Guidance Materials for WA Charities - Building Resilience: Utilising Restricted Reserves

Activity: Industry and government engagement/consultancyProviding continuing professional development to industry/government/community


These guidance materials are not intended to encourage charities to ignore donor’s wishes. However, the research we conducted suggests that often charities are unsure whether donor wishes are legally binding and, if so, are also unsure of the character of the legal obligation and the legal pathways to amend or lift such restrictions.

Accordingly, these guidance materials:
1. Provide information on the six main potential legal characterisations of donor restrictions and set out the available legal mechanisms for amending or lifting those restrictions. This information is contained in the Accessing Existing Restricted Assets diagram. The aim of the diagram is to empower charities when considering an amendment to restrictions and to provide them with a solid basis for any conversations with donors.
2. Make recommendations for preventative actions that charities can take in respect of future gifts, to avoid unwanted or inappropriate restrictions. These recommendations are set out in the Preventative Measures diagram.

This guidance is general in nature and does not constitute legal advice. However, it should materially help charities in obtaining legal advice.
Period2 May 2023
Work forLotterywest, Australia, Western Australia
Degree of RecognitionRegional