Preparing for and responding to disasters

On this page

• Introduction
• Complying with Australia’s fundraising laws
• General obligations while fundraising

Introduction

Complying with fundraising laws in Australia is an on-going challenge for not-for-profit organisations as each state and territory has its own distinct rules. Keeping up with registration and reporting requirements is time-consuming and resource intensive.

Complying with complex fundraising laws can be even more difficult during a disaster if an organisation’s operations are disrupted, the disaster leads to a shortage of staff, or records are damaged or destroyed.

During a disaster, not-for-profit organisations face further challenges that can make it difficult to secure funding to continue their operations and provide essential services. These challenges include:

• competing needs – disasters often create a surge of competing needs for limited funds, as organisations and individuals seek resources to address the crisis
• donor fatigue – the emotional and financial toll of disasters can lead to donor fatigue, making it difficult to sustain fundraising efforts over time
• shifting priorities – donors may shift their priorities toward immediate relief efforts, resulting in decreased funding for long-term projects or organisations that are not directly involved in disaster response
• economic hardship – disasters can cause economic hardship for individuals and businesses, leading to a decline in giving
• communication challenges – disasters can disrupt communication channels, making it difficult for organisations to reach out to donors and seek support
• trust and transparency – in the aftermath of a disaster, there may be increased scrutiny of non-profit organisations, and donors may be more cautious about where they allocate their funds

When fundraising, in addition to the obligations under the state and territory fundraising regimes, fundraisers must comply with any other laws and standards which may apply to their fundraising activities.

These include laws against misleading, deceptive and unconscionable conduct, the Telecommunications (Telemarketing and Research Calls) Industry Standard, privacy laws and local government requirements.

Non-compliance with fundraising laws and other legal requirements can result in fines, penalties, or even loss of charitable status. These legal requirements continue to apply in times of disaster.

Complying with Australia’s fundraising laws

Fundraising takes many forms and often crosses jurisdictions, particularly in relation to online fundraising campaigns. If you fundraise in multiple jurisdictions, you must comply with the laws of each jurisdiction and you may require multiple licences to conduct your fundraising activities.

Compliance with fundraising laws is crucial for maintaining public trust in the not-for-profit and charity sector and avoiding legal penalties. Non-compliance can damage your organisation's reputation and jeopardise future support.

Assessing where a fundraising activity is taking place can be a difficult process, particularly when conducting online and email fundraising activities for a disaster effort.

Generally, a fundraising activity will be considered to be ‘taking place’ in:

• the place where the fundraising appeal is run (for example, the office where campaign communications are being sent from)
• the place where people receive fundraising communications, and
• the place where people make their donation

In the case of a fundraising appeal run online (for example through Facebook, a crowdfunding website or emails to subscribers), the fundraiser must comply with the laws of the state or territory where:

• the soliciting of a donation occurs (for example, where the email is sent from)
• the fundraising communications are received (for example, where the people who open the email are)
• the making of the donations occurs (for example, where a person fills in an online donation form), and
• the receipt of a donation occurs (for example, the fundraising headquarters)

To manage the difficulty of complying with multiple regulatory state and territory regimes, an organisation can:

• choose a limited number of state and territories in which to run its fundraising appeal
• make it clear on the organisation’s appeal communications which states and territories the appeal relates to, and
• require donors to confirm that they are in those chosen states and territories before they can make a donation

In these circumstances, the organisation will only need to comply with fundraising laws in the states and territories specified in the fundraising appeal.

In planning fundraising activities, apart from identifying where the fundraising is or will take place, an organisation must also consider what it will need to do to lawfully conduct fundraising activities in those jurisdictions.

Each state and territory’s fundraising laws are different. Each fundraising regime regulates different types of fundraising activities and imposes different licencing and reporting obligations on those activities. This means a fundraising activity which might be regulated in one jurisdiction might not be regulated in another jurisdiction.

When fundraising, you must consider whether your fundraising activity will qualify as a regulated activity in the jurisdictions you are fundraising in. The guides linked to below provide an outline of the fundraising regime in each state and territory.

For more information about legal fundraising requirements in each state and territory, see our:

• guide to fundraising laws in Australia
• fact sheet on the fundraising application processes and requirements in each state and territory, and
• guides to fundraising laws in each state and territory

Also see our webpages on Fundraising and Gifts, wills, bequests and endowments.

What if the organisation is registered as a charity with the ACNC?

In jurisdictions like Victoria, South Australia, the ACT, and Queensland, registration with Australian Charities and Not-for-profits Commission (ACNC) registration, coupled with notification to the state or territory regulator, is generally sufficient to permit fundraising.

In New South Wales, while ACNC registration is a prerequisite, charities must still apply for a fundraising permit from the local regulator.

You will need to check the requirements in the relevant jurisdictions for your ACNC-registered charity.

For more information, see our fact sheet on state and territory fundraising requirements for ACNC registered charities.

Complying with other laws and standards which may apply to fundraising activities

The Australian Consumer Law sets out rules against misleading, deceptive and unconscionable conduct that may apply to fundraisers.

Whether the Australian Consumer Law applies to a particular fundraising activity depends on whether that activity occurs in ‘trade or commerce’. If it does, you must ensure your fundraising practices comply with the Australian Consumer Law. If your organisation makes a representation to use funds raised for a disaster in a specific way, then it must follow through on that representation.

Generally, if you:

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

you are likely to have obligations under the Australian Consumer Law.

The Australian Consumer Law also imposes requirements in relation to unsolicited consumer agreements.

For more information, see:

• the guide to the Australian Consumer Law for fundraising and other activities of charities published by the Department of the Treasury, and
• our guide to the laws of advertising and your community organisation

The Telecommunications (Telemarketing and Research Calls) Industry Standard is a set of enforceable rules about how and when fundraisers can use telemarketing. The rules include information that must be provided during calls, the timing of calls, caller identification and the termination of calls.

For more information, see the Australian Communications and Media Authority’s website

Privacy laws (at both the state and federal level), set out requirements relevant to the collection, use and disclosure of ‘personal information’ in connection with fundraising activities. For more information, see our webpage on privacy.

Local government requirements will also apply to certain fundraising activities and additional permits or approvals from local government may be required.

Many local governments require fundraisers to apply for permits to door-knock or undertake face-to-face fundraising.

Fundraisers should check with their relevant local councils to make sure they have the required permits in place.

General obligations while fundraising

Generally, fundraisers should:

• ensure fundraising activities align with the purpose of the intended charity
• ensure the fundraising campaign and materials are truthful, make no misrepresentations and comply with requirements for adding licence or registration numbers to advertising materials, packaging or communications
• make sure that any money raised is given to the intended beneficiaries or used for the specific purpose for which it was obtained
• make sure they apply high standards of governance to the campaign, critically assessing whether the people involved are suitably qualified and of proper character, and whether appropriate safety measures have been taken to protect people involved
• meet reporting requirements for funds raised within the required time
• maintain appropriate records of collectors and their identifying numbers
• properly account for funds received through the fundraising activity, this includes issuing receipts and putting funds into a dedicated bank account
• ensure appropriate safeguards for managing cash donations, including around the collection, storage and emptying of collection tins, boxes and envelopes
• conduct the fundraising activities in accordance with the conditions of the state or territory fundraising approval, and
• comply with directions given by relevant fundraising regulators

Disclaimer: These resources provide general information about legal issues that may arise for not-for-profit organisations in managing disasters. This information is a guide only and is not legal advice. If you or your organisation has a specific legal issue, you should seek legal advice before deciding what to do. See full disclaimer and copyright notice.

The content on this webpage was last updated in December 2024.

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