Multi-Jurisdictional Fundraising Compliance for Australian NFPs

Introduction

Fundraising across multiple Australian states and territories presents complex legal obligations for any entity operating as a not for profit organisation. The regulatory framework is fragmented and inconsistent, as each jurisdiction has its own distinct laws, creating a significant compliance burden for NFPs operating nationally or online.

This article provides essential guidance on managing these overlapping compliance regimes, registering across jurisdictions, and adopting best practices to reduce regulatory risk. Complying to these requirements successfully is crucial for maintaining public trust and ensuring the long-term sustainability of any NFP organisation in Australia.

Understanding the Multi-Jurisdictional Challenge for Australian NFPs

The Patchwork of State & Territory Fundraising Laws

The regulatory framework for NFP organisations in Australia is fragmented and inconsistent, creating a significant compliance burden. This complexity stems from several factors:

• Each Australian state and territory (except the Northern Territory) has established its own distinct fundraising laws and licensing regimes
• A NFP business wanting to run a national campaign may need to navigate up to seven different regulatory systems
• High administrative costs result from understanding and adhering to varied rules across jurisdictions

This regulatory patchwork diverts valuable resources away from an organisation’s core mission—its charitable purpose—and towards managing compliance instead. The challenge is particularly pronounced for organisations operating across multiple state borders, which may be required to obtain several different licences just to fundraise lawfully.

Managing Online Fundraising Across Australian Borders

Modern fundraising methods, especially online campaigns, introduce further complexities for Australian NFP organisations. The core issue is that fundraising laws generally apply based on where the donor is located, not where the organisation is based.

Consequently, a single online appeal accessible across Australia can trigger compliance obligations in multiple jurisdictions at once. For instance, a fundraising campaign promoted through a website or social media could be viewed by people in every state and territory.

This reality means the NFP organisation may be required to hold fundraising registrations in each of those jurisdictions. Therefore, it becomes crucial for organisations to understand their obligations, including cyber safety & legal duties, before launching digital campaigns, as the regulatory burden increases significantly with online fundraising.

The Path to National Harmonisation & Reform for Your Organisation

An Overview of the National Fundraising Principles

In February 2023, Commonwealth, state, and territory governments agreed to a set of nationally consistent fundraising principles designed to streamline the rules for charity fundraisers. These principles provide a single framework to support ethical fundraising practices and are intended to form the basis of future legislation across Australia. Until these changes are fully implemented, existing state and territory laws continue to apply.

The 16 agreed-upon principles cover key aspects of fundraising conduct, transparency, and governance for any NFP organisation:

Principle	Description
Purpose	Representatives must clearly explain the charity’s purpose and how the funds raised will be used.
Identifiable	Fundraisers must be clearly identifiable to the public, displaying their name, the organisation’s name and contact details, and whether they are a volunteer or paid employee.
Written records	A charitable organisation is required to create and maintain written records of its fundraising activities that are easy to read and understand.
Solicitations	Fundraisers must respect a person’s refusal to donate or a request to stop receiving future communications.
Door-to-door or telephone fundraising activities	These activities are restricted to specific times, generally between 9 am and 6 pm on weekdays for door-to-door appeals and until 8 pm for telephone calls, with shorter hours on weekends.
False or inaccurate information	Representatives must never mislead, deceive, or knowingly use false information when fundraising.
Undue or unreasonable pressure	Placing undue pressure on a person or acting unconscionably to secure a donation is strictly prohibited.
Exploitation	Fundraisers must not exploit a donor’s trust, lack of knowledge, or vulnerable circumstances.
One-off or ongoing donation	It must be made clear whether a donation is a single gift or an ongoing commitment, and instructions on how to cancel an ongoing donation must be provided.
Commercial fundraisers	A commercial fundraiser must disclose that they operate for profit and explain how they are paid for their services.
Due diligence	A NFP must conduct reasonable due diligence when engaging any third party to assist with fundraising activities.
The organisation’s written records	Charities must keep written records detailing the total funds raised and the purposes for which they are applied.
Health, safety and wellbeing	All reasonable measures must be taken to protect the health and safety of fundraisers and the public.
Complaints process	A clear and accessible complaints process must be established to allow for the proper investigation of any concerns raised by the public.
Privacy law	Any personal information collected must be managed in accordance with the Australian Privacy Principles where the Privacy Act 1988 (Cth) applies.
Remuneration to commercial fundraisers	Payments made to commercial fundraisers must not be excessive when compared to the amount of money or goods received for the charitable purpose.

Tracking the Implementation of Reforms in Each State & Territory

While all states and territories have agreed to the National Fundraising Principles, the pace of implementation varies across jurisdictions. Some have already made legislative changes to adopt the new framework, while others are still operating under their existing fundraising laws. This creates an ongoing need for any NFP organisation to track its compliance obligations in each location it operates.

The current status of implementation for each state and territory is as follows:

Jurisdiction	Status of Implementation
Australian Capital Territory	The ACT has implemented the principles. Amendments to the Charitable Collections Act 2003 (ACT) make compliance a condition of a licence and switch off certain local rules for ACNC-registered charities.
New South Wales	NSW has released a proposed implementation plan and intends to make changes in the second half of 2025, incorporating the principles into the Charitable Fundraising Regulation 2021 (NSW).
Queensland	Progress has been slow, and Queensland has not yet finalised its implementation plan, continuing to operate under the Collections Act 1966 (QLD).
South Australia	This jurisdiction has published its implementation plan and is progressing with reforms that align with the national framework.
Tasmania	Tasmania has released its implementation plan, signalling its commitment to adopting the nationally consistent principles.
Victoria	An implementation plan has been published, and Victoria is moving forward with integrating the principles into its regulatory framework under the Fundraising Act 1998 (VIC).
Western Australia	WA has not yet finalised its implementation, leaving its existing laws under the Charitable Collections Act 1946 (WA) in place for now.
Northern Territory	The NT does not have a specific fundraising regulatory regime, so the implementation of these principles is not applicable in the same way.

Securing Your Organisation’s Authority to Fundraise Across Australia

The Role of ACNC Registration in Streamlining Compliance

For any NFP organisation in Australia, registration with the ACNC is a critical step, often requiring guidance from administrative lawyers, that can significantly streamline fundraising compliance. In several jurisdictions, being an ACNC-registered charity simplifies the process of gaining the authority to fundraise, reducing the administrative burden for your NFP.

Certain states and territories offer what is known as ‘deemed authority’ to fundraise for ACNC-registered charities. This means your organisation may not need to complete a full, separate application process. For instance:

• In jurisdictions like South Australia and the Australian Capital Territory, ACNC registration is considered sufficient for a NFP to engage in fundraising, provided the local regulator is notified.
• This approach helps to reduce regulatory duplication for your organisation.

However, it is important to understand that ACNC registration does not grant a universal right to fundraise across all of Australia. Some states have different requirements. For example, in New South Wales, charities registered with the ACNC are automatically considered eligible to fundraise, but they are still required to submit a formal application to obtain a fundraising licence.

State-by-State Approval Requirements for Your Not-for-Profit

The approval process for fundraising varies significantly across Australia, and your NFP organisation must meet the specific requirements of each state and territory where it intends to solicit donations. While ACNC registration is beneficial, it does not replace the need for local authorisation in every case.

The requirements for some key jurisdictions include:

Jurisdiction	Approval Requirement
New South Wales	An authority to fundraise must be obtained. ACNC registration makes a charity eligible, but a separate application to NSW Fair Trading is mandatory.
Victoria	ACNC-registered charities do not need to register but must notify Consumer Affairs Victoria of their intention to fundraise.
South Australia	A NFP registered with the ACNC is deemed to hold a licence. It only needs to notify Consumer and Business Services of its intent to fundraise.
Queensland	ACNC registration does not provide automatic authority. An organisation must register with the Office of Fair Trading or obtain a sanction for a specific appeal.
Western Australia	A NFP must apply for a Charitable Collections Licence; ACNC registration does not provide an exemption.
Tasmania	Approval is generally required for organisations not incorporated in Tasmania. ACNC registration does not automatically grant authority.
Australian Capital Territory	Charities registered with the ACNC are deemed to hold a licence and do not need to submit a separate application to Access Canberra.

Key Ongoing Compliance Obligations for Your FPN

General Governance & Best Practice Obligations

Once your NFP organisation has the authority to fundraise, you must meet a range of ongoing legal and governance duties, and it is vital to strengthen your charity board processes for better compliance. These obligations are essential for maintaining compliance and ensuring public trust in your activities.

Fundraisers must adhere to high standards of conduct and transparency throughout all campaigns. In general, your NFP business should follow these best practices:

Best Practice	Description
Ensure Truthful Campaigns	All fundraising activities must be truthful, align with the organisation’s stated purpose, and use funds for the specific purpose advertised.
Provide Clear Identification	Collectors must be clearly identifiable, wearing a badge with their name, the NFP’s name and contact details, and a unique identifying number.
Maintain Proper Records	Accurate and easily understood written records of all fundraising activities must be kept, including a register of collectors and proper accounting of all funds.
Uphold High Governance Standards	Apply strong governance and risk management, ensuring staff and volunteers are qualified and that appropriate safety measures are in place.

Adhering to the Australian Consumer Law & Other Legal Standards

Beyond specific fundraising legislation, your NFP organisation must also comply with other significant laws, most notably the Australian Consumer Law (ACL), a core area of focus for commercial and business lawyers. The ACL is a national law designed to protect consumers by prohibiting misleading or deceptive conduct in trade or commerce.

The ACL generally applies to fundraising activities if your NFP is involved in the supply of goods or services, such as selling merchandise or event tickets. It also applies if you engage for-profit professional fundraisers or conduct campaigns in an organised, continuous, and repetitive manner.

Under the ACL, your organisation cannot make false or misleading representations about how donations will be used or place undue pressure on individuals to donate.

In addition to the ACL, other legal standards may apply to your fundraising activities. These include:

Legal Standard	Relevance to Fundraising
Privacy Laws	Regulate the collection, use, and disclosure of personal information, such as donor details.
Workplace Laws	Cover the rights and entitlements of paid employees and the health and safety of both staff and volunteers, making it critical to understand the difference between volunteers vs employees for legal compliance.
Local Government Requirements	Many local councils have specific rules and permit requirements for public fundraising activities like face-to-face collections.

Financial Management & Reporting Requirements for Multi-State Fundraising

Managing Funds & Keeping Accurate Records

Proper financial management is a critical obligation for any NFP organisation conducting multi-state fundraising. This responsibility encompasses several key requirements:

Requirement	Description
Maintaining accurate records	Clearly identifiable records must be kept for each fundraising campaign to ensure transparency and meet auditing standards.
Separate bank accounts	Most jurisdictions require all funds raised to be kept in a dedicated bank account, separate from other organisational or personal funds.
Designated account management	In several states, this account must be in the fundraiser’s name and may require at least two people to operate it.

Furthermore, all funds raised must be used for the specific purpose that was advertised during the campaign. This aligns with the non-distribution rules that apply to every NFP organisation, ensuring donor intent is respected and maintained.

Meeting Varied Financial Reporting & Auditing Obligations

The ACNC audit & annual financial report requirements for NFP businesses vary significantly across Australian states and territories, creating a complex compliance landscape. While registration with the ACNC can streamline these obligations in some jurisdictions, it does not eliminate the need to understand local rules.

Many states have different thresholds that trigger the need for audited financial statements. The reporting landscape includes a mix of requirements that depend on your organisation’s ACNC status and location:

Jurisdiction	Financial Reporting & Auditing Obligation
New South Wales	ACNC-registered charities can submit their AIS to the ACNC. An auditor’s report is required if appeal income exceeds $250,000 in a financial year.
Victoria	A NFP registered with the ACNC is exempt from lodging a separate annual statement with Consumer Affairs Victoria, provided it has notified the regulator.
South Australia	An organisation that has complied with its ACNC reporting requirements is not required to submit separate audited accounts to the state regulator.
Queensland	An ACNC-registered charity may be exempt from lodging an annual return if it meets certain conditions, like including its QLD registration number on its ACNC report.
Western Australia	If an organisation is a registered charity and has met its ACNC reporting duties, it is not required to submit separate annual financial returns.
Australian Capital Territory	An ACNC-registered licence holder does not need to provide a separate financial report. Audited reports are otherwise required if fundraising income exceeds $50,000.
Tasmania	There are no standard annual reporting requirements, but the regulator may impose reporting conditions on a fundraiser’s approval.

Conclusion

Fundraising across multiple Australian states and territories subjects a NFP organisation to a complex web of differing legal requirements. Adhering to these varied compliance regimes, from initial registration to ongoing financial reporting, is fundamental to operating lawfully and maintaining public trust.

To ensure your NFP organisation meets its multi-state fundraising obligations, contact our specialised not-for-profit and charity lawyers at LawBridge for trusted legal expertise. Our services are tailored to help you handle regulatory complexities and secure your organisation’s future.

Frequently Asked Questions