How to run a successful charity event - eBook Chpt 1
Chapter 1
What is a charity?
Before organising a charity event, it's crucial to familarise yourself with what a 'charity' is, and more importantly, what the government recognises as being a charity. One of the main reasons for this is that different tax concessions and legislations apply to charities and non-profit organisations. For example, charity donations of over $2 are usually tax deductible.
According to the Australian Tax Office (ATO), a charity:
- Is an entity that is also a trust fund or an institution. An entity can include a corporation, unincorporated association, trust or partnership. A branch, account, division or anything that is part of an entity, is not treated as a charity.
- Exists for the public benefit or the relief of poverty. These can include aged care community services, animal welfare groups, unemployment support organisations and children's charities. Of course, not all entities that provide charitable services to the public are recognised as charities (for example, hospitals or public libraries).
- Is non-profit. An entity is not a charity if it is operating for the indirect or direct profit of its members, owners or any other person. Non-profit organisations are prevented from providing profits, gains or dividends to members or a particular people.
- Is charitable in its purpose, within the legal sense of the term. Under legislation, the sole purpose of the entity must be charitable and for public benefit.
On the other hand, an entity would not be a charity if its main purposes were:
- Sporting, recreational or social
- Political, lobbying or promotional
- Illegal
- Governmental
- For commercial gains and profits such as businesses
While charities can carry out business-like events, such as fundraisers and operating retail stores, these activities must advance charitable purposes. For example, The Smith Family sells quality donated goods at its retail stores to generate funds to provide educational assistance for disadvantaged children in Australia.
Did you know?
According to the ATO, there are approximately 700,000 non-profit organisations currently operating in Australia. Around 190,000 are registered with the ATO and the rest are either non-taxable or their turnover is below the minimum threshold. GiveWell reports that roughly 10 per cent of Australians are employed by non-profit organisations and 19 per cent of the income of Australian charities comes from fundraising initiatives.
What is a charity event?
A charity event is an event that raises funds and awareness for a particular cause that is supported by a charity organisation. Causes can range from poverty relief, environmental awareness, health or medical issues, gender inequality and disadvantage issues in Australia or overseas.
They can be small and local (like a bake sale or a trivia night) or they can attract thousands of participants such as the City2Surf or The Smith Family's 'Around the Bay in a Day'.
Types of charity events can include:
- Fun runs or marathons like the City2Surf
- Movie, bowling or trivia nights
- Dinner parties, auctions or gala balls
- Sausage sizzles or cake stalls
- Bike rides, kayak adventures, hikes or mountain climbs
Of course, there really is no limit to what a charity event is or what it involves. You can be as out-of-the-box - or as tame - as you want, as long as the event helps to achieve your targeted objectives.
Why do people run charity events?
With the current economic climate, charity research group, GiveWell found that in the 2009 financial year, almost two-thirds of charities experienced significant increases in the demand for their services and are struggling to cope. In fact, a report by the Australian Council of Social Services found that in 2008, nearly 280,000 people (or 1 in 12) who needed urgent assistance, were turned away by community services because of this increase in demand.
Given these statistics, it is increasingly important for charities to creatively develop new ways to fundraise, market and raise awareness for the services they provide. This is why charity events can be so effective.
Here are some reasons why organisations put on charity events:
- Raise much needed funds for services.
- Build community (For example, on National Tree Day, families, businesses and schools are encouraged to plant trees in their local community).
- As a team-building exercise, such as company charity bike rides.
- Bring attention to specific issues like health issues or social inequality.
- Raise the profile of a charity
- To have fun!
A charity event that is planned, marketed and executed properly can effectively communicate an organisation's values and services, while providing a fun and interesting way to engage the wider community.
Case Study: The Smith Family's 'Around the Bay in a Day'
For the past 17 years, The Smith Family has partnered with Bicycle Victoria as the charity partner for 'Around the Bay in a Day' - Australia's largest single day bike ride, and one of the most popular cycling events in the world. This charity bike ride around Port Phillip Bay is one of Melbourne's major events sitting between the AFL Grand Final and the Spring Racing Carnival.
This year, The Smith Family aims to raise $1,000,000 at this charity event to provide 3000 disadvantaged children in Australia with educational and learning assistance through its Learning for Life program. Last year, over 1000 cyclists participated to raise more than $400,000 for The Smith Family.
'Around the Bay in a Day' shows that with the right planning, partnerships, marketing and logistical organisation, a simple idea can turn into a large scale annual charity event that.
- Effectively engages the wider community to participate in a good cause
- Raises vital funds to support disadvantaged children and families in Australia
- Draws attention and awareness to the 680,000 Australian children who do not have access to the same educational, health and life opportunities as the average child in Australia
- Helps support literacy, mentoring, tutoring and homework clubs across the nation, as well as financial scholarships to provide essential school expenses.
- Is loads of fun
In the next chapter, we will explore how to come up with a good charity event idea, tips, mistakes to avoid and some more examples from The Smith Family.
Sources:
http://aroundthebayfundraising.com.au/
http://www.ato.gov.au/nonprofit/content.asp?doc=/content/34267.htm&page=2&H2
http://www.ato.gov.au/nonprofit/content.asp?doc=/content/34263.htm&page=2&H2
http://www.ato.gov.au/nonprofit/content.asp?doc=/content/59564.htm
http://www.ato.gov.au/content/downloads/COR_0015516_CP0809.pdf - pp. 61
http://www.bv.com.au/great-rides/20005/