Money collection is subject to licence or notification
The new Money Collection Act entered into force on 1 March 2020. The purpose of the Act is to streamline the process of fundraising through money collection and to ensure that civil society can operate effectively.
As a fundraising method, money collecting is used to appeal to the general public for monetary donations. In money collections, donors receive nothing in exchange for their donation of money.
Fundraising requires either a money collection licence granted by the National Police Board or, in the case of a small-scale money collection, submission of a notification to the local police department. The Money Collection Act lays down provisions on certain exemptions regarding licences and notifications.
The National Police Board is responsible for supervising compliance with the Money Collection Act and for issuing guidance related to the organisation of such fundraising.
Licences applied for from National Police Board
Money collection licences are granted by the National Police Board. Applications for a licence may be submitted online.
Associations, foundations or religious communities engaged in non-profit activities can be granted a money collection licence to fund such activities. Not all activities performed by these organisations need to be non-profit, but funds collected through fundraising by this method must be used for such a purpose. In addition, licences may be granted to certain bodies specified in the Act, such as universities and universities of applied sciences. Money collection licences are granted for an indefinite period. Licence holders must submit an annual report on their money collecting to the National Police Board.
Small-scale money collection notifications submitted to police department
The new Act separately defines small-scale money collection. This refers to money collecting that is limited in terms of its duration and the amount collected. The maximum amount that may be raised in a small-scale money collection is set at EUR 10,000 and the collection may last no more than three months.
Small-scale money collection may be arranged not only by non-profit associations and foundations but also, for example, by unregistered groups formed by at least three natural persons. Small-scale money collection may also be organised for purposes other than non-profit activities, but not, however, for supporting a business activity or for accumulating wealth for a legal person.
A police department must be given notification about a small-scale money collection at least five working days before the start of the fundraising. The notification may be submitted online. A report on the money collection must then be submitted to the police department after the collection is over.