Update on the Implementation of the National Fundraising Principles
What are the National Fundraising Principles?
The National Fundraising Principles are a set of 16 charitable fundraising conduct requirements agreed upon by states and territories in February 2023 at the Council on Federal Financial Relations. Implementation of the Principles across all jurisdictions should result in more uniform regulatory requirements, making charitable fundraising simpler and easier for charities and fundraisers.
The National Fundraising Principles can be read in full here.
Why is a change needed?
The existing fundraising laws were developed at a time when fundraising was more likely to be in person and local, rather than online or national. Introduction of the National Fundraising Principles is a much needed change in the charity sector, as current fundraising laws are different in every state and territory and require charities to meet numerous detailed requirements when undertaking fundraising activities, particularly if those activities are national appeals (and typically, simply including a ‘donate’ button on a charity’s website is considered a national appeal). Uniform regulation of charitable fundraising will reduce red tape and allow charities to spend more time on their charitable work.
Who will the National Fundraising Principles apply to?
Charitable fundraising laws generally apply to organisations that are collecting donations of money, goods or services for a charitable purpose, where there is no expectation that the donor will receive anything of meaningful value in return for their donation.
When will the National Fundraising Principles apply?
South Australia has already implemented the new Principles. There is no set date on which the other states and territories will implement the National Fundraising Principles. Most jurisdictions have released implementation plans, but most plans do not include detailed timelines for implementation. The progress of each state and territory is summarised below.
ACT: The ACT Government has released an implementation plan noting its intention to:
• amend current fundraising laws to introduce the National Fundraising Principles;
• give the government power to enforce the principles; and
• remove any overlapping requirements between the current fundraising laws and the Principles.
The ACT expects that the National Fundraising Principles will apply to fundraising activities in the ACT sometime during the second half of 2024. For more details, see: https://www.justice.act.gov.au/latest-news/act-implementation-plan-for-national-fundraising-principles-for-charities
NSW: No implementation plan seems to exist at this stage.
NT: The NT does not currently regulate charitable fundraising. However, the NT Government is a part of the Council on Federal Financial Relations where it was agreed that all states and territories would implement the National Fundraising Principles. No plan to implement the Principles seems to exist at this stage.
QLD: QLD Government released its implementation plan late 2023. The Government intends to:
• implement the National Fundraising Principles through subordinate legislation, and possible changes to the Collections Act; and
• implement conduct requirements for the principles and repeal existing conduct requirements.
No timeframe for implementation is provided in the plan. For more details, see: https://www.qld.gov.au/law/laws-regulated-industries-and-accountability/queensland-laws-and-regulations/fair-trading-services-programs-and-resources/consultation-regulatory-reform/2023-reviews-consultations/national-fundraising-principles
SA: The SA Government has already replaced its previous fundraising rules in the Charities Code of Practice with the National Fundraising Principles this year and organisations have been required to comply with the new Principles from 1 March 2024.
Some parts of the Collections for Charitable Purposes Act 1939 (SA) still apply in addition to the National Fundraising Principles specified in the Code of Practice. For example, the requirement to hold a licence before collecting money for a charitable purpose, marking collection boxes in public places with certain details, as well as section 6C, which in some way duplicates the National Fundraising Principles relating to identification. For more details about the Code, see: https://www.charities.sa.gov.au/charities-code-of-practice.pdf
TAS: The Charities and Associations Law (Miscellaneous) Amendment Bill 2023, which would implement the National Fundraising Principles, progressed to its 2nd reading and then went to committee stage in Tasmania’s lower house (the House of Assembly), in late 2023. However, the Bill has not progressed further as a State election was called and the Government entered caretaker mode. An election was held on 23 March 2023.
VIC: Victoria has released a plan to implement the National Fundraising Principles by replacing existing fundraising laws with the Principles early this year. For more details, see: National Fundraising Principles Implementation Plan – Consumer Affairs Victoria
WA: No implementation plan seems to exist at this stage.
This publication was authored by Brooke Arcia and is ©For Purpose Advisory. It is for general guidance only and any opinions expressed are the opinions of the author. The content and any links are current as at the date it was published and For Purpose Advisory takes no responsibility for any changes to the links or accuracy of the content. Legal advice should be sought before taking action in relation to any specific issues mentioned in this publication.
