What is a charitable purpose

To operate as a charitable fundraiser, you must define your charitable purpose when applying for an authority to fundraise.

Your purpose must meet the NSW definition of a charitable purpose if you plan to fundraise in NSW. If you intend to register as a charity with the Australian Charities and Not-for-profit Commission (ACNC), it will also need to meet the federal definition of a charitable purpose.

The wording of your charitable purpose is legally binding and cannot be changed once the appeal is underway.  

NSW definition of a charitable purpose

The Charitable Fundraising Act 1991 (the Act) regulates public fundraising appeals for charitable purposes in NSW. It sets out how public funds are solicited and managed for charitable purposes to ensure transparency and public confidence.

For there to be a charitable purpose, there must be an intention to provide a benefit to the public or a section of the public rather than to obtain a private benefit or advantage.

Charitable purpose in NSW is broadly defined in the Act to include "any benevolent, philanthropic, or patriotic purpose".

Federal definition of a charitable purpose for organisations

The NSW definition differs to the definition the ACNC uses for federal charity registration, which lists 12 specific types of purposes as a charitable purpose of an organisation.

This means an organisation might be considered to have a charitable purpose under NSW fundraising laws, but may not meet the stricter requirements to be a registered charity with the ACNC.

Before establishing your charitable purpose, we recommend you review the 12 types of charitable purposes set out in the Charities Act 2013 (Cth). Considering these when defining your purpose will help you if you choose to register your organisation with the ACNC now or in future.

The 12 types of purpose are:

• advancing health
• advancing education
• advancing social or public welfare
• advancing religion
• advancing culture
• promoting reconciliation, mutual respect and tolerance between groups of individuals that are in Australia
• promoting or protecting human rights
• advancing the security or safety of Australia or the Australian public
• preventing or relieving the suffering of animals
• advancing the natural environment
• promoting or opposing a change to any matter established by law, policy or practice in the Commonwealth, a state or a territory or another country (where that change furthers or opposes one or more of the purposes above)
• other similar purposes ‘beneficial to the general public’ (a general category). Examples include:
  • enhancing public space for public benefit
  • providing recreational facilities which are open to everyone (for example, sports centre)
  • promoting the value of agriculture by holding an annual agricultural show
  • promoting industry and business for the public benefit.   

Your charitable purposes, aims and objectives are usually set out in in your organisation’s governing instrument. The governing instrument is the formal document which sets up an organisation and establishes how it will run.