Fundraising Laws For Australian Businesses: Essential Compliance Guide

Fundraising can help you do more good, reach new supporters and grow faster - whether you’re a charity, social enterprise or a business running a cause-related campaign.

But Australia’s fundraising rules are split across federal consumer law and state/territory fundraising legislation. If you’re collecting money from the public, it’s important to know when you need authority to fundraise, what you must disclose, and how to stay compliant online and offline.

In this guide, we’ll clarify what counts as “fundraising,” who regulates it, the key steps to run a compliant appeal, and how to navigate crowdfunding, raffles and cause marketing. We’ll also explain the important difference between public fundraising and raising capital from investors under the Corporations Act.

What Counts As Fundraising In Australia?

In most states and territories, “fundraising” means soliciting donations or contributions from the public for a beneficial or charitable purpose. Typical activities include:

• Donation appeals (online, in-person, mail, social media or phone)
• Events, auctions and charity sales
• Street, workplace or door-to-door collections
• Peer-to-peer campaigns and crowdfunding appeals
• Commercial partnerships where a portion of sales is donated (cause marketing)

Two quick clarifications help avoid confusion:

• Charitable fundraising versus selling: If you’re selling goods and simply keeping revenue as income, that’s trading. When you invite the public to donate (or you say a portion of sales supports a cause), fundraising rules can apply.
• Fundraising versus securities/capital raising: Asking the public for donations is different from raising investment (shares, notes or units). Capital raising is regulated by the Corporations Act and Australian Securities and Investments Commission (ASIC), and has separate disclosure rules. We cover this distinction later in this guide.

Who Regulates Fundraising And When Do You Need Approval?

Australia has a mix of federal and state/territory rules.

Federal level

• Australian Consumer Law (ACL): All fundraising communications must be accurate and not misleading. This includes statements about your purpose, how funds will be used, and any fees or commissions. Core rules sit in section 18 (misleading or deceptive conduct) and related provisions.
• ACNC (for registered charities): If you’re a registered charity, you must meet ACNC governance standards and reporting obligations. ACNC registration does not automatically authorise fundraising in every state - many jurisdictions still require a separate authority to fundraise.

State and territory level

Most jurisdictions require an “authority to fundraise” or registration before you run public appeals for a charitable or beneficial purpose. Key examples include:

• Victoria: Fundraising Act 1998 (administered by Consumer Affairs Victoria). Most public appeals for a beneficial purpose require registration and ongoing record-keeping.
• New South Wales: Charitable Fundraising Act 1991 (administered by NSW Fair Trading). Organisations generally need an authority to fundraise, with disclosure and financial reporting requirements.
• Queensland: Collections Act 1966 (administered by the Office of Fair Trading). Certain charitable appeals require authorisation; rules cover identification, records and banking.
• South Australia: Collections for Charitable Purposes Act 1939 (authorisation and conditions apply).
• Western Australia: Charitable Collections Act 1946 (licensing and conditions for charitable collections).
• Tasmania, ACT and NT: Fundraising and charitable collection laws also apply, with varying registration and disclosure obligations.

If your appeal reaches donors in multiple states (including via your website or social media), you may need authority wherever donors are located. Some jurisdictions have streamlined reporting for ACNC-registered charities, but fundraising authorisations still commonly apply. Always check the rules in each state or territory where your supporters are based.

Do ACNC-Registered Charities Still Need State Authorisations?

In most cases, yes. ACNC registration doesn’t replace state fundraising authorisations. However, some jurisdictions accept ACNC reporting to reduce duplicate reporting. The authorisation step (and ongoing conduct requirements) still typically applies when you run public appeals.

Key Steps To Run A Compliant Fundraising Appeal

Here’s a practical roadmap to plan and run a lawful public appeal.

1) Confirm Your Purpose And Where You’ll Fundraise

Write a short statement of purpose for the appeal: what you’re raising money for, how the funds will be used, and any costs you’ll deduct (for example, event expenses or a platform fee). Map where donors are likely to be located. If donations may come from multiple states or territories, plan for multi-jurisdiction compliance.

2) Check If You Need An Authority Or Registration

For charitable or beneficial purpose appeals, most states and territories require an authority to fundraise before you start asking the public for donations. Application processes are usually online and require details about your organisation, your appeal, banking arrangements and responsible persons.

Allow lead time for approval, and keep copies of the approvals on file. If your structure changes (for example, you incorporate or change your governing rules), update the regulator.

3) Make Clear And Accurate Disclosures

Supporters should always know who’s asking for funds, why, and how their contribution will be used. Typical disclosures include your legal name, contact details, the purpose of the appeal, and where a portion of proceeds or any commissions apply.

Under consumer law, statements must be clear, accurate and not misleading. This includes any imagery, testimonials, impact statements or “percentage of sales” claims. Keeping scripts and approved wording on file helps your team stay consistent.

4) Keep Proper Records, Receipts And Banking

Most jurisdictions require proper financial records for each appeal, including banking arrangements, receipts issued to donors, expenses and net proceeds. Larger campaigns may need external review or audit depending on thresholds set by the regulator. Good records also make your end-of-year reporting smoother if you’re ACNC-registered.

5) Manage Your Team And Third Parties

If you use paid fundraisers, volunteers, ambassadors or a professional fundraising company, ensure they understand your legal obligations and the approved messaging for the appeal. Clear agreements set expectations about scripts, payment, data handling and compliance.

Where you’ll have staff involved, put the essentials in writing with an Employment Contract and pair it with simple workplace policies (for example, conduct and complaints). If you engage a commercial partner for a cause-marketing campaign, have a short written agreement covering the percentage or amount donated, the disclosure you’ll publish and branding permissions.

6) Get Your Online House In Order

Most campaigns collect supporter details or process donations online. If you meet the Privacy Act threshold (or you’re otherwise required to comply), publish a compliant Privacy Policy and make sure your practices match what it says. Even small organisations that are exempt should still handle personal information carefully (and many platforms require you to have a policy).

If donations run through your website, include clear Website Terms and Conditions and consider adding a short donations/refunds section so supporters know what to expect if an event is cancelled or a campaign doesn’t proceed.

If you email or SMS supporters, follow Australia’s spam rules (consent, identity and unsubscribe). A quick refresher on email marketing laws will help keep your outreach compliant.

7) Use Branding And IP Properly

Protect your name and logo, and don’t use another organisation’s brand without permission. As you grow, it’s worth considering whether to register your trade mark to lock in your brand and reduce the risk of confusion for donors.

Crowdfunding, Raffles And Cause-Related Marketing

Crowdfunding (Donations Or Rewards-Based)

Donation and rewards-based crowdfunding still counts as fundraising if you’re asking the public to contribute to a cause or project. You’ll generally need authority to fundraise where donors are located, plus clear disclosures about your identity, purpose, fees and how funds will be used.

Platforms typically require you to confirm you’re legally compliant before a campaign can go live. Keep copies of the campaign page, FAQs and receipts for your records.

Lotteries, Raffles And Prize Promotions

Raffles and charity lotteries are regulated separately from general fundraising and have extra rules around permits, prize limits, draws and conduct requirements that vary by state and territory. If your appeal involves a game of chance or prize draw, check the relevant raffle laws before you advertise the promotion.

Cause Marketing (Portion Of Sales Donated)

If you’re a business donating a portion of sale proceeds to a cause, disclose this clearly (for example, “$5 from each sale goes to X”) and keep records. In some jurisdictions, arrangements with commercial fundraisers have specific disclosure and record-keeping expectations, especially if the fundraiser is paid a commission. Clear partner agreements help avoid misunderstandings about amounts donated and approval of promotional wording.

Social Media And Influencers

Influencer content, ambassador posts and ads must be truthful and not misleading. Ensure anyone promoting your campaign uses approved messaging and discloses sponsorships where applicable. Screenshots of posts and stories can be helpful for your records of what was said to the public.

Fundraising Vs Capital Raising From Investors: What’s The Difference?

Fundraising law often gets conflated with raising money from investors. They’re very different legal regimes:

• Public fundraising seeks donations or contributions for a beneficial purpose and is primarily governed by state/territory fundraising laws (plus ACL and other federal rules).
• Capital raising involves issuing shares, notes or units to investors and is governed by the Corporations Act (and overseen by ASIC). This includes private placements, seed rounds, convertible notes and crowd-sourced funding via licensed intermediaries.

If you’re raising investment rather than donations, think about disclosure, investor rights and company documentation. Many startups map out their options for capital raising for startups early, then prepare the right documents for the round (for example, a term sheet, cap table and subscription paperwork).

Depending on your structure and the raise, you may also need internal governance documents like a Shareholders Agreement, a Company Constitution and a share register that reflects the new holdings. Your investor paperwork (for example, a share offer) should align with any existing founder arrangements and voting rights, and be consistent with the company’s constitution.

What Legal Documents Will You Likely Need?

Every organisation and appeal is different, but the following documents and policies are commonly used to manage risk and demonstrate good governance:

• Fundraising Policy: A short internal policy setting out who can approve appeals, the disclosure/checklist to use, record-keeping, banking and how you’ll handle complaints.
• Donor Terms/Refunds: Plain-language terms that explain how donations are processed, acknowledgements/receipts, and when refunds may be available (for example, event cancellations).
• Privacy Policy: If the Privacy Act applies to your organisation (or as good practice), publish and follow a transparent Privacy Policy covering collection, use and storage of supporter data.
• Website Terms and Conditions: If you accept donations or sell tickets online, include clear Website Terms and Conditions with a donations or ticketing section.
• Third-Party Fundraiser/Partner Agreement: When you work with a professional fundraiser, platform or commercial partner, set out roles, fees, messaging approvals, reporting and termination rights.
• Employment/Volunteer Documents: Use an Employment Contract for staff and a simple volunteer agreement or handbook for volunteers assisting with appeals.
• Brand/IP Permissions: If others will use your brand in promotions, grant permission in writing and keep a brand guide. Consider whether to register your trade mark.

Not every organisation will need every document, but having the right set for your specific campaign makes compliance easier and reduces the risk of disputes.

Other Laws That Often Apply To Fundraising

• Australian Consumer Law (ACL): Your advertising, social posts and scripts must not mislead supporters about who you are, the purpose of the appeal, fees or the impact their contribution will have. Keep records of your approved messaging and disclosures.
• Privacy: If the Privacy Act applies, publish a compliant Privacy Policy and obtain consent where required. If you share data with partners or platforms, check data security and contract terms.
• Spam Act: Obtain consent for email/SMS, identify your organisation and include an unsubscribe link in every message. Review your processes against Australia’s email marketing laws.
• Tax and DGR statements: If you are endorsed as a Deductible Gift Recipient (DGR), you can issue tax-deductible receipts in line with ATO rules. If you’re not DGR-endorsed, don’t describe donations as tax-deductible.
• Employment law: Paying fundraisers or hiring event staff triggers Fair Work obligations and workplace safety requirements - set clear roles and pay correctly.
• Gaming/lotteries: Raffles, lotteries and prize promotions have separate permits and conduct rules that vary by state/territory (see “Raffles and prize promotions” above).

Key Takeaways

• Public fundraising in Australia is regulated by state and territory fundraising laws, alongside national consumer law - plan for both when you run donation appeals.
• Most jurisdictions require an authority to fundraise for charitable or beneficial purpose appeals; online campaigns can trigger multi-state compliance where donors are located.
• Disclose your identity, purpose and any fees or commissions clearly, and keep robust records, receipts and banking for each appeal.
• Crowdfunding, raffles and cause marketing have extra rules - check raffle and gaming requirements and make sure your platform pages and ads aren’t misleading.
• Fundraising (donations) is not the same as investment - if you’re raising money from investors, follow Corporations Act rules for capital raising for startups instead.
• Set yourself up with the right contracts and policies - think Privacy Policy, Website Terms and Conditions, staff/volunteer documents and partner agreements - so your appeal runs smoothly.

If you would like a consultation on complying with fundraising laws in Australia for your business or not‑for‑profit, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.