New Fundraising Act makes it significantly easier to organise fundraising
The Government submitted a proposal on a new Fundraising Act to Parliament on 25 October. The new Act would replace the current fixed-term money collection licences that are required each time fundraising is arranged with a system of licences granted for an indefinite period, and would enable small-scale civic fundraising to be arranged by submitting a notification to a police department.
"The amendments will facilitate civic participation by cutting red tape in fundraising and enabling small-scale fundraising also for new 'pop-up' fundraisers," Minister of the Interior Kai Mykkänen says with a smile.
In future, fundraising would require either a fundraising licence granted by the National Police Board for an indefinite period or the submission of a small-scale fundraising notification to a police department. The Fundraising Act would lay down provisions on certain fundraising activities and fundraising at times of elections that fall outside the scope of the Act and for which it would not be necessary to apply for a licence or submit a notification.
Fundraising licence for an indefinite period or one-off small-scale fundraising
A fundraising licence would be granted for an indefinite period and the application process would be simplified considerably. For a fundraising licence to be granted, there would be 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 would have 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.
Small-scale fundraising would only require notification to be submitted to a police department. There would be no requirement for the organiser of small-scale fundraising to be a not-for-profit entity nor would the fundraising have to be for charitable purposes. However, the new Act would not allow the organisation of small-scale fundraising to support a business activity or to accumulate wealth for a legal person. Information on the purpose of fundraising would have to be provided in the notification and the use of funds collected would be monitored. Under the proposal, a small-scale fundraiser could organise fundraising up to twice per calendar year and the maximum amount raised each time would be set at EUR 10,000.
The proposal will pursue the objective of the Prime Minister Juha Sipilä’s Government Programme to facilitate voluntary activities and fundraising procedures by reducing the administrative burden and streamlining licence processes.
The new Fundraising Act is scheduled to enter into force in autumn 2019.
Sini Lahdenperä, Senior Specialist, tel. +358 295 488 312, [email protected]
Titta Andersson-Bohren, Special Adviser, tel. +358 50 5131 539, [email protected] (requests to interview Minister Mykkänen)