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The Western Australian Government has been working with the Commonwealth and other states and territories to support charities by harmonising fundraising regulation and reducing red tape.
As part of this work, Western Australia and the other states and territories have agreed to a set of fundraising principles to streamline and harmonise conduct requirements for charitable fundraising activities across Australia.
Legislation is currently being prepared to implement the national fundraising principles for charitable collections in Western Australia. More information can be found on Western Australia’s implementation plan for the national fundraising principles.
Licence holders can choose to adopt the Voluntary Code of Practice for public fundraising which provides a recommended set of principles and guidelines for collections in Western Australia.
It is intended to apply to charitable and not for profit organisations, individuals, one off fundraising events and activities, as well as their organisers. The code also provides advice and guidelines for organisations when dealing with commercial fundraising contractors. It is also intended to apply to other organisations except to the extent that their activities are regulated by legislation or other mandatory rules in a manner which is inconsistent with the code.
In this Code:
"Act" means the Charitable Collections Act 1946.
"Approved auditor" means a:
"Charitable organisations" includes all charitable organisations which conduct public fundraising in Western Australia, but is not limited to those organisations licensed under the Act.
"Commercial fundraising contractor" means for profit organisations which for a fee or commission conduct public fundraising on behalf of other organisations.
"Committee" means the Charitable Collections Advisory Committee established pursuant to the Act.
"Donation" means a gift of cash or goods.
"Donor" is the person who gives.
"Not for profit organisations" means charitable organisations and organisations which are not considered to be charitable, but which have not for profit objectives.
"One off fundraising" means fundraising where, at the commencement of a fundraising program or campaign, it is intended that the organising body or process will be dissolved or wound up shortly after the conclusion of the program or campaign and the distribution of the funds raised.
"Public fundraising" includes but is not limited to all:
"Purchase" means to obtain goods and services by payment. "Purchaser" is the person who purchases.
Members of the public provide funds in response to appeals to promote or aid a cause from which they may not obtain any personal material benefit, but usually do so on the understanding that some part of any donation or purchase is to go toward the aims of the organisation. In deciding whether to undertake a fundraising activity an organisation should ensure it:
Fundraising campaigns involve varying degrees of invasion of privacy. Therefore, respect donor privacy in all cases. Do not sell or otherwise make available personal details of a donor for use in campaigns by other organisations without the permission of that donor.
Take care in ensuring fundraising is conducted in a friendly manner and recognise that it is the individual right of the members of the public to decide for themselves whether to donate, make a purchase, or not. Avoid aggressive conduct during fundraising campaigns. It can harm donor willingness to give in the long term.
This section discusses recommended practices and guidelines for the conduct of public fundraising.
The aim of this guideline is to provide an informed basis upon which the public can base decisions to participate, and as a means of accountability to the public.
Donations and purchases are made in good faith. Members of the public have a right to be assured funds given in support of a specific purpose are in fact applied to that purpose. Accordingly, in any fundraising:
Ensure the organisation uses its best endeavours to be able to inform donors or purchasers of the:
In calculating these costs, make allowance for all direct and indirect costs to the extent that they can be ascertained, including but not limited to the following:
Where an indirect cost cannot be ascertained, make a fair allowance for it.
The public should have access to as much information on the organisation as possible. Promotional material should state the:
Establish procedures for handling complaints from the public and train office staff and collectors in handling complaints courteously.
If the refund of a donation is requested, consider making a refund where the:
A refund could be made in any circumstances or for any reason which the organisation considers appropriate.
Comply with a donor's or purchaser's request that they be excluded from any future mailings.
Raffles may be conducted amongst existing donors to or purchasers from the organisation by mail or direct solicitation.
Do not mail raffle books or tickets to members of the public who are not also existing donors to or purchasers from the organisation without first gaining their individual approval.
Ensure that any permit required under the Gaming Commission Act 1987 is obtained and that the raffle is conducted in accordance with the conditions of any such permit and the requirements of the Act.
Ensure any contract with a commercial fundraising contractor is made in writing. This section sets out some basic negotiating suggestions when establishing the terms of a contract.
Make sure the contract sets out:
Ensure:
All organisations and individuals covered by this code are required to produce accurate information relating to public fundraising to ensure accountability to donors. Records must be kept in such a manner as will ensure that funds raised from the public are properly accounted for and the results of fundraising activities are verifiable. This requires that certain accounting procedures and standards be adopted.
Information contained in the financial statements is an important factor in determining estimates of fundraising returns to be used in promotional materials for future fundraising campaigns, as well as to satisfy public enquiries into the organisation's fundraising costs.
A recognised accounting method is to be used.Australian Accounting Standards must be complied with in the preparation of accounts.
Financial statements must include:
The income section of the income and expenditure statement must:
The expenditure section of the income and expenditure statement must:
Note: Section 3 of this code lists some indirect and overhead fundraising costs.
The apportionment method must be clearly stated in the notes to the accounts and remain consistent from year to year. Where a change in the apportionment method occurs, this must also be clearly stated in the notes.
Make annual accounts publicly available at a nominal fee.
Receipt and record all donations.
Cash handling procedures must require:
All cheques must be signed by not less than two persons.
Prepare annual accounts and have them audited and submitted to the Committee within four months of the end of the financial year.
Use an independent approved auditor to audit accounts, except where the gross value of funds raised in the year is less than $50,000, where the audit may be undertaken by an independent person who has accounting experience but is not a qualified accountant. However, you will need to apply for Special Ministerial Approval prior to using that person to audit your accounts.
Ensure accounts are signed by the auditor as well as a person responsible for their preparation.
Comply with any conditions attached to licences issued under the Act in relation to approved auditors.
Retain records for not less than 5 years.
Except in the case of one off fundraising, establish a structure which has the following elements:
An organisation which adopts this code and applies the principles set out in it will:
The organisation may include in any of its promotional or advertising material the statement:
{Name of organisation} complies with the Voluntary Code of Practice for Public Fundraising in Western Australia”.
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