New fundraising law to enter force in March

The new Fundraising Act that will enter into force next spring with the view to make fundraising significantly easier.

The Government submitted the Act for approval on Thursday and the President approved it on Friday, which will enter into force on March 1, 2020, according to a government press release.

The new Act will grant fundraising licences always for an indefinite period. The new Act also enables small-scale civic fundraising subject to notification (small-scale fundraising).

A requirement for the organisation of a fundraising event will in future be either to apply to the National Police Board for a fundraising licence or notify a police department of the organisation of a small-scale collection.

The Fundraising Act lays down provisions on certain fundraising activities that fall outside the scope of the Act and for which it is not necessary to apply for a licence or submit a notification.

The application process is lightened significantly from the present one. For a fundraising licence to be granted, there is a general requirement that the fundraising organiser should be a not-for-profit entity and that the fundraising is for charitable purposes.

The licence holder has to notify the National Police Board every year of the organisation of fundraising, the funds raised and the use of the funds, and submit an annual plan of upcoming fundraising events.

One-off small-scale fundraising requires notification to be submitted to a police department. There is no requirement for the organiser of small-scale fundraising to be a not-for-profit entity nor has the fundraising to be for charitable purposes. However, the new Act does not allow the organisation of small-scale fundraising to support a business activity or to accumulate wealth for a legal person. The maximum amount raised by small-scale fundraising is set at EUR 10,000 and it may last no more than three months.