Introduction
Online fundraising platforms provide Australian charities with powerful tools to connect with donors nationwide. However, this broad reach creates a significant challenge, as each state and territory has its own distinct fundraising legislation, making compliance a complex task for any charity operating digitally.
For an Australian charity using these platforms, understanding the varied fundraising regulations is essential for lawful operation and maintaining public trust. This compliance guide offers practical information to help your organisation navigate the complexities of multi-jurisdictional fundraising law, from licensing requirements to choosing a compliant platform, to help you stay compliant.
Understanding Your Charity’s Online Fundraising Jurisdiction
Where Does Online Fundraising Occur
Determining which fundraising law applies to online and email campaigns can be challenging for any Australian charity. Fundraising regulation is generally triggered based on where different parts of the donation process take place.
An online fundraising activity is considered to have occurred in a state or territory if any of the following happens there:
| Component of Donation Process | Description |
|---|---|
| Solicitation of a donation | Where the appeal is made, such as the location from which a fundraising email is sent. |
| Receipt of the communication | Where potential donors receive the fundraising appeal, for example, where they open the email or view the social media post. |
| Making of a donation | The location of the donor when they complete an online donation form or purchase a product as part of the campaign. |
| Receipt of the donation | Typically where the charity’s headquarters or relevant office is located and receives the funds. |
The Need for Multi-State Compliance for Your Charity
Because online fundraising appeals are accessible across Australia and even globally, they are not confined to a single jurisdiction. This means that if your charity runs a national online campaign, you must comply with the fundraising legislation in all states and territories where the appeal is received and donations are made.
Appealing for funds through a website that is accessible everywhere is viewed as a national appeal to the public. To stay compliant, it is recommended that organisations engaging in online fundraising apply for the necessary licence or registration in each state or territory. This ensures your charity meets its legal obligations across the country.
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State-by-State Licensing Requirements for Online Fundraising
Understanding Fundraising Regulations in NSW
In New South Wales, the fundraising law requires organisations to obtain an “authority to fundraise” before conducting appeals. This rule applies to any “fundraising appeal” directed towards a “charitable purpose,” as outlined in the Charitable Fundraising Act 1991 (NSW).
A fundraising appeal is broadly defined and includes soliciting or receiving money or other benefits through various methods, including online platforms. The definition of a “charitable purpose” in NSW extends beyond the common law meaning to also include:
- Any benevolent purpose
- Philanthropic purpose
- Patriotic purpose
Queensland’s Charitable Fundraising Rules
Queensland’s fundraising legislation regulates any “appeal for support” intended for “charitable” or “community purposes.” To stay compliant, a charity must either:
- Register with the Queensland Office of Fair Trading, or
- Obtain a specific sanction for a particular fundraising appeal
An “appeal for support” covers a wide range of activities, from direct collections to holding events where proceeds are intended for a charitable cause. This framework ensures that online fundraising campaigns targeting donors in Queensland adhere to the state’s fundraising regulations.
Western Australia’s Licence Requirements
For charities fundraising in Western Australia, the primary requirement is to secure a Charitable Collections Licence. This is necessary for any organisation that plans to collect money or goods for a “charitable purpose” within the state.
The Charitable Collections Act 1946 (WA) defines “charitable purpose” to include a variety of causes, such as:
- The relief of the sick, poor, or unemployed
- Support for hospitals, schools, and social or welfare activities
- Animal welfare, conservation, and environmental causes
How ACNC Registration Affects State Licensing
Registration with the Australian Charities and Not-for-profits Commission (ACNC) can simplify state-level compliance for your charity, but the effect varies by jurisdiction. This is a key part of navigating fundraising law for any Australian charity involved in online fundraising.
In some states, ACNC registration streamlines the process significantly:
| Jurisdiction(s) | Effect of ACNC Registration on Fundraising Authority |
|---|---|
| Victoria, South Australia & ACT | Being registered with the ACNC is generally sufficient to authorise fundraising, provided the state regulator is notified. |
| Queensland | ACNC registration is recognised and can satisfy the state’s requirements. |
| New South Wales (NSW) | While ACNC-registered charities are automatically eligible to fundraise, they must still complete a separate, streamlined application to receive a state licence. |
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Choosing a Compliant Digital Fundraising Platform
What Services Do Online Platforms Offer Your Charity
Digital fundraising platforms offer a range of services that can help your charity streamline its online fundraising efforts. By using these platforms, you can focus more on your mission and less on the technical aspects of collecting donations.
Many platforms provide comprehensive solutions that cater to the different needs of a modern Australian charity. The core services typically offered by these online platforms include:
| Service | Description |
|---|---|
| Hosting Donation Pages | Platforms host dedicated donation pages, handling the entire process of collecting donations and issuing receipts to ensure compliance with credit card processing regulations. |
| Enabling Peer-to-Peer Fundraising | Supporters can create personal fundraising pages to collect money for your cause, leveraging their social networks to reach a wider audience of potential donors. |
| Managing Event Registrations | Some platforms offer event management solutions, including hosting event pages, handling ticketing and registration, and processing event-related donations. |
Performing Due Diligence on Your Platform Choice
Before committing to a digital fundraising platform, it is essential to conduct thorough due diligence to ensure it aligns with your charity’s needs and values. The Responsible People of your charity must be satisfied that the platform is suitable and that its terms are fair.
A careful investigation will help you avoid potential issues related to fees, fund distribution, and data management. When evaluating a crowdfunding or fundraising platform, consider the following key factors:
| Factor to Consider | Description |
|---|---|
| Platform Fees | Investigate the fee structure, often a percentage of funds raised. The charity’s Responsible People must be satisfied that fees are fair and not excessive. |
| Fund Distribution | Clarify how and when collected funds are distributed. Ensure donations are sent directly to the charity’s bank account in a timely manner. |
| Platform Location | Determine if the platform is based in Australia or overseas, as this has implications for legal compliance, data privacy, and support. |
| Data Management | Examine how the platform manages donor data. It must comply with Australian privacy laws and meet the charity’s data protection standards. |
Identifying Cybersecurity & Data Privacy Risks
When fundraising online, protecting your charity and its donors from cybersecurity threats is a critical responsibility. Choosing a platform with robust security measures is essential to stay compliant and maintain public trust.
Understanding the potential risks allows you to make an informed decision and select a platform that prioritises data safety. Key security and privacy risks to evaluate in a digital fundraising platform include:
| Risk Area | Description |
|---|---|
| Data Security and Location | Using overseas servers is a significant risk, as data may not be protected by Australian privacy laws and could be vulnerable to theft or misuse. |
| Data Retention Policies | Understand how long the platform stores donor data. The longer it is kept, the greater the risk of misuse; ideally, it should be deleted within a year. |
| Collection of Personal Information | Be cautious of platforms collecting sensitive information. Check what details are displayed publicly and ensure profiles are not easily searchable online. |
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Key Compliance Obligations for Your Charity’s Online Fundraising
General Ongoing Duties for Fundraisers
Beyond obtaining the necessary licences, your Australian charity must adhere to several ongoing duties to stay compliant with fundraising law. These obligations ensure that all fundraising activities, including online fundraising, are conducted ethically and transparently, which helps maintain public trust.
To meet the requirements of fundraising legislation, your charity should always:
| Duty | Requirement |
|---|---|
| Ensure campaigns are truthful | All communications must be honest and avoid misrepresentation, including displaying required licence or registration numbers on materials. |
| Use funds for their stated purpose | Money raised must be used for the specific purpose or cause communicated to donors during the appeal. |
| Provide proper identification | Authorised collectors must be given proper identification badges that include key details like the fundraiser’s name and contact number. |
| Maintain high standards of governance | Apply strong governance and charity risk management to every campaign, ensuring participants are qualified and safety measures are in place. |
| Account for all funds properly | Keep accurate records of all funds received, including issuing receipts and depositing all money into a dedicated bank account. |
Meeting Australian Consumer Law Requirements
The Australian Consumer Law (ACL) applies to fundraising activities that are conducted in a business-like manner, which is often the case for organised and continuous online fundraising campaigns.
Under this fundraising legislation, your charity is prohibited from engaging in misleading or deceptive conduct. This is a critical part of any compliance guide for an Australian charity.
Conduct that may be considered misleading or deceptive under the ACL includes:
| Type of Misleading Conduct | Example / Explanation |
|---|---|
| Misrepresenting how donations are used | Claiming 100% of donations go to a cause if a portion is actually used for administration or fundraising costs. |
| Falsely claiming a collector is a volunteer | Representing a paid fundraiser (employee or contractor) as an unpaid volunteer. |
| Creating a false impression about donations | Telling a donor they are making a one-off contribution when the agreement authorises ongoing, periodic donations. |
| Omitting important information | Stating funds go to the charity’s account but failing to disclose that significant fees are then paid to a professional fundraiser. |
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Financial & Reporting Duties for Charitable Fundraising
Keeping Accurate Financial Records & Bank Accounts
To stay compliant with Australian fundraising law, every charity must maintain precise financial records for all fundraising campaigns. This includes clearly identifying which campaign the funds relate to, especially when multiple appeals are running concurrently. This practice is a fundamental part of the fundraising legislation across the country.
A universal requirement is the use of a separate and dedicated bank account for all money received from fundraising. The timing requirements for depositing funds vary by jurisdiction:
| Jurisdiction | Fund Deposit Requirement |
|---|---|
| New South Wales | All funds must be deposited immediately into an account used exclusively for fundraising appeals. |
| Western Australia | Funds must be deposited within seven days of receipt. |
| Australian Capital Territory | Funds must be deposited within five days of receipt. |
These requirements ensure that donor funds are properly safeguarded throughout the fundraising process.
State-Specific Annual Reporting Obligations
Annual reporting duties vary significantly between states, and understanding these differences is crucial for any charity involved in online fundraising. However, registration with the ACNC can streamline these obligations, helping your organisation stay compliant with less administrative burden.
State-specific reporting obligations include:
| State / Territory | Annual Reporting Obligation for ACNC-Registered Charities |
|---|---|
| New South Wales | Can meet obligations by submitting their Annual Information Statement (AIS) to the ACNC. |
| Victoria | Not required to lodge a separate annual statement if Consumer Affairs Victoria has been notified of ACNC registration. |
| South Australia | Not required to submit separate audited accounts to Consumer and Business Services if federal reporting requirements are met. |
| Queensland | Exempt from lodging a state annual return if registered with both ACNC and the state and satisfies ACNC reporting requirements. |
| Western Australia | Not required to submit separate annual financial returns to Consumer Protection if ACNC reporting duties have been fulfilled. |
| Australian Capital Territory | Not required to provide a separate financial report to the ACT government if the AIS is submitted to the ACNC. |
| Tasmania | No standard annual reporting requirements, but the state regulator may impose reporting conditions as part of an approval. |
Conclusion
To successfully fundraise online, an Australian charity must understand and adhere to the varied fundraising legislation across each state and territory. From securing the correct licence to choosing a compliant digital platform and meeting ongoing reporting duties, maintaining compliance is essential for lawful operation and public trust.
If your charity needs guidance on any aspect of fundraising law, contact the expert not-for-profit lawyers at LawBridge today. Our specialised services for not-for-profit organisations provide the trusted expertise you need to stay compliant and focus on your mission.
