Key responsibilities for fundraisers

Authority holders must comply with the conditions of their authority

If you hold a NSW fundraising authority (including a deemed authority), you must comply with the National Fundraising Principles (Principles) and the Standard Conditions which operate to supplement the Principles. 

The Principles and the Standard Conditions are both prescribed conditions of an authority.  

The following governance-related Standard Conditions do not apply to fundraises with a deemed authority:

• organisations must submit audited annual financial statements to AGM
• management of organisations
• internal dispute resolution processes.  

You must also comply with any specific conditions NSW Fair Trading has imposed on your authority.  

Failure to comply with any conditions of an authority can result in the cancellation or suspension of the authority.  

See the Charitable Fundraising Guidelines for more information. 

All charitable fundraisers (with and without an authority) must keep and maintain records

Keep records of income and expenditure for at least 7 years

These must be kept for a period of 7 years after the appeal ends and identify the charitable purpose the money was raised for.

Keep records relating to a fundraising appeal for at least 3 years

These include:

• a register of assets
• a petty cash book (if petty cash is used)
• a cash book (for each account receiving income from the appeal)
• a register of the receipts issued
• a register of receipt books (if you used more than 3 receipt books)
• records of all people involved in the appeal (including traders, employees and volunteers) and what activities they were involved in.

Keep records of ‘minutes’ for at least 3 years

These include minutes of:   

• the business the organisation’s governing body carried out relating to the fundraising appeal
• general meetings or extraordinary meetings held.

All records must be readily accessible. To learn how to maintain these records see the Charitable Fundraising Guidelines.

Financial reporting requirements

Non-authority holder (small fundraiser)

You are not required to submit an annual return if you raise $15,000 or less in a financial year. However, you may still be required to produce financial records related to the appeal – therefore you must maintain good records for 7 years.

All Authority holders

If you are an authority holder you are required to submit financial reports annually, regardless of how much money you raise. The annual return form can be lodged online.

Authority holders (raised more than $15,000 gross in a financial year)

All authority holders that raise more than $15,000 gross in a financial year are required to: 

• lodge an annual return (see below)
• sign the statement of compliance at the bottom of the annual return form
• include an annual financial statement (see below)
• include an annual financial statement with notes to the financial statement (if the amount raised is more than $100,000 but less than $250,000)
• include an annual auditor’s report of your accounts from all your fundraising appeals. This report must be submitted along with the annual return, regardless of whether the auditor identifies any problems or matters of concern (if the amount raised is $250,000 or more from all fundraising appeals). 

Annual return requirements for all authority holders

A signed annual return form must be submitted by every authority holder:

• within 6 months of the end of the financial year
• even if no money was received or no appeal was conducted
• completing the annual return form and containing the following details:
  • your details (name, addresses, phone, email, website etc)
  • the details of any traders you’ve engaged for your appeals
  • the beneficiaries, charitable purpose, and duration of your fundraising appeals
  • the annual financial statement (outlined below)
  • auditor’s report (if your fundraiser(s) raised $250,000 or more in a financial year).

Annual financial statement requirements for authority holders

The annual financial statement must be prepared according to the Australian Accounting Standards.

It must include:

• an income statement (summarising income and expenditure for the financial year)
• a balance sheet (summarising assets and liabilities at the end of the financial year)
• a statement of cash flows
• if more than $100,000 gross is received from a fundraising appeal, notes to the financial statement.

‘Notes to the financial statement’ are supplemental notes used to explain the assumptions used to prepare the numbers in financial statements and details of the accounting policies used.

If you are an organisation, the annual financial statement must also include a signed declaration that:

• your organisation can pay all of its debts when they are due
• the financial statement satisfies the requirements of the Act and Regulation
• the contents of the statement are true and fair
• your organisation has appropriate and effective internal controls.

If you are an organisation that receives more than $100,000 gross from a fundraising appeal, your organisation’s income statement and balance sheet must also include:

• details of accounting principles and methods used in preparing the financial statements
• details of a material matter or occurrence (even if adverse in nature)
• a statement on how the net surplus or deficit from a fundraising appeal in the financial year was applied
• the aggregate gross income and aggregate direct expenditure incurred in all appeals conducted in the financial year.

Banking requirements for authority holders

Applying to Fair Trading for approval to pay board members

If a person serving on the governing body of an organisation holding an authority is to receive any remuneration or other benefit from the organisation, then approval is required before any payment or benefit is provided. 

An application for approval must be made in writing and sent in advance by email to Charity Inquiries or by post to PO Box 22 Bathurst, NSW 2795.

See the Charitable Fundraising Guidelines for more information on renumeration of board members and the application process. 

Authority holders must notify any changes to Fair Trading

You must notify us when details change for your organisation or appeal such as changes to authority holder’s:

• contact person(s)
• name or address
• charitable purpose for which the appeal is being or is to be conducted
• incorporation status
• branches whether commencing or ceasing
• auditor whether commencing or ceasing
• traders of the authority holder whether commencing or ceasing.

You must also tell us within 28 days when certain events happen, including when:

• you have decided to stop fundraising
• you become insolvent
• you become aware that information or a document provided in an annual return was misleading or deceptive in a material particular
• a material error is identified in an annual financial statement accompanying an annual return lodged by the authority holder.   
• the authority holder becomes insolvent, is placed in liquidation or under external administration or is wound up
• a member of the governing body of the authority holder, is convicted of an offence involving fraud or dishonesty for which the maximum penalty on conviction is imprisonment for not less than 3 months
• the authority holder (for an individual) or a member of the governing body or a trustee becomes bankrupt
• the authority holder (for an individual) or a member of the governing body or a trustee is convicted of fraud or dishonesty.

For further instructions on how to notify Fair Trading, visit Change the details on a charitable fundraising authority.

Fundraisers may have obligations under the Australian Consumer Law

All fundraisers in NSW must comply with the ACL when carrying out fundraising activities in trade or commerce.  

You may have obligations under the ACL if you are carrying out activities in trade or commerce, such as

• a fundraising activity involving a supply of goods or services, or
• are a for-profit professional fundraiser, or
• are fundraising in an organised, continuous and repetitive way.

For a full list of these obligations visit the Australian Consumer Law website.

Non-compliance with fundraising requirements

Penalties may apply if you do not meet mandatory requirements.  

NSW Fair Trading can also suspend, cancel or apply conditions to an authority for various reasons, including if there are:  

• failures to comply with the charitable fundraising laws  
• breaches of any conditions of the authority
• allegations of misleading or fraudulent behaviour.  

NSW Fair Trading will give you written notice which will specify:

• the date or time from which the suspension/cancellation takes effect
• the period of suspension
• the grounds for the suspension/cancellation.

You can apply to the NSW Civil and Administrative Tribunal (NCAT) for administrative review of the suspension or cancellation.

Contact Fair Trading about charitable fundraising responsibilities 

If you have any enquiries you can email Fair Trading or call 13 32 20.