Fundraising

Associations are set up to achieve a range of objectives, which can include a wide diversity of activities.  As long as the association meets the requirements of being not-for-profit and only undertakes activities in its state of incorporation, the members and management committee are generally free to determine what type of activities are undertaken. 

Associations do not have an unrestricted right to fundraise, even if it is for not-for-profit purposes. This chapter provides information on the legal requirements that associations must take into consideration when planning and carrying out their fundraising activities.

Many associations undertake some form of fundraising in order to help finance their not-for-profit activities, for example, running a raffle, conducting a door-knock, selling food or collecting clothes. 

Examples:

  • The Harmony Community Development Association Inc. holds an annual street collection, organises charity sports events and runs a bingo evening for senior citizens.
  • Kick-it Inc. runs soccer coaching and competitions for under 12 year olds.  The group also undertakes fundraising and runs education sessions in local schools.
  • Sam Point Neighbourhood House Inc. runs educational programmes, school holiday activity programmes, single parent camps and an unemployed workers co-operative.
  • Friends of Lake Boro Inc. publishes a local newsletter, conducts busy bees and collects donations at shopping centres.
  • Care-in-Care Inc. is a large organisation with over 60 staff, delivering services for low-income earners across Perth.  Services include counselling, education, legal advice and emergency relief.  The centre also has two op shops, a refuge and an inner city canteen for homeless people.

Key Points

  • Incorporated associations that wish to raise funds from the public for a charitable purpose must have a licence. 
  • Permission for raising funds in shopping centres must be obtained from the shopping centre management.
  • Fundraising in streets and public places in the metropolitan area requires a street appeal permit.
  • An association must obtain a licence from the local council for a food stall and a licence from the DRGL for a licence to sell alcohol.
  • Additional insurance may be required for fundraising events.
  • Obtaining endorsement from the ATO as a DGR could assist eligible associations with fundraising.