Fundraising for small charities: the complete Australian guide
Fundraising for a small charity comes down to three things: a clear reason to give, the right legal foundations, and a mix of income sources you can actually manage. Most small charities raise the most, for the least effort, by asking the people who already know them, then building regular givers and grants on top.
Australians are generous, but fewer of them are giving. In 2022–23, 27.8% of taxpayers claimed a deduction for a gift, the fifth year in a row below 30%. The median claim was $150. That means a small charity's fundraising depends less on finding new donors and more on keeping and deepening relationships with the ones it has.
This guide is for CEOs, fundraisers and board members of Australian charities raising under about $3 million a year, often with one fundraiser or none. It covers the legal basics, the main income streams, tax receipts and how to plan and measure your fundraising.
In short:
- Get registered with the ACNC, and apply for deductible gift recipient (DGR) status if you're eligible. DGR status makes donations tax-deductible, which matters to most larger donors.
- Check the fundraising rules in every state you raise money in. They are converging but not yet identical.
- Write a short case for support before you ask anyone for money.
- Spread your income across two to four streams so one lost grant doesn't sink you.
- Thank donors quickly and personally. Keeping a donor costs far less than finding a new one.
Before you ask: what you need in place
A few foundations make every later ask easier and keep you on the right side of the law. Most take a few weeks to set up and only need doing once.
1. ACNC registration
Registering with the Australian Charities and Not-for-profits Commission (ACNC) gives you a public listing on the Charity Register that donors and funders check. It also unlocks tax concessions, simpler fundraising rules in most states, and DGR status. Many grant makers will only fund registered charities.
2. Deductible gift recipient (DGR) status
DGR status lets donors claim a tax deduction for their gift. It is granted by the ATO, not the ACNC, and only certain types of charity are eligible, such as public benevolent institutions, health promotion charities, and harm prevention, environmental and cultural organisations.
- Already registered with the ACNC? Apply to the ATO directly using its DGR application form.
- Not yet registered? Apply for both at once through the ACNC registration form. The ACNC passes your DGR application to the ATO.
You'll need the item number for your DGR category and a revocation clause in your governing document. A charity can be endorsed as a whole, or can run a separate DGR gift fund. If only a fund is endorsed, only gifts to that fund are deductible. See DGR status: what it is, who is eligible and how to apply.
Without DGR status you can still raise money. Many community appeals, events and grants don't depend on it. But your donors can't claim a deduction, and some grant makers, including most private ancillary funds, can only give to DGRs.
3. A case for support
A case for support is a one-to-two-page statement of why someone should give to you, now. It is the source for every appeal letter, grant application and donation page. Cover:
- the problem, in plain words and with one or two local facts
- what your charity does about it, and the difference that makes
- one real story (with permission) that shows that difference
- what a gift achieves, ideally tied to amounts, such as "$50 funds a week of meals for one family"
- why now, and why you
4. Systems to take and record gifts
Before you launch an appeal, make sure you can:
- accept gifts online, by card, bank transfer and cash
- issue a correct receipt for tax-deductible gifts (see the receipts section below)
- record every donor, gift and consent to contact in one place, even a spreadsheet to start
- comply with privacy law and your own privacy policy when collecting donor details
Fundraising law: what applies where
Australia has no single national fundraising law. Each state and territory has its own, and the rules that apply depend on where the people you ask are located. An online appeal can reach every state at once.
The good news is that the rules are converging. In February 2023, every government agreed to 16 National Fundraising Principles: a common set of conduct and record-keeping rules. Most states now also let ACNC-registered charities fundraise without a separate licence.
Where each state stands (late 2026)
| State or territory | Do ACNC-registered charities need a separate licence? | National Fundraising Principles |
|---|---|---|
| ACT | No. Taken to hold a licence | Apply |
| NSW | No. Deemed authority from 1 April 2026, once you tell the ACNC you fundraise in NSW | Apply from 1 April 2026 |
| NT | No general fundraising law | Do not apply |
| Queensland | No, but you must notify the Office of Fair Trading | Not yet. Adoption announced |
| South Australia | Simplified licensing for registered charities | Apply through the Charities Code of Practice |
| Tasmania | Reforms passed in September 2026, start date not yet announced | Not yet |
| Victoria | No. Deemed registered fundraiser | Apply |
| Western Australia | No. Deemed licence | Apply from 1 August 2026 |
Charities that are not registered with the ACNC face the older state licensing systems in full. If you plan to fundraise widely, registering with the ACNC is the simplest way to cut red tape.
Raffles, lotteries and bingo are regulated separately by gaming regulators in each state, even for registered charities. See the events section below.
What the National Fundraising Principles require
In summary, the principles require your charity, and anyone fundraising for it, to:
- identify your charity clearly, and say if a paid fundraiser is involved
- keep clear written records of fundraising activities
- respect a person's request not to be contacted
- avoid door-to-door and phone fundraising at unreasonable hours
- never mislead, deceive or put undue pressure on people
- take care when fundraising from people who may be vulnerable
- do due diligence on any third party fundraising for you
- handle personal information under the Privacy Act where it applies
- have a process to handle fundraising complaints
- use funds raised for the purpose you stated
Rules change regularly. Check the regulator's website in each state you fundraise in before a major campaign. See Fundraising laws in Australia: a state-by-state guide and The 16 National Fundraising Principles explained.
Choosing your fundraising mix
No charity needs to do everything. The right mix depends on your cause, your supporters, your team's time and whether you have DGR status. Most small charities do best with two to four streams, chosen deliberately.
| Income stream | Best for | Time to first income | Ongoing effort | Needs DGR? |
|---|---|---|---|---|
| Appeals to existing supporters | Almost every charity | Weeks | Medium, in bursts | Helps a lot |
| Regular (monthly) giving | Charities with a loyal supporter base | Months to build | Low once running | Helps |
| Major gifts from individuals | Charities with well-connected boards | Months to years | High, relationship-based | Usually |
| Grants from trusts and foundations | Clear, fundable projects | 3–12 months | High per application | Often |
| Government grants | Services that match government priorities | 3–12 months | High, with reporting | Rarely |
| Community fundraising (peer-to-peer, challenges) | Causes people feel personally connected to | Weeks | Medium | Helps |
| Events | Charities with strong local networks | Months | High | No, for most event income |
| Gifts in wills | Charities with long-term, loyal supporters | Years | Low to medium | Helps |
| Corporate partnerships | Causes that fit a business's values or staff | Months | Medium to high | Sometimes |
How to choose
- Start with who you already know. A list of past donors, volunteers, clients' families and local businesses is worth more than any new channel.
- Match streams to your capacity. If you have one part-time fundraiser, one appeal and one grant program may be all you can run well.
- Balance short and long term. Appeals and grants bring money this year. Regular giving and gifts in wills build income for years to come.
- Avoid relying on one source. If any single funder provides more than about a third of your income, losing it would be a crisis. Make reducing that risk part of your plan.
- Count the cost. Events and some government grants can absorb a lot of staff time for modest net return. Track net income, not just gross.
Individual giving: appeals, regular giving and major gifts
Gifts from individuals are the most flexible money a charity can raise. They usually come with no reporting conditions, and a donor who gives once is the best prospect to give again.
Appeals
An appeal is a time-limited ask to your supporters, by mail, email, social media or all three. Australian charities often run two a year:
- End of financial year (EOFY), May to June. Donors give before 30 June to claim a deduction in that year's tax return. For DGRs, this is usually the biggest appeal of the year.
- Christmas, November to December. People are in a generous frame of mind, and it suits charities with or without DGR status.
A strong appeal has one clear story, one specific need, a suggested gift amount, a deadline and an easy way to give. Send it more than once: a reminder to people who haven't responded often raises as much as the first send. See Planning your end of financial year (EOFY) appeal.
Regular giving
Regular givers donate a set amount each month by card or direct debit. They are the most valuable donors a small charity can have: income is predictable, and many keep giving for years.
- Make monthly giving the default option on your donation page.
- Ask one-off donors to convert, ideally a few months after their first gift.
- Tell regular givers what their ongoing support achieves, at least a few times a year.
- Follow up promptly when a card payment fails. Expired cards are a common, fixable cause of lost regular givers.
See How to build a regular giving program from scratch.
Major gifts
A small number of donors can give much larger amounts, often thousands of dollars or more. Major gifts come from relationships, not mass appeals.
- Identify. Look for supporters who give more than average, give often, or have links to your board.
- Get to know them. Invite them to see your work, and ask what they care about.
- Ask in person, for a specific amount, for a specific purpose that matches their interests.
- Thank and report back personally, and keep them close to the impact.
Your board is your strongest asset here. Ask each member to open doors, even if they don't give large amounts themselves.
Grants and trusts
Grants can fund a new program, equipment or a pilot that individual donors won't. They are competitive and slow, so treat them as one part of your mix, not the whole of it.
Types of grant maker
| Grant maker | Typical size | What to know |
|---|---|---|
| Local councils | Small | Often the easiest first grant. Rounds open once or twice a year |
| State and federal government | Small to large | Strict criteria, detailed reporting. GrantConnect lists federal grants |
| Private and public ancillary funds | Small to large | Many can only give to DGRs. Often relationship-driven |
| Community foundations | Small to medium | Focus on a region. Often keen to support small local charities |
| Corporate foundations | Small to medium | Usually tied to the company's locations or staff interests |
Writing applications that win
- Read the guidelines twice. Most rejected applications fail on eligibility or fit, not quality. Call the grant officer if anything is unclear.
- Lead with the need and the outcome, not your organisation's history.
- Be specific. Say how many people you will help, what will change for them, and how you'll measure it.
- Build an honest budget. Include a fair share of overheads. Many funders now accept them.
- Reuse your best content. Keep a library of your case for support, program descriptions, impact data and staff bios.
- Report on time. Funders talk to each other, and good acquittals lead to repeat funding.
Keep a grants calendar with each funder's round dates, decision dates and reporting deadlines. See How to write a grant application that gets funded, Where to find grants for Australian charities and Grant acquittals and funder reporting made simple.
Events, community and digital fundraising
Events
Events build community and visibility, but they are labour-intensive and can lose money. Before committing, estimate net income (ticket sales, sponsorship and auction income, minus every cost) and the hours involved.
- Keep costs low. Ask for donated venues, food and prizes. Secure sponsors before you commit to big costs.
- Use the event to find donors, not just to raise money on the night. Capture attendees' details, with consent, and follow up.
- Know what's deductible. Tickets to a gala dinner are not a gift. A guest may be able to claim part of a ticket as a contribution if what they paid is well above the value of the benefit they got. The receipts section below explains the rules.
Raffles, lotteries and auctions
Raffles and other games of chance are regulated by each state's gaming or liquor regulator, separately from fundraising law. ACNC registration does not exempt you. Rules often depend on the total prize value, and larger raffles typically need a permit. In Queensland, for example, the Office of Liquor and Gaming Regulation oversees raffles and bingo. In the NT, the Gaming Control Act applies.
Check the rules in every state where you'll sell tickets, especially if you sell online. Raffle tickets are never tax-deductible.
Community and peer-to-peer fundraising
Peer-to-peer fundraising means supporters raise money from their own friends and family, often through a challenge such as a fun run, a walk or a month without something. It lets you reach people you'd never reach yourself.
- Give fundraisers a simple online page, a target and a ready-made story they can share.
- Thank both the fundraiser and their donors.
- Remember that the National Fundraising Principles apply to people raising money on your behalf. Give community fundraisers clear guidelines.
Personal crowdfunding pages are not DGRs. If a supporter wants donors to get a tax deduction, the money needs to go through your charity's own DGR-endorsed donation page or fund.
Digital fundraising
- Make giving easy. A fast, mobile-friendly donation page with as few fields as possible, monthly giving as an option, and Apple Pay or Google Pay where you can.
- Grow your email list. Email still drives a large share of online gifts for most charities.
- Use social media for stories, and link back to your own donation page.
- Check platform fees. Compare the fees charged by donation platforms and payment processors before you choose. See Online donation platforms in Australia compared.
Gifts in wills and corporate partnerships
Gifts in wills
A gift in a will (a bequest) can be the largest single gift a supporter ever makes. It costs them nothing during their lifetime, so even modest donors can leave significant gifts. Income is unpredictable and slow to arrive, but a program can be started cheaply.
- Make it easy. Publish your charity's full legal name, ABN and address, plus suggested wording for a will, on a "Gifts in wills" page.
- Mention it regularly. Add a line to newsletters, appeal letters and your website.
- Focus on loyal supporters. People who have given for many years or volunteer are the most likely to leave a gift.
- Thank people who tell you, and keep them close. Never pressure anyone, and always encourage them to get independent legal advice.
- Join awareness campaigns such as Include a Charity, which promotes gifts in wills across the sector.
Gifts made under a will are not tax-deductible for the estate in the usual way, so don't promise a tax benefit. See Gifts in wills: starting a bequest program on a small budget.
Corporate partnerships
Businesses can support you with cash, in-kind goods, pro bono services, staff volunteering or workplace giving.
- Look local first. Local businesses, banks and professional firms often prefer to support charities in their community.
- Lead with fit. Explain what's in it for them: staff engagement, customer goodwill or alignment with their values.
- Agree terms in writing. Set out what each side gives and gets, how your name and logo can be used, and how you'll report back.
- Protect your reputation. Have a simple policy on which businesses you will and won't partner with.
Workplace giving, where staff donate through their employer's payroll and get the tax benefit straight away, can produce steady regular income. Ask partners whether they run a program, and whether they match staff donations.
Tax-deductible donations and receipts
If your charity has DGR status, getting gifts and receipts right protects your donors' deductions and your endorsement.
When is a donation tax-deductible?
According to the ATO, a donor can claim a deduction when the gift:
- is made to an organisation that has DGR status at the time of the gift
- is a genuine gift: given voluntarily, with no material benefit in return
- is money or property, including shares
- meets any extra conditions that apply to that DGR
- is backed by a record, such as a receipt
The old $2 minimum has gone. A 2026 law change, backdated to gifts made from 1 July 2024, means gifts of any amount to a DGR can be deducted.
Not deductible: raffle and lottery tickets, items with a price (such as chocolates, pins or merchandise), membership fees, and gifts made through personal crowdfunding pages that aren't run by a DGR.
What a receipt must include
A DGR doesn't have to issue receipts, but any receipt it issues for a gift must show:
- your organisation's name
- your ABN
- a statement that the receipt is for a gift
It's good practice to also show the amount (or a description of donated property) and the date. Getting receipts wrong can put your DGR endorsement at risk.
Fundraising events: contributions
When someone pays to attend a fundraising event, such as a dinner or a golf day, the payment is a contribution, not a gift. It may be partly deductible if the benefit they receive is minor. A receipt for an event contribution must show your name and ABN, that it is for a contribution to attend or take part in an event, the amount paid, and the GST-inclusive market value of the benefit received. The ATO's guidance on minor benefits sets out the limits.
Receipting tips
- Send receipts automatically for online gifts, and within a few days for cheques and cash.
- Send an annual summary of gifts to regular givers in July, ready for tax time.
- If you don't issue receipts for small gifts, tell donors they can use bank statements as their record.
See Tax-deductible donations and receipts: what charities must get right.
Planning, budgeting and measuring results
Write a one-page fundraising plan
A fundraising plan turns good intentions into a calendar. For a small charity, one page covering the next 12 months is enough:
- Your target: how much you need to raise, and for what. Link it to your budget and strategic plan.
- Your streams: the two to four you'll focus on, with a target for each.
- Your calendar: when each appeal, grant round, event and newsletter happens.
- Who does what: staff, board members and volunteers.
- Your budget: what you'll spend to raise the money.
- How you'll measure it: the few numbers you'll report to the board.
See Strategic planning for small charities: the complete guide.
Measure what matters
| Measure | What it tells you |
|---|---|
| Net income by stream (income minus direct costs) | Which streams are worth the effort |
| Return on investment (income ÷ cost) | How efficiently each stream raises money |
| Number of active donors | Whether your base is growing or shrinking |
| Donor retention rate (share of last year's donors who gave again) | Whether you're keeping supporters. Small gains here have a big effect over time |
| Average gift | Whether donors are giving more |
| Regular giver numbers and monthly income | How predictable your income is |
| Grant success rate | Whether you're applying to the right funders |
Report these to the board at least quarterly, alongside progress against your target.
Spend money to raise money
Fundraising costs money, and that's fine. A charity that spends nothing on fundraising usually raises very little. What matters is that each stream returns more than it costs over time and that you can explain your costs. Regular giving and gifts in wills often cost more in their first year than they raise but pay back over several years.
Frequently asked questions
Do we need a licence to fundraise in Australia?
It depends on the state and whether you're registered with the ACNC. In most states, ACNC-registered charities no longer need a separate fundraising licence, though some require you to notify the regulator. Unregistered organisations usually need a licence in each state where they fundraise. The NT has no general fundraising law.
Can we fundraise without DGR status?
Yes. You can run appeals, events and community fundraising, and apply for many grants, without DGR status. Your donors just can't claim a tax deduction, and some funders, such as private ancillary funds, can only give to DGRs.
Is there a minimum donation for a tax deduction?
No, not any more. A 2026 change to the law removed the old $2 minimum for gifts to DGRs, backdated to gifts made from 1 July 2024.
Do we have to issue receipts?
No, a DGR isn't required to issue receipts. But any receipt you issue for a gift must show your organisation's name, your ABN and that it's for a gift. Most donors expect one, so it's good practice to send them.
Do we need a permit to run a raffle?
Often, yes. Raffles are regulated by each state's gaming regulator, and the rules usually depend on the total prize value. Check with the regulator in every state where you'll sell tickets.
How much should a small charity spend on fundraising?
There's no fixed rule. What matters is that each stream returns more than it costs over time. Track net income and cost per dollar raised for each stream, and expect newer programs, such as regular giving, to take time to pay off.
What's the best fundraising method for a small charity?
For most small charities, asking existing supporters through a well-run appeal raises the most for the least effort. Building regular givers and applying for well-matched grants are usually the next steps.
Sources
- What do the taxation statistics of giving reveal?, Philanthropy Australia, July 2025
- Deductible gift recipients and the ACNC, ACNC
- National Fundraising Principles, Justice Connect Not-for-profit Law
- Red tape cuts for charities that fundraise in New South Wales, ACNC
- Fundraising in Queensland, ACNC
- Gifts and donations, ATO
- Receipts for tax-deductible gifts, ATO
- July 2026 monthly tax update, Andersen Australia
This guide is general information, not legal, tax or financial advice. Fundraising rules differ between states and change often, so check with the relevant regulator and get advice for your circumstances.