Fundraising for charities and non-profits can be a fulfilling experience, but it’s crucial to adhere to the rules and regulations to avoid any legal issues. Grassroots fundraising is essential for supporting various non-profit missions, but it’s important to understand and comply with the laws governing these activities in Victoria. This guide will walk you through the key aspects of fundraising in Victoria, including registration requirements and financial reporting. If you find this too complicated, don’t worry—we offer simple, compliant fundraising solutions that cost you nothing in volunteer time and resource.
Overview of Fundraising in Victoria
Fundraising involves requesting donations or financial contributions from individuals, businesses, and organisations to support a cause or project. In Victoria, these activities are regulated to ensure they are conducted transparently, responsibly, and fairly.
Regulatory Authorities
The main body responsible for overseeing fundraising activities in Victoria is Consumer Affairs Victoria (CAV). They ensure compliance with the Fundraising Act 1998 and related regulations, which govern the conduct of fundraising activities within the state. This legislation aims to protect the public by setting out clear guidelines and standards for transparency, accountability, and ethical conduct in fundraising.
CAV’s responsibilities include overseeing the registration of fundraisers, monitoring compliance with fundraising laws, and investigating complaints or breaches. They ensure that all registered fundraisers maintain accurate financial records, disclose necessary information to donors, and use raised funds appropriately. CAV also has the authority to issue fines, suspend registrations, or take legal action against fundraisers who violate the regulations.
In addition to the Fundraising Act, CAV provides guidance on specific aspects, such as the required disclosure of the intended use of donations, restrictions on the types of activities that can be undertaken, and the proper handling of donated funds. Fundraisers must comply with these rules to ensure they operate within the law and maintain public trust.
You can find more information on the CAV website.
Registration Process
Register Online With CAV
Anyone who plans to conduct fundraising activities in Victoria must register with CAV. This includes charities, non-profits, and other groups soliciting donations from the public. The online application process for registering as a fundraiser with Consumer Affairs Victoria (CAV) is generally straightforward and can be completed in about 15 to 30 minutes, depending on the complexity of your organisation and the completeness of your documentation. This time frame assumes that you have all the necessary information and documents ready, such as details about your organisation, planned fundraising activities, and financial records.
However, the overall time for approval and processing by CAV may take longer, as they review the application and ensure all requirements are met. This review period can vary but typically takes a few weeks.
How to Register as a Fundraiser
- Complete the application form on the CAV website.
- Submit the required documentation, including information about your organisation, planned fundraising activities, and financial records.
- There is currently no fee to register as a fundraiser.
- Wait for approval from CAV before beginning any fundraising activities.
- Conducting Fundraising Activities
- Approved Fundraising Activities
- In Victoria, fundraisers can organise events, online raffles, online campaigns, direct mail solicitations, and more. However, all activities must align with CAV’s regulations.
Key Guidelines and Restrictions
- Ensure transparency in all communications.
- Avoid misleading or deceptive practices.
- Clearly state the purpose of the funds being raised.
- Obtain necessary permits for specific activities, such as raffles or public events.
- Financial Reporting and Record-Keeping
- Reporting Obligations
- Fundraisers must regularly submit financial reports to CAV, detailing the income and expenses related to their activities. This maintains transparency and accountability.
Record-Keeping Requirements
- Keep accurate and up-to-date records of all donations, expenses, and other financial transactions. These records should be readily available for inspection by CAV if requested.
Keeping accurate records is a crucial aspect of managing fundraising activities, ensuring transparency, and complying with regulatory requirements. Here’s a guide on how to maintain proper records for fundraising in Victoria:
Record-Keeping Basics
Income and Expenditure
Maintain detailed records of all income received (including donations, grants, and sponsorships) and all expenses incurred (such as costs for events, marketing, and administration). Each transaction should be documented with receipts, invoices, or other supporting documents.
Donor Information
Record details of donors, including names, contact information, and donation amounts. This information is essential for acknowledging contributions and for any necessary reporting.
Bank Statements
Keep copies of bank statements that reflect the organisation’s financial transactions. These statements should be reconciled regularly with the recorded income and expenditures.
Specific Requirements
Fundraising Events
For events like raffles, auctions, or ticketed gatherings, maintain a log of all items, including donated goods and services, their estimated value, and sales records.
Permits and Approvals
Retain copies of any permits or approvals obtained for specific fundraising activities, such as public collections or lotteries.
Compliance Documents
Keep records of all filings with Consumer Affairs Victoria (CAV), including registration applications, financial statements, and any correspondence regarding compliance issues.
Storage and Accessibility
Digital and Physical Records
Store records securely, whether they are digital or physical. Ensure that digital records are backed up regularly and that physical records are kept in a safe, accessible place.
Retention Period
Records should be kept for a minimum of seven years, as required by Australian tax and financial regulations. This period ensures that documents are available for any audits or inspections.
Financial Reporting
Regular Reporting
Prepare and submit regular financial reports to CAV, detailing the income and expenditure from fundraising activities. These reports help maintain transparency and accountability to donors and the public.
Audits and Reviews
Be prepared for potential audits or reviews by CAV or other regulatory bodies. Having organised and comprehensive records will facilitate this process and show compliance.
Best Practices
Segregation of Duties
Where possible, separate the roles of handling cash, recording transactions, and reconciling accounts to reduce the risk of errors or fraud.
Professional Assistance
Consider engaging a professional accountant or bookkeeper to help manage records and ensure compliance with financial regulations.
Consider contracting your fundraising efforts to a provider such as Clubdraws who provides online raffles, to raise funds for animals, raise money for schools, for sports club fundraisers and any other charitable organisation.
If this all seems too complicated, Clubdraws offers a hands-free solution, that won’t cost you volunteer time, and continually deposit funds into your bank account on a weekly basis.
Consequences of Non-Compliance
Common Issues
- Not registering as a fundraiser.
- Misleading donors about how the funds will be used.
- Failing to provide accurate financial reports or keep proper records.=
- Potential Penalties
- Violations can result in fines, suspension of fundraising activities, or legal action. It’s crucial to comply with all regulations to avoid these penalties.
Examples of Fines for Non-Compliance in Victoria
Failure to Register
Fines can range from a few hundred to several thousand dollars, depending on the severity and length of the non-compliance.
Inadequate Financial Reporting
Fines can be substantial for not maintaining accurate records.
Misleading Practices
Misleading donors can lead to significant fines.
Serious Offenses
Severe cases, such as gross negligence, can incur much higher penalties.
Specific Violations
Fines also apply for not obtaining required permits for activities like raffles.
For the latest information, visit the Consumer Affairs Victoria website.
Conclusion
Navigating fundraising laws in Victoria can be challenging, but following these rules is crucial for the success and integrity of your efforts. By adhering to the guidelines in this guide, you can ensure that your fundraising activities are legal, transparent, and effective. For more resources and assistance, visit the Consumer Affairs Victoria website or contact us for a hassle-free fundraising solution.
