Changes to the charity fundraising laws started on 1 July 2021, this will provide clarity to charities in managing registration and reporting requirements.
On this page:
- Changes from 1 July 2021
- Updated reporting requirements
- Recognising the needs of the sector
- The inquiry that led to 1 July 2021 change
Changes from 1 July 2021
From 1 July 2021, fundraisers will have greater clarity for their responsibilities and reporting requirements.
Investigative and enforcement powers have also been increased to maintain public confidence in the operation of charitable fundraisers, and support effective regulation.
Charities will be better supported by updated registration and reporting requirements and by reducing some barriers with other State and Federal laws.
The key changes include:
- introducing a maximum five-year term for an authority to fundraise and allowing authorities to be renewed
- Enhanced accountability and transparency requirements for fundraisers
- providing organisations that are registered with the Australian Charities and Not-for-profits Commission (ACNC) automatic eligibility for an authority.
- ACNC registered organisations do not have to report to both NSW Fair Trading and the ACNC.
- increasing the maximum penalty amounts for greater deterrence against non-compliance
- allowing authorised officers to issue compliance notices and penalty infringement notices (PINs) to simplify enforcement action
- the standard conditions that authority holders need to comply with are now located within the Regulation and are not provided separately.
The Charitable Fundraising Guidelines PDF, 453.79 KB have also been updated to reflect the changes to the charitable fundraising laws. These guidelines provide detail on the obligations of fundraisers in NSW.
Updated reporting requirements
Under the new law reforms reporting requirements have changed. All authority holders will now be required to submit an annual return, annual financial statement and compliance statement within 6 months of the end of their financial year. This is a requirement even if no money was received and no fundraising appeal was conducted. For fundraisers that raise $250,000 or more in a financial year an auditor’s report will also need to be submitted.
These changes recognise the importance of accountability and transparency regarding donated funds to maintain donor and general public confidence. To know more on the reporting requirements you can go to the Rules for fundraising page.
Recognising the needs of the sector
We have recognised the need to better streamline application and reporting requirements for organisations registered with the ACNC to reduce regulatory burden.
Registration with the ACNC is a pathway to obtain a fundraising authority in NSW. If you are an ACNC registered organisation you are automatically eligible to apply for and receive an authority. All you need to provide is your ACNC-registration details when applying. You will not need to provide other details that are usually required as part of the application process.
If you are given an authority on the basis of your ACNC registration, you will need to notify Fair Trading within 28 days of any changes to your registration. This includes if your ACNC-registration is revoked, or if one of your ACNC responsible entities is suspended or removed.
To reduce red tape, duplication and ensure financial reporting requirements special arrangements apply for ACNC registered organisations. More information can be found under the Special arrangements for ACNC registered organisations section.
The inquiry that led to 1 July 2021 changes
Changes to the charitable fundraising laws were introduced in the Charitable Fundraising Amendment Act 2018 (the Amendment Act) and in the new Charitable Fundraising Regulation 2021. These changes form part of the NSW Government’s response to the 2017 Public Inquiry conducted by Justice Bergin. The Bergin Report was published in January 2018.
You can visit the Charitable fundraising page for more information on the requirements for fundraisers from 1 July 2021.