RSL NSW could face another several months without fundraising after members voted down a new constitution to overhaul the league's governance issues.
The organisation on Tuesday held an extraordinary general meeting where members voted on a new constitution which aimed to increase transparency and efficiency, make legal compliance easier, and introduce controls to restore fundraising activities.
It was knocked down 68 votes to 32.
RSL NSW president James Brown said under the current constitution it is difficult to comply with the charitable fundraising law and it's unlikely the organisation would be able to fundraise until a new constitution is passed.
He's hopeful a revised constitution will pass at the next extraordinary congress meeting in May.
This means for a second year, it's unlikely the veteran's charity will be able to raise funds for itself on Anzac Day.
Last week, RSL NSW said in a statement 160 of the league's 352 sub-branches are at risk of closing because of their inability to resume fundraising.
"We always knew this process would be tough," Mr Brown told AAP on Tuesday.
"We need to think carefully about how we can reconcile the governance arrangements members prefer with the governance the law and charities demand."
One of the main issues for members was that they didn't have enough time to process the new constitution and that it lacked specific details, he added.
"We are under specific pressures because of the scandals we have gone through. All of that created a need to try and have a crack and have a go early rather than later," Mr Brown said.
The organisation has been going through significant reform since a public inquiry in 2017 revealed former president Don Rowe used his RSL credit card between 2009 and 2014 to pay for his mortgage, family phone bills, flights and meals.
The fundraising ban was announced by Mr Brown after the revelations were made in the public inquiry.
Members on Tuesday were also set to vote on remuneration for directors but this was contingent on the constitution passing and as a result did not get voted on.
Share
