THE CHARITABLE FUNDS (REGULATION OF COLLECTIONS) ACT, 1953.

 
(Act XXXI of 1953). 

CONTENTS.

SECTIONS:

1.                  Short title, extent and commencement.

2.                  Definitions.

3.                  Regulation of private and charitable funds.

4.                  Declaration of collections of private funds.

5.                  Sanctioning of collection of charitable funds.

6.                  Maintenance and audit of accounts.

7.                  Misapplication of funds.

8.                  Application of Act VI of 1890.

9.                  Powers of sanctioning authority.

10.              Appellate authority.

11.              Revision.

12.              Penalty for contraventions.

13.              Offences cognizable, bailable and non-compoundable.

14.              Prosecution subject to sanction by District Magistrate.

15.              Jurisdiction of Magistrates.

16.              Application of other laws.

17.              Exemptions.

18.              Rules.

19.              Protection of persons acting under this Act.

[1]THE CHARITABLE FUNDS (REGULATION OF COLLECTIONS) ACT, 1953. 

(Act XXXI of 1953) 

[3rd November, 1953]

An Act to provide for the regulation, administration and accounting of collections of charitable donations and for the prevention of frauds.

            WHEREAS it is expedient to provide for the regulation, administration and accounting of collections of charitable donations and for the  prevention of frauds;

            It is hereby enacted as follows :—

(a)          "collect" and "collection" with their grammatical variations and cognate expressions mean and include  appealing for, receiving, collecting and attempting to collect, whether directly or indirectly, any donations whether in money or in kind and whether from the public in a public manner or from particular individuals or otherwise for any fund to which this Act applies; but do not include mere advice by any person not himself engaged in making the collection;

(b)         "private fund" means a fund consisting of donations whether in money or kind given by way of charity for the  benefit  of an individual or a family or a group of persons related to each other or connected with each other for some purpose, when the aggregate of the donations collected or to be collected in any year exceeds or is likely to exceed in value two hundred and fifty rupees but neither exceeds nor is likely to exceed five thousand rupees. 

(c)          "charitable fund" means any fund consisting of donations whether in money or kind given by way of charity— 

(i)     for the benefit of an individual or a family or a group of persons related to each other or connected with each other for some purpose, when the aggregate of the donations collected or to be collected in any year exceeds or is likely to exceed in value five thousand rupees; or

(ii)   for the benefit of any institution, association, society or undertaking of which the sole or a principal object is the establishment or maintenance or benefit of a mosque, dargah, orphanage, widows' home, educational institution or other similar establishment, or the relief of poverty, sickness or distress or any other educational, religious, benevolent or philanthropic  purpose;

(d)         "promoter" of a fund means a person holding himself responsible for the due collection, custody, administration and accounting of the donations which it is intended or proposed to make for a private or a charitable fund;

(e)          "collector" of a fund means a person actually engaged in collecting  donations  for a private or a charitable fund;

(f)          "recipient" of a fund means an individual, institution, association, society or undertaking for whose benefit a private or a charitable fund is or is to be collected;

(g)         "declaration" means a declaration duly made as prescribed by the promoter or promoters of a private or a charitable fund and in force under the rules made under this Act, and stating—

(i)     the names and addresses of the promoters of the fund; 

(ii)   the value of the donations which it is intended to collect;

(iii) the names and  addresses of the collectors of the fund; 

(iv) the names and addresses of the recipients of the fund; 

(v)   the objects and purposes for which the donations are to be utilised; 

(vi) the names of the banks or the persons in whose custody the collections are to be kept;

[3][(gg) "Government" means  the  Government of [4][West Pakistan]

(h)         "Sanctioning authority" means a person appointed by the [5][Government] to be a sanctioning authority for the purposes of this Act;

(i)           "prescribed" means prescribed by rules  made under this Act.

            [6][(2) Nothing in this Act shall apply to—

(a)    any donation made directly to any individual or individuals for the personal benefit of such individual or individuals; 

(b)   the income from boxes placed at, and offerings or subscriptions made to or for the purposes of mosques, takias, khankahs, durgahs or other shrines, the administration whereof has been taken over and assumed by the Chief Administrator of Auqaf, [7][West Pakistan] under provisions of the West Pakistan Waqf Properties Ordinance, 1961 (XXVIII of 1961).]

(a)    before the commencement of the collection a declaration in respect of the private fund has been duly made in the prescribed form and been duly delivered by hand or by registered post, acknowledgement due, to the sanctioning authority, and 

(b)   his name and address is duly shown as a promoter or collector of the fund in the declaration.

            (2) The sanctioning authority may refuse to sanction the collection if the object of the collection appears to it to be immoral or contrary to public policy, or if the authority is not satisfied with regard to the bona fides of the parsons proposing to make the collection, or if the authority is not satisfied with regard to the proper custody of the fund or the due administration of the fund for the purposes for which it is to be collected. 

            (3) The sanctioning authority may sanction the collection on such conditions as it may consider it necessary to impose for ensuring the proper custody of the fund and its due administration and utilisation for the objects and purposes of the fund. 

            (4) When the collection of any fund is intended to be for the benefit of an institution, association, society or undertaking, the sanctioning authority, if it considers it necessary, may sanction the collection on the condition that the institution, association, society or undertaking shall be registered under the Societies Registration Act, 1860, either before the commencement of  the collection or within a specified period.

            (5)  If the sanctioning authority sanctions the collection, it shall issue or cause to be issued certificates, in the form and manner prescribed, to persons desirous of making the collection, authorising them to make the collection; provided that the sanctioning authority may refuse to issue or to cause to be issued any such certificate, and may cancel any certificate which has been issued, to any person [8][after giving such person an opportunity of being heard], if the sanctioning authority is not satisfied with regard to the bona fides of the person.

            (6) No person shall collect any donation for any charitable fund unless he is in possession of a certificate duly issued to him and in force under sub-section (5) authorising him to make the collection.

            (2) The accounts of all charitable funds shall be audited and submitted to the sanctioning authority in the prescribed manner and at prescribed times or intervals.

            (3) The sanctioning authority may at any time for reasons to be stated in writing require by order any accounts of any charitable fund to be audited or re-audited by a specified auditor at the cost of any particular  individual or individuals. 

            (4) The sanctioning authority may at any time inspect or cause to be inspected any accounts maintained under this section. 

            (5) Any person who dishonestly or fraudulently tampers with, conceals or destroys any records pertaining to the collection of any fund to which this Act applies shall be deemed to have contravened this Act and be punishable accordingly.

            (2) No charitable fund in the custody of any persons authorised to hold it shall be transferred to any other persons except with the permission in wrtiing of the sanctioning authority or under the order of a court.

            (3) If any part of any donations collected for any private or charitable fund is used for any purpose or object other than that for which it was collected, or is otherwise misapplied or misappropriated in any manner, every person concerned with the collection or administration of the fund, whether as a promoter, collector or a recipient, shall unless he proves that the misuse, misapplication or misappropriation occurred without his knowledge and that he had used all due diligence to prevent such misuse misapplication or misappropriation, shall be deemed to have acted in contravention of this section and be punishable accordingly.

            (2) Any person who is dissatisfied with any order passed or direction given or refusal to make any order or give any direction by the sanctioning authority, may within thirty days of the order, direction or refusal, appeal against it to the appellate authority, and the appellate authority may thereupon make such order as it thinks fit in accordance with this Act.

            (2)  Without prejudice to the generality of the foregoing power, the rules may provide for— 

(a)    the form and contents of declarations and the verification of statements made therein; 

(b)   the periods for which declarations shall remain in force and the manner in which the periods may be extended or terminated;

(c)    the form and manner in which receipts for donations may be given and the maintenance of proper vouchers for the purposes of the accounts; 

(d)   the maintenance of proper books of  account and the auditing of the accounts;

(e)    the periodical submission of statements of accounts; 

(f)    the  supervision, inspection and examination  of accounts;

(g)   the payment of charges for forms of declarations, certificates; etc.