The Law Handbook 2024

Chapter 6.6: Community organisations 621 Generally, a fundraising activity is likely to be in trade or commerce where an organisation: • engages in fundraising activities that involve the supply of goods or services; • is a for-profit professional fundraiser; or • continually fundraises in an organised, continuous and repetitive way. Where an organisation’s fundraising activity is likely to be in trade or commerce then it is likely to have obligations under the ACL, for example, not to mislead or deceive consumer when running a fundraising campaign, and not to harass or coerce consumers when seeking donations. For more information, see the ACCC’s publication, ‘Guide to the ACL for charities, not-for-profits and fundraisers’ (www.accc.gov.au/publications/guide-to-the-acl- for-charities-not-for-profits-fundraisers) . Other laws may apply when conducting fundraising. For example, the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017 (Cth) sets out the rules for fundraising via telemarketing. Also, privacy laws are relevant to the collection, use and disclosure of personal information (see www.nfplaw.org.au/free- resources/discrimination-and-privacy-laws/privacy) . There may also be specific local government requirements for door-knock appeals and face-to- face fundraising. Many local councils require permits for these activities. Fundraising outside of Victoria Each state and the Australian Capital Territory has its own legislation and rules for fundraising activities (there is no specific fundraising legislation in the Northern Territory). Organisations that are fundraising in more than one state or territory need to ensure they are complying with all relevant fundraising laws in those jurisdictions. There are some exemptions, which depend on the specific legislation in each state. Some types of groups are exempt and there are some exemptions depending on how much money is raised. Online fundraising has raised new challenges for fundraising regulation and organisations should carefully consider the relevant laws before conducting an online fundraising appeal. This includes putting a donate button on a website. It can take weeks to get all the required approvals. For more information about fundraising laws in different states and territories, see www.nfplaw.org. au/fundraising. Other fundraising considerations Some fundraising activities (e.g. door-knocking, lotteries, raffles, street collections, events, and the sale of alcohol) require other permissions, permits or licences. Information about permits and licences is usually available from local councils. Receipts stating that donations of $2 or more are tax deductible cannot be given unless the organisation has been endorsed as a DGR by the ATO, or is specifically listed as a DGR (see ‘Deductible gift recipient status’, above). Other sources of funds Organisations may apply for financial grants from government, philanthropic foundations, charitable trusts, private businesses and others. Information on how to make these applications is available from grant providers. Being endorsed as a DGR is a requirement of some grants. If an organisation does not have DGR endorsement, it may be able to apply for funding via an arrangement with another organisation that does have DGR endorsement. This is known as an ‘auspicing arrangement’. For more information about auspicing arrangements, see www.nfplaw.org. au/free-resources/working-with-others/what-is- auspicing . Organisations should be aware that GST may apply to sponsorship and funding arrangements (‘sponsorship’ is defined very broadly). GST generally does not apply to donations. However, if something of value is provided (e.g. advertising, signage, or naming rights), this may be considered to be sponsorship, thus attracting GST. Australian Business Number A community organisation, regardless of whether it is incorporated or unincorporated, is not required to have an Australian Business Number ( ABN ) unless it is a charity, but may need one for business purposes (e.g. registering for the GST). An ABN is an identifying number for all Australian enterprises (the definition of ‘enterprise’