Charitable fundraising regulation reform
Informing principles for new fundraising regulation
- Never has it been more critical for charities to diversify their income and build their capacity. For this reason, CCA believes the first principle of any proposed new fundraising regulations should be to encourage and support fundraising activities by charities.
- While increasing the transparency of charities is desirable, no evidence has been presented to indicate the Australian public lack trust in charities or are concerned about information asymmetry. The goal of any new regulation should not be seen as addressing a market failure, but of promoting more charitable giving.
- The current regulatory system applying to charities engaged in fundraising is, at best, very difficult and time consuming for charities to negotiate and comply with. Having separate jurisdictional fundraising regulatory regimes in Australia is not justifiable, especially given the diminishing relevance of geographical boundaries.
- CCA is generally opposed to the establishment of new or additional regulations and compliance burdens for charities unless there is good evidence that in the medium to longer term the proposed new regulations will contribute to efficiencies, a reduction in compliance costs, and further increase public trust.
- Any proposed new fundraising regulations must take account of existing more generic laws including the criminal law, corporations and associations incorporation law, consumer protection laws, common law and others. Most fraudulent activity, misrepresentation and misuse of funds raised is covered by these laws and duplication of these in any new fundraising regulation would not make sense.
- It is the purpose of the charity and the degree to which money raised is directed towards the charitable purpose that matters, not the nature of the fundraising activity undertaken. Trying to define public benefit by the actual fundraising activity rather than whether the funding raised will be used to fulfil a charitable purpose creates fundamental definitional problems and may needlessly restrict fundraising in Australia.
- CCA supports the development of new charities fundraising regulation to the degree that new regulations will enable a real reduction in compliance costs and limit the duplication associated with jurisdictional fundraising regulations.
CCA's full submission is attached.
