Fundraising rules to be harmonised nationally

In a move that could save the charity sector $1 million a month and many admin headaches, fundraising regulations will be consistent across the country for the first time. Andrew Leigh also gave Pro Bono readers an exclusive clue as to what he’s expecting his office’s next announcement to be. 

The federal government is moving to install consistent fundraising rules across all states and territories, after an agreement was reached between the Commonwealth, state and territory Treasurers late last year.

See more: Fundraising law reform coming

Nationally consistent fundraising regulations could save the charity sector up to $1 million a month in compliance administration costs.

The principles on charitable fundraiser conduct, which you can read in full at the bottom of this story, were developed by a working group consisting of representatives from all states and territories.

“The principles will give charities and donors a clear understanding of appropriate conduct, while allowing for greater flexibility as to how charities achieve compliance,” said a statement released by Assistant Minister for Competition, Charities and Treasury Andrew Leigh.

“Regulatory guidance to support the principles will also be developed in collaboration with the charitable fundraising sector.

“Each participating jurisdiction will release an implementation plan by July 2023 explaining how it will give effect to the principles through regulatory changes or legislation.”

When asked about the potential timeline for the new rules to be in place, Leigh told Pro Bono News, “I would have liked them to be in place years ago. Certainly the necessity of reform has been known for a long time. But this has the implementation plans being concluded within a  year. I hope that states and territories will move quickly to pass necessary legislation to get it done.”

Current fundraising laws were developed when fundraising was primarily done in-person, but with online mediums now being the primary channel of contact, the cost of complexity of complying with varying requirements is a major issue.

With all states and territories on board, Leigh also said it is unlikely that the new rules will face hurdles getting through respective parliaments.

“I’ve spoken to almost all of my state and territory counterparts, they understand the burden that this imposes on the charitable sector,” he explained, adding that it made no sense to have charities “jumping through unnecessary hoops”.

The move was welcomed by the sector with CEO of the Community Council for Australia (CCA) David Crosbie saying charities are “delighted that progress is being made to fix the duplication and red tape that engulfs any charity seeking to fundraise online or in most parts of Australia”.

“Charities currently face a dog’s breakfast of outdated, dysfunctional regulation that is strangling charitable fundraising in Australia,” said Crosbie. “The commitment to streamline fundraising regulation announced today…is long overdue. It is a reform that offers real benefits to charities and the communities they serve without in any way diminishing accountability.”

CCA chair Rev Tim Costello AO said governments and communities across Australia would gain “increased value from the donations and funding charities receive if they follow through on their commitments and jointly remove the interstate road blocks on fundraising”.

Leigh’s office has made a raft of announcements since he took office and he gave Pro Bono News readers a hint of what the next one might be, and it involves the Australian Charities and Not-for-profits Commission.

“I’d like to see the charities commission moving more towards fulfilling its original mandate as a one-stop shop for charities,” he explained.

“There’s great opportunities for the commission in reducing the paperwork burden, allowing organisations to better report less often and I know [commissioner] Sue Woodward’s committed to that.”

He clarified that he doesn’t necessarily expect an expansion of the ACNC’s remit, but potentially an announcement on the way that it services the sector.

See more: Bringing fresh vigour and rigour to the charity sector

The following is an unedited list of the proposed principles as provided by Andrew Leigh’s office. 

National Fundraising Principles

1. Always explain the purpose of their charity and the purpose to which the funds raised will be applied in ways that are appropriate for the audience.
2. Always be clearly, and individually, identifiable by the public (including to display identification that contains the individual’s name, whether they are a volunteer, employee or acting in some other capacity for a charitable organisation or commercial fundraising organisation, and that organisation’s name and contact details).
3. Always make and keep written records of fundraising activities that can be easily read and understood.
4. Always acknowledge and comply with a:

• refusal to make a donation
• request not to receive future solicitations (including marketing and promotional materials)
• request to be contacted at a more convenient time or by a different means
• request to limit the number, type or frequency of solicitations.

5. Never conduct door-to-door or telephone fundraising activity at the following times:

• before 9 am or after 5 pm on a weekend
• before 9 am or after 6 pm (door-to-door) or 8pm (telephone) on a weekday
• on a public holiday, unless the public holiday is closely connected with a fundraiser’s charitable purpose.

6. Never mislead, deceive or knowingly use false or inaccurate information when fundraising.
7. Never place undue or unreasonable pressure on a person when fundraising, or act unconscionably in any way to obtain a donation.
8. Never exploit the trust, lack of knowledge, lack of capacity, apparent need for care and support, or vulnerable circumstances of any donor.
9. Always make it clear whether a donation is a one-off or an ongoing donation, and clearly explain how to end an ongoing donation.
10. For commercial fundraisers engaged to fundraise for a charitable organisation, never accept a donation without having explained that they are part of an organisation that makes a profit from fundraising as well as how they are paid.

At all times, charitable organisations must:

11. Conduct all reasonable due diligence when engaging third parties to assist, support or deliver fundraising activities on its behalf.
12. Make and keep written records of the total funds raised and the purposes for which funds are applied.
13. Take all reasonable measures to protect the health, safety and wellbeing of fundraisers employed or directly engaged by them, as well as members of the public, when fundraising.
14. Establish and maintain a complaints process that allows for proper investigation and redress of fundraising complaints that may be made by the public and encourage anyone with concerns about a fundraising activity conducted by or on behalf of the charity to contact them.
15. Ensure information covered by the Privacy Act 1998 (the Act) is collected, used and managed in accordance with the Australian Privacy Principles where required under the Act.
16. Always ensure remuneration to commercial fundraisers engaged to fundraise for a charitable organisation is not excessive when compared to money or goods received for the charitable purpose of the fundraising.