Fundraising in South Australia comes with a set of rules that are important to follow. Charities and non-profit organisations need to fundraise to acquire the necessary resources to support their honourable missions, but fundraising isn’t as straightforward as it seems. To conduct fundraising legally in South Australia, you must comply with the specific laws and regulations, and in this guide, we’ll explore the key points, from registration requirements to record-keeping and penalties for non-compliance. So keep reading so you can dot your i’s and cross your t’s in compliance.
That said, if this seems overwhelming, connect with us at Clubdraws for a fundraiser solution that works, and that’s legal in South Australia.
Understanding Fundraising in South Australia
South Australian fundraising could be as simple as collecting donations for animal shelters, as complex as organising events, and soliciting support to raise funds for charitable causes. To ensure that these activities are conducted ethically and legally, the state has set out specific rules and guidelines under the Collections for Charitable Purposes Act 1939 and its associated regulations.
Key Regulatory Body
The primary authority responsible for overseeing fundraising activities in South Australia is Consumer and Business Services (CBS). CBS ensures that all charitable organisations and fundraisers comply with the legal requirements, promoting transparency, accountability, and ethical behavior in all fundraising efforts within SA.
For more detailed information and resources, you can visit the Consumer and Business Services website.
Registration Requirements
Who Needs to Register?
Any organisation or individual intending to raise funds for a charitable purpose in South Australia must register with CBS. This includes charities, non-profits, and any group planning to solicit donations from the public.
Steps to Register as a Fundraiser
Complete the Application:
Fill out the necessary forms, available on the CBS website, detailing your organization’s structure, proposed fundraising activities, and financial records.
Provide Required Documentation:
Submit documents that support your application, such as the organization’s constitution, financial statements, and any relevant permits.
Pay the Registration Fee:
A fee is required to process your application.
Await Approval:
After submitting your application, CBS will review it, and upon approval, you’ll receive a certificate of registration, allowing you to commence your fundraising activities legally.
Conducting Fundraising Activities
Permissible Fundraising Activities
In South Australia, fundraisers can engage in a variety of activities, such as:
- Charity Events: Including auctions, dinners, and walks.
- Public Collections: Street collections, door-to-door appeals, and more.
- Raffles and Lotteries: Provided they comply with specific rules and obtain the necessary permits.
Guidelines & Restrictions
To ensure that fundraising activities are conducted legally and ethically, fundraisers must:
- Be Transparent: Clearly communicate the purpose of the fundraising activity and how the funds will be used.
- Avoid Misleading Conduct: Ensure that no deceptive practices are involved in the fundraising process.
- Obtain Necessary Permits: Certain activities, like public collections or raffles, may require additional permits or approvals.
Financial Reporting and Record-Keeping
Financial Reporting Obligations
Fundraisers in South Australia must submit regular financial reports to CBS, detailing all income and expenditure related to their fundraising activities. This ensures accountability and helps maintain public trust.
Record-Keeping Requirements
Fundraisers must maintain accurate and up-to-date records, including:
- Details of All Donations: Document each donation, including the donor’s information and the amount given.
- Expenditure Records: Keep a log of all expenses related to fundraising activities.
- Audit Trails: Ensure that all financial transactions can be easily traced and verified by CBS if required.
Penalties for Non-Compliance
Common Violations
Some of the most common violations include:
- Failure to Register: Operating a fundraising activity without proper registration.
- Inadequate Record-Keeping: Not maintaining the required financial records.
- Misleading Donors: Providing false or misleading information about how the funds will be used.
Consequences of Non-Compliance
Non-compliance with the fundraising regulations in South Australia can lead to significant penalties, including:
- Fines: Penalties for non-compliance can be substantial, depending on the severity of the breach. For instance, failing to register as a fundraiser or misleading donors can result in fines ranging from a few hundred to several thousand dollars.
- Legal Action: In severe cases, non-compliant fundraisers may face legal action, leading to more serious consequences, such as suspension of fundraising activities or prosecution.
Example Fines for Non-Compliance
The fines for non-compliance can vary depending on the nature of the violation:
- Failure to Register: Operating without registration can incur fines starting from a few hundred dollars.
- Record-Keeping Violations: Not maintaining accurate financial records can lead to fines of up to $10,000.
- Misleading Conduct: Deceptive practices in fundraising can attract fines of up to $20,000 or more, depending on the severity.
Key Takeaways
Navigating the fundraising laws in South Australia requires careful attention to detail and strict adherence to the regulations set out by Consumer and Business Services. By following the guidelines in this guide, fundraisers can ensure that their activities are legal, ethical, and effective, but if this all seems far too hard, then connect with ClubDraws who host fundraisers for charities that requires minimal effort from you, and they’ve taken care of all of the compliance requirements. For more information and assistance with compliance if you’re hosting your own event, visit the Consumer and Business Services website.
