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Commercial fund-raisers, etc., required to indicate institutions benefiting and arrangements for remuneration

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

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—(1) Where a commercial fund-raiser or commercial participator solicits money or other property for the benefit of one or more particular charitable institutions, all solicitation and publicity material shall be accompanied by a written statement clearly indicating —(a)the name or names of the charitable institution or institutions concerned;(b)if there is more than one charitable institution concerned, the proportions in which the charitable institutions are each to benefit;(c)the name of the commercial fund-raiser or commercial participator;(d)the fact that the commercial fund-raiser or commercial participator is a commercial entity;(e)in the case of a commercial fund-raiser — that all donations collected by the commercial fund-raiser will be paid in gross to the charitable institution or institutions concerned without deducting or setting off any remuneration due to the commercial fund-raiser;(ea)in the case of a commercial participator — the proportion of the total proceeds that will be given to the charitable institution or institutions concerned; and(f)the method (in general terms) by which the remuneration of the commercial fund-raiser or commercial participator in connection with the fund-raising appeal is to be determined.(2) Where a commercial fund-raiser or commercial participator solicits money or other property for charitable, benevolent or philanthropic purpose of any description (rather than for the benefit of one or more particular charitable institutions), all solicitation and publicity material shall be accompanied by a written statement clearly indicating —(a)the purpose for which the commercial fund-raiser or commercial participator is soliciting money or other property;(b)the fact that the commercial fund-raiser or commercial participator is soliciting money or other property for those purposes and not for the benefit of any particular charitable institution or institutions;(c)the name of the commercial fund-raiser or commercial participator;(d)the fact that the commercial fund-raiser or commercial participator is a commercial entity;(e)in the case of a commercial fund-raiser — that all donations collected by the commercial fund-raiser will be applied for those purposes without deducting or setting off any remuneration due to the commercial fund-raiser;(ea)in the case of a commercial participator — the proportion of the total proceeds that will be applied for those purposes;(f)the method by which the total proceeds of the appeal may be distributed to one or more charitable institutions established for any of those purposes; and(g)the method (in general terms) by which the remuneration in connection with the appeal is to be determined.(3) Where any representation is made by a commercial fund-raiser or commercial participator to the effect that charitable contributions are to be given to or applied for the benefit of one or more particular charitable institutions, the representation shall be accompanied by a written statement clearly indicating —(a)the name or names of the charitable institution or institutions concerned;(b)if there is more than one charitable institution concerned, the proportions in which the charitable institutions are each to benefit; (c)the name of the commercial fund-raiser or commercial participator;(d)the commercial fund-raiser or commercial participator is a commercial entity;(e)in the case of a commercial fund-raiser — that all donations collected by the commercial fund-raiser will be paid in gross to the charitable institution or institutions concerned without deducting or setting off any remuneration due to the commercial fund-raiser;(ea)in the case of a commercial participator — the proportion of the total proceeds that will be given to the charitable institution or institutions concerned; and(f)the method (in general terms) by which it is to be determined —(i)what proportion of the consideration given for goods or services sold or supplied by him, or of any other proceeds of a promotional venture undertaken by him, is to be given to or applied for the benefit of the charitable institution or institutions concerned; or(ii)what sums by way of donations by him in connection with the sale or supply of any such goods or services are to be so given or applied,as the case may require.(4) Where any requirement under paragraphs (1), (2) and (3) is not complied with in relation to any solicitation or representation, the commercial fund-raiser or commercial participator concerned 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 thereof during which the offence continues after conviction.(5) It shall be a defence for a person charged with any offence under paragraph (4) to prove that he took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.(6) Where the commission by any person of an offence under paragraph (4) is due to the act or default of some other person, that other person shall be guilty of the offence; and a person may be charged with and convicted of the offence by virtue of this paragraph whether or not proceedings are taken against the first-mentioned person.(7) In this regulation, “appeal”, in relation to any solicitation by a commercial fund-raiser or commercial participator, means the campaign or other fund-raising venture in the course of which the solicitation is made.

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