Advantages and Disadvantages of changing the constitution of IPWEA (NSW Division) Ltd (the
‘Company’)
Background and summary of current position
The board of directors (the ‘Board’) recommends supports the proposed amendments to the
Purpose as stated in the Constitution. The background to this decision is set out below.
1.
The Company has made the following documents available for review on the Company’s
website at www.ipwea.org/newsouthwales/sgm2015:
a. The Company’s current constitution; and
b. Example newly drafted proposed constitution (based on ACNC template).
2.
IPWEA NSW is one-step away from charitable status with the Australian Charities and Non for
Profit Commission
3.
The Company is a not-for-profit organisation but is not a registered charity.
4.
This means that, in the years that the Company turns a profit, that profit is liable to company
tax at a rate of 30%.
5.
The Board is of the view that the Company’s funds that are paid out as tax could, more
usefully, be redeployed in broadening the Company’s range of services and thereby increasing
the Company’s overall impact and potential benefit to the community.
6.
If the Company became a registered charity, the Company’s profits would no longer be subject
to company tax.
7.
The Board therefore supports amending the constitution to make the purpose of the
Company charitable, with a view to ensuring the success of the Company’s application for
charitable status.
Resolution 1
Suggested amendments in italics
Charitable purposes and powers
6.
Object
The company’s object is to pursue the following charitable purposes:
6.1
Purpose – the company is established to be a charity with the purpose of advancing public
works excellence in Australia, particularly in NSW by:
•
conducting and publishing research into improvements to the processes used in public
works and services to enhance NSW Communities
•
working with government at all levels to ensure that the interests of the community are
represented in regard to the public decision-making process relating to public works and services,
and
•
providing a forum for all people engaged in the public works to discuss best practice and
enhancing the future of NSW Communities
Resolution Advantages & Disadvantages
Advantages
Disadvantages

The Australian Charities and Non For Profit
commission have confirmed the proposed
amendment. The proposed amendments
would definitely be suitable for registration
with the ACNC.
Potential tax saving

The Constitution was only recently
overhauled in March

No guarantee that the change will lead to
acceptance of the charitable status
application
Easier to keep the constitution up to date
and compliant by reference to guidance
released by ACNC on an ongoing basis.

No guarantee that the change will lead to
acceptance of application

