Part of a comprehensive analysis of the Charities Act 1994
All Parts in This Series
Regulating Fund-Raising Appeals under the Charities Act 1994: Key Provisions and Their Purpose
The Charities Act 1994 establishes a comprehensive regulatory framework governing fund-raising appeals conducted by charities and other institutions established for charitable, benevolent, or philanthropic purposes. This framework is primarily set out in Part 8 of the Act, which outlines the requirements for permits, the powers of the Commissioner, the role of the Minister, and the penalties for non-compliance. Understanding these provisions is essential for ensuring that fund-raising activities are conducted transparently, ethically, and in the public interest.
Section 36: Requirement for Permit to Conduct or Participate in Fund-Raising Appeals
"36.—(1) No person may conduct or participate in any fund‑raising appeal unless the person is — (a) exempt from the provision of this section; or (b) a person to whom a permit has been granted by the Commissioner in accordance with regulations made for the purpose of this section." — Section 36, Charities Act 1994
Section 36 imposes a clear prohibition on conducting or participating in any fund-raising appeal without a valid permit issued by the Commissioner, except where an exemption applies. This provision exists to ensure that all fund-raising appeals are subject to regulatory oversight, thereby protecting donors and the public from fraudulent or improperly managed appeals. The permit system enables the Commissioner to vet applicants and monitor fund-raising activities, ensuring that funds are raised and applied for legitimate charitable purposes.
Section 37: Commissioner’s Powers to Prohibit, Restrict, or Suspend Fund-Raising Appeals
"37.—(1) Despite any exemption or permit granted under section 36, the Commissioner may, at any time, by order in the Gazette— (a) prohibit or stop the conduct of any fund‑raising appeal by any charity or person; or (b) restrict the conduct of any fund‑raising appeal by any charity or person by imposing conditions, if the Commissioner is satisfied — (c) that any fund-raising appeal conducted by the charity or person has not been conducted in good faith for charitable, benevolent or philanthropic purposes; (d) that any of the persons who have conducted a fund-raising appeal, or any persons associated with any such appeal, are not fit and proper persons to administer, or to be associated with, a fund‑raising appeal for charitable, benevolent or philanthropic purposes; (e) that any fund-raising appeal has been improperly administered; (f) that, in connection with any fund-raising appeal conducted, the provisions of this Act or the regulations or the conditions imposed by the Commissioner were not complied with by any person conducting or participating in the appeal; or (g) that, in the public interest, the fund-raising appeal should not be conducted." — Section 37, Charities Act 1994
This section empowers the Commissioner with broad discretionary authority to intervene in fund-raising appeals even after a permit has been granted or an exemption applies. The rationale behind this provision is to safeguard the integrity of fund-raising activities by allowing the Commissioner to act decisively if there are concerns about good faith, proper administration, or the fitness of persons involved. It also serves to protect the public interest by enabling the Commissioner to halt or impose conditions on appeals that may be detrimental or misleading.
Section 38: Minister’s Power to Make Regulations Governing Fund-Raising Appeals
"38.—(1) The Minister may make regulations for the purposes of this Part, including provisions— (a) regulating the conduct of commercial fund‑raisers and commercial participators in relation to fund‑raising appeals, and in particular— (i) prescribing the form and content of agreements between a charitable institution and commercial fund‑raisers, commercial participators or any other persons conducting or participating in a fund‑raising appeal for the benefit of the institution; (ii) providing for the refund of charitable contributions or cancellation of agreements or undertakings made by donors in response to a fund‑raising appeal, where notice of the donor’s intention to cancel the agreement, undertaking or charitable contribution has been given to the relevant fund‑raiser within a prescribed period; (iii) requiring commercial fund-raisers or commercial participators or other persons conducting or participating in a fund‑raising appeal for the benefit of a charitable institution to make available to the institution books, documents or other records (however kept) which relate to the institution; and (iv) specifying the manner in which money or other property acquired by such commercial fund‑raisers or commercial participators or other persons for the benefit of, or otherwise falling to be given to or applied by such persons for the benefit of, charitable institutions is to be transmitted to the institutions; and (b) regulating the raising of funds for charitable, benevolent or philanthropic purposes (whether by commercial fund‑raisers or commercial participators or otherwise) or the conduct of fund‑raising appeals, including provisions prohibiting persons under a prescribed age from acting as collectors and prohibiting others from causing them so to act and determining the remuneration of the collectors." — Section 38, Charities Act 1994
Section 38 grants the Minister the authority to create detailed regulations that govern the conduct of commercial fund-raisers and participators, as well as the broader conduct of fund-raising appeals. This provision exists to provide flexibility and specificity in regulating complex commercial interactions and promotional activities related to charitable fund-raising. It ensures transparency in agreements, protects donors’ rights (such as refund and cancellation), and mandates accountability through record-keeping and proper transmission of funds. The regulation of collectors, including age restrictions and remuneration, further protects vulnerable individuals and maintains ethical standards.
Section 39: Exclusion of Judicial Review of Minister’s and Commissioner’s Decisions
"39.—(1) There is to be no judicial review in any court of any act done or decision made by the Minister or Commissioner under any regulations made for the purpose of section 36 except in regard to any question relating to compliance with any procedural requirement of the regulations governing that act or decision." — Section 39, Charities Act 1994
This provision limits the scope for judicial review of decisions or acts by the Minister or Commissioner under the fund-raising regulations, except where procedural compliance is in question. The purpose is to provide finality and certainty to regulatory decisions, preventing undue delays or challenges that could undermine the regulatory framework. It balances the need for administrative discretion with procedural fairness, ensuring that only procedural irregularities can be contested in court.
Definitions in Part 8: Clarifying Key Terms to Ensure Regulatory Precision
"35.—(1) In this Part and any regulations made for the purpose of this Part, unless the context otherwise requires— “charitable contributions”, in relation to any representation made by any commercial participator or other person, means— (a) the whole or part of— (i) the consideration given for goods or services sold or supplied by the commercial participator or person; or (ii) any proceeds (other than such consideration) of a promotional venture undertaken by the commercial participator or person; or (b) sums given by the commercial participator or person by way of donation in connection with the sale or supply of any such goods or services (whether the amount of such sums is determined by reference to the value of the goods or services or otherwise); “charitable institution” means a charity or an institution (other than a charity) which is established for charitable, benevolent or philanthropic purposes; “collector”, in relation to a fund-raising appeal, means any person by whom that appeal is made (whether made by the person alone or with others and whether made by the person for remuneration or otherwise); “commercial fund-raiser” means any person who for reward solicits or otherwise procures money or other property for, or purportedly for, the benefit of a charity or any charitable, benevolent or philanthropic purpose; “commercial participator”, in relation to any charitable institution, means any person who carries on for gain a business other than a fund‑raising business, but in the course of that business, engages in any promotional venture in the course of which it is represented that charitable contributions are to be given to or applied for the benefit of the institution; “fund‑raising appeal” means— (a) an appeal by any person, whether made expressly or impliedly, for money or other property (whether as consideration or otherwise) that is made in association with a representation that the whole or any part of the money or property, or proceeds or returns from the money or property, will be applied for any charitable, benevolent or philanthropic purpose; or (b) the receipt by any person of any money or other property (whether as consideration or otherwise) that is given in whole or in part for any charitable, benevolent or philanthropic purpose; “fund-raising business” means any business carried on for gain and wholly or primarily engaged in soliciting or otherwise procuring money or other property for charitable, benevolent or philanthropic purposes; “proceeds”, in relation to a fund-raising appeal, means all money or other property given (whether for consideration or otherwise) in response to the fund‑raising appeal in question; “promotional venture” means any advertising or sales campaign or any other venture undertaken for promotional purposes; “represent” and “solicit” mean, respectively, represent and solicit in any manner, whether expressly or impliedly and whether done— (a) by speaking directly to the person or persons to whom the representation or solicitation is addressed (whether or not in the presence of the person or persons); or (b) by means of a statement published in any newspaper, film or radio or television programme, or otherwise, and references to a representation or solicitation are to be construed accordingly; “services” includes facilities and, in particular— (a) access to any premises or event; (b) membership of any organisation; (c) the provision of advertising space; and (d) the provision of any financial facilities, and references to the supply of services are to be construed accordingly." — Section 35(1), Charities Act 1994
Section 35(1) provides precise definitions of key terms used throughout Part 8, which is crucial for the effective application and enforcement of the fund-raising regulations. These definitions delineate the scope of what constitutes a fund-raising appeal, who qualifies as a commercial fund-raiser or participator, and what types of contributions and proceeds are covered. By doing so, the Act ensures clarity and reduces ambiguity, facilitating compliance and enforcement. For example, defining “commercial fund-raiser” and “commercial participator” distinguishes between different actors involved in fund-raising, allowing tailored regulatory measures.
Moreover, the inclusion of “represent” and “solicit” with broad meanings ensures that all forms of communication intended to raise funds are captured, whether direct or indirect, verbal or written. The definition of “services” extends the regulatory reach to non-monetary benefits linked to fund-raising, such as event access or advertising space, reflecting the diverse nature of modern charitable activities.
Penalties for Non-Compliance: Ensuring Accountability and Deterrence
"36.—(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part of a day during which the offence continues after conviction." — Section 36(2), Charities Act 1994
"37.—(5) Any person who conducts any fund-raising appeal in contravention of any order made by the Commissioner under subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part of a day during which the offence continues after conviction." — Section 37(5), Charities Act 1994
The Act imposes stringent penalties for violations of the permit requirement under Section 36 and for contraventions of orders issued by the Commissioner under Section 37. The maximum penalties include fines up to $10,000, imprisonment for up to three years, or both, with additional daily fines for continuing offences. These penalties serve multiple purposes:
- Deterrence: The severity of the penalties discourages unauthorized or improper fund-raising activities.
- Accountability: They hold individuals and organizations responsible for complying with the regulatory framework.
- Protection of Public Interest: By penalizing misconduct, the Act protects donors and the public from exploitation or mismanagement of charitable funds.
Such enforcement mechanisms are essential to maintain public confidence in charitable institutions and the integrity of the fund-raising process.
Cross-References and Legal Context
"(2) In this Part and any regulations made for the purpose of this Part— (a) any reference to charitable purposes, where occurring in the context of a reference to charitable, benevolent or philanthropic purposes, is a reference to charitable purposes whether or not the purposes are charitable within the meaning of any rule of law;" — Section 35(2)(a), Charities Act 1994
Verify Section 35 in source document →
While Part 8 does not explicitly cross-reference other statutes, Section 35(2)(a) clarifies that references to “charitable purposes” include purposes that may not strictly meet the legal definition of charity under common law or other legislation. This broad definition allows the Act to regulate a wider range of benevolent and philanthropic activities, reflecting the diverse nature of charitable work in Singapore.
This provision ensures that the regulatory framework is not narrowly confined and can adapt to evolving charitable practices, thereby enhancing the Act’s relevance and effectiveness.
Conclusion
The fund-raising provisions under Part 8 of the Charities Act 1994 establish a robust regulatory regime designed to ensure that fund-raising appeals are conducted ethically, transparently, and in the public interest. The requirement for permits, the Commissioner’s oversight powers, the Minister’s regulatory authority, and the defined penalties collectively create a system that protects donors and charitable institutions alike.
Clear definitions underpin the regulatory framework, providing precision and reducing ambiguity. The exclusion of judicial review except on procedural grounds balances administrative efficiency with fairness. Together, these provisions foster public trust in charitable fund-raising and uphold the integrity of Singapore’s charitable sector.
Sections Covered in This Analysis
- Section 35(1) and (2)(a) – Definitions
- Section 36(1) and (2) – Permit Requirement and Offences
- Section 37(1) and (5) – Commissioner’s Powers and Offences
- Section 38(1) – Minister’s Power to Make Regulations
- Section 39(1) – Exclusion of Judicial Review
Source Documents
For the authoritative text, consult SSO.