Crowdfunding for Charities. The ACNC Compliance Checklist Every NGO Needs

Crowdfunding is now a mainstream fundraising channel for Australian charities. It is fast, low-cost, and can reach donors well beyond your existing supporter base. But crowdfunding sits on top of the same fundraising and governance obligations as any other campaign. The ACNC's guide for charities and donors makes clear that responsibility cannot be outsourced to a platform.

Use this checklist before you launch your next campaign.

1. Confirm crowdfunding fits your charitable purpose

Your Responsible People, board members, committee members or trustees, must be able to justify crowdfunding as a viable and beneficial fundraising stream that helps fulfil your charitable purposes. Put it on the agenda of a formal board meeting and record the decision in the minutes. This is not a formality; it is the ACNC's clear expectation.

2. Do due diligence on the platform

Not every crowdfunding platform is suitable for a registered charity. Before you sign up, check the following.

• Fees. Most platforms charge a percentage of funds raised. Some only charge on successful campaigns. Are the fees fair and defensible to your board?
• Fund flow. Funds should be sent directly to the charity, not to an individual who created the campaign. Confirm this in writing.
• Location. Is the platform based in Australia or overseas? This affects data-protection obligations and dispute resolution.
• Donor data handling. How does the platform store and share supporter data? Does it meet your privacy standards?
• Eligibility rules. Some platforms only accept registered charities; others accept anyone. Both models exist and both are legitimate. You just need to know which one you are on.

3. Know your fundraising licence obligations

Fundraising in Australia is regulated at the state and territory level, and the rules vary. Every state and territory except the Northern Territory has its own fundraising legislation. A national online campaign can therefore require registration in multiple jurisdictions.

The ACNC's Fundraising Hub lists the regulator in each state. Check every jurisdiction where you expect donations to originate, not just the state where your charity is registered.

4. Control how funds are used

Money raised through a crowdfunding campaign, less reasonable expenses, must be applied in line with your charitable purpose. If a campaign was launched for a specific project, the funds cannot be quietly reallocated later. This is the difference between restricted and unrestricted funds, and boards get this wrong more often than they should.

5. Watch for third-party campaigns run in your name

Individuals sometimes launch crowdfunding campaigns to raise money "for" a charity without asking first. Ask each platform whether you will be notified if that happens. You may want to decline funds from a campaign that runs counter to your values, safeguarding standards or approach. The only way to do that is to know it exists.

6. Remember. DGR status is separate

Being a registered charity does not automatically mean donations to your crowdfunding campaign are tax deductible. Only charities endorsed by the ATO as Deductible Gift Recipients (DGR) can offer tax deductions, and even then conditions may apply. If tax deductibility is a headline promise on your campaign page, make sure the promise is accurate.

Source. Crowdfunding and charities, ACNC guide.