An individual, just like you, has all kinds of legal powers. Assuming you are over 18 of course!
For example, you can sign contracts and be bound by them. You can own land, goods and other things. You can sue others and can in turn be sued.
This is because, according to law, you are a legal entity.
Incorporation is, in simple terms, a way of giving all these same powers to an entity that is separate from you and separate from others in your group. The common incorporated entity types used by not-for-profit and charitable organisations include companies, incorporated associations, and cooperatives.
You can learn more about the different types of incorporated entities in our article coming soon!
Importantly, you need to know that for as long as your NFP or charity is unincorporated, there is no separate legal entity with the types of powers described above – meaning that one or more of the individuals in your group will need to take on the legal role and responsibilities personally.