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An association may wish to engage a commercial fundraiser to collect on its behalf. Commercial fundraisers are not presently required to be licensed under the Charitable Collections Act 1946. Any agreement between an association and a commercial fundraiser is subject to contract law, and associations should seek legal advice before entering into agreements.
Consumer Protection has developed some guidelines for consideration by associations contemplating entering into an agreement with a commercial fundraiser.
Some incorporated associations obtain funds though gifts and bequests. A bequest is a gift of property in a will. While this is a valid means of acquiring funds, it is very important for associations to ensure that gifts and bequests have been given to the association without any undue influence or coercion.
If an incorporated association is planning to raise funds through a request for gifts and bequests, it is essential to discuss the project with a solicitor and to have the solicitor draft all the necessary documents (e.g. letters of request, forms and promotional material) in order to avoid legal pitfalls.
Incorporated associations that qualify as a DGR can receive tax-deductible gifts. This can make them more attractive to donors wishing to claim an income tax deduction for the gift, for example, sponsors and private donations. More information concerning Deductible Gift Recipients can be found on the ATO website.
A fundraising activity may require specific, one-off insurance, if the event is not going to be covered by existing policies. Personal injury, product liability and cover for volunteers are particular areas to consider. If the association is using a sub-contractor you should also check what insurance they have. Insurance topics are covered in more detail in Insurance and Risk Management.
Certain activities may require local government approval for fundraising. This is likely to be the case when using a public space and/or in relation to local health, noise, safety or traffic by-laws.