Fundraising has been a major source of income for non-profit organizations to sustain the cause for which they strive. There are substantially a large number of non-profit organizations and it won’t be a surprise if some of those use the funds for personal gains. To curb these off track activities it is important for nations to formulate rules in this regard. Here we catch up with regulations rules for crowdfunding Australia, more precisely Western Australia.
Pieces of legislation which regulate crowdfunding Australia
- The charitable collections Act of 1946:
It regulates the crowdfunding Australia by keeping a check over an organization which raises funds for charitable purpose. It is mandatory for such an organization to hold a license under this category.
- The Gaming and Wagering Commission Act of 1987:
There are many ideas for crowdfunding Australia causes which are enacted through raffles,auctions, bingo and gambling. This law checks these ways of raising funds in crowdfunding Australia, thereby sorting out unethical practices from ethical ones. These include providing help to the needy, be it unemployed, kindergarten, ill or hospitals.
- The Street Collections (Regulation) Act of 1940:
This act regulates whatever street fundraising activity which is done for crowdfunding Australia causes. Any kind of street collection comes under the purview of this legislation.
- The Liquor control Act of 1988:
Indeed, there are fundraising activities for crowdfunding Australia causes which involve selling of liquor for the fundraisers. This act regulates them.
With the above regulation acts on work,activities for crowdfunding Australia causes have become a regulated venture. In lack of these acts crowdfunding activities would have become a way to fill personal pockets.
Some Loopholes from which association benefit
As seen from the description of these acts, they cover various aspects of crowdfunding Australia, but there are certain points which do not come under its purview for example fundraising for school and sport activities. These are not considered in the genre of proper charitable funding as these might be organized by some association of teachers and parents to purchase needed resources for proper studies at school. Interestingly if the same associations raise funds for the homeless needy, then they must follow the mandate of holding a charity license according to the charitable collection act 1946.
As we see there are various rules which govern activities of crowdfunding Australia, but still there are loopholes, from which the defaulters could gain advantage. Hence, timely revision and addition of laws pertaining to crowdfunding Australia must be looked upon by the government.
Also, other countries where crowdfunding is more common have diligently enacted laws which curb frauds in this field. Countries where the practice of crowdfunding for charity is gaining pace, should take the matter of regulations on a serious note, thereby restraining fraud at a very early stage.
