New South Wales Consolidated Regulations

CHARITABLE FUNDRAISING REGULATION 2008 - REG 9

9 Lawful and proper expenses

(1) For the purposes of section 20 (3) of the Act, an expense is a lawful and proper expense in connection with a fundraising appeal if:

(a) the Minister has, pursuant to this clause, determined that such an expense constitutes a lawful and proper expense in connection with that fundraising appeal, fundraising appeals of that class or description, or fundraising appeals generally, and

(b) it is not an expense referred to in subclause (5) (a)-(c), and

(c) it complies with the requirements of this clause.

(2) The Minister may, subject to this clause, decide what constitutes a lawful and proper expense in respect of a particular fundraising appeal or any class or description of fundraising appeals or fundraising appeals generally.

(3) The Minister, in deciding what constitutes a lawful and proper expense, must have regard to the provisions of this clause and to:

(a) the type and amount of expenses generally accepted as being associated with the manner of appeal concerned, and

(b) whether the ratio that the amount of the expense in question bears to the gross income obtained from the appeal is reasonable in the circumstances.

(4) The Minister’s decision has effect with respect to an authorised fundraiser when it is notified to the authorised fundraiser or when it is notified in the Gazette, whichever occurs first.

(5) An expense is not a lawful and proper expense:

(a) if it is prohibited under any law, or

(b) if it is not supported by documentary evidence or is not otherwise verifiable as being properly incurred, or

(c) in the case of an expense paid or incurred by an organisation that is an authorised fundraiser, if it was not properly authorised by or on behalf of the organisation.

(6) Commissions paid or payable to any person as part of a fundraising appeal must not exceed one-third of the gross money obtained by that person in the appeal.

(7) If a fundraising appeal is conducted with a trader, expenses must be of a type and amount provided for, or described in, a written agreement between the authorised fundraiser and the trader.