Fundraising reform: a win worth building on

After more than 15 years of persistent advocacy for charity fundraising law reform – efforts led by the Fix Fundraising coalition – February 2023 marked a major milestone.

The Commonwealth and state governments finally agreed to implement a meaningful national reform program: the National Fundraising Principles.

Developed in partnership with sector leaders including the Public Fundraising Regulatory Association (PFRA), the Community Council for Australia, and Justice Connect, these principles offer Australia a single, streamlined set of national rules for charity fundraisers.

So, why write this article now? Isn’t the job done?

Not quite.

While the states and territories committed to publishing their implementation plans by July 2023, only four jurisdictions – the ACT, South Australia, Tasmania, and Victoria – have done so at the time of writing.

The remaining states have promised to legislate the changes, but the overall pace of implementation has been frustratingly slow.

After reaching agreement in Canberra more than two years ago, many politicians and officials returned to their capitals and, for 18 months, did very little. Even after they had drafted the principles and undertaken legislative analysis, progress stagnated.

When implementation plans finally emerged from the first states, it became clear that coordination across jurisdictions was severely lacking. Each state appeared to be tweaking the principles independently, undermining the very intent of a nationally consistent framework.

Thankfully, there’s been a course correction.

Most states now acknowledge the need for uniformity. However, New South Wales, Queensland and Western Australia have yet to finalise their implementation. That leaves more than 17 million Australians still governed by a fragmented and inconsistent patchwork of fundraising laws, which means unnecessary complexity for charities and delayed investment in vital community programs.

Recognising this, the Australian Charities and Not-for-profits Commission (ACNC) has taken on a more visible leadership role – a welcome development.

The regulator’s most recent Annual Charities Report highlights the sector’s scale: more than $220 billion in annual revenue and employment of nearly 11 per cent of the national workforce. The charity sector is one of the most significant in the country.

Yet regulation remains splintered, not just between the ACNC and state consumer affairs bodies, but also through an overwhelming web of laws that charities must navigate simply to deliver their services.

Charities are frequently criticised for spending on so-called “administration,” a term that obscures the real complexity of running large, often multi-jurisdictional not-for-profits. These critiques do little to support public understanding or foster trust in a sector that delivers essential services under often challenging conditions.

However, the pressing question is not whether the Fundraising Principles will eventually be implemented nationwide. It’s why fundraising reform is taking so long, and what this says about the future of collaboration between government and the charity sector.

Like anyone else, politicians respond to incentives. They focus on policies that help them win elections. Australia’s three- and four-year election cycles, however, disincentivise long-term, structural reform, whether in housing, education, or the not-for-profit sector.

The truth is fundraising reform was never going to be a vote-winner. It sat too low on the list of ministerial priorities. Despite this, the sector stayed the course, but the delays were costly and avoidable.

Now that momentum is finally building, there’s still more to do.

Raffles and lotteries, volunteer and safeguarding rules, grant procurement and disaster relief funding all remain governed by inconsistent and sometimes archaic frameworks. And yes – a truly national Working with Children Check system is still urgently needed.

The Albanese government has announced a Productivity Summit in response to Australia's sluggish productivity growth. The challenges facing the charity sector mirror many of the broader issues confronting our economy: soaring public debt, duplicative regulation, a rigid and costly labour market, widening inequality, housing inaccessibility, and underinvestment in innovation and high-value sectors.

The sector’s call for reform of fundraising regulation wasn’t just about cutting red tape. It was driven by the recognition that Australia faces mounting social challenges that the government cannot tackle alone.

The government's commitment to doubling philanthropic giving by 2030 is admirable, but achieving that goal will require the kind of bold, coordinated and imaginative leadership that has so far been inconsistent across jurisdictions.

Most of the reform we’ve achieved so far has involved rationalising outdated rules, many of which arguably never served their purpose. We’ve done so against the grain of bureaucratic inertia and state-based protectionism that continue to hold the sector – and the country – back.

With the prime minister now in his second term and his party governing most of the states and territories, the moment is ripe for ambitious, lasting reform. A genuine national approach, where states work in partnership with the Commonwealth and the charity sector, could transform not just how we fundraise, but how we govern public interest sectors altogether.

The sector achieved a welcome win on fundraising reform, but bigger wins are demanded and needed by the nation. It’s time we made our own luck as a country.