Fundraising - LSV Club Support Manual

Fundraising is the process of soliciting and gathering contributions as money or other resources, by requesting donations from individuals, businesses, charitable foundations, or governmental agencies. It can also include raffles and typically involves the collection of donations at events (Street Appeal, Balls, Golf Days), venues (e.g. shopping centre) or via direct mail (e.g. sending letters seeking donations to all businesses in the area).

a) Charitable Fundraising

LSV holds charitable status (we are a Charity) and as such is classified by the Australian Government as a DGR (Deductible Gift Recipients) in order to raise money for Life Saving to fund our services.

Therefore, we are prohibited as a SLS entity from raising money on behalf of anyone other than our own members and clubs. Doing so repeatedly could place our charitable status in jeopardy.

Losing our DGR status would effectively mean that individuals or organisations who contribute money to our organisation, would no longer be able to claim their contributions as a tax deduction. This would be an irretrievable blow to our movement as the revenue received from fundraising would be eradicated.

b) Fundraising is a regulated activity

Fundraising activity in Victoria is regulated by Consumer Affairs Victoria and the Victorian Commission for Gambling and Liquor Regulation.

Consumer Affairs Victoria (CAV) regulates the majority of fundraising activities in Victoria and oversees the laws that govern fundraising across the state – Fundraising Act 1998 (Vic) and Fundraising Regulations 2009 (Vic). ACNC / CAV covers registration as a fundraiser, but larger fundraising events may need separate registration. Members will need to seek advice through ACDC / CAV.

The Fundraising Act 1998 (Vic) regulates fundraisers and fundraising appeals or activities.

Fundraising activities may include:

telephone and door knock appeals
traffic intersection and highway collections (Note: These appeals generally also require separate approval from Victoria Police and the relevant local government)
golf days, movie nights and trivia nights
public appeals to support clubs, associations, causes or people
sale of goods where it is represented that part of the sale price is to be donated to a charitable organisation or cause

c) Is it a Donation, Raffle or Sponsorship?

It is important to understand the distinction between a donation and funds received through a raffle or a sponsorship.

Donation – a gift of cash or goods with no requirement by the recipient to promote a business or a product. It can often result in the issuing of a receipt for tax-deductibility purposes.
Raffle Income – cash given in exchange for a ticket(s) in a game of chance. No tax deductible receipt is allowed.
Sponsorship – cash or goods/services are exchanged in return for certain promotional or business returns to the Sponsor. No tax deductible receipt is allowed.

The Victorian Commission for Gambling and Liquor Regulation (VCGLR) regulates raffles, lotteries and other gaming activities – including those run by charities as fundraising activities – under the Gambling Regulation Act 2003 (Vic).

In Victoria, charities conducting such activities to raise funds may not need to register with CAV as fundraisers. However, they may still be required to comply with certain rules under the Gambling Regulation Act 2003 (Vic), including the need to obtain registration as a ‘community or charitable organisation’ from VCGLR.

d) Plan for Success

If there is a key to success it is planning and enthusiasm. There is plenty of hard work to do before potential donors are approached. The following are broad guidelines on how to fundraise for a specific purpose which cannot be carried out within the club budget. Remember people will not support a poorly defined cause – they like to see where their money is used.

The following points are in chronological order, as far as possible, but some things are carried out in tandem.

Establish how much money is needed.
Understand exactly what the money is needed for. Why is it a good cause? Why is it different to or more important than, other fundraising causes?
Make sure the project outlined to potential donors will fill a need.
Set up a group of enthusiastic, well-informed and influential fundraisers who are prepared to offer their time, energy and money. Prepare them to answer all questions potential donors may pose.

These people are the public face of the club in a campaign where promotion and public relations play a key part in the success of the project. Enthusiastic askers breed contented givers.

People from within the club are preferable to the employment of a professional fundraiser although it may be worthwhile to seek professional advice regarding your overall fundraising strategy. A team of people is more effective than an individual.
Identify potential donors. Studies have shown only 10 per cent of people are givers. Don’t waste time on the other 90 per cent.

Potential givers fall into three categories:

Those automatically interested – members, supporters, parents
A group with natural links to the club – equipment suppliers, other groups who share the same facilities
Those in the community who might see some benefit in the project or use the beach during in the year

e) Planning tips

(i) Analyse the donor list.

Decide on your approach. Choose askers carefully – having the right people on the job is vital. Askers should be from the same section of the community as those they are approaching. Askers set an example by being prepared to do what they ask others to do.

(ii) Co-ordinate the campaign

Have a plan which allocates specific tasks. Make sure all those involved are well-educated on the cause and the reasons for it.

(iii) Approach donors

Use a variety of approach methods to ensure a wide coverage of potential donors. Work out the most cost effective combination of direct mail approaches and personal follow ups.

(iv) Start with as few names as possible to raise the required amount

Go to the well-off first. Major donors are the key to success. Make a list of these with another list covering secondary donors. Typically, one third of all donations come from the top few donors. Plan your workforce accordingly.