Charities (Amendment) Act 2007 - Singapore Statutes Online

REPUBLIC OF SINGAPORE

GOVERNMENT GAZETTE

ACTS SUPPLEMENT

Published by Authority

NO. 10]

Friday, March 2

[2007

The following Act was passed by Parliament on 23rd January 2007 and assented to by the President on 1st February 2007:—

Charities (Amendment) Act 2007

(No. 10 of 2007)

I assent.

S R NATHAN

President

1st February 2007.

Date of Commencement: 1st March 2007

An Act to amend the Charities Act (Chapter 37 of the 1995 Revised Edition) and to make consequential amendments to certain other written laws.

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

1. This Act may be cited as the Charities (Amendment) Act 2007 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Repeal and re-enactment of long title

2. The long title to the Charities Act is repealed and the following long title substituted therefor:

“An Act to make provision for the registration of charities, the administration of charities and their affairs, the regulation of charities and institutions of a public character, the regulation of fund-raising activities carried on in connection with charities and other institutions and the conduct of fund-raising appeals, and for purposes connected therewith.”.

Amendment of section 2

3. Section 2(1) of the Charities Act is amended by inserting, immediately after the definition of “company”, the following definition:

“ “Council” means the Charity Council established under section 4A;”.

Amendment of section 3

4. Section 3 of the Charities Act is amended —

(a)

by deleting the words “sections 24, 25 and 30” in subsection (2) and substituting the words “sections 24, 25, 25A, 26A, 26B and 30”; and

(b)

by inserting, immediately after subsection (2), the following subsection:

“(3) An Assistant Commissioner of Charities shall have and may exercise all the powers, duties and functions of the Commissioner as may be delegated to him by the Commissioner in writing, except those which are exercisable under sections 24, 25, 25A, 26A, 26B and 30.”.

Repeal and re-enactment of section 4

5. Section 4 of the Charities Act is repealed and the following section substituted therefor:

“Objectives and general functions of Commissioner

4.—(1) The objectives of the Commissioner shall be —

(a)	to maintain public trust and confidence in charities;
(b)	to promote compliance by charity trustees with their legal obligations in exercising control and management of the administration of their charities;
(c)	to promote the effective use of charitable resources; and
(d)	to enhance the accountability of charities to donors, beneficiaries and the general public.

(2) The general functions of the Commissioner shall be —

(a)	to determine whether institutions are or are not charities;
(b)	to encourage and facilitate the better administration of charities;
(c)	to identify and investigate apparent misconduct or mismanagement in the administration of charities;
(d)	to take remedial or protective action in connection with misconduct or mismanagement in the administration of charities;
(e)	to obtain, evaluate and disseminate information in connection with the performance of any of the Commissioner’s functions or meeting any of the Commissioner’s objectives;
(f)	to give information or advice, or make proposals, to the Minister on matters relating to any of the Commissioner’s functions or meeting any of the Commissioner’s objectives; and
(g)	to perform such other functions as the Minister may determine.

(3) The Commissioner shall, as soon as possible after the end of every year, submit to the Minister a report on his operations during that year, and the Minister shall present a copy of the report to Parliament.”.

New Part IIA

6. The Charities Act is amended by inserting, immediately after section 4, the following Part:

“PART IIA

CHARITY COUNCIL

Charity Council

4A.—(1) There shall be established a Charity Council consisting of a Chairman and such other members as the Minister may appoint.

(2) The Chairman and other members of the Council shall be appointed for such duration and on such terms and conditions as the Minister may determine.

Functions of Council

4B.—(1) The functions of the Council shall be —

(a)	to advise the Commissioner on any question which he may refer to it in connection with the administration of this Act, and the objectives and functions of the Commissioner under this Act;
(b)	to make such recommendations to the Commissioner as it may think fit in relation to the regulation of charities; and
(c)	to promote self-regulation and good governance standards in the charity sector.

(2) The Council may perform such other functions as the Minister may determine.

(3) The Council may regulate its own procedure.”.

Amendment of section 5

7. Section 5 of the Charities Act is amended by inserting, immediately after subsection (3), the following subsections:

“(3A) The Commissioner shall refuse to register an institution as a charity —

(a)	if it appears to the Commissioner that the registration of the institution will be contrary to the public interest; or
(b)	on such other ground as the Minister may prescribe.

(3B) The Commissioner shall remove an institution from the register of charities —

(a)	if it appears to the Commissioner that the continued registration of the institution as a charity is contrary to the public interest; or
(b)	on such other ground as the Minister may prescribe.”.

Amendment of section 15

8. Section 15(2) of the Charities Act is amended by inserting, immediately after “$5,000”, the words “and, in the case of a continuing offence, to a further fine not exceeding $50 for every day or part thereof during which the offence continues after conviction”.

Amendment of section 18

9. Section 18 of the Charities Act is amended by inserting, immediately after “$5,000”, the words “and, in the case of a continuing offence, to a further fine not exceeding $50 for every day or part thereof during which the offence continues after conviction”.

New section 25A

10. The Charities Act is amended by inserting, immediately after section 25, the following section:

“Power to suspend or remove trustees, etc., from membership of charity

25A.—(1) This section shall apply where the Commissioner makes an order under section 25 removing or suspending any trustee, charity trustee, officer, agent or employee of a charity from his office or employment, as the case may be, and the person in question is a member of the charity.

(2) If the order suspends the person in question from his office or employment, the Commissioner may also make an order suspending his membership of the charity for the period for which he is suspended from his office or employment.

(3) If the order removes the person in question from his office or employment, the Commissioner may also make an order —

(a)	terminating his membership of the charity; and
(b)	prohibiting him from resuming his membership of the charity for not less than 2 years or such time as the Commissioner may specify.

(4) Any person who continues in his membership of a charity in contravention of an order under subsection (2) or (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $50 for every day or part thereof during which the offence continues after conviction.

(5) This section shall not apply to an exempt charity.”.

New sections 26A and 26B

11. The Charities Act is amended by inserting, immediately after section 26, the following sections:

“Power to direct application of charity property

26A.—(1) This section shall apply where the Commissioner is satisfied —

(a)	that a person or persons in possession or control of any property held by or on trust for a charity is or are unwilling to apply it properly for the purposes of the charity; and
(b)	that it is necessary or desirable to make an order under this section for the purpose of securing a proper application of that property for the purposes of the charity.

(2) The Commissioner may by order direct the person or persons concerned to apply the property in such manner as is specified in the order.

(3) An order under this section —

(a)	may require action to be taken whether or not it would otherwise be within the powers exercisable by the person or persons concerned in relation to the property; but
(b)	may not require any action to be taken which is prohibited by any written law or expressly prohibited by the trusts of the charity.

(4) Anything done by a person under the authority of an order under this section shall be deemed to be properly done in the exercise of the powers mentioned in subsection (3)(a).

(5) Subsection (4) shall not affect any contractual or other rights arising in connection with anything which has been done under the authority of such an order.

(6) Any person who contravenes an order under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $50 for every day or part thereof during which the offence continues after conviction.

Power to direct application of charity property after charity ceases to exist

26B.—(1) This section shall apply in respect of any institution that was a charity (whether or not registered under section 5) —

(a)

from the time the institution ceases to be a charity, or ceases to exist or operate, whichever occurs earlier; and

(b)

where the Commissioner is satisfied —

(i)	that a person or persons in possession or control of any property held by or on trust for the institution is or are unwilling to apply it properly for the purposes of the trust; and
(ii)	that it is necessary or desirable to make an order under this section for the purpose of securing a proper application of that property for the purposes of the trust.

(2) The Commissioner may by order direct the person or persons concerned to apply the property in such manner as is specified in the order.

(3) An order under this section —

(a)	may require action to be taken whether or not it would otherwise be within the powers exercisable by the person or persons concerned in relation to the property; but
(b)	may not require any action to be taken which is prohibited by any written law or expressly prohibited by the trusts of the institution.

(4) Anything done by a person under the authority of an order under this section shall be deemed to be properly done in the exercise of the powers mentioned in subsection (3)(a).

(5) Subsection (4) shall not affect any contractual or other rights arising in connection with anything which has been done under the authority of such an order.

Amendment of section 28

12. Section 28(1) of the Charities Act is amended by inserting, immediately after the words “one year or to both”, the words “and, in the case of a continuing offence, to a further fine not exceeding $50 for every day or part thereof during which the offence continues after conviction”.

Amendment of section 35

13. Section 35(6) of the Charities Act is amended by inserting, immediately after the words “3 years or to both”, the words “and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part thereof during which the offence continues after conviction”.

Amendment of section 38

14. Section 38 of the Charities Act is amended by inserting, immediately after the words “3 years or to both”, the words “and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part thereof during which the offence continues after conviction”.

Repeal and re-enactment of section 39 and new sections 39A and 39B

15. Section 39 of the Charities Act is repealed and the following sections substituted therefor:

“Interpretation of this Part

39.—(1) In this Part and any regulations made for the purpose of this Part, unless the context otherwise requires —

“fund-raising appeal” means —

(a)	an appeal, whether made expressly or impliedly, to any member of the public to give money or other property (whether for consideration or otherwise) which is made in association with a representation that the whole or any part of its proceeds is to be applied for charitable, benevolent or philanthropic purposes; or
(b)	a receipt from any member of the public of any money or other property (whether for consideration or otherwise) which is given in whole or in part for any charitable, benevolent or philanthropic purposes;

“proceeds”, in relation to a fund-raising appeal, means all money or other property given (whether for consideration or otherwise) in response to the fund-raising appeal in question.

(2) In this Part and any regulations made for the purpose of this Part, unless the context otherwise requires, any reference to charitable purposes, where occurring in the context of a reference to charitable, benevolent or philanthropic purposes, is a reference to charitable purposes whether or not the purposes are charitable within the meaning of any rule of law.

Prohibition on conducting fund-raising appeal without permit

39A.—(1) No person shall conduct or participate in any fund-raising appeal unless he is —

(a)	exempt from the provision of this section; or
(b)	a person to whom a permit has been granted by the Commissioner in accordance with regulations made for the purpose of this section.

(2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part thereof during which the offence continues after conviction.

(3) The Minister, or such person as he may appoint, may exempt any person or class of persons from the provision of this section.

Power of Commissioner to prohibit or restrict fund-raising appeal

39B.—(1) Notwithstanding any exemption or permit granted under section 39A, the Commissioner may, at any time, by order published in the Gazette —

(a)	prohibit or stop the conduct of any fund-raising appeal by any charity or person; or
(b)	restrict the conduct of any fund-raising appeal by any charity or person by imposing conditions,

if he is satisfied —

(i)	that any fund-raising appeal conducted by the charity or person has not been conducted in good faith for charitable, benevolent or philanthropic purposes;
(ii)	that any of the persons who have conducted a fund-raising appeal, or any persons associated with any such appeal, are not fit and proper persons to administer, or to be associated with, a fund-raising appeal for charitable, benevolent or philanthropic purposes;
(iii)	that any fund-raising appeal has been improperly administered;
(iv)	that, in connection with any fund-raising appeal conducted, the provisions of this Act or the regulations or the conditions imposed by the Commissioner were not complied with by any person conducting or participating in the appeal; or
(v)	that, in the public interest, the fund-raising appeal should not be conducted.

(2) Any person who conducts any fund-raising appeal in contravention of any order made by the Commissioner under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $50 for every day or part thereof during which the offence continues after conviction.”.

Amendment of section 40

16. Section 40 of the Charities Act is amended by deleting the words “section 39” wherever they appear in subsections (1) and (2) and substituting in each case the words “section 39A”.

New Part VIIIA

17. The Charities Act is amended by inserting, immediately after section 40, the following Part:

“PART VIIIA

INSTITUTIONS OF A PUBLIC CHARACTER
AND SECTOR ADMINISTRATORS

Interpretation of this Part

40A. In this Part, unless the context otherwise requires —

“institution of a public character” means an institution or fund in Singapore which is —

(a)	a hospital not operated or conducted for profit;
(b)	a public or benevolent institution not operated or conducted for profit;
(c)	a public authority or society not operated or conducted for profit and which is engaged in research or other work connected with the causes, prevention or cure of disease in human beings;
(d)	a university or a public fund for the establishment, maintenance, enlargement or improvement of a university;
(e)	an educational institution not operated or conducted for profit, or a public fund for the establishment, maintenance, enlargement or improvement of such an educational institution;
(f)	a public or private fund for the provision, establishment or endowment of a scholarship, exhibition or prize in a university, or an educational institution not operated or conducted for profit;
(g)	a public fund established and maintained for the relief of distress among members of the public;
(h)	an institution which is established for charitable, benevolent or philanthropic purposes only; or
(i)	an organisation not operated or conducted for profit which is engaged in or connected with the promotion of culture or the arts or with the promotion of sports,

which is approved as an institution of a public character by the Minister, Commissioner or any Sector Administrator on the application of the institution, or which is deemed as an institution of a public character under any written law;

“sector”, in relation to a Sector Administrator, means the class or classes of charities or institutions of a public character that the Minister has by notice published in the Gazette designated as under the supervision of that Sector Administrator;

“Sector Administrator” means any person or organisation appointed to be a Sector Administrator under section 40B.

Appointment of Sector Administrators

40B. The Minister may appoint any person or organisation to be a Sector Administrator for one or more of the following purposes:

(a)	regulating the administration of charities within the sector;
(b)	approving institutions as institutions of a public character from among such class or classes of institutions as the Minister or Commissioner may determine;
(c)	regulating the administration of donations made to institutions of a public character within the sector;
(d)	exercising such other functions and powers as the Minister may determine.

Regulations relating to institutions of a public character and Sector Administrators

40C.—(1) The Minister may make regulations to provide for —

(a)

the manner and criteria to be adopted —

(i)	for the approval of institutions of a public character; and
(ii)	for the extension and revocation of the approval granted to institutions of a public character;

(b)

the regulation of any amendment of the constitution or any other governing instrument of any institution of a public character;

(c)

the use of donations, issue of tax deduction receipts and maintenance of donation records and accounts by institutions of a public character;

(d)

the regulation of institutions of a public character, including the application of provisions in the Act to institutions of a public character, whether or not such institutions are charities;

(e)

the delegation by the Commissioner to any Sector Administrator of any of his functions or powers, except those which are exercisable under sections 24, 25, 25A, 26A, 26B and 30;

(f)

the procedures for appeal against decisions made by Sector Administrators; and

(g)

generally giving effect to or for carrying out the purposes of this Part.

(2) Where any institution of a public character contravenes any regulations made under subsection (1) —

(a)

the institution of a public character shall be liable to pay to the Commissioner a financial penalty of the higher of $100 or the amount ascertained by the formula

0.4 x the total value of the donations (as determined under section 37(3) of the Income Tax Act (Cap. 134)) which ought not to be allowed a deduction under section 37(3) of the Income Tax Act by reason of the contravention; and

(b)

the Minister, Commissioner or the appropriate Sector Administrator may revoke the approval granted to the institution of a public character.

(3) Any financial penalty payable by any institution of a public character under subsection (2)(a) shall be recoverable as a debt due to the Government.

(4) The Commissioner may remit or refund the whole or any part of the financial penalty payable by any institution of a public character under subsection (2)(a).

(5) Any financial penalty paid under subsection (2)(a) shall, after deducting any remission or refund under subsection (4), be paid into the Consolidated Fund.

(6) Any financial penalty imposed under subsection (2)(a) shall be deemed to be interest on tax for the purposes of section 33(2) of the Limitation Act (Cap. 163).

(7) Where any Sector Administrator contravenes any regulations made under subsection (1), the Minister may revoke the appointment of the Sector Administrator.”.

New section 46A

18. The Charities Act is amended by inserting, immediately after section 46, the following section:

“Protection from liability

46A. No action, suit or other legal proceedings shall lie against the Commissioner, the Deputy Commissioner, any Assistant Commissioner, any officer appointed or authorised by the Commissioner or any Sector Administrator appointed under section 40B, for anything done (including any statement made) or omitted to be done in good faith in the course of or in connection with —

(a)	the exercise or purported exercise of any power under this Act or any other written law;
(b)	the performance or purported performance of any function or the discharge or purported discharge of any duty under this Act or any other written law; or
(c)	the compliance or purported compliance with this Act or any other written law.”.

Amendment of section 47

19. Section 47(1) of the Charities Act is amended by deleting “$500” and substituting the words “one half of the amount of the maximum fine that is prescribed for the offence”.

New section 47A

20. The Charities Act is amended by inserting, immediately after section 47, the following section:

“Prosecution of offences

47A. Proceedings in respect of any offence under this Act or any regulations made thereunder may be conducted by any public officer who is authorised to conduct such proceedings by the Commissioner with the consent of the Attorney-General.”.

Amendment of section 48

21. Section 48(2) of the Charities Act is amended —

(a)

by inserting, immediately before paragraph (a), the following paragraph:

“(a)	prescribe the procedures and conditions for the registration of charities or any class of charities;”;

(b)

by relettering the existing paragraph (a) as paragraph (aa);

(c)

by deleting the words “public charitable collections” in the 5th line of paragraph (e) and substituting the words “fund-raising appeals”;

(d)

by deleting the word “and” at the end of paragraph (f);

(e)

by deleting the full-stop at the end of paragraph (g) and substituting the words “and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part thereof during which the offence continues after conviction; and”; and

(f)

by inserting, immediately after paragraph (g), the following paragraph:

“(h)	prescribe any other matter or thing required or permitted to be prescribed or necessary to be prescribed to give effect to this Act.”.

Consequential amendments to other written laws

22. The provisions of the Acts specified in the first column of the Schedule are amended in the manner set out in the second column thereof.

Transitional provisions

23.—(1) Where an institution or fund was, before the appointed day, an institution of a public character to which approval had been granted under section 37(3) of the Income Tax Act (Cap. 134), the institution or fund shall, from the appointed day, be deemed to be an institution of a public character approved under the Charities Act, and the approval shall expire on the day the approval under the Income Tax Act would have expired if this Act had not been enacted.

(2) Subsection (1) shall be without prejudice to the powers of the Minister, Commissioner or appropriate Sector Administrator, from the appointed day, to approve or revoke the approval of any institution or fund as an institution of a public character.

(3) Any application for the approval of an institution of a public character under section 37(3) of the Income Tax Act made before the appointed day, which was not approved before that day, shall be deemed to be an application for approval as an institution of a public character made under the Charities Act.

(4) Where any contravention of any regulations made under section 107 of the Income Tax Act has occurred before the appointed day, the Commissioner may exercise the powers conferred on the Comptroller of Income Tax in respect of such contravention before the appointed day, as if this Act had not been enacted.

(5) In this section, “appointed day” means the date of commencement of section 17 of this Act.

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