Fundraising Appeals and Consumer Acts Amendment Act 2009 (Vic)
On 10 February 2009, the Fundraising Appeals and Consumer Acts Amendment Act 2009 (Vic) became law in Victoria.
The amending act makes a number of changes to fundraising laws contained within the Fundraising Act 1998 (Vic) (formerly called the Fundraising Appeals Act).
What are the changes to Victoria's fundraising laws?
The changes to Victoria’s fundraising laws include:
Name of Act changed; definition of ‘fundraising’ clarified
The name of the Act has now changed to the Fundraising Act 1998 (Vic) (that is, the word ‘appeal’ has been removed).
The definition of a ‘fundraising appeal’ clarifies that it is not only a single event over a limited period of time but can also be an ongoing activity.
The Act has also amended certain sections in the Act to clarify that commercial fundraisers are covered by the Act, irrespective of whether they act as ‘agents’ for one or more organisations.
Registration period extended from 12 months to 3 years
The default period of registration as a fundraiser has changed. The current registration period is 12 months. The Bill changes this to three years.
Registration and renewal applications that have been lodged after 11 February 2025 will have a default validity period of 3 years. Applications made before this date will retain the previous default length of 12 months.
New disclosure requirements
The Act has introduced two new disclosure requirements:
- When registering, fundraisers are required to disclose details of the actual total amount of proceeds that have been, or is estimated will be, distributed to beneficiaries. This information may be posted on the public register.
- All ‘businesses’ are required to clearly disclose to a donor the exact dollar or percentage amount of funds that will be passed on to the beneficiaries, when obtaining donations as part of the supply of goods or services. The disclosure must be made in writing to the person to whom the goods or services are to be supplied before the contract in relation to that supply is entered into.
For example, where a women’s clothing shop says that it will distribute a portion of funds raised when selling a t-shirt, to a not-for-profit organisation, it must disclose in writing to all potential t-shirt buyers (for example via a prominent sign), the percentage of funds or exact amount that will be distributed to the not-for-profit organisation.
Clothing bin requirements removed
The amendments have removed the sections in the Act which currently specify separate and quite detailed record-keeping and labelling requirements for clothing bins.
Use of direct debit forms for fundraising
The Act provides that a person conducting a fundraising appeal using direct debit deduction forms must ensure that the wording on the form is legible and clear. This is to make sure that potential donors have the ability to work out the nature of the arrangement they are signing up for.
Changes to Director's powers
Under the previous regime, the Director of Consumer Affairs Victoria (CAV) had the power to deregister fundraisers for breach of a condition. The Act now introduces a new provision to allow the Director to reduce the period of registration of a fundraiser in some circumstances, where full deregistration is not an appropriate penalty.
The Director also has a new power to publish guidelines to help fundraisers understand any registration conditions that are imposed by the Act.
When do these changes come in to force?
The Bill was passed by Parliament on 3 February 2025 and receieved formal assent (becoming law) on 10 February 2009.
Most of the changes to the fundraising laws came in to force on 10 February 2009. We understand that Consumer Affairs Victoria has written to registered fundraisers in Victoria to explain the changes.
For just a few of the changes (eg. those relating to commercial fundraisers, new disclosure obligations and direct debit forms) there is a delayed implementation date of May 2009, or if not, at the latest November 2009.
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This is a link to the current version of the Fundraising Act 1998 (Vic)
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This is a link to the Bill which changes the former Fundraising Appeals Act, as well as the Explanatory Memorandum document which is drafted by government to explain the Bill.
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This is a link to the text of what the Minister for Consumer Affairs, Hon. Tony Robinson MP said to the Parliament when he introduced the Bill on 9 October 2008.
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The Bill has been introduced as a result of a Review of Victoria's Fundraising Appeals Act, which the government commenced in 2004. This is a link to the background documents for the review, which help to explain some of the proposed changes to the Act.
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FIA is the peak body representing professional fundraising in Australia. Their website contains many resources and guides in relation to fundraiising and regulatory compliance.