EmailHospital Circular 15/2006
Date Issued: 25 July 2006
Publication: 15/2006
Distribution: Public Hospitals
Attention: Public Hospitals, Metropolitan Health Services, Rural Health Services
Subject: Fundraising Activities
Background:
Fundraising activities are a legitimate activity for Health Services and public hospitals and provide an opportunity to collect additional revenue. Fundraising activities assist funded agencies to purchase additional medical equipment, improve facilities and conduct research.
Under certain circumstances donations to hospitals constitute a tax-deductible donation.
Fundraising activities can be split into fundraising appeals and community or charitable gaming activity. There are different regulations and approval processes required for each type of fundraising activity.
Fundraising Appeals include:
- Door knock appeals
- Telemarketing
- Traffic intersection/highway collections
- Donations to clothing bins
- Sale of goods at opportunity shops
- Appeals run by commercial fundraisers
- Public appeals to support a club, organisation or an environmental or community cause.
- Public appeals to support a cause or person or group of persons.
- The selling of goods where portions of the sale price are donated to a charitable organisation or cause.
Unless exempted from registration, anyone wishing to conduct a fundraising appeal or appeals during a year is required to register with Consumer Affairs Victoria before they commence fundraising. Hospitals or other registered health agencies funded by the state government are exempt from the need to register. For further information contact Consumer Affairs Victoria.
Community or charitable gaming activity includes:
- Raffles or lotteries
- Bingo
- Lucky envelopes
- Casino night
Community or charitable gaming activity can only be conducted by organisations that have been declared (registered) by the Victorian Commission for Gambling Regulation to be community or charitable organisations. If your organisation has been declared it would have been advised by the Commission in writing and issued a declaration number. If you are not sure if your organisation has been declared, please contact the Minor Gaming Unit of the Victorian Commission for Gambling Regulation.
Most community or charitable gaming activities require a permit. There are a number of conditions that determine if a permit if required. For further information contact the Victorian Commission for Gambling Regulation.
Relevant Legislation and Policies:
Fundraising arrangements must comply with the Gambling Regulation Act 2003 and the Gambling Regulation Regulations 2005.
Division 30 of the Income Tax Assessment Act 1997 (ITAA97) determines which organisations and types of organisations can qualify as a deductible gift recipient (DGR).
Risk Management:
Health Services/Hospitals should consider risk management strategies
when conducting fundraising activities. Fundraising activities have
varying levels of risk and each fundraising activity should be examined
on its merits. The level of risk is to be commensurate with the funded
agencies exposure and capacity to manage the risk.
Some fundraising activities require agencies to pre-purchase goods or
incur costs prior to conducting fundraising activities including venue
hire, printing of tickets, advertising and so on. The risk that these
costs will not be fully offset by revenue generated needs to be taken
into consideration when looking at potential profits.
A risk management plan should be developed for activities where there
are substantial outlays and include:
- Establish the context
- Analyse the risks
- Evaluate and rank the risks
- Decide how to monitor the risks
- Assign accountability
- Document the risk assessment
The fundraising activity should also have appropriate approval levels within the Health Service/Hospitals.
Endorsement Process for fundraising activities where outlays of more than $250,000 are required:
For fundraising activities where the outlay of the Health Service/Public Hospitals to conduct the fundraising activity is $250,000 or greater, the Chief Executive Officer must seek approval from the Executive Director, Metropolitan Health and Aged Care Services or Executive Director, Rural and Regional Health and Aged Care Services, prior to commencing the fund raising activity and incurring costs.
This policy is effective immediately.
For queries on the above matters please contact:
Michelle Wickham on 9096 2568 or email
michelle.wickham@dhs.vic.goc.au
| Lance Wallace Executive Director Metropolitan Health and Aged Care Services |
Dr C W Brook Executive Director Rural Health and Aged Care Services |
