On this page
- Handling disputes and conflict
- Being taken to court
- Responding to a subpoena
- Common questions about disputes
Handling disputes and conflict
Disputes and conflicts are a normal part of running a not-for-profit organisation. They can arise within your organisation, between board or committee members, with volunteers, staff or members, or with people and organisations outside your organisation.
Understanding your legal rights and responsibilities can help your organisation respond appropriately, reduce risk and resolve disputes before they escalate. In some cases, disputes can be resolved through informal discussions or mediation. In others, your organisation may need to respond to legal action or comply with legal processes such as a subpoena.
Internal disputes arise within an organisation. They may involve:
- board or committee members
- members of the organisation
- volunteers
- employees
- disagreements about governance, decision-making or organisational processes
External disputes arise between your organisation and an outside person or organisation. Examples include disputes with:
- clients or service users
- suppliers and contractors
- landlords
- partner organisations
- regulators
- people who allege they have suffered loss or harm as a result of your organisation's actions
Note
If your organisation receives court documents, a tribunal application, a subpoena or notice of prosecution, seek legal advice promptly. Strict time limits often apply and delaying a response can have serious consequences.
More information
For information about managing relationships with volunteers, see our national volunteering guide. For practical guidance on managing and resolving conflicts involving volunteers, see the NSW Government volunteering conflict resolution toolkit.
Being taken to court
If your organisation receives a letter threatening legal action, court documents or a notice from a tribunal or commission, it is important to act quickly.
Our fact sheet 'Being taken to court' explains:
- how legal action is started
- common court documents and notices
- what your organisation should do if proceedings are started
- legal costs and insurance considerations
- other legal documents your organisation may receive, including subpoenas and search warrants
More information
Many disputes can be resolved before a court or tribunal makes a decision. For information about mediation, see our fact sheet on using mediation to resolve conflicts and disputes.
Responding to a subpoena
A subpoena is a court or tribunal order requiring a person or organisation to provide documents, attend to give evidence, or both.
Receiving a subpoena does not necessarily mean your organisation is involved in a legal dispute. However, a subpoena is a court order and organisations should take immediate steps to understand their obligations and any applicable timeframes.
Our fact sheets explains:
- what a subpoena is
- how to check whether a subpoena is valid
- how to respond to a subpoena to produce documents
- how to respond to a subpoena to attend and give evidence
- when objections may be available
- costs and practical considerations
Common questions
When should a not-for-profit use mediation?
Mediation can be useful whenever people are willing to participate in discussions aimed at resolving a dispute.
It may assist with disputes involving members, volunteers, committee or board members, employees, clients, neighbouring organisations, contractors or other third parties. Mediation is generally less formal and less expensive than court proceedings and may help preserve ongoing relationships.
However, mediation is not suitable in every situation. Organisations should obtain advice if there are concerns about safety, significant power imbalances or urgent legal issues that require court intervention.
For more information, see our resources on using mediation to resolve conflicts and disputes.
How do we handle conflict on the board or committee?
Disagreements on boards and committees are common and do not necessarily indicate a governance problem. However, unresolved conflict can affect decision-making and the effective operation of the organisation.
Boards and committees should address conflict early, follow the organisation's governing documents and policies, and make sure decision-making processes remain fair and transparent. In some situations, independent facilitation or mediation may assist.
For more information, see our resources on using mediation to resolve conflicts and disputes.
How do you resolve a dispute with a member?
There is no single process for resolving a dispute with a member. The appropriate approach will depend on the nature of the dispute, your organisation's constitution and any applicable policies or legal requirements.
Many member disputes can be resolved through early communication, internal dispute resolution procedures or mediation. Where a dispute involves membership rights, disciplinary action or complaints, it is important to follow the procedures set out in your governing documents and act fairly.
For more information, see our resources on disputes with members.
What should our complaints process include?
The appropriate complaints or grievance process will depend on your organisation's size, activities and legal obligations. In many cases, your constitution or applicable legislation may contain requirements about how disputes and complaints are handled.
A clear and fair process can help organisations address concerns early and reduce the risk of disputes escalating. Your organisation should ensure any complaints process is consistent with its governing documents and relevant legal obligations.
For more information, see our resources on disputes with members.
The content on this webpage was last updated in October 2026 and is not legal advice. See full disclaimer and copyright notice.