{"id":299551,"date":"2025-11-27T09:46:58","date_gmt":"2025-11-26T21:46:58","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?post_type=sbh&p=299551"},"modified":"2026-05-05T17:31:00","modified_gmt":"2026-05-05T05:31:00","slug":"fundraising","status":"publish","type":"sbh","link":"https:\/\/www.reckon.com\/au\/small-business-resources\/not-for-profit\/fundraising\/","title":{"rendered":"Understanding Gifts & Fundraising for Non-profit Organisations"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.23″ custom_padding_tablet=”” custom_padding_phone=”0px||||false|false” da_disable_devices=”off|off|off” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.6″ header_2_font_size=”32px” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

Fundraising is a major tool that supports charities and not-for-profits (NFPs) to raise money and fund a variety of services and community programs. But the rules around it can be a little tricky. After all, different jurisdictions have different fundraising laws, and \u2018tax-deductible gifts\u2019 are a separate concept tied to deductible gift recipient (DGR) endorsement.<\/p>\n

So, do you want to know exactly how to raise funds, accept donations, run fundraising events and more?<\/p>\n

Know the rules before you raise funds<\/h2>\n

In Australia, fundraising (everything from raffles to crowdfunding to corporate partnerships) is regulated by states and territories, not by the Australian Charities & Not-for-profits Commission (ACNC). Your board or committee (aka \u2018Responsible People\u2019) is accountable for how fundraising is conducted and reported, even when you work with external agencies. And if you do online fundraising, you might be on the hook for compliance across multiple jurisdictions. We recommend you start by checking the ACNC Fundraising Hub and your state regulator.<\/p>\n

All Commonwealth, state and territory governments have agreed to follow a set of National Fundraising Principles, which are rolling out jurisdiction by jurisdiction. Because some states have already solidified the principles into law, you\u2019ll need to double-check the current requirements around where you operate and where donors are located.<\/p>\n

Receiving tax-deductible gifts<\/h2>\n

A tax-deductible gift is one that a donor can claim as a tax deduction \u2013 but only when it\u2019s made to an endorsed deductible gift recipient. The ACNC registers entities as charities, while the Australian Taxation Office (ATO) is responsible for DGR endorsement. Not all charities are eligible for DGR status, and endorsement can apply to your organisation as a whole or only to a certain fund or institution (e.g. a public fund for a particular purpose).<\/p>\n

If you\u2019re chasing DGR endorsement, you\u2019ll have to first nominate the DGR category that fits your purposes and structure. If you end up being endorsed, make sure you create receipts so donors can claim at tax time, and see that any surplus assets rules in your governing document meet DGR requirements.<\/p>\n

Gifts and fundraising for non-DGRs<\/h2>\n

You can still raise funds and accept donations without DGR status; your donors just won\u2019t be able to claim tax deductions for those contributions. Many non-DGR organisations rely on fundraising activities such as raffles, membership fees, events, sponsorships, grants, and fee-for-service work. Regardless of DGR status, your \u2018Responsible People\u2019 have to make sure your fundraising is always lawful and in the organisation\u2019s best interests, and that any money raised is used to further your charitable or community purpose.<\/p>\n

Be transparent and don\u2019t include any misleading statements in your mission. In other words, don\u2019t promise that \u201c100% of all contributions\u201d are used to fund your programs if there are actually some costs that are deducted.<\/p>\n

Tax deductible donations<\/h2>\n

If you\u2019re DGR endorsed, donors can claim tax deductions for gifts of money or property that meet the ATO\u2019s current rules. If your endorsement is limited to a specific fund, only donations to that fund will be deductible. Make clear on your donation page and receipts whether a donation is tax-deductible and, if your organisation has multiple funds, which entity or fund the donation feeds into.<\/p>\n

Top tip:<\/strong> Direct donors to the ACNC Charity Register<\/a> so they can verify your charity registration and DGR status. It\u2019ll make you look more trustworthy to the public and potential new donors.<\/p>\n

Fundraising events<\/h2>\n

Ticketed fundraising events \u2013 from a gala dinner to a trivia night or walk-a-thon \u2013 can be great ways to raise money and involve volunteers. But be aware that they might also trigger licensing under state or territory fundraising laws (and separate rules for raffles and lotteries), so check your local regulator before you run an event or launch an online campaign.<\/p>\n

From a tax perspective, the ATO has concessions for NFPs on some fundraising events (e.g. when supplies can be input-taxed) and notes when raffles\/bingo can be GST-free.<\/p>\n

Tax and fundraising<\/h2>\n