Organisation managers need to be aware of the rules and regulations imposed by legislation before embarking on any course of action to start fundraising schemes. Although in many cases there is no longer any need to apply for a permit, there is still plenty of opportunity to make mistakes which could possible lead to a fine.
The following types of fundraising schemes are covered by legislation:
- A Raffle (also known as Art Unions in Australia)
- Lucky Dips
- Lucky Door Prizes
- Guessing games
- Bingo - is a game in which each player is given a ticket
with numbers printed on it and wins if their numbers match the
randomly drawn winning numbers.
- Calcutta Sweep - is a game conducted on a horse race
at a racing venue where each player bids for participants in
Fundraising managers need to check with their local government as to whether a permit is required for the particular fundraising venture they have in mind. This often depends on the intended gross proceeds of the scheme. There may be a monetary level under which no permit is required and over which a permit is required.
If a permit is required it is likely that the organisation must be an Incorporated Association.
Rules for Raffles
If the fundraising scheme is a raffle (also known as an Art Union in Australia) there will be rules about raffle tickets. For example:
- All tickets must be accounted for sold or unsold.
- All sold tickets must be included in the draw
- Tickets must be sold at the same price. Selling 3 tickets for
$2 is allowed.
- Tickets may only be issued to an entrant if they have paid the
- Tickets must not be sold after the closing of the art union
- Each ticket must be numbered consecutively
- The name and address of the entrant must be legibly written
on the butt
- A person is not eligible to enter a category 1 art union if
they are directly engaged in conducting the draw
- A marble draw is preferred but if the ticket butts are used
then every ticket butt must be included.
There will also be rules about prizes:
- Prizes claimed must be delivered within one month.
- Prizes, if not claimed, must be drawn again.
- Prizes must be drawn in descending order and value.
There will also be other rules such as :
- The person responsible for the conduct of the
art union must keep in a safe place the records, documents and
accounts of the art union for auditing purposes.
- Results must be published in the way advertised on the tickets.
- A person under the age of 18 must not sell tickets if prizes