What is a fundraising appeal?
The soliciting or receiving of any money, property or other benefit from the public constitutes a fundraising appeal if a representation is made (this may be implied) that the appeal is for a charitable purpose or for the support of an organisation having a charitable object.
An appeal may take a variety of forms — donations, sponsorship, telethons, the conduct of lotteries and competitions, the supply of food, entertainment or other goods or services, or in connection with any other commercial undertaking. A membership drive undertaken by an organisation is a fundraising appeal if one of the objects of the organisation is a charitable object.
The term is not limited to simple collections from the public.
Each of the following do not constitute a fundraising appeal for the purposes of the Act (section 5)
- a request for, or the receipt of, an amount required as a genuine membership renewal fee of an organisation
- an appeal to (or the receipt of money or a benefit from) members of an organisation
- a request that any property be devised or bequeathed, or the giving of any information as to the means by which any property may be devised or bequeathed
- an appeal conducted exclusively or predominantly among persons sharing a common employer or place of work by one of those persons (being an appeal for a charitable purpose connected directly with another of those persons or any such other person’s immediate family) and the receipt of money or a benefit from any such appeal
- an appeal to (or the receipt of money or a benefit from) any Commonwealth, State or local government authority
- a request for, or the receipt of, money from a person if the money is wholly payable by the person as the genuine fee or charge for the provision of:
- educational facilities or services
- child minding services
- goods and services by a supported employment service for people with disabilities
- nursing and medical services
- other care or welfare services.
- an appeal to a registered club that is a participant in the Community Development and Support Expenditure Scheme (CDSE).
We recognise that persons or organisations may from time to time undertake certain projects and activities which by their nature are not intended as a fundraising appeal. These may include activities such as the publication of an information handbook or the sale of equipment at cost or at a nominal mark-up (eg. blood-testing strips to diabetics), production of stage plays by drama groups, etc. on a cost recovery basis.
These activities may constitute an appeal for purposes of the Act. If in doubt, you are advised to seek a ruling from us about the status of these types of activities.