Charitable Fundraising Act 1991

The Charitable Fundraising Act 1991 is a piece of legislation in New South Wales, Australia, that applies to not-for-profit (NFP) organisations that regulate fundraising activities. Its goal is to promote transparency, accountability, and public confidence in the charity and NFP sector through transparent requirements and standards. 

Key Points:

• The Charitable Fundraising Act 1991 applies to organisations that conduct fundraising in New South Wales. 
• Organisations must receive a fundraising authority before conducting fundraising. 
• Organisations must comply with various regulations, such as record keeping, transparency of information to donors, and using funds for their intended purposes. 
• The act is administered by the NSW Office of Fair Trading, which can investigate complaints and act against non-compliant organisations. 

Who does the Charitable Fundraising Act 1991 apply to?

The Charitable Fundraising Act 1991 applies to individuals and organisations that conduct fundraising in New South Wales. For example, charities, religious organisations, educational institutions, and other not-for-profit organisations that raise funds for charitable purposes. The act defines a fundraising appeal as any request for money, property, or other benefits made for a charitable purpose.

Key requirements of the Charitable Fundraising Act 1991 

The Charitable Fundraising Act 1991 imposes several requirements on organisations that conduct fundraising appeals in New South Wales. Some include:   

• Obtaining a fundraising authority: Organisations must obtain a fundraising authority from the NSW Office of Fair Trading before conducting any fundraising appeals. The authority must be renewed every 3 years. 

• Keeping proper records: Organisations must keep proper records of all fundraising appeals, including the amount of money raised, the expenses incurred, and how the funds were used. 

• Providing information to donors: Organisations must provide donors with certain information, such as the name of the organisation, the purpose of the fundraising appeal, and how the funds will be used. 

• Using funds for the intended purposes: Organisations must use the funds raised for the purposes stated in the fundraising appeal and must not use the funds for any other purpose without the consent of the donors. 

How is the Charitable Fundraising Act 1991 enforced?

The Charitable Fundraising Act 1991 is administered by the NSW Office of Fair Trading. They have the power to investigate complaints and take enforcement action against organisations that fail to comply with the act. The office may issue warnings, impose fines, or revoke an organisation’s fundraising authority if it finds that the organisation has breached the act.   The office also provides guidance and support to organisations to help them follow the act, including publishing guidelines and fact sheets, and providing training and education programs.

Importance of the Charitable Fundraising Act 1991   

The Charitable Fundraising Act 1991's fundemental purpose is instilling public confidence in the NFP, charity, and fundraising sector. By setting standards and requirements for organisations engaged in charitable fundraising, the act ensures that people who have donated can trust that their contributions will be used for the intended purposes and that organisations are held accountable for their fundraising activities.   The act also helps to prevent misuse of funds in the fundraising sector by mandating that organisations keep thorough records and provide information to donors. This protects both donors and the reputation of the fundraising sector. 

Additionally, the act promotes effectiveness in the NPF and charity sector by encouraging organisations to adopt best practices and use funds in a responsible and sustainable manner.   The Charitable Fundraising Act 1991 also ensures that organisations that receive donations are accountable to the public.