Dear Members,
I believe that our bridge community at Peninsula is a bit like a family in that to get along well, good communication is key. The Committee makes a huge effort to communicate, especially regarding any changes, but good communication is not as easy task and this is where your help is invaluable.
Whilst we relish any positive feedback, we also invite and appreciate enormously any expression of concerns or disagreement with decisions that are being made. It is this feedback that can alert us to the need for clarification, reflection and often better communication. Please keep writing or talking to us!
I would like to address a few topics where I understand there is some confusion:
“Has the Bridge Club become a company?”
The Bridge Club was established in 1966 as an incorporated association, which is the ideal legal structure for a non-profit organisation such as ours. It is a formal legal structure which establishes the club as its own legal identity separate from its members. This legal structure remains unchanged.
While there are benefits to be gained from incorporation, there are also obligations. These include annual reporting obligations, maintaining minutes, proper financial and membership records and registers.
The Club is not and will not become a proprietary limited (or private) company.
“Why did we get an ABN (Australian Business Number)?”
If an organisation has a turnover of $150,000 or more, then it is compulsory for that organisation to become registered as a GST entity, which requires an ABN number to be obtained. No exemptions are possible. It means that the club pays GST but also that it can recover GST on many expenses.
In 1999, the Australian Bridge Federation issued a detailed GST briefing paper informing all bridge clubs of the need to prepare for GST registration once this threshold was reached.
“Now we have an ABN, are we a money- making business?”
The Club has for many decades built up a surplus, for the specific contingency of the club requiring new premises. This is a responsible approach for any organisation. With the current lease due to expire in 2021, there is an increased need to add to this surplus.
“Won’t the Council look after us anyway because we are such a large community group?”
We would love to believe that this will be the case- it is clearly the best possible scenario.
However, when the current room was built, it required a sizeable injection of cash from the Club ($200,000)- even back then, the Council was unable to provide everything that was needed without the Club’s financial help.
Since then, the world has continued to change, and that includes the world of Councils. Increasingly they are required to engage with Community groups on a commercial basis, requiring competitive rental returns and explicitly asking for contributions from community groups.
It is essential that the Club prepares for the future and anticipates the environment in which it will be operating and negotiating.
I hope this has clarified some of your concerns.
It is an honour to be the President of such a wonderful vibrant and community-minded group of bridge players.
Sarah Young
