Fundraising laws for not-for-profit organisations

In February 2023, our Commonwealth, state and territory governments agreed to nationally consistent fundraising principles. Each state and territory released its implementation plan in July 2023, explaining how they will give effect to the principles through regulatory changes or legislation. Until the new fundraising laws are passed, existing state and territory-based laws apply.

Each Australian state and territory has its own distinct rules about fundraising. If your NFP is planning to conduct fundraising activities or is already doing so, you must understand these laws and their requirements. You may need to comply with multiple jurisdictions’ fundraising laws (including obtaining multiple licences to fundraise).

For this article we will look at the proposed fundraising principles: When the state and territory governments update their fundraising laws, the laws must include the 16 principles set out below.

Purpose: A charitable organisation must ensure its representatives always explain the purpose of the charity and the purpose to which the funds raised will be applied in ways that are appropriate for the audience.

Identifiable: A charitable organisation must ensure its representatives are always clearly, and individually, identifiable by the public including by displaying identification that contains: the individual’s name, whether they are a volunteer, employee or acting in some other capacity for a charitable organisation or commercial fundraising organisation, and that organisation’s name and contact details

Written records: A charitable organisation must ensure its representatives always make and keep written records of fundraising activities that can be easily read and understood.

Solicitations: A charitable organisation must ensure its representatives always acknowledge and comply with a: refusal to make a donation, request not to receive future solicitations (including marketing and promotional materials), request to be contacted at a more convenient time or by a different means, request to limit the number, type or frequency of solicitations.

Door to door or telephone fundraising activities: A charitable organisation must ensure its representatives never conduct door-to-door or telephone fundraising activity at the following times:

• before 9am or after 5pm on a weekend
• before 9am or after 6pm (door-to-door) or 8pm (telephone) on a weekday or public holiday, unless the public holiday is closely connected with a fundraiser’s charitable purpose.

False or inaccurate information: A charitable organisation must ensure its representatives never mislead, deceive or knowingly use false or inaccurate information when fundraising.

Undue or unreasonable pressure: A charitable organisation must ensure its representatives never place undue or unreasonable pressure on a person when fundraising, or act unconscionably in any way to obtain a donation.

Exploitation: A charitable organisation must ensure its representatives never exploit the trust, lack of knowledge, lack of capacity, apparent need for care and support, or vulnerable circumstances of any donor.

One-off or ongoing donation: A charitable organisation must ensure its representatives always make it clear whether a donation is a one-off or an ongoing donation, and clearly explain how to end an ongoing donation.

Commercial fundraisers: Commercial fundraisers engaged to fundraise for a charitable organisation must never accept a donation without having explained that they are part of an organisation that makes a profit from fundraising, as well as how they are paid.

Due diligence: At all times, a charitable organisation must conduct all reasonable due diligence when engaging third parties to assist, support or deliver fundraising activities on its behalf.

The organisation’s written records: At all times, a charitable organisation must make and keep written records of the total funds raised and the purposes for which funds are applied.

Health, safety and wellbeing: At all times, a charitable organisation must take all reasonable measures to protect the health, safety and wellbeing of fundraisers employed or directly engaged by the organisation, as well as members of the public, when fundraising.

Complaints process: At all times, a charitable organisation must establish and maintain a complaints process that allows for proper investigation and redress of fundraising complaints that may be made by the public, and encourages anyone with concerns about a fundraising activity conducted by or on behalf of the charity to contact them.

Privacy law: At all times, a charitable organisation must ensure information covered by the Privacy Act 1998 is collected, used and managed in accordance with the Australian Privacy Principles where required under this Act.

Remuneration to commercial fundraisers: At all times, a charitable organisation must ensure remuneration to commercial fundraisers engaged to fundraise for the organisation is not excessive compared to money or goods received for the charitable purpose of the fundraising.

Fundraising is defined differently under the various regulatory regimes in each state and territory, and may be referred to by a different term. (For example, in the Australian Capital Territory, fundraising is referred to as ‘charitable collections’.)

Each state-based fundraising guide covers:

• which activities are considered fundraising activities
• when your group will need to register to fundraise
• ongoing obligations for all fundraisers (whether required to be registered or not)
• other laws you need to consider when fundraising (such as lottery permits)
• when your group needs to consider fundraising laws and licensing requirements in other states
• issues to consider when fundraising online
• issues to consider when using third party fundraisers.

Guide for fundraising – NSW

Guide for fundraising – QLD

Guide for fundraising – VIC

Guide for fundraising – SA

Guide for fundraising – NT

Guide for fundraising – WA

Guide for fundraising – ACT

Guide for fundraising – TAS

Guide for fundraising laws Australia – June 2023

@ Justice Connect 2023

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