New legislation aims at preventing fraudulent fund-rising efforts
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New proposed legislation is aimed at giving officials more power to react to fraudulent fund-raising efforts.
"The faith and confidence of the citizens in fund raising drives must be restored", said Minister of the Interior Kari Rajamäki (SDP) at a press conference on Thursday. Shortly before that, the government had decided on the content of a bill for a new law on fund raising drives.
Under the proposal, organisations seeking a fund-raising permit will need to give more detailed information than before on how the drive is to be implemented, and what the money is to be used for.
Permission would be granted only if a sufficient portion of the money that is collected goes to the intended purpose of the drive, and if no disreputable characters are behind the effort.
Also, each separate drive would be required to have a separate bank account. An exception could be made for be a well-established charities that have had the same bank account for years.
Fund-raising permits would continue to be granted by local police, while permission for nationwide fund-raising drives would be granted by the provincial government of South Finland.
Under the bill, officials would be entitled to order a temporary halt to a fund-raising drive if there is a suspicion of malfeasance. Officials would also be allowed to freeze the funds that had been collected.
At the conclusion of a fund-raising drive, the organisation collecting the money would be required to report to officials how much was raised, and what the money is to be used for.
The bill also calls for more severe penalties for crimes involving fund-raising. The maximum prison term would be raised from the present six months to two years.
The proposed law would make a clearer distinction than before between the solicitation of donations, and other ways of raising money, such as selling goods. Under the proposal, those giving pure donations may be given nothing more in return than a symbol or logo of the collector.
Many shady fund-raising drives of recent years are based on the sale of goods in the name of a good cause, because no fund-raising licence is required. Such drives would be beyond the reach of officials under the proposed new law as well.
There are also plans to set up a national register of fund-raising drives. Part of the information could be placed on the Internet, allowing potential donors to check up on the legitimacy of a charity.
Helsingin Sanomat
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| 19.8.2005 - TODAY |
 New legislation aims at preventing fraudulent fund-rising efforts
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