Charitable Fundraising Regulation Reform

21 February 2012

Partner Pat Mullins reports that the Commonwealth Treasury recently released a consultation paper on the reform of charitable fundraising regulation in Australia as part of the Government's not-for-profit reform agenda.

Key facts

In February 2010 the Productivity Commission released a research report, Contribution of the Not for Profit Sector, in which it recognised that the costs faced by the not-for-profit sector could be reduced by reform of fundraising laws.

At present, every Australian State and Territory, with the exception of the Northern Territory, regulates fundraising by charities. State and Territory fundraising legislation has been identified as a significant cost for the sector, particularly for charities operating at a national level, who have to comply with multiple legislative and administrative requirements.

In its 2011-12 Budget, the Government made a commitment to establish the Australian Charities and Not-for-profits Commission (ACNC) and also committed to review fundraising regulation applying to charities. The ACNC will be a 'one-stop-shop' with a view to reducing the compliance costs faced by charities.

Consultation paper and process

The consultation paper provides information and seeks comments on a proposed framework for a nationally consistent approach to fundraising regulation. Under the proposed framework:

fundraising regulation would apply to those entities registered as a charity by the ACNC that engage in fundraising activities for a charitable purpose;
charities whose annual fundraising activities exceed the proposed threshold of $50,000 or who fundraise over the internet will be required to register with the ACNC;
charities will be required to meet minimum information disclosure requirements at the time donations are solicited, as well as broader reporting and record-keeping requirements; and
generic rather than prescriptive laws will apply to the conduct of charities engaged in fundraising activities.

Specific issues to be addressed are:

impacts (financial or otherwise) of existing fundraising regulation on the costs faced by charities;
defining the scope of regulated activities - including activities that may be exempt from regulation;
regulating the conduct of fundraising;
information disclosure at the time of giving;
information disclosure after the time of giving;
internet and electronic fundraising; and
fundraising by third parties on behalf of charities.

Closing date for submissions: Thursday, 5 April 2012.

For more information or assistance, please contact:

Pat Mullins | Partner
Mullins Lawyers
t +61 7 3224 0350
f +61 7 3224 0333
pmullins@mullinslaw.com.au