Donation Crowdfunding in Australia: Charities, Deductible Gifts and Safe Giving

Donation crowdfunding in Australia: how it fits local law

Donation crowdfunding in Australia is the use of an online page to collect gifts from many people moved by a cause and seeking nothing financial in return. It differs from equity crowdfunding, which the Australian Securities and Investments Commission regulates as a financial offering, and from reward campaigns where backers are promised goods.

Australians use donation crowdfunding for bushfire recovery, flood relief, medical treatment, surf lifesaving gear, school and sporting clubs, farm drought support and animal rescue. The country's geography, with small communities spread across vast distances, makes a page that friends can share across states especially useful.

The ACNC, the charity register and the ABN

The Australian Charities and Not-for-profits Commission, known as the ACNC, is the national regulator of charities. It keeps the public ACNC Charity Register, where anyone can look up a charity's name, Australian Business Number, purposes and annual information. Registration with the ACNC is the starting point for many charity tax concessions.

An Australian Business Number, or ABN, is the identifier issued through the Australian Business Register. Charities and many community groups hold one, and the ABN Lookup tool allows anyone to see whether a number is active and what entity it belongs to. Asking for a charity's ABN and checking it is a quick way to test an appeal.

A family raising money for a relative is not a charity and does not appear on the register. That is not a problem in itself, but it does mean the appeal sits outside charity regulation, and donors should treat it as a personal gift.

Deductible gift recipients and tax treatment of donations

In Australian tax law, a gift is generally deductible only when it goes to a deductible gift recipient, usually written as DGR. The Australian Taxation Office keeps rules about which organisations qualify, and being a registered charity does not automatically make an organisation a DGR. Some charities hold both statuses, some only one.

A donor who gives through crowdfunded giving to a DGR and receives a receipt may be able to claim the gift in a tax return, subject to the conditions the ATO sets, including the form of the gift. Gifts to individuals, including family members and people in need, are not deductible in the usual way, and the platform's thank-you email is not a tax receipt.

Recipients of a personal fundraiser should read the ATO's guidance on whether the money is a gift or income, because the answer depends on the circumstances. Advice from a registered tax agent is wise when sums are significant, and the rules are updated from time to time.

State and territory fundraising laws

Fundraising law in Australia is shaped by states and territories as well as the federal government. New South Wales, for example, has the Charitable Fundraising Act 1991, while Victoria regulates fundraisers through its Fundraising Act 1998 and Consumer Affairs Victoria. Other jurisdictions have their own requirements.

This patchwork can matter to a national donation-based crowdfunding campaign. A charity that solicits in several states may need to check the licensing, registration and reporting obligations in each place where it asks for money.

Raffles, art unions and similar games of chance are a separate area, regulated by state gaming bodies. A fundraiser who wants to add a prize draw to a donation crowdfunding appeal should contact the relevant state office first, because rules differ and mistakes can be costly.

Online fundraising platforms and payments in Australia

GoFundMe operates an Australian service and is widely used for personal and community online fundraising. Chuffed, which was founded in Australia, markets itself as a platform for social causes and charities. Mycause and Everyday Hero focus on charity fundraising, including sponsored events such as fun runs and challenges that raise money for health charities.

Many large charities, including medical research bodies and disaster agencies, run their own donation pages. Donors may pay by credit or debit card, bank transfer using PayID, or digital wallets, and regular giving by card is a common method for supporting ongoing work.

A page hosted by a platform is only as trustworthy as the person or organisation behind it, so a donor should look for a named charity, a visible ABN and a clear explanation of where funds go.

Bushfires, floods and crowdfunded giving

National disasters give Australia some of its most visible bursts of crowdfunded giving. After large bushfires and floods, appeals open within hours: the Australian Red Cross and state emergency charities, community foundations and rural bodies establish funds, while individuals post pages for particular towns, firefighters and wildlife carers.

Donors face a real choice about whom to trust. Established disaster funds publish how the money is allocated, whereas informal pages can be well meant but hard to follow. Asking how funds will reach affected households, and whether a registered charity is overseeing them, helps. Waiting a few days before giving to a new page can also let genuine appeals prove themselves and let doubtful ones be exposed.

Rural communities also lean on local fundraising for equipment such as defibrillators, fire brigade gear and community hall upgrades, often combining online gifts with barbecues, auctions and sporting days. In small towns the people giving frequently know the organisers personally, so a page that names the committee, the supplier and the planned purchase tends to feel more credible to neighbours.

Scamwatch and spotting fake appeals

Scamwatch, run by the Australian Competition and Consumer Commission, receives reports of scams and publishes warnings, including about charity frauds that appear after disasters. Scammers copy photographs, create fake pages and set up accounts with names close to well-known charities.

Before giving, a donor can check the ACNC Charity Register and ABN Lookup, visit the charity's own website and compare the details. Pressure to pay quickly, requests to pay by gift card or cryptocurrency, and vague accounts of how money will be used are warning signs.

Suspected scams can be reported to Scamwatch, to the platform hosting the page and, where money has been sent, to the donor's bank and the police. Reports help stop repeat offences.

Choosing a model: donation, reward, equity or loan

People who give without any expectation of a return are taking part in donation-based crowdfunding. A reward campaign involves a promise of goods. Equity offerings invite investors to take a stake and fall under securities regulation, and peer-to-peer lending involves repayment risk.

A donation crowdfunding organiser should decide in advance who will receive the funds, whether a charity or DGR is involved, what fees the platform charges and how updates will be shared. Written records of income and spending help the organiser answer questions and meet any tax obligations.