What are the regulatory requirements that commercial fund-raisers/ participators’ must adhere to?
Commercial fund-raisers/participators should also comply with the following requirements when conducting a fund-raising appeal on behalf of the registered charity:
Establish a written agreement with the beneficiary charity;
Donations received must be made directly to the charity who engaged them. Any administrative fees will be made by the charity separately;
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)