Charitable Fundraising Regulation 2021

Part 1 Preliminary

1 Name of Regulation

This Regulation is the Charitable Fundraising Regulation 2021.

2 Commencement

This Regulation commences on 1 July 2021 and is required to be published on the NSW legislation website.

Note—

This Regulation repeals and replaces the Charitable Fundraising Regulation 2015, which would otherwise be repealed by the Subordinate Legislation Act 1989, section 10(2).

3 Definitions

In this Regulation—

ACNC responsible entity has the same meaning as responsible entity has in the Australian Charities and Not-for-profits Commission Act 2012 of the Commonwealth.

Australian Accounting Standards has the same meaning as in the Associations Incorporation Act 2009.

authority holder, in relation to a fundraising appeal, means a person or organisation that holds an authority to conduct the appeal.

child, for Schedule 1—see Schedule 1, section 2.

child participant, for Schedule 1—see Schedule 1, section 2.

child participant employee, for Schedule 1, Part 3, Division 3—see Schedule 1, section 36.

child participant employer, for Schedule 1, Part 3, Division 3—see Schedule 1, section 36.

face-to-face collector means a person who participates in a fundraising appeal by face-to-face solicitation.

financial year, in relation to an organisation, means—

(a)  the financial year fixed for the organisation by the organisation’s constitution, or

(b)  if no financial year is fixed for the organisation by the organisation’s constitution—the year commencing 1 July.

gross amount, in relation to a fundraising appeal, means the amount collected by a trader in relation to the appeal minus the following—

(a)  the fair and reasonable expenses incurred by the trader in relation to the appeal,

(b)  a wage, commission or fee paid to the trader in relation to the appeal.

receipt includes a ticket.

supply of goods does not include giving a person who donates to a fundraising appeal a badge, sticker, token or other thing in acknowledgment of the person’s donation.

the Act means the Charitable Fundraising Act 1991.

Note—

The Act and the Interpretation Act 1987 contain definitions and other provisions that affect the interpretation and application of this Regulation.

Part 2 Fundraising appeals

Division 1 Organisations authorised to conduct fundraising appeals without holding authorities

4 Councils and certain trusts

(1)  For the purposes of the Act, section 9(2)(a), the following organisations and persons are authorised to conduct a fundraising appeal without being the holder of an authority—

(a)  a council,

(b)  a committee of a council, whether or not all of the members of the committee are councillors of the council,

(c)  for a fundraising appeal conducted for a trust—the trustees of the trust if 1 or more of the trustees is—

(i)  a council, or

(ii)  a mayor, councillor, general manager, public officer or senior staff member of a council who is a trustee by virtue of holding the office, or

(iii)  a person nominated by a council who is a trustee by virtue of the person’s nomination.

(2)  In this section—

council, councillor, mayor, public officer and senior staff have the same meanings as in the Local Government Act 1993.

5 Universities and controlled entities

(1)  For the purposes of the Act, section 9(2)(a), a university or a controlled entity is authorised to conduct a fundraising appeal without being the holder of an authority.

(2)  In this section—

controlled entity means a person, group of persons or body of which a university, or the council, board or senate of the university, has control within the meaning of the Australian Accounting Standards.

university means a university listed under the heading New South Wales in Schedule 1, Part 1 of the Higher Education Act 2001.

6 Small fundraisers

(1)  For the purposes of the Act, section 9(2)(a), a small fundraiser is authorised to conduct a fundraising appeal without being the holder of an authority.

(2)  In this section—

small fundraiser means an organisation or person that—

(a)  does not receive more than $15,000 gross in a financial year from any fundraising appeal the organisation or person conducts in the financial year, and

(b)  does not receive remuneration for conducting fundraising appeals, other than payment of lawful and proper expenses determined in accordance with section 14, and

(c)  only engages persons on a voluntary basis to participate in the fundraising appeal of the organisation or person.

7 Parents and citizens associations

For the purposes of the Act, section 9(2)(a), a parents and citizens association constituted in connection with a government school under the Education Act 1990, whether incorporated or not, is authorised to conduct a fundraising appeal without being the holder of an authority.

Division 2 Applications, suspensions and cancellations of authorities

8 Secretary may refuse applications for authorities for certain matters

For the purposes of the Act, section 16(2)(i), the following matters are prescribed—

(a)  that neither the applicant nor another person associated with the proposed fundraising appeal has ever held an authority that was cancelled on a ground relating to fraud or dishonesty of the applicant or person,

(b)  that neither the applicant nor another person associated with the proposed fundraising appeal has a conviction in New South Wales or elsewhere for an offence involving fraud or dishonesty recorded in the last 10 years unless the Secretary determines the conviction should be ignored because of—

(i)  the time that has passed since the offence was committed, or

(ii)  the triviality of the acts or omissions giving rise to the offence.

9 Fit and proper person

For the purposes of the Act, section 16(5), a person is not a fit and proper person in the following circumstances—

(a)  the person is a natural person or trustee who—

(i)  has, in the last 10 years, been found guilty of an offence involving fraud or dishonesty, whether in New South Wales or elsewhere, or

(ii)  has been convicted of an offence against the Act or this Regulation, or

(iii)  has become bankrupt, applies to take the benefit of a law for the relief of bankrupt or insolvent debtors, compounds with the person’s creditors or makes an assignment of the person’s remuneration for the benefit of 1 or more of the person’s creditors, or

(b)  the person is a corporation and—

(i)  a person who is a director of the corporation or otherwise concerned in the management of the corporation would not be a fit and proper person under the Act or this Regulation, or

(ii)  the corporation becomes insolvent, is placed in liquidation or under external administration or is wound up.

10 Suspension or cancellation of authorities—additional grounds

For the purposes of the Act, section 19A(1)(g), the Secretary may suspend or cancel an authority on the following grounds—

(a)  if the authority holder is an ACNC registered entity—the registration of the authority holder as an ACNC registered entity is revoked or an ACNC responsible entity of the ACNC registered entity is suspended or removed,

(b)  if the authority holder is a corporation—the holder’s incorporation or registration as a corporation is cancelled, revoked or suspended.

11 Suspension or cancellation of authorities—written notice

(1)  For the purposes of the Act, section 19A(2)(a), the Secretary may, by written notice to the holder of an authority, suspend or cancel the authority if the Secretary is satisfied there are grounds to suspend or cancel the authority.

(2)  A notice suspending the authority must specify the following—

(a)  the date or time from which the suspension takes effect,

(b)  the grounds for the suspension,

(c)  the period of suspension.

(3)  A notice cancelling the authority must specify the following—

(a)  the date or time from which the cancellation takes effect,

(b)  the grounds for the cancellation.

12 Suspension or cancellation of authorities—reviews

For the purposes of the Act, section 19A(2)(b), the holder of an authority that is suspended or cancelled may apply to the Civil and Administrative Tribunal for an administrative review under the Civil and Administrative Tribunal Act 2013 of the suspension or cancellation.

Division 3 Funds and expenses

13 Secretary may decide lawful and proper expenses

(1)  For the purposes of the Act, section 20(3), the Secretary may decide what constitutes a lawful and proper expense in connection with the following—

(a)  a particular fundraising appeal,

(b)  a class or type of fundraising appeal,

(c)  fundraising appeals generally.

(2)  In deciding what constitutes a lawful and proper expense, the Secretary must have regard to the following—

(a)  the type and amount of expenses generally accepted as being associated with the type of fundraising appeal concerned,

(b)  whether the ratio that the amount of the expense bears to the gross income obtained from the fundraising appeal is reasonable in the circumstances.

(3)  As soon as practicable after deciding an expense is a lawful and proper expense in connection with a fundraising appeal, the Secretary must—

(a)  if the decision concerns an expense in relation to a particular fundraising appeal—give the authority holder for the fundraising appeal written notice of the decision, or

(b)  otherwise—publish notice of the decision in the Gazette.

(4)  The Secretary’s decision has effect in relation to an authority holder on the earlier of the following—

(a)  when the authority holder is notified of the decision,

(b)  when the decision is notified in the Gazette.

14 Lawful and proper expenses for fundraising appeals

(1)  For the purposes of the Act, section 20(3), an expense is a lawful and proper expense in connection with a fundraising appeal if—

(a)  the Secretary has decided the expense constitutes a lawful and proper expense under section 13, and

(b)  the expense—

(i)  is not prohibited under a law, and

(ii)  is supported by documentary evidence or otherwise verifiable as being properly incurred, and

(iii)  for an expense paid or incurred by an authority holder that is an organisation—was properly authorised by or on behalf of the organisation.

(2)  If the expense is a commission paid or payable to a person as part of a fundraising appeal, the commission must also not exceed one-third of the total amount obtained by the person in the appeal.

(3)  If a fundraising appeal is conducted jointly with a trader, the expense must also be of a type and amount provided for, or described, in the written agreement between the trader and the authority holder.

15 Payments relating to fundraising appeals must be identified

(1)  For the purposes of the Act, section 20(10)(a), the following matters must be identified—

(a)  payments relating to fundraising appeals made into and out of accounts,

(b)  the fundraising appeal to which the payments relate.

(2)  If an account referred to in subsection (1)(a) consists only of money raised in the fundraising appeal, the payments are taken to be identified for the purposes of this section.

16 Receipts must be issued for all money received

(1)  For the purposes of the Act, section 20(10)(c), an authority holder must issue a receipt to a donor for all money received from the donor, except where money is received in the following circumstances—

(a)  through the supply of goods or services,

(b)  through a payroll deduction scheme.

(2)  Despite subsection (1)—

(a)  if money is received through a collection box or similar device that is cleared by a trader—the authority holder may issue a single receipt to the trader for the gross amount of money cleared from each box or device, or

(b)  if money is received and deposited directly into an authority holder’s account in accordance with the Act, section 20(6)—the authority holder may issue a single receipt to a donor for the aggregate amount of money received during a period of not more than 12 months.

(3)  A receipt must be consecutively numbered, issued in consecutive sequence and include the following details—

(a)  the name, including a trading or business name, of the authority holder,

(b)  the number, or other form of identification, of the authority granted to the authority holder,

(c)  the amount of the money received for which the receipt was issued,

(d)  the date and time the receipt was issued.

(4)  If money is received by a person participating in a fundraising appeal, the participant must—

(a)  count the money in the donor’s presence, and

(b)  issue a receipt to the donor for the amount of money received.

(5)  If a fundraising appeal is conducted jointly with a trader, the trader must issue receipts that are authorised and issued to the trader by the authority holder in accordance with the written agreement between the trader and the authority holder.

17 Records of income and expenditure must be appropriately kept, maintained and readily accessible

(1)  For the purposes of the Act, section 22(2), records of income and expenditure must be kept and maintained as follows—

(a)  in English, or readily accessible and easily convertible into English,

(b)  for a period of at least 7 years, or for a shorter period approved in writing by the Minister, after the income or the expenditure to which the records relate is received or incurred.

(2)  The records must identify the charitable purpose for which money or benefit was received or paid in the course of a fundraising appeal.

(3)  The records must be kept, maintained and readily accessible for the purpose of the auditing of the records under section 18.

18 Records of income and expenditure must be audited

For the purposes of the Act, section 22(2A), records of income and expenditure must be audited annually.

19 Additional records must be appropriately kept and maintained

(1)  A person or organisation that conducts a fundraising appeal must keep and maintain the following additional records in relation to the appeal—

(a)  details of all persons associated with the fundraising appeal, including traders, employees and volunteers, and the activities undertaken by each person in relation to the fundraising appeal,

(b)  a cash book for each account into which the gross income obtained from the appeal is paid,

(c)  a register of assets,

(d)  a register recording details of receipts issued, including electronic receipts,

(e)  if more than 3 receipt books are used, a register recording the following—

(i)  the book number,

(ii)  the date on which the book was issued,

(iii)  the date on which the book was completed,

(iv)  the name and signature of the person who issued, received and returned the book,

(f)  if petty cash is used—a petty cash book.

(2)  An organisation that conducts a fundraising appeal must also keep and maintain a record of minutes of the following—

(a)  business relating to the fundraising appeal that is transacted by the governing body of the organisation,

(b)  a general meeting or extraordinary meeting held by the organisation.

(3)  The records must be kept and maintained as follows—

(a)  in English, or readily accessible and easily convertible into English,

(b)  for a period of at least 3 years, or for a shorter period approved in writing by the Minister.

20 Annual returns must include certain information

For the purposes of the Act, section 23(1)(c), the following information must be included in an annual return—

(a)  details of the authority holder, including—

(i)  the authority holder’s name and a trading or business name, and

(ii)  the business address, address of the registered office and postal address, and

(iii)  the telephone number and email address, and

(iv)  a website address, and

(v)  an address for service specified by the authority holder,

(b)  whether or not the authority holder is incorporated or unincorporated,

(c)  if the holder is incorporated—the legislation under which the authority is incorporated,

(d)  information about fundraising appeals, including the charitable purpose, duration and the beneficiaries of the appeal,

(e)  details of a trader engaged by the authority holder in relation to an appeal conducted by the authority holder.

21 Annual returns must be accompanied by certain documents

(1)  For the purposes of the Act, section 23(1)(d), the following documents must accompany an annual return—

(a)  an annual financial statement,

(b)  an auditor’s report prepared for the purposes of the Act, section 24,

(c)  a statement of compliance in the form approved under the Act, section 24B.

(2)  The annual financial statement must—

(a)  be prepared in accordance with the Australian Accounting Standards, and

(b)  consist of the following—

(i)  an income statement that summarises the income and expenditure of each fundraising appeal conducted in a financial year,

(ii)  a balance sheet that summarises all assets and liabilities resulting from the conduct of fundraising appeals at the end of the financial year,

(iii)  a statement of cash flows,

(iv)  if more than $100,000 gross is received from a fundraising appeal conducted in a financial year—notes to the financial statement.

(3)  If the authority holder is an organisation, the annual financial statement must also contain a declaration from the organisation that contains the following statements—

(a)  the organisation is able to pay all of the organisation’s debts as and when the debts become due and payable,

(b)  the financial statement satisfies the requirements of the Act and this Regulation,

(c)  the contents of the financial statement are true and fair,

(d)  the organisation has appropriate and effective internal controls.

Note—

If an organisation is a company incorporated under the Corporations Act 2001 of the Commonwealth, the declaration referred to in subsection (3) must be provided in addition to the directors’ declaration referred to in that Act, section 295.

(4)  If the authority holder is an organisation and receives more than $100,000 gross in a financial year from a fundraising appeal conducted by the organisation in the financial year, the income statement and balance sheet referred to in subsection (2)(b) must also contain the following information—

(a)  the accounting principles and methods adopted in the preparation of financial statements,

(b)  details of a material matter or occurrence, including a matter or occurrence of an adverse nature,

Example—

An example of an adverse matter or occurrence is an operating loss from a fundraising appeal conducted in the financial year.

(c)  a statement that describes the way in which the net surplus or deficit obtained from a fundraising appeal in the financial year was applied,

(d)  the aggregate gross income and aggregate direct expenditure incurred in all fundraising appeals conducted jointly with traders in the financial year.

22 Certain fundraisers exempt from requirement to have accounts audited

For the purposes of the Act, section 25(1), a person or organisation is exempt from the requirement under the Act, section 24(1) to have the account of the person or organisation audited if the person or organisation receives a gross income of less than $250,000, in the financial year to which the audit requirement relates, from all fundraising appeals conducted by the person or organisation in the financial year.

Division 4 Miscellaneous

23 Prescribed matters not constituting a fundraising appeal

(1)  For the purposes of the Act, section 5(3)(f), the following are prescribed—

(a)  a request for, or the receipt of, money from a person if the money is wholly payable by the person as the genuine fee or charge for the provision of the following—

(i)  educational facilities or services,

(ii)  child-minding services,

(iii)  goods or services supplied through a supported employment service for people with disabilities,

(iv)  nursing or medical services,

(v)  other care or welfare services,

(b)  a request for, or the receipt of, money, property or other benefit from a registered club if—

(i)  the registered club applies profits to community development and support in accordance with the ClubGRANTS guidelines, and

(ii)  the request for, or receipt of, money, property or other benefit relates to the application of profits.

(2)  In this section—

ClubGRANTS guidelines has the same meaning as in the Gaming Machine Tax Act 2001, section 16.

registered club has the same meaning as in the Registered Clubs Act 1976.

24 Written agreements between traders and authority holders to include certain matters

For the purposes of the Act, section 11(2A), a written agreement between a trader and an authority holder who are jointly conducting a fundraising appeal must include the following matters—

(a)  the parties to the agreement,

(b)  how the agreement may be varied,

(c)  how, and for what reasons, the agreement may be terminated,

(d)  a requirement for the parties to participate in alternative dispute resolution to resolve disputes, including details of the processes that will apply and how the processes will apply,

(e)  the types of insurance policies each party is required to hold, including details about the level of insurance, and other particular terms and conditions of each insurance policy,

(f)  reporting requirements under relevant laws including, for example, the Act and this Regulation,

(g)  an undertaking by the trader that the trader will comply with all relevant laws including, for example, the Act and this Regulation,

(h)  the responsibilities of each party to keep and maintain records, including, for example, the types of records, and the manner in which the records must be kept and maintained,

(i)  the wage, commission or fee payable to the trader,

(j)  the types of expenses and limits on the amounts of expenses that may be incurred by the trader or authority holder in relation to the appeal,

(k)  the method to be used for calculating the gross amount obtained by the trader for the appeal to which the agreement relates, and the manner of payment of the gross amount to the authority holder.

25 Standard conditions of an authority

For the purposes of the Act, section 19(1), the conditions set out in Schedule 1 are imposed as conditions of an authority.

26 Authority holders to notify Secretary of additional matters

For the purposes of the Act, section 24A(1)(j), the following circumstances are prescribed—

(a)  if the authority holder is an organisation with a branch that is not an authority holder in the branch’s own right—

(i)  the name of the branch changes, or

(ii)  the branch ceases to be under the responsibility of, and the direction and control of, the governing body of the authority holder, or

(iii)  the branch ceases to operate,

(b)  the incorporation status of the authority holder changes,

(c)  there is a change to the particulars of a trader jointly conducting a fundraising appeal with the authority holder, or the authority holder engages a new trader in relation to the fundraising appeal,

(d)  the name, address or telephone number of the auditor for a fundraising appeal conducted by the authority holder changes,

(e)  the authority holder decides to cease conducting the fundraising appeal,

(f)  there is a material error identified in an annual financial statement accompanying an annual return lodged by the authority holder,

(g)  if the authority was granted under the Act, section 16(1)(b)—an ACNC responsible entity of the ACNC registered entity has been suspended or removed.

27 Public access to information

(1)  On request by a person (the applicant) under the Act, section 47(1), a person or organisation that is, or was within the previous 12 months, an authority holder must provide the applicant with a copy of the annual audited financial statements in relation to all fundraising appeals conducted by the authority holder during the 7 financial years immediately before the request.

(2)  For the purposes of the Act, section 47(1)(b), the following information is prescribed—

(a)  a copy of, or extract from, the organisation’s objects and constitution, including an amendment to the organisation’s objects and constitution,

(b)  the names of the members of the governing body of the organisation.

(3)  For the purposes of the Act, section 47(3), the fee for providing financial statements or information is—

(a)  $20.00 for the first page and $1.75 for each additional page, or

(b)  a lesser amount determined by the person or organisation providing the information.

28 Identification of face-to-face collectors

(1)  While participating in a fundraising appeal, a face-to-face collector must prominently display the identification card or badge issued to the person by the authority holder for the appeal.

Maximum penalty—5 penalty units.

(2)  Subsection (1) does not apply if—

(a)  the fundraising appeal is taking place as part of a fundraising event or function, and

(b)  it is clear to a person attending the event or function that the fundraising appeal is being conducted by, or on behalf of, the authority holder.

29 Identification of collectors other than face-to-face collectors

(1)  This section applies to a person (a prescribed collector) who—

(a)  participates in a fundraising appeal otherwise than as a face-to-face collector including, for example, by telephone, email or mail, and

(b)  receives a wage, commission or fee for participating in the fundraising appeal.

(2)  The prescribed collector must, whether or not requested to do so by a person being solicited, disclose to the person—

(a)  that the prescribed collector receives a wage, commission or fee for participating in the fundraising appeal, and

(b)  the name of the prescribed collector’s employer for the purposes of the fundraising appeal.

Maximum penalty—5 penalty units.

Part 3 Miscellaneous

30 Religious organisations exempt from Act

For the purposes of the Act, section 7(1)(b), the following religious bodies or religious organisations are prescribed—

ACE Global Incorporated

Australian Asian Church Incorporated

Bible Society Australia

Buddhist Council of New South Wales Incorporated

Church Missionary Society NSW & ACT Limited

City Bible Forum Incorporated

Coffs Coast Schools Ministry Inc

Cornerstone Community

Creflo Dollar Ministries

Far East Broadcasting Co (Australia)

Good News Broadcasting Association Limited

Grace Evangelical Church Newcastle Inc

Hope Media (trading as Hope 103.2)

Hope Mission Centre

Hour of Power Australia Limited

Hwa Tsang Monastery Inc

Jesse Duplantis Ministries

Kenneth Copeland Ministries Eagle Mountain International Church Ltd

Leading The Way With Dr Michael Youssef Australia Limited

Loyal Orange Institution of New South Wales

Open Doors Australia Ltd

Rose Mountain Incorporated

Scripture Union NSW

Seventh Day Baptists (Australia) Pty Ltd

Shoalhaven Employers of Christian Education Teachers Inc

Shree Swaminarayan Temple (Sydney) Inc

Tahlee Ministries Incorporated

The E.U. Graduates Fund

The Servants of Jesus Community Ltd

Voice of the Martyrs Limited

s 30: Am 2022 (329), Sch 1[1].

31 Certain police officers may act as authorised officers

For the purposes of the Act, section 25A(2), a police officer who holds, or acts in the capacity of a police officer who holds, the rank of sergeant or above is authorised to exercise all the functions of an authorised officer under the Act.

32 Repeal and saving

(1)  The Charitable Fundraising Regulation 2015 is repealed.

(2)  Any act, matter or thing that, immediately before the repeal of the Charitable Fundraising Regulation 2015, had effect under that Regulation continues to have effect under this Regulation.

Schedule 1 Standard conditions of an authority

section 25

Part 1 Preliminary

1 Name of Schedule

This Schedule sets out the Standard conditions of an authority.

2 Definitions

In this Schedule—

child means a person under the age of 15 years.

child participant means a child who participates in a fundraising appeal.

child participant employee, for Part 3, Division 3—see section 36.

child participant employer, for Part 3, Division 3—see section 36.

Part 2 General

3 Application of Part

This Part applies to all fundraising appeals and prescribes the standard conditions to which an authority to conduct an appeal is subject.

4 Controls over conduct of fundraising appeals

An authority holder must exercise proper and effective controls over the conduct of a fundraising appeal, including controls to ensure the following may be accounted for—

(a)  the gross income and an article obtained from the appeal,

(b)  a lawful and proper expense incurred in the appeal.

5 Organisations must submit audited annual financial statements to AGM

An authority holder that is an organisation must cause the annual financial statement referred to in the Charitable Fundraising Regulation 2021, section 21(1)(a) that has been audited in accordance with the Act, section 24 or otherwise according to law to be submitted to an annual general meeting of the organisation within 6 months after the end of each financial year.

6 Expenses to be proportionate to gross income

An authority holder must take all reasonable steps to ensure a lawful and proper expense payable in relation to an appeal does not exceed the following—

(a)  a fair and reasonable proportion of the gross income obtained,

(b)  for a fundraising appeal for donations only, and without an associated supply of goods or services, however conducted—50% of the gross income obtained.

7 Persons participating in fundraising appeals on behalf of authority holders

(1)  This section applies to an authorisation that an authority holder gives to the following persons (the collector) who participate in a fundraising appeal on behalf of the authority holder—

(a)  a member of the governing body of an organisation that is the authority holder,

(b)  an agent or employee, whether voluntary or not, of the authority holder.

(2)  The authority holder must ensure the authorisation is as follows—

(a)  if the collector participates in the fundraising appeal as a face-to-face collector—in the form of an identification card or badge that—

(i)  is uniquely numbered and indicates the date the card was issued and the date the card expires, and

(ii)  includes the name and contact telephone number of the authority holder, and the name of the collector, and

(iii)  if the collector receives a wage, commission or fee participating in the appeal—includes the words “paid collector” and the name of the collector’s employer, and

(iv)  is signed and dated by the authority holder, a delegate of the authority holder or the governing body of the authority holder, and

(v)  is of a sufficient size to ensure the particulars may be easily read by members of the public, and

(vi)  is recovered by the authority holder as soon as the collector’s involvement in the appeal has ended,

(b)  if the collector participates in the fundraising appeal otherwise than as a face-to-face collector—

(i)  in writing, and

(ii)  includes the name of the collector, and

(iii)  includes a description of the appeal the collector is participating in, and

(iv)  includes the terms and conditions under which the authorisation was granted, and

(v)  signed and dated by the authority holder, a delegate of the authority holder or the governing body of the authority holder.

(3)  If the appeal is conducted jointly with a trader, the trader may sign the authorisation for the purposes of subsection (2)(a)(iv) or (2)(b)(v) if the written agreement between the trader and the authority holder provides for the trader to sign the authorisation.

8 Fundraising through direct marketing

If a fundraising appeal involves solicitation through direct marketing, an authority holder must—

(a)  if requested by a person being solicited—

(i)  inform the person of the source from which the authority holder obtained the person’s name and other details, and

(ii)  ensure the person’s name and other details are—

(A)  removed as soon as practicable from the source of names or contacts used for the purposes of the appeal, or

(B)  if the removal of the name and details is not practicable—to be rendered unusable, and

(b)  ensure the name and other details of a person being solicited are not disclosed to another person or an organisation without the express consent of the person to whom the information relates, and

(c)  ensure the laws and standards relevant to a fundraising appeal that involves solicitation through direct marketing are complied with, including the following—

(i)  Australian Consumer Law (NSW),

(ii)  Telecommunications (Telemarketing and Research Calls) Industry Standard 2017 of the Commonwealth,

(iii)  laws relating to fair trading, trade practices, privacy and anti-discrimination.

9 Collection boxes for monetary donations

If an authority holder uses a collection box or similar device for monetary donations, the authority holder must ensure the following—

(a)  the box or device is—

(i)  securely constructed, and

(ii)  properly sealed, and

(iii)  uniquely numbered, and

(iv)  clearly labelled with the name of the authority holder,

(b)  the use and clearance of the box or device is supervised and secure,

(c)  a record of the location of each box or device used is kept and maintained.

10 Payments in connection with fundraising appeals must be authorised

If an authority holder is an organisation, payments made in connection with the following must be authorised by or on behalf of the organisation—

(a)  an expenditure incurred in relation to the conduct of a fundraising appeal,

(b)  a distribution of funds or profit raised in a fundraising appeal.

11 Advertisements, notices or information about fundraising appeals

(1)  An authority holder must ensure an advertisement, notice or information provided as part of a fundraising appeal—

(a)  clearly and prominently discloses the name of the authority holder and the charitable purpose of the fundraising appeal, and

(b)  complies with the Australian Consumer Law (NSW) and other laws and standards relevant to a fundraising appeal, including laws relating to fair trading, trade practices, privacy or anti-discrimination.

(2)  If the fundraising appeal involves the collection of donated goods or material, the authority holder must also ensure an advertisement, notice or information includes particulars of how the donated goods or material will be dealt with.

(3)  If the fundraising appeal is conducted jointly by a trader and the authority holder, the authority holder must also ensure a written or printed advertisement, notice or information includes the following—

(a)  the full name under which the trader operates for the purposes of the appeal,

(b)  the business address, postal address, email address, website address and telephone number of the trader,

(c)  the date on which the appeal commences and the date on which the appeal ends,

(d)  if the appeal involves the collection of donated goods or material—details of the intended distribution of funds raised or of a guaranteed minimum payment or proportion of profits to be paid by the trader to the authority holder under the Act, section 11(2)(c) expressed as—

(i)  a percentage of the average gross income derived, or expected to be derived, from all goods and material collected over a specified period of the appeal, or

(ii)  if the collection device is a collection bin—an average dollar amount derived or expected to be derived from each bin for each month over a specified period of the appeal.

12 Certain information must be provided about fundraising appeals

If a person conducting or participating in a fundraising appeal is asked a question in relation to the purpose or the details of the appeal, the person must—

(a)  answer the question honestly, or

(b)  if the person is unable to answer the question—arrange to find an answer to the question.

13 Donations collected using collection bins

(1)  If a fundraising appeal conducted jointly by a trader and an authority holder involves the collection of donated goods or material using a collection bin, the authority holder must ensure the following requirements are complied with—

(a)  each bin is consecutively numbered in a clear and visible manner,

(b)  if there is more than one bin used in connection with the appeal—the total number of bins currently used in connection with the appeal is displayed on the bin in a clear and visible manner,

(c)  for each month during which the appeal is conducted, the trader—

(i)  keeps and maintains a record of each bin used in relation to the appeal, including the number and location of each bin, and the date the record is made, and

(ii)  gives a copy of the record to the authority holder.

(2)  If the fundraising appeal is for the collection of donated articles of clothing, the authority holder must ensure the following additional requirements are complied with—

(a)  an adhesive notice that states “COMMERCIALLY OPERATED” is displayed on the chute of each bin,

(b)  for each month during which the appeal is conducted, the trader—

(i)  keeps and maintains a record of the gross weight of unsorted clothing obtained from the collection bin and the date the record is made, and

(ii)  gives a copy of the record to the authority holder.

Note—

The record under subsection (2)(b)(i) may be combined with the record referred to in subsection (1)(c)(i).

(3)  If a fundraising appeal conducted solely by an authority holder involves the collection of donated articles of clothing using a collection bin, the authority holder must ensure an adhesive notice that states “CHARITY OPERATED” is displayed on the chute of each bin.

14 Donations collected using collection bags

(1)  If a fundraising appeal conducted jointly by a trader and an authority holder involves the collection of donated goods or material using a collection bag, the authority holder must ensure, for each month during which the appeal is conducted, the trader—

(a)  keeps and maintains a record of each bag distributed as part of the appeal, including the date on which, and location from which, each bag was distributed, and the total number of bags distributed, and

(b)  gives a copy of the record to the authority holder.

(2)  If the fundraising appeal is for the collection of donated articles of clothing, the authority holder must ensure the following additional requirements are complied with—

(a)  each bag, and an advertisement or notice or information distributed with each bag, must display “COMMERCIALLY OPERATED” in a clear and visible manner in the following format—

(b)  for each month during which the appeal is conducted, the trader—

(i)  keeps and maintains a record of the gross weight of unsorted clothing obtained from the collection bag and the date the record is made, and

(ii)  provides a copy of the record to the authority holder.

Note—

The record under subsection (2)(b)(i) may be combined with the record referred to in subsection (1)(a).

(3)  If a fundraising appeal conducted solely by an authority holder involves the collection of donated articles of clothing using a collection bag, the authority holder must ensure each bag, and an advertisement or notice or information distributed with each bag, displays “CHARITY OPERATED” in a clear and visible manner in the following format—

15 Management of organisations

The fundraising activities of an authority holder that is an organisation must be managed as follows—

(a)  the organisation must be administered by a governing body that consists of at least 3 persons or 3 trustees,

(b)  the quorum for a meeting of the governing body is the greater of—

(i)  3 persons or 3 trustees, or

(ii)  one-quarter of the members constituting the governing body,

(c)  a transaction made by a member of the governing body must be recorded in the organisation’s minutes of a meeting.

16 Processes for avoiding conflicts of interest

(1)  An authority holder must establish a process for managing and resolving conflicts of interest involving the following—

(a)  if the authority holder is an organisation—a member of the governing body of the organisation,

(b)  an agent, employee or collector, whether voluntary or not, of the authority holder.

(2)  If, in a meeting of a governing body, the appointment, conditions of service or remuneration of, or the supply of goods or services by, a member of the body or the member’s immediate family is being considered—

(a)  the member must be excluded from that part of the meeting, and

(b)  the quorum for the meeting must not include the member, and

(c)  the resolution of the matters being considered must be subsequently ratified at a general meeting of the organisation or by a committee to which has been delegated the function of ratifying the resolution of the matters.

17 Internal dispute resolution processes

If an authority holder is an organisation, the organisation must establish a process for resolving internal disputes between the members of the organisation in relation to the organisation’s fundraising activities.

18 Complaint handling processes

An authority holder must establish a process for resolving complaints made by members of the public or an employee or collector, whether voluntary or not, of the holder in relation to the holder’s fundraising activities.

19 Prohibition against soliciting from motor vehicle occupants

A person must not participate in a fundraising appeal by soliciting money, property or other benefit from another person who is occupying a motor vehicle that is—

(a)  in motion, or

(b)  temporarily stopped for any reason, including at a traffic light or intersection.

Part 3 Child participants in fundraising appeals

Division 1 Application

20 Application of Part

This Part applies to a fundraising appeal involving child participants and prescribes the standard conditions in relation to the participation of children in the appeal to which an authority is subject.

21 Age of child participants

An authority holder must ensure a child participant is of or above the following age—

(a)  if the child will not receive a wage, commission or fee for participating in the fundraising appeal—8 years,

(b)  if the child will receive a wage, commission or fee for participating in the fundraising appeal—13 years.

Note—

Division 3 sets out additional conditions that apply to child participants who receive a wage, commission or fee for participating in a fundraising appeal.

Division 2 General

22 Compliance with standard conditions

An authority holder must take all reasonable steps to ensure the standard conditions prescribed in this Part are complied with.

23 Parental consent

An authority holder must obtain the consent of a child’s parent before permitting the child to participate in the appeal.

24 Insurance

An authority holder must ensure a child participant is covered by an appropriate insurance policy, including a public liability insurance policy.

25 Parental contact

An authority holder must—

(a)  take all reasonable steps to ensure a child participant is able to make contact with the child’s parent at all times, and

(b)  facilitate the making of contact whenever the child requests or whenever it is otherwise appropriate to do so in the interests of the child.

26 Supervision

(1)  An authority holder must ensure a child participant is appropriately supervised having regard to the child’s age, sex and degree of maturity.

(2)  The supervisor must—

(a)  remain in the general vicinity of the child at all times, and

(b)  make contact with the child at intervals of not more than 30 minutes, and

(c)  know the whereabouts of the child at all times.

(3)  The supervisor must not supervise more than 6 child participants at any one time.

(4)  If a child participant is under 11 years of age, the supervisor must maintain contact with the child at all times.

27 Working alone prohibited

An authority holder must ensure a child participant works with at least one other child participant.

28 Food and drinks provided

An authority holder must ensure the following—

(a)  a child participant is provided at reasonable hours during the child’s participation in a fundraising appeal with food that is varied, sufficient, nutritious and appropriate having regard to the age, taste and culture of the child,

(b)  water or fruit juice, or another nutritious drink, is readily available to the child at all times during the child’s participation in the appeal.

29 Toilet facilities accessible

An authority holder must ensure a child participant has access to clean and easily accessible toilet, hand-washing and hand-drying facilities.

30 Protection from elements

An authority holder must ensure a child participant is adequately clothed and otherwise protected from extremes of climate.

31 Moving unreasonable weights prohibited

An authority holder must ensure a child participant is not permitted or required to move anything of an unreasonable weight having regard to the child’s age or condition.

32 Entry to private homes and motor vehicles prohibited

An authority holder must ensure a child participant is not permitted or required to—

(a)  enter a private dwelling while soliciting door-to-door, or

(b)  solicit from a person who is occupying a motor vehicle.

33 Participation hours limited

(1)  An authority holder must ensure a child participant does not participate in a fundraising appeal as follows—

(a)  on a day on which the child is required to attend school (a school day)—for more than 4 hours,

(b)  on a day other than a school day—for more than 6 hours,

(c)  on a day other than a school day if the following day is a school day—finish participating in the appeal later than 8.30 pm,

(d)  for more than 5 days per week.

(2)  The authority holder must ensure that if the child participant is participating in a fundraising appeal outdoors, the child does not—

(a)  start participating in the appeal before sunrise or 6.30 am, whichever is the later, and

(b)  finish participating in the appeal later than sunset or 6.00 pm, whichever is the earlier.

(3)  The authority holder must ensure a child participant is not permitted or required to start participating in a fundraising appeal less than 12 hours after the child has previously finished participating in an appeal or other work.

34 Travel home

An authority holder must ensure a child participant is taken home by the child’s parent or another adult authorised by the child’s parent after the child finishes participating in the appeal unless—

(a)  the child is more than 12 years of age, and

(b)  the distance between where the child finishes participating in the appeal and the child’s home is less than 10 kilometres, and

(c)  travel home will be by public transport, and

(d)  travel home will be completed within daylight hours.

Division 3 Child participants who receive wages, commissions or fees

35 Application

This Division applies to the employment of a child participant for the purposes of conducting a fundraising appeal.

36 Definitions

In this Division—

child participant employee means a child participant who is employed for the purposes of conducting a fundraising appeal.

child participant employer means a person who employs a child participant for the purposes of conducting a fundraising appeal.

37 Letters of employment

Prior to a child participant employee’s commencement of employment, a child participant employer must provide the employee with a letter of employment that contains the terms and conditions of the employment, which includes the following—

(a)  the basis on which wages, commissions or fees will be paid or provided, including how the matters will be calculated, a guarantee of minimum payments and the method by which payment will be effected,

(b)  the rights of the employee.

38 Records of employment

(1)  A child participant employer must keep and maintain a record of employment in relation to each child participant employee that includes the following details—

(a)  the employee’s full name, date of birth, residential address and telephone number,

(b)  the date of employment,

(c)  a description of the nature of the employment,

(d)  the full name and residential address of the person immediately responsible for the employee during the appeal,

(e)  consent to the employee’s employment provided by the employee’s parent, including an original copy of a written consent provided by the parent.

(2)  If the employer is a trader, the employer must make the records available to the authority holder with whom the trader is jointly conducting the fundraising appeal.

Schedule 2 Penalty notice offences

1 Application of Schedule

(1)  For the Act, section 25ZA—

(a)  each offence created by a provision specified in this Schedule is an offence for which a penalty notice may be issued, and

(b)  the amount payable for the penalty notice is the amount specified opposite the provision.

(2)  If the provision is qualified by words that restrict its operation to limited kinds of offences or to offences committed in limited circumstances, the penalty notice may be issued only for—

(a)  that limited kind of offence, or

(b)  an offence committed in those limited circumstances.

Column 1	Column 2
Provision	Penalty
Offences under the Act
Section 9(1)	$2,200
Section 10(1)	$550
Section 11(1)	$2,200
Section 12(1)	$2,200
Section 13(2)	$2,200
Section 20(7)	$2,200
Section 22	$550
Section 23(1)	$550
Section 23(5)	$2,200
Section 24(4)	$550
Section 24A	$2,200
Section 24B	$550
Section 25B(4)	$110
Section 25L(b), (c), (d), (e) or (f)	$550
Section 25M(6)	$550
Section 25P(2)	$550
Section 25Q(2)	$550
Section 25T	$550
Section 25Z(2)	$220
Section 41S(2)	$110
Section 47(1)	$55
Section 48(1)	$2,200
Offences under this Regulation
Clause 28(1)	$55
Clause 29(2)	$55

sch 2: Ins 2022 (329), Sch 1[2].