Presented by Robert Clark MP		www.robertclark.net

New legislation to tackle fundraising fraud

New legislation designed to reduce fundraising fraud and maintain public confidence in fundraising appeals has come into effect.

The Fundraising Appeals Act 1998 replaces existing fundraising legislation and introduces a new notification requirement for obtaining approval to run fundraising activities, as well as new record-keeping procedures.

Fundraisers seeking public donations are now required to notify the Office of Fair Trading and Business Affairs of their intention to conduct a fundraising activity at least 28 days before the activity starts.

Internal fundraising events are exempt from the Act and do not need to be reported to the Office. For example, sporting clubs or kindergartens that intend only to raise money for their own purposes, from relatives or acquaintances of its members, are exempt from the legislation.

A limited range of organisations already regulated under other legislation are also exempt from the requirement to notify the Office of fundraising intentions. But these must still comply with the other provisions of the Act.

The exempted groups include:

• State schools, school councils and registered schools.
• TAFE colleges, universities and other tertiary educational institutions.
• Public hospitals or other registered funded health agencies.
• Proclaimed religious organisations.
• Organisations registered under the Workplace Relations Act 1996.
• Registered political parties.
• Registered trade unions.

Under the Act, fundraisers must also keep accurate and true records of the income and expenditure relating to the appeal. Full details of all funds and assets received as a result of an appeal, and full details of what happened to these funds and assets, must be recorded.

The legislation also requires fundraisers to document:

• The amount applied to the purposes or objects of the appeal.
• Any expenditure on assets.
• Any expenditure on wages, salaries, commissions and other remuneration in relation to the appeal.
• Any other administrative expenses related to the appeal.
• Any other expenditure related to the appeal.

(News Release, Office of the Minister for Fair Trading, June 30, 1999)