When auspicing occurs, the auspicing organisation accepts legal responsibility for the organisation being 'auspiced' and may also undertake administrative tasks for that organisation. Further an auspicing body is an incorporated organisation and enables a non-incorporated group to apply for funding and grants. This means that the auspicing organisation receives the money on behalf of the unincorporated group and is responsible for making sure the project is completed and the money is accounted for (acquitted).
- Smaller unincorporated organisations may access funding from agencies and philanthropic sources without needing to become incorporated.
- Can provide stronger voice around funding and advocacy.
- Auspicing body can mentor and build capacity of smaller organisation so that it may become independent in future.
- Roles, responsibilities and authority need to be very well documented and clearly understood.
- Problems may arise if both bodies want to compete for the same funding.
- Issues may arise around confidentiality and privacy.
- The process is at risk if the lead agency looses funding.
- The auspiced organisation must ensure that the Auspicing Body has the real capacity to properly fulfil its role.
- Potential loss of organisational identity for the smaller service.