How to become a Licensed charity
It is a requirement for all charitable organisations that collect monies and goods from the public to be licensed with the Charitable Collections Advisory Committee under the Charitable Collections Act 1946.
To become licensed you need to complete an application to licence a charitable organisation.
Together with the application form you need to provide a National Police Clearance for each of your Principal Executive Officers named on the form. Each officer must complete a "Declaration and Consent" form and include their Police Clearance with it.
Only organisations, which raise funds in Western Australia, as defined by section 6 of the Act (extract given below), are required to be licensed.
Section 6 includes fundraising activities such as doorknocking, telemarketing, television-radio appeals, street appeals, mail outs, entertainments, fetes, functions etc., as well as advertising at certain types of events. It does not include funds raised through the sale of goods where valuable consideration is involved (eg. sale of confectionery).
If your organisation does not intend to raise funds by any of the above methods you do not need to be licensed. For example, raising funds through government and Lotteries Commission grants, membership subscriptions, gaming machines, raffles etc. do not constitute fundraising for which a licence is required.
Charitable Collections Act 1946
6. Restriction on certain collections
(1) No person shall -
(a) collect or attempt to collect any money or goods for any charitable purpose; or
(b) obtain or attempt to obtain money by the sale of any disc, badge, token, flower or other device for any charitable purpose; or
(c) conduct any entertainment or function to which any charge for admission is made, or sell or attempt to sell any ticket for admission to any entertainment or function in any case where it is held out that any part of the proceeds of the entertainment or function are to be devoted (either wholly or partly) for any charitable purpose; or
(d) advertise, whether by way of poster, streamer, handbill, notice in any newspaper or any other means or hold out or represent in any manner that the whole or any part of the proceeds of any sports, races, fete, bazaar or other function will be paid into or applied for any charitable purpose.
unless he is -
(i) the holder of a license under this Act; or
(ii) a member of the committeee or other governing body, of a society, body, or association which is the holder of a license under this Act and who is authorized by such licensee; or
(iii) authorized to do so by a person, society, body or association which holds a license under this Act,
and except in accordance with such license and authority.
If you are unsure after reading section 6 whether your organisation's fundraising activities require to be licensed or not, please do not hesitate to contact:
The Administrative Officer
Charitable Collections Advisory Committee
Department of Commerce
Unit 4, 321 Selby Street
OSBORNE PARK WA 6017
- Ph: +61 8 9282 4373
- Fax: +61 8 9282 4337
It is not necessary to obtain a licence from this office for your organisation to qualify for government grants, tax deductibility status and other taxation exemptions or benefits. Each individual government office based on their own requirements grants these benefits. In relation to obtaining tax deductibility status, contact the Australian Taxation Office directly on 13 28 66.
An important matter taken into consideration by the Committee, which is imposed by section 11(2) of the Act, states:
"In considering any application for a licence the advisory committee....shall consider whether, having regard to the objects of the applicant, those objects would be more effectively or economically carried out by any other person, society, body or association being the holder of or an applicant for a licence under this Act."
The Committee therefore has a responsibility under the Act to ensure that duplication is minimised and encourages amalgamations wherever possible, particularly where charities provide similar services.
Include in your application, if relevant, the reasons for your organisation seeking separate licensing from any established charity with similar objectives and advise if your organisation:
- has discussed with any similar charity your objectives and whether any services or programs proposed by your organisation could be conducted as part of their program with input from personnel associated with your organisation; and
- has considered approaching an existing charity with a view to amalgamating your operations and structures to avoid administrative cost duplications and unnecessary establishment costs.
Finally, you need to ensure the documents required by the Application form are attached and certified as required.
For more information contact:
The Administrative Officer
Charitable Collections Advisory Committee
Department of Commerce
Unit 4, 321 Selby Street
OSBORNE PARK WA 6017
- Ph: +61 8 9282 4373
- Fax: +61 8 9282 4337