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What are the regulatory requirements that commercial fund-raisers/ participators’ must adhere to?


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Updated by MCCY-CU

Commercial fund-raisers/participators should also comply with the following requirements when conducting a fund-raising appeal on behalf of the registered charity:


  1. Establish a written agreement with the beneficiary charity;

  2. Donations received must be made directly to the charity who engaged them. Any administrative fees will be made by the charity separately;

  3. Give disclosure of clear and accurate information to donors about the beneficiary and the purpose of the donation; proper management and usage of donations; as well as keeping accounting records of donations received and disbursed.

 

Do also note that commercial fund-raisers and commercial participators need to also fulfil the following obligations towards donors:

 

  • Any information provided to donors or to the general public is accurate and not misleading

  • Disclose the name of their organisation, intended use of funds raised (includes the cause and/or beneficiaries) and whether any commercial fund-raiser has been engaged in soliciting the donation

  • All solicitation and publicity materials must be accompanied by a written statement with the additional information:

    • Proportion of total proceeds that will go to charitable causes

    • Breakdown of proceeds to each charity (if funds are raised for more than one charity)

    • Name of the commercial fund-raiser or commercial participator and its status as a commercial entity

    • How the fund-raiser/participator’s remuneration is calculated (if any)


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