Economic subjects | Non-profit sphere » A Guide to Charitable Collections in the Act

Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT JULY 2017 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT 2 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT 1. INTRODUCTION 4 1.1 PURPOSE OF THIS GUIDE 4 1.2 PURPOSE OF THE LEGISLATION 4 WHAT IS CHARITABLE PURPOSE . 4 WHAT IS A COLLECTION . 5 WHO DOES NOT NEED TO OBTAIN A LICENCE . 5 DO COMMERCIAL FUNDRAISERS NEED A LICENCE . 6 1.3 ACCESS CANBERRAS ROLE 6 PUBLIC REGISTER . 6 2. APPLICATION PROCESS 6 2.1 WHO CAN APPLY 6 2.2 APPLICATION FORM 6 2.3 BEFORE YOU APPLY - WHAT YOU NEED TO DO 7 TERM OF LICENCE . 7 RESPONSIBLE PERSON FOR LICENCE . 7 PURPOSE OF COLLECTION . 7 2.4 DOCUMENTATION 7-8 NAME OF AUDITOR AND CONTACT DETAILS . 7 COLLECTION DETAILS . 8 2.5 ASSESSMENT OF LICENCE APPLICATION 8 3. AFTER LICENCE HAS BEEN ISSUED 9-11 3.1 NOTIFICATION 9 CHANGE OF COLLECTION DETAILS . 9 CONTACT DETAILS . 9 COMMERCIAL FUNDRAISERS AND RETAIL AGENTS . 9

3 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT 3.2 FINANCIAL AND AUDIT REPORTS 9-11 FINANCIAL RECORDS . 9 FINANCIAL REPORTS . 10 AUDIT REQUIREMENTS . 10 PROCEEDS OF COLLECTIONS . 11 3.3 FINANCIAL MANAGEMENT 11 BANKING OF PROCEEDS . 11 INVESTMENT OF TRUST MONEY . 11 3.4 CONDUCT OF COLLECTIONS 11-13 IDENTIFICATION . 11 RECEIPTS . 12 INFORMATION THAT MUST BE PROVIDED TO THE PUBLIC . 12 CHILDRENS PARTICIPATION . 12-13 3.5 SUMMARY OF OFFENCES UNDER THE ACT 13 3.6 AMENDMENT, SUSPENSION OR CANCELLATION OF LICENCE 14 SUSPENSION . 14 SURRENDERING A LICENCE . 14 3.7 REGULATORY OVERSIGHT 14-15 COMPLIANCE. 14-15 MAKING A COMPLAINT TO ACCESS CANBERRA . 15 FURTHER INFORMATION AND RESOURCES . 15 4 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT 1. INTRODUCTION 1.1 PURPOSE OF THIS GUIDE The purpose of this guide is to support the administration of the Charitable Collections Act 2003 (the Act) by providing information for

applicants and licence holders on their obligations. PLEASE NOTE: If your organisation is registered with the Australian Charities and Not-for-profit Commission (ACNC), you are no longer required to be licensed in the ACT under the Charitable Collections Act 2003. If you are an incorporated association in the ACT, you will also have obligations under the Associations Incorporation Act 1991 – see Incorporated Associations in the ACT Guide. 1.2 PURPOSE OF THE LEGISLATION The purpose of the Charitable Collections Act 2003 is to: • promote the proper management and administration of charitable collections; • ensure proper record keep and auditing of accounts for charitable collections; and • ensure that the public has access to information about charitable collections. What is charitable purpose? For a purpose to be charitable, it must be for: • the relief of poverty or sickness or the needs of the aged; • the advancement of education; • the advancement of religion; •

purposes beneficial to the community (benevolent, philanthropic and patriotic); • a public benefit. The purpose cannot provide a private advantage or be harmful to the public. Access Canberra will use the above criteria in assessing whether an application to undertake charitable collections in the ACT is for a charitable purpose. 5 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT 6 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT What is a collection? A collection is the soliciting, or receiving, of money or a benefit for a charitable purpose. A collection does not include soliciting or receiving money or a benefit from: • an approved lottery; • a bequest under a will; • payment of a membership fee; • a collection taken during a church service; or • fundraising for a person to attend a sporting event. Who does not need to obtain a licence? You do not require a charitable collection licence if you are: • an

organisation and the amount raised is less than $15,000 in a financial year; • a church raising funds on the premises (collection plates); • a school and you are collecting voluntary contributions or raising funds from parents, friends, parents and citizens association and alumni for educational activities. This includes: o a genuine fee or charge by the school for educational purposes; o a voluntary contribution to the school for educational purposes by a person with parental responsibility for a child enrolled at the school; o a collection by a body affiliated with the school that is collecting for the educational purposes of the school. • a club or association collecting membership fees; • workmates, a club or meeting raising funds for the benefit of others within the group; • a non-government organisation accredited with the Australian Government Department of Foreign Affairs and Trade (whether or not the money or benefit is used, or intended to be used, solely for

aid in a foreign country). The list of accredited organisations is here ; • soliciting or receiving sponsorship from a corporation; • an organisation registered with ACNC. To be considered a charitable collection, it has to be money or a benefit solicited or received because of the collection undertaken by the entity. 7 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT Do commercial fundraisers need a licence? A commercial fundraiser who is engaged on a commercial basis by a licensed or ACNC-registered charity to conduct a collection on behalf of that charity and does not have a charitable purpose is authorised to collect under an organisation’s charitable collection licence. If the commercial fundraiser is authorised by a charity registered by the ACNC, they do not require a charitable collection licence in the ACT. However, the charity is responsible for ensuring they comply with the ACNC governance standards, including for the engagement of third

parties, and that there are adequate processes and checks in place to protect people in vulnerable circumstances – see the FAQ. 1.3 ACCESS CANBERRA’S ROLE Access Canberra is responsible for the administration of the Act, including maintaining the public register and ensuring organisations meet their reporting requirements. From July 2017, charities registered with the ACNC are exempt from requiring a licence to undertake charitable collections in the ACT, including the requirement to report to Access Canberra. Instead, they are required to meet the ACNCs governance standards and financial reporting requirements. Public register Details of charitable collections licences are included on a public register that can be searched on the Access Canberra website. 2. APPLICATION PROCESS 2.1 WHO CAN APPLY There are four types of charitable collection licences: • • • • Individual Unincorporated body Incorporated body Corporation. 2.2 APPLICATION FORM The application form is

available on the Access Canberra website. If the application does not have sufficient information, Access Canberra may contact you for further information to support your application which may delay approval. It is important that your application is lodged before any collections commence or you may be in breach of the Act. 8 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT The following information is provided to assist you with your application. 2.3 BEFORE YOU APPLY – WHAT YOU NEED TO DO Term of licence A licence can be issued for up to five years. Licences are subject to financial reporting obligations to Access Canberra during the term and at the end of the licence. Responsible person for licence If you are an incorporated body or an individual applicant, the incorporated body or the individual will be the licence holder. You will need to provide the details of a person who will be the main contact in the application. If you are an unincorporated

body, the executive officer (known as the nominated person for the purposes of the licence) becomes the holder of the licence and the main contact with Access Canberra. The unincorporated body must consent to the nominated person being the licensee on behalf of the unincorporated body. It is important that the unincorporated body advises Access Canberra of any changes to the nominated person – the form is available on the Access Canberra website. Purpose of collection The application needs to be clear on the charitable purpose of the collection and provide sufficient information to satisfy Access Canberra that the application meets the criteria for what Access Canberra considers a charitable purpose. You can attach additional information as part of your application. If the description of the activity in the application does not meet the criteria for what is a charitable purpose, Access Canberra may request additional information or refuse the application. 2.4 DOCUMENTATION Name of

auditor and contact details You are not legally required to provide the name and contact of the auditor, but it can save time if Access Canberra needs to contact the auditor to clarify any information on audit reports. 9 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT Collection Details The application needs to include information on the proposed collection and estimates of the amount of money you expect to collect. This is because there are different reporting requirements, depending on the amount of money that is collected. The following information needs to be included in the application: • Expected income from collection • Details of Each Collection – the licence will specify the details of each collection, any conditions and periods during which the collection is being conducted. • Type of Collection – the Act requires that licensees are specific about the type of collection they intend to undertake. The form has been designed to assist

applicants define each collection. • Name of charity / charities who will receive proceeds – an application must identify the recipients of proceeds. • How the proceeds will be spent • Date collection starts and ends. • End of financial year date. 2.5 ASSESSMENT OF LICENCE APPLICATION Access Canberra will not grant a charitable collection licence if the proposed collection is not considered a charitable purpose. Access Canberra may also refuse an application where there is evidence that: • an applicant or an associate may have committed a disqualifying act; • the applicant is taking benefit of any law for the relief of bankrupt or insolvent debtors; • the applicant is seeking to assign the benefit to personal creditors; • an executive officer or an associate of an executive officer has committed a disqualifying act • the body is under external administration; or • the nominated person of an unincorporated body has committed a disqualifying act. A disqualifying

act includes • a contravention of this Act or a corresponding State law, whether or not the contravention is an offence; or • an offence involving fraud or dishonesty of which the person has been convicted or found guilty; or • a contravention of a condition of a licence. 10 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT 3. AFTER LICENCE HAS BEEN ISSUED 3.1 NOTIFICATION Change of collection details If any of the collection details listed in your application change after you have been issued a licence, you will need to apply to amend the licence with Access Canberra. A copy of the current licence must be provided with this application. Contact details A licensee must advise Access Canberra within seven days of a change of name, address or telephone number shown on the licence. An unincorporated body must advise Access Canberra of changes to the nominated person – the form is available on the Access Canberra website. The Executive Officer or a

nominated person must do this within 7 days of receiving the resignation or change. Failure to advise Access Canberra will constitute a breach under the Act and penalties may apply. Commercial fundraisers and retail agents A licensee must provide details of each commercial arrangement they have to collect under the licence. This also applies if licensees establish arrangements with retail agents (for example, a supermarket selling badges on behalf of a licensee). 3.2 FINANCIAL AND AUDIT REPORTS Financial records A licensee must: • record a true and fair view of income and expenditure for the collection to be worked out at any given time; • keep records in a way that allows them to be conveniently and properly audited; • include prescribed details; • keep records for 7 years (unless Access Canberra advises the licensee in writing of a shorter period). If the collection is part of a collection that includes other jurisdictions as well as the ACT, the records only need to

identify the whole amount. They do not need to identify the amount obtained within the ACT. 11 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT Failure to keep records is a strict liability offence. The maximum penalty is 50 penalty units Financial reports All licence holders are required to report to Access Canberra on their collections. PLEASE NOTE: From July 2017, charities registered with the ACNC are exempt from requiring a licence in the ACT and from reporting to Access Canberra. The due date for the report will depend on the term of the licence. • All licence holders must report 120 days after the licence ends. • If the licence is issued for more than 12 months, you are also required to report at the end of each year of the licence. The licensee is responsible for reporting on the funds raised by the commercial fundraiser and/or retail business under the licence. Failure to provide these reports is a strict liability offence. The maximum

penalty is 50 penalty units. Audit Requirements If the income from the collection exceeds more than $50,000 within a 12 month period, the accounts must be audited and provided to Access Canberra. The audited statements can be submitted with the financial reporting form . Access Canberra can also request audited statements of any licensee. If requested, the report must be prepared by: • a registered company auditor under the Corporations Act 2001 (C’wlth); or • an auditor approved in writing by the Director General. The auditor’s report must contain the auditor’s opinion about: • whether the money (including any proceeds of a benefit) received during, or for the purposes of the collection, has been properly accounted for and applied in accordance with the Act; • whether the accounts and records for the collection have been properly kept; and • whether the accounts show a true and fair view of income and expenditure in relation to the collection. 12 Source:

http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT The maximum penalty for intentional failure to comply with the notice is 200 penalty units, imprisonment for 2 years or both. The maximum penalty for failure to comply with the notice is 50 penalty units. Proceeds of collections Under the Act, the proceeds of collections must not be applied for any purpose other than the stated purpose of the collection. Licensees are able to deduct reasonable expenses incurred in: • • • • conducting and carrying out the collection; administering and distributing the proceeds of the collection; complying with the legislation; and any other expenses stated in the application for the charitable collection licence. 3.3 FINANCIAL MANAGEMENT Banking of proceeds All the proceeds of a collection must be banked into the collections bank account within 5 banking days of receipt. The gross proceeds of a collection must be clearly documented for financial return purposes. Investment of

trust money Money, including the proceeds of a benefit, received during a collection that is not immediately required to be applied for the charitable purpose, may be invested only in a way authorised by law for the investment of trust funds. 3.4 CONDUCT OF COLLECTIONS It is the responsibility of the licensee to ensure that any person collecting on behalf of the organisation is aware of their responsibilities under the Act and the conditions on the licence. Identification A person participating in a collection must wear identification or a tag that displays: • the person’s surname or a unique number given to the person by the licensee of the collection; • the licensee’s name or the licensee’s logo (if the logo is well known by the community); • that it is a paid collection, if the person receives payment or a benefit for undertaking the collection. If the logo is not available or not well known, the purpose of the collection must also be on the tag. 13 Source:

http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT Receipts A collector is required to issue a receipt for any donation made personally, where the amount given is more than two dollars and the donor requests a receipt. An authorised receipt can be a printed receipt or anything else that acknowledges a donation of a particular amount. Examples of non-printed receipts include badges of different colours or designs that indicate the amount of the donation. Information that must be provided to the public Table 1 outlines the information that collectors must provide to the public every time. Personal collections (door to door, public places) Telephone collections Written collections Yes Yes How and where the collections will be spent Yes Business contact number for the licensee Information that must be provided Website collections Collection bins Yes Yes Yes, if not indicated by licence name Yes Yes Yes No Yes Yes Yes Yes Yes The licensee’s name No

Yes - if the purpose does not identify the licensee Yes Yes Yes If they are a ‘paid collector’ No – this is on identification tag Yes Yes Yes No Purpose of the collection 14 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT Children’s participation Children can participate in collections under certain circumstances. It is important to note children’s participation in your application. The Regulations outline statutory conditions for children’s participation, including requirements for children under 12 years of age and children under 6 years of age. 3.5 SUMMARY OF OFFENCES UNDER THE ACT Offence Penalty Unlawfully undertaking a collection Maximum of 200 penalty units, two years in prison or both Not displaying identification tags Maximum of 50 penalty units Failure to advise that you are seeking to solicit or receive money, or the purpose of the collection Maximum penalty is 50 penalty units, six months in prison, or both

Providing false or misleading information or documents Maximum penalty is 100 penalty units, imprisonment for one year, or both It is also an offence if a person taking part in a collection is reckless about whether information is false or misleading or omits something which makes the information false or misleading Maximum penalty is 50 penalty units, six months in prison, or both. Failure to return an amended, suspended or cancelled licence Failure to ensure the proceeds of a collection are applied to anything else other than the purpose of the collection Failure to bank collection Maximum penalty of 5 penalty units for failure to return a licence under such circumstances. Penalties range from 50 penalty units to 200 penalty units or two years in prison or both. Maximum penalty is 200 penalty points, two years in prison or both. Failure to bank collection within 5 working days of receipt Strict liability offence Failure to finalise accounts Strict liability offence 15

Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT Failure to issue a receipt Strict liability offence 3.6 AMENDMENT, SUSPENSION OR CANCELLATION OF A LICENCE Suspension Access Canberra may suspend or cancel the licence if: • a licensee is not compliant with the Act; • a licensee is not compliant with the conditions of the licence; or • the collection is no longer being used for a charitable purpose. You have 14 days after Access Canberra advises you that the licence may be amended, suspended or cancelled to provide information about why the licence should not be suspended or cancelled. If Access Canberra decides to suspend or cancel a licence, they will notify the licensee of the suspension or cancellation, which will take effect 14 days after the decision was made. If the licensee fails to comply with the decision, and continues to collect after the expiry of the notice, the licensee will be in breach of the Act which has a penalty of one year in

prison, 100 penalty points or both. Surrendering a licence To surrender a charitable collection licence, submit the Application to Surrender Licence form to Access Canberra. You cannot surrender a licence if it is already the subject of an amendment, cancellation or suspension process, or if you have not dealt with the proceeds of the collection in accordance with section 5 of the Act, which has penalties for non-compliance. 3.7 REGULATORY OVERSIGHT Compliance The objectives of the Act are to promote the proper and efficient management and administration of charitable fundraising in the ACT, to ensure proper account keeping and auditing practices, and to prevent deception of the public. Access Canberra is responsible for ensuring compliance with the Act and can investigate alleged breaches of the Act. 16 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT This is done by ensuring that charitable collection licensees are aware of their obligations under the

Act through proactive compliance and engagement; and investigating any alleged non-compliance with the Act in line with Access Canberra’s Compliance Framework. However, Access Canberra does not investigate criminal matters, which are the responsibility of the police under the provisions of the Crimes Act. Where an investigation uncovers criminal offences we will refer the matter to the police to consider what action they wish to take. Making a complaint to Access Canberra The Complaints Management Team is the single entry point for recording, managing and responding to complaints, supporting Access Canberra’s ‘No Wrong Door’ approach to customer service and engagement. A risk-based approach will be taken to the management and response of complaints On a case by case basis each complaint will be triaged, assessed, prioritised according to the risk of harm it poses and actioned proportionally. Consistent with Access Canberra’s Accountability Commitment, this will support a

proportionate regulatory response; ranging from an acknowledgment through to a full regulatory investigation. To make a complaint please complete the online feedback form at the following link https://www.accesscanberraactgovau/app/ask/c/169,233 Further information and resources Further information on charitable collections is available on the Access Canberra website . The national bodies for fundraising are: Fundraising Institute Australia Public Fundraising Regulatory Association (PFRA) 17 Source: http://www.doksinet A GUIDE TO CHARITABLE COLLECTIONS IN THE ACT Access Canberra July 2017 18