Fundraising for the Victorian bushfire: E-Alert February 2009

Issues to consider when fundraising for the Victorian bushfire victims

We have received a number of queries in the last few days from clients seeking to establish appeals for the victims of the Victorian bushfires. If you are planning fundraising appeals for the Victorian bushfire victims, it is important to consider the impacts of each of the following before proceeding:
 

• The requirements for tax deductibility of donations under Division 30 of the Income Tax Assessment Act 1997;
• The requirements of the Victorian Fundraising Act 1998;
• If there is to be a lottery, other prize or competition - the Gambling Regulation Act 2003 (VIC);
• Generally, the requirements of Part V of the Trade Practices Act 1974 and the Fair Trading Act 1999 in relation to representations about deductibility of donations, how the funds raised will be applied, prizes etc.

Each of these are potentially serious sources of liability, which must be considered prior to launching an appeal.

We have been involved in the past in dealing with the consequences of well intentioned but ill thought through fundraising appeals, which have cost our clients a great deal of money - in some cases much more than the amount raised.

In general it will be quicker and simpler for most employers and organisations to simply suggest that donations be made to the Victorian Bushfire Appeal.

If you would like further information or advice regarding fundraising appeals please feel free to contact Robert Gregory on 03 9240 0770.