Singapore legislation
Regulation 5
of Charities (Fund-raising Appeals for Local and Foreign Charitable Purposes) Regulations 2012
Regulation 5
Use of donations
Subregulation 1
A charity or person receiving a donation must use the donation in accordance with this regulation.
Subregulation 2
Where the donor has specified an intention that the donation should be used for any specific lawful purpose, the donation shall be used for that purpose by the charity or person receiving the donation.
Subregulation 3
Where the donor has not specified such an intention, the donation shall be used by the charity or person receiving the donation according to the purpose communicated to the donor under regulation 4(1)(b)(ii) before or at the time the donation is received.
Subregulation 4
Where no purpose referred to in paragraph (2) or (3) has been specified or communicated, the donation received by the charity may be used by the charity to fund any activity carried out by the charity that meets its purposes under its governing instruments.
Subregulation 5
A charity may invest any donation that is not immediately required for use for any purpose or activity referred to in paragraphs (2), (3) and (4) in such investments as are permitted by law.
Subregulation 6
Subject to paragraph (7), where a donation, or any part of it, cannot be used or invested by a charity under paragraphs (2) to (5), or used by a person under paragraph (2) or (3), the charity or the person, as the case may be, shall —
refund the amount to the donor; or
use the amount for such other purpose as may be approved by the Sector Administrator.
Subregulation 7
Where —
the total amount of donations received by a private fund-raiser as a result of the conduct of a private fund-raising appeal for any local charitable purpose is $10,000 or less; and
the whole or any part of the donations cannot be used or invested by the private fund-raiser under paragraph (2), (3), (4) or (5) (called the unused amount),the private fund-raiser must —
refund the unused amount of each donation to the donor;
obtain the donor’s consent to use the amount for any other charitable, benevolent or philanthropic purpose, and use such amount for the charitable, benevolent or philanthropic purpose that the donor has expressly or impliedly consented to; or
if the refund mentioned in sub-paragraph (c) cannot be made, or the express or implied consent mentioned in sub-paragraph (d) cannot be obtained, use the unused amount for such other purpose as may be approved by the Sector Administrator.
Subregulation 8
A charity or person receiving a donation commits an offence if the charity or person (as the case may be) uses or invests a donation other than in accordance with paragraph (2), (3), (4) or (5).
Subregulation 9
A charity or person mentioned in paragraph (6) commits an offence if the charity or person fails to comply with that paragraph.
Subregulation 10
A charity or person who is guilty of an offence under paragraph (8) or (9) 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.
Subregulation 11
Paragraphs (8) and (9) do not apply to a private fund-raiser who conducts a private fund-raising appeal for any local charitable purpose.