New Fundraising Act will come into force in March 2020

The Ministry of the Interior announced that a new Fundraising Act will enter into force next spring and "will make fundraising significantly easier".

The Government submitted the new Fundraising Act for approval on 4 July. The President of the Republic is set to approve the Act on 5 July and it will enter into force on 1 March 2020.

The new Act will grant fundraising licences always for an indefinite period. It will also enable 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 new Act was prepared in close cooperation with interest groups. During the preparation, the Ministry of the Interior consulted non-governmental organisations, civic activists and other interest groups in consultations and workshops and by means of an online survey and a consultation process.

Licence granted for an indefinite period

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 organizer 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 organizer 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 10,000 euros and it may last no more than three months.

The National Police Board will give more information about the matter closer to the entry into force of the Act.