The Australian Institute of Company Directors (AICD) welcomes the announcement by Assistant Minister for Competition, Charities and Treasury Dr Andrew Leigh.
A national agreement on a set of fundraising principles to allow harmonisation of fundraising laws across all states and territories.
According to AICD Not For Profit Sector Lead Phill Butler, the announcement of the nationally consistent fundraising principles, if implemented fully by all states and territories, will give charities and donors a clear understanding of appropriate conduct, while allowing charities to focus on their charitable purposes without unnecessary compliance costs.
“Good governance has never been more important in the not-for-profit (NFP) sector as organisations face ever-increasing challenges and demand for their services,” said Butler.
“The AICD has strongly advocated for NFP fundraising reform and harmonisation of NFP regulations across Australia and welcomes the announcement today of new principals that will make it easier for our NFPs to do their jobs without the added burden of unnecessary red tape.”
The AICD looks forward to the states and territories releasing their respective implementation plans by July 2023. Comprehensive implementation by all states and territories within a short timeframe will be central to this reform achieving its objectives.
Related: New Report shows pressures build for NFP Leaders
With over 70% of AICD’s members involved in the governance of NFPs, the AICD has long been an advocate for a consistent approach to fundraising laws to ensure that the sector is not restrained by overburdensome red tape.
Under the existing fundraising laws, any charities that want to raise money online are required to apply for a fundraising licence in every state where the donation drive may be accessed.
This over-regulation severely reduces the ability of the charitable sector to assist in a timely and effective way. Today’s commitment is a step in the right direction to improving this.
As a signatory of the Joint Statement on Fundraising Reform, and a member of the #FixFundraising Coalition, the AICD looks forward to engaging with the various jurisdictions as they release the implementation plans.