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Prohibition on commercial fund-raiser, etc., raising funds for charitable institution without written agreement

Charities (Fund-raising Appeals for Local and Foreign Charitable Purposes) Regulations 2012

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—(1) It shall be unlawful for a commercial fund-raiser, commercial participator, or person to solicit money or other property for the benefit of a charitable institution unless there is a written agreement with the charitable institution containing details of all the following requirements, and the requirement in paragraph (1A):(a)location of appeal, date of appeal and fund-raising appeal method;(b)in the case of a commercial participator or other person — the proportion of the total proceeds that will be given to the charitable institution;(c)timeframe within which proceeds must be distributed to the charitable institution; and(d)remuneration of the commercial fund-raiser, commercial participator or person.(1A) For the purposes of paragraph (1), the requirement is that in the case of a written agreement between a commercial fund-raiser and the charitable institution, donations collected by the commercial fund-raiser must be paid in gross directly to the charitable institution without deducting or setting off any remuneration due to the commercial fund-raiser.(2) In the event a commercial fund-raiser, commercial participator or person who has an agreement with a charitable institution (referred to hereinafter as the first-mentioned agreement) enters into an agreement with another person (referred to hereinafter as the second-mentioned agreement) to perform the first-mentioned agreement or parts thereof, paragraph (1) shall not apply to the second-mentioned agreement.(3) It shall be unlawful for a commercial fund-raiser, commercial participator or person to represent that a charitable contribution is to be given to or applied for the benefit of a charitable institution unless the commercial fund-raiser, commercial participator or person does so in accordance with a written agreement with the charitable institution containing details of all the requirements in paragraph (1), and (if applicable) the requirement in paragraph (1A).(4) Where on the application of a charitable institution, the General Division of the High Court is satisfied —(a)that any person has contravened or is contravening paragraph (1) or (3) in relation to the charitable institution; and(b)that, unless restrained, any such contravention is likely to continue or be repeated, the General Division of the High Court may grant an injunction restraining the contravention; and compliance with paragraph (1) or (3) shall not be enforceable otherwise than in accordance with this paragraph.(5) Where —(a)a charitable institution makes any agreement with a commercial fund-raiser or commercial participator by virtue of which, as the case may be —(i)the commercial fund-raiser is authorised to solicit money or other property for the benefit of the institution; or(ii)the commercial participator is authorised to represent that charitable contributions are to be given to or applied for the benefit of the institution; but(b)the agreement does not satisfy any requirement in paragraph (1) in any respect,the agreement shall not be enforceable against the charitable institution except to such extent (if any) as may be provided by an order of the General Division of the High Court.(6) A commercial fund-raiser or commercial participator who is a party to an agreement referred to in paragraph (5)(a) shall not be entitled to receive any amount by way of remuneration or expenses in respect of anything done by him in pursuance of the agreement unless he is so entitled under any provision of the agreement, and —(a)the agreement contains details of all the requirements in paragraph (1), and (if applicable) the requirement in paragraph (1A); or(b)any such provision has effect by virtue of an order of the General Division of the High Court under paragraph (5).(7) A commercial fund-raiser, commercial participator or person mentioned in paragraph (1) or (3) commits an offence if the commercial fund-raiser, commercial participator or person (as the case may be) fails to comply with any requirement referred to in of paragraph (1) or (3).(8) A commercial fund-raiser, commercial participator or person who is guilty of an offence under paragraph (7) shall be liable on conviction —(a)to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both; and(b)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.

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