It generally involves an organisation setting a fundraising target online and then asking those on the internet (the crowd) for donations to reach that target.
The ACNC has issued some information for charities and donors about the use of crowdfunding. In particular, they advise charities and not-for-profits to:
- do their homework
- carefully consider the terms, conditions and fees
- be aware of the law in relation to fundraising which is different in each State and Territory
- remember that charities cannot outsource their responsibilities
In addition, ACNC provides the following advice for intending donors:
- not all crowdfunding campaigns come from registered charities
- give wisely
We recommend that you review the ACNC’s Charities and Crowdfunding Guide in the event that you intend to be involved in setting up a campaign or making a significant donation to a charity through crowdfunding sources. The Australian Taxation Office has also issued some guidance on the tax implications of crowdfunding.
If you have any questions please do not hesitate to contact our office.
Bill d’Apice, Partner | +61 2 9233 9013 | [email protected]