Unincorporated Association

This is the most common structure used by the vast majority of sports clubs and organisations within the voluntary sector. The members come together and agree to establish the club with its own rules and operating procedures.  These are then set down in the Constitution e.g. appointment of office-bearers such as a chair, secretary and treasurer, the duties, powers and responsibilities of those appointed and elected and the rules governing membership.

There is a contractual relationship between the individual members of the organisation as they have agreed or "contracted" to come together for a particular purpose.  The association has no existence or personality separate from its individual members.

This is the simplest form of club structure, the easiest to run and operate, and the one that most members will be familiar with. 

This structure is most suitable for:     

• small local clubs;
• clubs without significant buildings, equipment, or financial assets;
• clubs that are not engaged in high-risk sports where accidents are far more likely and potentially costly if negligence could be proved;
• clubs that protect themselves against third party liability and negligence through a standard insurance policy for their sport.

As this type of association has no legal identity of its own, it cannot start legal action, borrow money, enter into contracts in its own name or hold property.   If the association exists to benefit others, the property will normally be deemed to be held in trust.

One serious consequence that you should be aware of with this type of structure is that if something was to go seriously wrong ALL the members of the association are liable.  So, if the club goes bankrupt, all the members could be liable for the debts, irrespective of their individual financial circumstances.  Because this liability is unlimited, those with more wealth could be hit harder than those with relatively little money.

On the positive side, unincorporated associations are simple to set up and run.  You don't need permission from anyone else.  You create your own constitution and run your own affairs within these rules.  Most clubs are able to insure themselves against the more common risks and your National Governing Body is likely to offer an insurance scheme that you can join.