Starting a charity or running fundraising activities in Australia is an inspiring way to make a difference. It also comes with legal responsibilities that protect your organisation, your supporters and the people you serve.
This guide walks you through the essentials of charity and fundraising compliance in Australia, from choosing a structure and getting the right authorisations to understanding the laws that apply to your activities. With the right setup, you can focus on impact while staying compliant and building trust.
What Counts As A Charity Or Fundraising Activity?
In Australia, a charity is a not-for-profit organisation with a charitable purpose that benefits the public (for example, advancing education, promoting health or relieving poverty). Charities can be small, local groups or national organisations.
Fundraising activities include any efforts to seek public support or donations, such as events, raffles, online campaigns or workplace giving. You don’t have to be a registered charity to fundraise, but you still need to follow state and territory fundraising rules if you appeal to the public for donations.
Before you begin, it’s worth working out whether you’re establishing a new charity, setting up a social enterprise, fundraising for a specific project under another charity’s umbrella, or running one-off appeals. Your approach will determine the registrations, licences and ongoing compliance you’ll need.
How To Plan And Set Up Your Charity Or Fundraiser
A little planning up front saves a lot of time later. Use this step-by-step roadmap as your starting point.
1) Clarify Purpose And Activities
- Define your charitable purpose and intended beneficiaries.
- Map out how you’ll raise funds (events, online donations, grants, memberships) and how funds will be used.
- Consider whether you’ll operate locally, across multiple states, or internationally.
2) Choose A Structure
Your structure affects governance, personal liability, eligibility for charity registration, and public confidence.
- Incorporated association: Often suitable for smaller groups operating in a single state or territory.
- Company limited by guarantee: Common for organisations operating nationally; governed by the Corporations Act and often registered as charities.
- Unincorporated association: Easy to set up, but not a separate legal entity, which increases personal risk for members.
- Charitable trust: Useful for specific philanthropic purposes, typically with trustee governance.
Whichever structure you choose, adopt a clear governing document. If you incorporate as a company, a tailored Company Constitution helps set out your purpose, decision-making rules and conflict processes.
3) Register Your Organisation
- ABN: Apply for an Australian Business Number so you can operate, invoice and apply for licences.
- Name registration: If you’re trading under a name that isn’t your incorporated name, register the business name.
- Charity registration: If you’re a charity, apply to the Australian Charities and Not-for-profits Commission (ACNC). ACNC registration is typically required before you can access charity tax concessions.
- Incorporation: Register as an incorporated association (state/territory regulator) or a company limited by guarantee (ASIC), if that’s your chosen structure.
4) Understand Fundraising Licences
Most states and territories require a licence or authority before you can publicly solicit donations. If you’ll fundraise across multiple states (including online), you may need authorisations in each relevant jurisdiction. More on that below.
5) Set Up Governance And Financial Controls
- Appoint a board or committee with clear roles and responsibilities.
- Establish processes for banking, approvals, record-keeping and reporting.
- Adopt policies covering fundraising, conflicts of interest, complaints and risk management.
6) Plan For People And Safety
If you’ll engage staff or volunteers, put proper agreements and safety systems in place. A written Employment Contract sets clear expectations for paid roles, and a Volunteer Agreement helps manage risk and duty of care for volunteer roles.
7) Consider Tax And Accounting From Day One
Charities and not-for-profits have specific tax settings. For example, the GST registration threshold for not-for-profits is generally $150,000. You may be eligible for charity tax concessions or Deductible Gift Recipient (DGR) endorsement depending on your purpose and activities.
Because tax status and DGR endorsement depend on your specific circumstances, it’s best to speak with a qualified accountant for tailored advice on ATO registration, GST, FBT and DGR pathways.
Which Registrations, Licences And Taxes Apply?
Here’s a closer look at the core registrations and authorisations most organisations consider.
ACNC Registration (For Charities)
ACNC registration recognises your organisation as a charity and may be a prerequisite for ATO charity tax concessions. Registration brings ongoing obligations, including annual reporting and meeting ACNC governance standards.
Fundraising Licences (State/Territory)
Fundraising is regulated at the state and territory level. If you ask the public for donations in a jurisdiction, you generally need a licence or authority there. The exact exemptions and thresholds vary by state, and online appeals can trigger multi-state requirements because you may be soliciting donors everywhere your campaign is visible.
Expect conditions around disclosure, record-keeping, financial reporting and the use of commercial fundraisers.
Tax And DGR
- Charity tax concessions: Income tax exemption and other concessions may apply if you’re a registered charity.
- DGR endorsement: Only certain categories qualify. DGR status allows donors to claim tax deductions for gifts.
- GST and FBT: Consider GST registration (often required if your NFP turnover meets the $150,000 threshold) and whether any fringe benefits tax concessions apply.
Given the complexity of tax concessions and DGR categories, get personalised advice from an accountant who works with charities and NFPs.
Other Approvals You Might Need
- Local event permits: Council approval for public events, street collections or signage.
- Insurance: Public liability, volunteer insurance and directors’ and officers’ (D&O) cover are common risk controls.
- Gaming permits: If you plan raffles or prize promotions, check the raffle and gaming requirements in your state or territory.
What Laws Do Charities And Fundraisers Need To Follow?
Compliance goes beyond registrations. The laws that apply to your organisation will depend on what you do, where you operate and who you work with. These are the key areas most charities and fundraisers should consider.
Fundraising Laws (State And Territory)
States and territories regulate public appeals for donations, including how funds are collected, receipted and used, what you must disclose to donors and how you report. If your campaign is online and accessible nationwide, you may need authorisation in multiple jurisdictions.
Australian Consumer Law (ACL)
When you advertise a campaign or speak with donors, you must not mislead or deceive, make false claims or engage in unfair practices. Clear, accurate messaging about how funds will be used is essential. The ACL also sets expectations around transparency when selling merchandise in support of your cause. If you need tailored support with compliance, consider getting help from a consumer law specialist.
Privacy And Data Protection
Many charities collect personal information from donors, beneficiaries, staff and volunteers. In Australia, the Privacy Act and Australian Privacy Principles (APPs) generally apply to organisations with an annual turnover over $3 million, and to some smaller organisations in specific circumstances (for example, health service providers or those that trade in personal information).
Even if you’re under the $3 million threshold and not technically covered by the APPs, it’s good practice to publish a clear Privacy Policy and handle data securely. If you collect payment details or store card data, make sure your systems are secure and align with your legal obligations around storing credit card details.
Employment, Volunteers And Safety
If you hire staff, you must meet Fair Work obligations, pay correctly under the relevant award, and provide a safe workplace. Volunteers aren’t employees, but you still owe them a duty of care and should have clear role descriptions, induction processes and policies. Documenting roles through an Employment Contract (for staff) and a Volunteer Agreement (for volunteers) helps prevent misunderstandings and manage risk.
Intellectual Property (Brand Protection)
Your name, logo and campaign branding are valuable assets. To protect them, consider registering a trade mark. This gives you exclusive rights to use your brand in Australia for nominated classes of goods and services and helps stop others from using confusingly similar names or logos. You can start by applying to register your trade mark and setting internal guidelines for brand use.
Raffles, Lotteries And Gaming
Charity raffles and prize draws are common fundraising tools, but they’re governed by state and territory gaming rules with conditions on permit types, prize values, draw processes, record-keeping and how proceeds are used. Check your local requirements and ensure your raffle terms are clear. For an overview of the landscape, see the basics on raffle laws in Australia.
Working Overseas, Sanctions And Financial Crime Risk
Many charities support international causes. If you operate overseas or send funds abroad, you must meet the ACNC External Conduct Standards and be mindful of Australia’s sanctions regime. Most charities are not subject to the Anti‑Money Laundering and Counter‑Terrorism Financing (AML/CTF) Act unless they provide designated financial services (for example, remittance or stored value facilities). Even so, basic due diligence on partners and recipients and clear financial controls are sensible risk measures.
What Legal Documents Should You Have In Place?
Strong governance and clear paperwork build credibility with donors and make day‑to‑day operations smoother. These documents are common across charities and fundraisers.
- Governing document: Your constitution, rules or trust deed sets out your purpose, membership, decision-making and winding‑up rules. A tailored Company Constitution is important if you incorporate as a company limited by guarantee.
- Board and committee policies: Cover conflicts of interest, delegations, meeting procedures, financial controls and document retention.
- Fundraising policy: Explains permitted fundraising methods, approvals, use of third‑party fundraisers, receipting and reporting requirements.
- Privacy Policy: Tells donors, beneficiaries and supporters how you collect, use and store personal information. Even where the APPs don’t strictly apply, a clear Privacy Policy is best practice.
- Volunteer Agreement and Employment Contract: Set expectations, rights and responsibilities for people working with you. Start with a simple Volunteer Agreement and the relevant Employment Contract for paid roles.
- Event or campaign terms: Terms and conditions for ticketed events, peer‑to‑peer campaigns or online donations, including refund rules and disclaimers.
- Service Agreements: If you provide programs or support services, project‑specific agreements clarify scope, funding conditions, reporting and IP ownership.
- Trade mark portfolio: Protect your brand by registering key marks and standardising how partners and volunteers use your logo. Start with trade mark registration and a simple brand style policy.
You may not need every document on day one, but getting the core governance, privacy, people and fundraising documents right early will pay off as you grow.
Digital campaigns and crowdfunding can supercharge your reach. They can also expose you to multi‑jurisdictional rules and data security risks if not managed well.
- Licensing footprint: If your online appeal targets supporters in multiple states or territories, check whether you need separate fundraising licences in each of those jurisdictions.
- Platform terms: If you use a crowdfunding or social media platform, confirm the platform’s terms align with your obligations around receipting, refunds, data use and reporting.
- Website compliance: Publish clear donation terms and a Privacy Policy on your website, and ensure your collection notices explain how donor data will be used.
- Payments and security: Use reputable payment gateways and follow best practice for storing card details, if you store any at all.
- Transparent messaging: Be specific about how funds will be used, any admin or platform fees, and what happens if you exceed or don’t meet your target.
The clearer you are online, the easier it is for donors to trust your campaign and support your cause with confidence.
Key Takeaways
- Set up your charity or fundraiser with a clear purpose, the right structure and strong governance so you can grow responsibly and build trust.
- If you publicly solicit donations, expect to need state or territory fundraising licences; online appeals can trigger multi‑state requirements.
- Follow core laws that commonly apply: fundraising rules, the Australian Consumer Law, privacy and data protection, employment and volunteer obligations, and raffle/gaming requirements.
- Protect your brand and credibility with essential documents, including your governing document, fundraising and privacy policies, people agreements and trade mark registration.
- The APPs don’t automatically apply to all small charities, but a clear Privacy Policy and secure data practices remain best practice.
- Tax, GST and DGR status depend on your circumstances, so it’s wise to get advice from an accountant on ATO registrations and concessions.
If you’d like a consultation on starting or managing a charity and fundraising initiative in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
