Fundraising Licence Requirements

Does your organisation conduct fundraising activities for a charitable purpose? If so it may be required to hold a Fundraising Licence.

In NSW all fundraising activities are required to be conducted in accordance with the Charitable Fundraising Act 1991 and from 1 July 2015 NSW Fair Trading has assumed responsibility for its administration.

The Act generally requires that any entity carrying out fundraising activities needs to hold an authority to fundraise.

What are fundraising activities?
Generally, fundraising activities are any activities which you ask or target the public (ie. people outside your organisation) for the money or other benefits for a charitable purpose. Some examples of fundraising activities include:

  • raffles and bingo
  • golf days, movie nights and trivia nights
  • dinner dances and balls
  • public auctions
  • doorknock and telephone appeals
  • clothing bins
  • sale of goods at opportunity shops.

There are a number of activities that are specifically excluded as being fundraising activities, including:

  • Membership or joining fees
  • Fundraising revenue only received from past and present members and their friends and relatives
  • Some government grants
  • Grants from registered clubs made for the purpose of community development (in accordance with Gaming Machine Act 2001)
  • Certain money received as a genuine fee or charge for services as prescribed in the regulations

Are there any exemptions?
The regulations detail the following types of organisations as being exempt:

  • Local Councils
  • Universities
  • Certain religious organisations (specifically detailed in the regulations)
  • Organisations with small fundraising activities (Generally gross fundraising under $15,000)

Further information
Further information can be found on the NSW Fair Trading website (www.fairtrading.nsw.gov.au).

Q42015, Taxation & AccountingCristy Houghton