Charitable fundraising

It’s great that you want to help your fellow Australian through a fundraising appeal but for larger appeals (over $15,000) there are a number of financial reporting and record keeping requirements. For that reason, individuals are encouraged to work with an established charitable organisation rather than taking on all the responsibilities themselves.

Organisations can register with the Australian Charities and Not-for-profits Commission (ACNC). Registration is voluntary but most importantly offers access to tax concessions.

ACNC registered charities holding a NSW Authority to fundraise will have reporting obligations to both the ACNC and NSW Fair Trading, but these obligations can be met by submitting your Annual Information Statement (AIS) to the ACNC.

Check who is registered with the ACNC.

Often a charitable fundraiser is an incorporated association, company or cooperative. Established charitable organisations or newly minted organisations set up for the purpose of fundraising have more financial reporting responsibilities than individuals. But these organisations enjoy the benefits of having a legal identity separate from its members, providing protection in legal transactions and limited liability to its members.

An incorporated entity such as an incorporated association, company or cooperative:

• is a 'legal person'
• can enter into and enforce contracts in its own name
• can open a bank account
• can hold, acquire and deal with property in its own name
• can sue or be sued
• continues, even though its members may change.

A trader, also known as a commercial fundraiser, is a for profit business that provides services to fundraising appeals. For example, a trader may hire and train individuals to seek donations from members of the public in train stations, supermarkets etc.

It's important to note, that a trader can only be involved in a charitable fundraising appeal if they are authorised by an existing NSW Authority holder and they have a written agreement in place.