Conducting an appeal

What is a fundraising appeal?

A charitable fundraising appeal is where a person solicits or receives money, property or other benefits from another if it is made out:

• that the appeal is for a charitable purpose, or
• that it is for the support of an organisation which has a charitable purpose.

Examples of fundraising activities may include:

• requesting donations,
• selling merchandise, or
• holding events,

to raise money where there is a representation that the proceeds will benefit the public or a section of the public rather than be for private benefit.

What is not considered a fundraising appeal?

The following are not considered fundraising appeals and no authority is required:

• payment of a genuine membership renewal fee of an organisation,
• an appeal to (or the receipt of money or benefit from) members of an organisation,
• any property bequeathed, or directions or instructions about how property may be bequeathed,
• collecting done in a workplace or organisational setting to raise money for a colleague or their immediate family,
• an appeal to (or the receipt of money or benefit from) any Commonwealth, State or local government authority,
• a payment of a genuine fee or charge for:
  • educational facilities or services,
  • child-minding services,
  • goods and services supplied by a supported employment service for people with disabilities,
  • nursing or medical services, or
  • other care or welfare services, 
• an appeal to (or the receipt of money or benefit from) a registered club if the support is provided under the ClubGRANTS scheme.

Certain projects and activities may not be intended as a fundraising appeal.

For example, activities done for cost recovery such as publishing an information handbook, selling equipment at cost or at a nominal mark-up, or a stage play by a drama group.

Be aware that such activities may constitute an appeal if they fall within the definition of fundraising appeal in the Act.

How can I conduct a charitable fundraising appeal?

A person conducts a fundraising appeal if they organise the appeal. Sometimes an authority holder will authorise someone else (called a “trader”) to organize or be part of the fundraising appeal on their behalf.

Common ways to raise funds from the public are:

• Face-to-face
• Telemarketing
• Online
• Crowdfunding
• Sales of goods and services
• Community gaming activities
• Television (including Telethons)
• Charitable Events
• Direct mail.

Who can participate in my charitable fundraising appeal?

A person participates in a fundraising appeal if they solicit or receive any money, property or other benefit in the course of the appeal or assist in organising the appeal. 

Participants may be volunteers or receive a wage, commission or fee.

A participant may only take part in a fundraising appeal if an authority holder has provided written authority to the participant to fundraise on their behalf. 

These requirements do not apply to fundraisers exempted from the obligation to hold an authority to fundraise.

Written permission to participate in an appeal (not face-to-face)

Where an appeal is not conducted face-to-face (e.g. telemarketing), the permission the authorised fundraiser gives to a participant must be in writing. The document must include:

• Participant’s name,
• Terms and conditions of authorisation, and
• Description of the appeal or appeals to be undertaken, 

The written authorisation must be signed and dated by the authority holder, delegate (including the trader where authorised to do so under written agreement) or governing body.

Written permission to participate in a face-to-face appeal

The authorisation given by an authorised fundraiser to a participant involved in a face-to-face appeal must be in the form of an identification card or badge, which must:

• be uniquely numbered with the number shown on the card,
• include the name of the authorised fundraiser and their phone number,
• include the name of the face-to-face collector,
• include the words ‘paid collector’ and name of collector’s employer if collector received a wage, commission or fee for services,
• have printed issue and expiry dates,
• be signed and dated by authority holder, delegate (including the trader where authorised to do so under written agreement) or governing body, and
• have details printed in sufficient size to be easily read by members of the public.

The badge or card must always be worn when conducting a face-to-face appeal. It must be recovered by the authorised fundraiser when the collector’s involvement in the appeal has ended.

Participation of children

A child is defined as a person under the age of 15 years. A child who participates in fundraising appeal:

• cannot be under eight years of age,
• may only receive a benefit, such as wages, commissions and/or other material benefits, if over the age of 13,
• must have parental consent to participate in the appeal and be able to contact his or her parents during an appeal,
• must be adequately supervised (having regard to age, sex and maturity of child), which includes:
  • at least one supervisor per six child participants
  • where the child is 11 years or older, supervisors must be in close proximity to the child participant, know the whereabouts of the child and make contact every 30 minutes
  • where the child is under 11 years of age, their supervisor must be in constant contact,
• must work with at least one other child participant, and
• must not enter a private dwelling when engaged in door-to-door fundraising.

Compliance with requirements regarding child participants is the responsibility of the authority holder. An authority holder must take all reasonable steps to ensure any child participant also complies with these requirements.

Well-being

Authority holders must ensure that the physical and emotional well-being of a child participant is not put at risk.

This means that authority holders must:

• take all reasonable steps to ensure children always have access to drinking water and receive appropriate and sufficient nutritious food which is available at reasonable hours,
• ensure toilet, hand-washing and hand-drying facilities are accessible,
• ensure children are accompanied by their parent or by an adult authorised by their parent when travelling home after they participate in the appeal. This requirement does not apply where the child is over 12, the distance home is less than 10 kilometres, public transport is available, and the journey is being completed within daylight hours,
• ensure children are adequately clothed and protected from extremes of climate or temperature (e.g. sun protection), and
• not punish, socially isolate, immobilise or subject children to any behaviour likely to humiliate or frighten them.

Insurance

Appropriate insurance, including public liability insurance, must be secured for a child participant. This includes adequate insurance to protect the interests of the child against any claim which could be brought against them; for example, for property damage.

Hours of participation

A child must not be required or permitted to participate in a fundraising appeal:

• for more than four hours on a school day,
• for more than six hours on days other than school days,
• for more than five days per week,
• before sunrise or after sunset where the appeal is conducted outdoors, and
• after 8.30pm if the following day is a school day.

After participating for any maximum period provided above, a child must receive a minimum break of 12 hours before participating further.

Any weight that a child lifts must be reasonable, considering their age and condition.

Children receiving wage, commission or benefit

A letter of employment or engagement must be issued to any child participant who receives a wage, commission or some other material benefit for participating in a fundraising appeal.

The letter must contain:

• Details of how wages, commissions or benefits will be calculated, including any guarantee of minimum payment or benefit,
• Method of payment,
• General terms and conditions of employment or engagement, and
• Rights of the employee.

The authority holder must maintain a record of employment for each child participant employed or engaged. For every child, the record must include:

• Child’s full name, residential address and contact number,
• Child’s date of birth,
• Description of the nature of employment,
• Details of parent’s consent to child’s employment (including retention of any written documentation), and
• The name and address of the person immediately responsible for the child during the appeal.

If the employer is a trader, the employer must make the records available to the authority holder.

What requirements apply to a face-to-face appeal?

Face-to-face collections may be conducted:

• door to door,
• in a street or public place (e.g. train station),
• in a privately-owned public space (e.g. a shopping centre or university campus), or
• in a place of entertainment.

Face-to-face participants must prominently display any identification card or badge. 

If a collection is to be undertaken in any public road or place, an authority holder should contact the local council(s) to determine whether approval is required. This especially applies if a stall, stand or similar device is to be used for the fundraising appeal.

If a collection is to be undertaken in a privately-owned public space, then the authority holder must first obtain written approval from the owner of the private space as well as comply with any policies or reasonable directions.

Fees and charges may be charged by owners, councils or relevant authorities for use of premises or areas. Authority holders must ensure costs are reasonable and do not exceed the proceeds of the fundraising appeal.

Authority holders must also comply with all reasonable directions of owners, councils or relevant authorities where face-to-face fundraising appeals are held.

A fundraising appeal must not solicit donations from persons in motor vehicles, including where stationary or stopped at traffic lights.

What requirements apply to a telemarketing appeal?

Phone calls for the purposes of soliciting donations are known as telemarketing. Persons conducting or participating in fundraising appeals using telemarketing must comply with the Do Not Call Register Act 2006 (Cth), Do Not Call Register Regulations 2017 and Telecommunications (Do Not Call Register) Industry Standard 2017.

Regardless of whether requested, a participant must disclose to the person being solicited that they are employed if they receive a wage, commission or fee for participating. The disclosure must include the name of their employer.

Do charities need to comply with the Do Not Call Register?

The Do Not Call Register is a Federal database where individuals and organisations can remove their telephone, mobile and fax numbers to opt out of receiving most unsolicited telemarketing. The Act establishes the register, and outlines rules for making unsolicited telemarketing calls and sending unsolicited marketing faxes to numbers on the register.

However, charities registered with the ACNC are permitted to call numbers listed on the Do Not Call register.

Charities not registered with the ACNC are not permitted to call numbers on the Do Not Call register. Civil penalties and injunctions apply to persons in breach of the Do Not Call Act 2006 (Cth).

How can charities comply with telemarketing requirements?

Registered charities must meet the requirements of the Telecommunications (Telemarketing and Research Calls) Industry Standard 2017. The relevant regulator is the Australian Communications and Media Authority, which has several enforcement options available for breaches of the standards, from formal warnings to penalties.

• The Telecommunications (Telemarketing and Research Calls) Industry Standard 2017 outlines: prohibited calling times that must be complied with,
• information that must be provided during telemarketing calls, which includes:
  • Name of individual making call
  • The company name or business name of employer or registered business name and, where requested, contact details
  • The charity that caused call to be made and, where requested, contact details
  • The purpose of the call
  • Information that must be provided upon request during telemarking calls.
• that a caller must terminate a call if;
  • it is reasonable to conclude that someone has received the call at an inappropriate time (for example, they are not at their usual residential address)
  • the person receiving the call asks for it to end or indicates they do not want it to continue.
• that a caller must ensure that:
  • calling line identification is enabled for all calls (for example, does not call from a blocked or private number),
  • the number they are calling from can receive a return telephone call. Telephone numbers for return contact must remain available for at least 30 days,
  • when a person makes a return call, they must be able to obtain details of the employer and purpose of the original call.

What requirements apply to an online appeal?

Online appeals refer to fundraising appeals through a charity's website or via email. Many charities offer direct links for one off payments or longer term donation plans. For example, many charities have a 'donate now' button on their website’s homepage.

Where online fundraising appeals receive donations from persons in NSW, the charity must hold an authority to fundraise under the Act (unless exempt) and comply with the Act, Regulations and Authority Conditions.

Regardless of whether requested, a participant must disclose to the person being solicited that they are employed if they receive a wage, commission or fee for participating. The disclosure must include the name of their employer.

What requirements apply to a crowdfunding appeal?

Crowdfunding is another method of raising funds for individuals, businesses, not-for-profits and charities.

It involves an individual or an organisation setting a fundraising target online and then asking for donations to reach that target. There are numerous crowdfunding bodies that provide a platform for this form of fundraising.

If a person raising funds for a charitable purpose accepts money from someone living in NSW, it must abide by all relevant laws, regulations and authority conditions (even where the charity is based or registered outside of NSW). This includes where money is accepted via an online platform.

If a crowdfunding platform obtains a benefit for hosting the fundraising appeal or conducts fundraising appeals for business or trade, they are considered to be a trader for the purposes of Section 11 of the Act. 

Before crowdfunding for a charitable purpose, where funds may be donated by persons in NSW, persons conducting the appeal need to:

• obtain an authority to undertake a fundraising appeal unless exempt,
• carefully read the terms and conditions of the crowdfunding platform to ensure they are fair and reasonable, including details of what will happen to money raised if the fundraising target is not met,
• ensure the distribution of funds between the crowdfunding body and authority holder is reasonable. The amount or calculation of the amount to be returned to the authorised fundraiser from proceeds of the appeal must be included in a written agreement, and
• ensure any advertisement or notice of information of the appeal are accurate and outline how funds are distributed between the authority holder and crowdfunding body as well as explain how funds will be used if the target is met.

If a person is considering crowdfunding to raise money on behalf of a charity, the person should contact the charity to obtain authorisation to conduct the appeal.

What requirements apply to the sales of goods and services?

In the context of a charitable fundraising appeal, the sale of goods and services may include:

• selling food through door-to-door sales (e.g. confectionary),
• sale of merchandise in retail outlets where a portion of the profits are donated to charities,
• sales from tickets for charity concerts, and/or
• sales of publications for charity.

An authority holder must take all reasonable steps to ensure that the expenses of the appeal do not exceed a fair and reasonable proportion of the gross income obtained from the supply of goods or services.

Where goods or merchandise are sold, a stock inventory record must be maintained in addition to any other records.

All fundraisers must also ensure they comply with the Fair Trading Act 1987 (NSW) and the Australian Consumer Law wherever the supply of goods or services is involved.

Can I conduct community gaming as part of an appeal?

Yes. A community gaming activity can be conducted as part of a fundraising appeal provided the game is conducted in compliance with the requirements under the NSW Community Gaming Act 2018 and Community Gaming Regulation 2020.

Community gaming activities include a range of lotteries, raffles and games of chance operated by, or on behalf of, charities and not-for-profit organisations. This excludes commercial lotteries conducted by Lotteries NSW.

For further information visit Fair Trading's community gaming.

What must I include in advertisements, information and notices about my appeal?

Advertisement, notice or information involves any representations made to the public as part of a fundraising appeal. This includes posters (including for charity concerts), advertisements, flyers and direct marketing.

Any advertisement, notice or information provided as part of a fundraising appeal must:

• clearly and prominently outline the name of the authorised fundraiser,
• not be reasonably likely to cause offence,
• be based on fact,
• not be false, misleading or deceptive or likely to mislead or deceive, and
• may also need to comply with other laws, such as the Australian Consumer Law. 

For example, where a participant is employed by a trader, it would be false and misleading for a participant to state ‘I am (name) from the (name) charity’, whereas in fact they are from a commercial organisation, not the charity itself. It would also be false and misleading for a participant to answer a question that he or she is not remunerated for the purposes of the appeal, when in fact that person is remunerated by a trader.

For advertisements involving traders see Appeals conducted jointly with traders.

Disclosures by participants

A person who participates in an appeal other than by face-to-face solicitations (e.g. by telephone, online or mail) and receives a wage, commission or fee must disclose, at the beginning of the conversation:

• that he or she is employed, whether or not this information is requested, and
• the name of his or her employer for the purposes of the appeal.

Questions to participants

If questioned about a fundraising appeal, a person conducting or participating must respond by:

• honestly answering any questions in relation to purpose or details of the appeal or arranging to find answers or follow up responses if unable to answer at the time or unsure of an answer,
• providing reasonable information on how gross income and any articles obtained from the appeal will be distributed,
• providing information on what is to happen to any goods and materials collected,
• providing reasonable information relating to fundraising appeals jointly conducted with a trader,
• informing the person being solicited of the source from which the person’s name and other details were obtained, if requested, and
• informing the person solicited that the person’s name and details will be removed as soon as practicable from the source of information, if requested.

Authorised fundraisers must provide employees, traders or volunteers with information and written instructions to ensure accurate and consistent responses to reasonable questions.

The requirements of participants must be contained in the authority holder’s internal policies that must be complied with.

Compliance by participants

Authority holders must ensure that persons conducting or participating in the fundraising appeal comply with the Act, Regulations and Authority Conditions.

Authority holders must develop and exercise appropriate controls, policies and procedures to ensure participants involved in collections are accountable and acting with integrity.

What requirements apply to collection devices?

Collection devices are widely used for fundraising purposes. Examples include:

• boxes or buckets held by participants,
• boxes or buckets placed in shops or businesses,
• boxes selling sweets/confectionary and food products, or
• canisters placed on shop counters selling sweets/confectionery and food products.

The standard conditions attached to all authorities’ state that proper supervision, security and control must be exercised over the use and clearance of collection boxes or devices. Authority holders must establish appropriate procedures and internal controls to be issued to all participants using collection boxes, which must also be incorporated into written agreements with traders.

Collection boxes for monetary donations must be:

• securely constructed,
• properly sealed to prevent unauthorised opening,
• uniquely numbered, and
• clearly labelled with the name of the authorised fundraiser.

What requirements apply to appeals for donated goods? 

Where a fundraising appeal for collection of donated articles of clothing is to be conducted by the authority holder, the authority holder must ensure:

• if the collection device is a bin, each bin must have ‘CHARITY OPERATED’ displayed on its chute, or
• if the collection device is a collection bag, each bag, or any advertisement, notice or information distributed with each bag, must have printed ‘CHARITY OPERATED’ in a clearly visible position.

For font and size specifications, see Authority Condition 14.

Any advertisement, notice or information must also include particulars of what is to happen to any goods or material collected.

If the appeal is conducted jointly with a trader see what requirements apply to collection of goods with a trader for collection of goods.

Do I need to comply with Australian Consumer Law?

The Australian Consumer Law (ACL) is a scheme for fair trading and consumer protection that applies nationally and in all States and Territories of Australia. The ACL applies to activities in trade or commerce, whether or not carried out for profit. Charities and fundraisers carrying out activities in trade or commerce have obligations under the ACL.

Who ACL applies to

When considering whether your activities are in trade or commerce, you need to consider the characteristics of the activity; not just your organisational structure or whether your organisation is for profit or not. You may be acting in trade or commerce for some activities but not others. Determining whether an activity is undertaken in trade or commerce depends on the individual facts of the case.

The ACCC has issued guidance for charities to use in their compliance with the ACL, which is published at www.consumerlaw.gov.au.

The guidance states, broadly, that if you:

• engage in a fundraising activity involving a supply of goods or services,
• are a for profit professional fundraiser (e.g. a joint trader), or
• are fundraising in an organised, continuous way,

then your organisation is likely to be engaged in trade or commerce and therefore have clear obligations under the ACL.

Obligations under ACL

A person's obligations under the ACL vary depending on the fundraising activity. Generally, you must not:

• engage in misleading or deceptive or unconscionable conduct,
• make false or misleading representations, or
• use harassment or coercion.

Some consumer guarantees would also apply to fundraising activities involving the sale of goods or services.

For more information and examples, visit the ACL Guide for Fundraising.