Voluntary Organisations (Charity Shops) Regulations, 2020

L.N. 390 of 2020

VOLUNTARY ORGANISATIONS ACT

(CAP. 492)

Voluntary Organisations (Charity Shops) Regulations, 2020

IN exercise of the powers conferred by article 41(1)(r) and (s) of

the Voluntary Organisations Act, the Minister for Education and

Employment, in consultation with the Minister for Finance and

Financial Services has made the following regulations:-

(1) The title of these regulations is the Voluntary Citation and

scope.

Organisations (Charity Shops) Regulations, 2020.

(2) The scope of these regulations is to regulate charity shops

carrying out trading activities in order for a voluntary organisation to

achieve its primary lawful and social purpose and objectives

including that of public benefit and to ensure that such charity shops

are administered in the interest of the voluntary organisation

concerned and for public interest.

(1) Unless otherwise provided in these regulations, the Interpretation.

definitions prescribed in the Act shall apply.

(2) For the purpose of these regulations and unless the context

otherwise requires

"the Act" means the Voluntary Organisations Act;

"administrators" shall have the meaning as assigned to it in the

Act;

"annual accounts" means all accounting records of income and

expenditure kept by a voluntary organisation for the respective

financial year;

"charitable donation" means a donation in cash or in kind

including goods and items donated or services made to a charity shop

to support a voluntary organisation to obtain its primary purpose and

objectives;

"charity shop" means an establishment which is open to the

general public to carry out trading activities in order to raise funds for

a voluntary organisation to achieve its principal purpose and

objectives provided that such charity shop may only be established by

a voluntary organisation;

"charity retailing" means the sale of new items or the re-sale of

goods or items, including those donated by the public, to raise funds

for a charity purpose;

"charity shop operator" means a person operating a charity shop

and includes the management of such charity shop and the term

"charity shop operators" shall be construed accordingly;

"the Commissioner" means the Commissioner for Voluntary

Organisations;

"donor" means a person who gives a donation in cash or in kind,

whether items or goods to charity for a charitable purpose and

includes customers;

"employee" means a person not being an administrator, who has

entered, or is employed by virtue of a contract of service with the

charity shop, or any person who has undertaken personally to execute

any work or services for, and under the immediate direction and

control of a charity shop against remuneration, but excluding any

work or services performed in a professional capacity or as a

contractor for another person, when such work or service is not

regulated by a specific contract of service. Such work or services to

charity shops may include, but are not limited to fundraising activities

or public events;

"respective financial year" means the financial year in respect of

which annual accounts are prepared by voluntary organisations;

"trading activity" means the carrying out of activities by a

charity shop in order to raise funds for a voluntary organisation;

"voluntary organisation" means an organisation established in

accordance with article 3 of the Act;

"voluntary organisation number" means the number allocated to

a voluntary organisation by the Commissioner upon its enrolment.

These regulations shall apply to all enrolled voluntary

organisations.

(2) The objectives of these regulations include

(a)

to promote good practice and high standards in

charity retailing;

(b) to ensure compliance with all the requirements

established in these regulations and in the provisions of the Act;

(c)

to promote public confidence and support for charity

shops;

(d)

to increase donations to charity shops;

(e)

to generate positive publicity for charity shops;

(f)

to promote awareness of legitimate charity shops;

(g)

to support the work for charities.

(1) Any charity shop shall be registered with the Office General

of the Commissioner who shall in return grant a permit to the requirements.

voluntary organisation establishing such charity shop

Provided that the Commissioner shall have the discretion

to authorize or refuse such registration

Provided further that the Commissioner shall, in writing,

give justifiable reasons for his decision to refuse such a permit, in

particular in case of non-compliance with all the requirements

established in these regulations and in the provisions of the Act.

(2) Administrators of a voluntary organisation shall comply

with their obligations in terms of these regulations as charities, as

retailers and administrators of the property or the premises concerned.

(3) Administrators shall ensure that charity shops do not

perform any activity which goes beyond the purpose for which the

voluntary organisation was established and that such charity shops

shall adhere to the conditions stipulated in their permit or licence or

authorisation issued by the Commissioner.

(4) Administrators shall ensure they have clear, transparent

procedures in place to enable donors or customers to notify the

charity of their complaints and such procedures should include

systems to ensure that all complaints are addressed promptly and

within a specified time frame.

(1) Applications by voluntary organisations for the Applications.

operation of such charity shops shall be received by the

Commissioner.

(2) In the application to obtain a permit to open a charity shop,

the voluntary organisation shall provide to the Commissioner

(a)

a contract of purchase or lease of the premises, or a

document confirming a valid legal title;

(b) a valid planning permit of the premises and where

such premises were built before 1967, an architect’s declaration

to this effect;

(c)

the name of any person who is entrusted with the

management of the charity shop, including but not limited to

volunteers, who shall be at least sixteen (16) years of age;

(d) an updated police conduct certificate of the

applicants and of the persons mentioned in paragraph (c);

(e)

a resolution declaration signed by all administrators

of the voluntary organisation declaring that such voluntary

organisation will be opening and operating a charity shop;

(f)

a valid certificate certifying that the premises are

registered as compliant with the rules and regulations issued by

the Health and Safety Authority in terms of the Occupational

Health and Safety Authority Act;

(g) any other necessary and ancillary information which

the Commissioner may from time to time require in terms of

these regulations.

(1) Charity operators shall treat the public, donors and

customers with respect and shall provide clear information to donors

and customers about their charity’s objectives and activities on the

request of such information.

(2) Charity operators shall provide appropriate training,

information and support to all staff and volunteers.

(3) Charity operators shall take all reasonable measures to

ensure the secure handling of cash, cheques and credit card payments

as well as donations in kind.

(4) Charity operators should have clear, published policies and

procedures for the handling of complaints received in their shops.

(5) Saving the provisions of the Development Planning Act,

charity shops shall have on the façade of their premises the words

"Charity Shop" both in the Maltese and the English Language,

together with the voluntary organisation’s name and the voluntary

organisation’s number.

A shop or stall opened for a period of less than twenty (20) Stalls or

days in a year shall not be considered as a charity shop for the temporary

shops.

purposes of these regulations, but shall nevertheless abide by the

provisions established in the Voluntary Organisations (Public L.N. 371 of

2020. Collections) Regulations, 2020.

(1) Annual returns shall be duly filled by administrators Annual returns.

and submitted to the Commissioner in terms of the Annual Returns

Form prescribed in Schedule 1, including the details of the selling

items of the charity shop and the value added tax (VAT) registration

number.

(2) Saving the provisions of sub-regulation (1), annual returns

shall include but are not limited to

(a)

the charity registration documents including

(i)

the purpose and activities of the charity shop;

and

(ii) the names, titles,

designated

role

and

addresses of charity operators;

(b)

name or type of charity;

(c)

salaries to directors, managers, members and, or

employees (if applicable);

(d)

name of donee; and

(e)

receipts to donors specifying the list of goods and

items being donated; and

(f)

a copy of the annual accounts of the voluntary

organisation attached as Annex A submitted to the

Commissioner in terms of Schedule III to the Voluntary S.L. 492.01

Organisations (Annual Returns and Annual Accounts)

Regulations.

(3) Administrators shall include clear contact details for their

charity on all requests made for donations. Details of the personnel

representing the charity, whether operators, employees, member or

volunteers, and where possible of their vehicles shall be clearly

identifiable.

(4) For the purpose of this regulation, any information

regarding the trading activities carried out by charity shops shall

provide an actual and transparent analysis of the generated revenue,

income, expenditure, assets and liabilities for the respective financial

year.

(1) The members and employees of a charity shop may

be entitled to remuneration for services rendered to such charity shop

in terms of the market levels and market conditions as defined in the

Act, and such services shall be published in the annual report

prepared by the administrators of the related voluntary organisation.

(2) Administrators of a charity shop shall

(a)

declare the amount of remuneration received by its

employees; and

(b) provide a copy of the contract of employment to the

Commissioner, which shall be used by the Commissioner for

internal purposes only.

(3) Saving the provisions of sub-regulation (2), in the case of

charity shops receiving government funds, the employees of such

charity shops shall be entitled to remuneration which shall not exceed

the salary of a public officer or a civil servant, when compared to

their respective designated role in such charity shop.

(4) The Commissioner shall, in all cases mentioned under sub-

regulation (2), and in order to ensure that employees are not paid

exorbitant rates, be entitled to obtain from the voluntary organisation

or any other entity or authority concerned, the number of employees

in the charity shop and their respective designated role, together with

any other information which the Commissioner may require in this

regard.

(5) The remuneration of persons who are employed to carry

out management duties, executive functions or fundraising activities

in a charity shop shall not be such as to materially prejudice the

voluntary organisation from achieving its principal purpose and

objectives.

(1) Any person who operates in a charity shop, whether

against remuneration or not, being a helper, member, volunteer and,

or charity operator shall be in possession of a tag issued by the

Commissioner.

(2) The tag shall include

(a)

the name and surname of the person;

(b)

the identity card number or passport number of the

person;

(c)

the voluntary organisation’s number of the enrolled

voluntary organisation;

(d)

the name of the charity shop;

(e)

the signature of the Commissioner or a

representative acting on his behalf and any administrator of the

voluntary organisation.

(3) Where applications for such tags are made by a voluntary

organisation, such voluntary organisation shall take full responsibility

on the good standing and credibility of these persons and observe the

provisions of article 22B of the Act.

(4) The tag shall be made visible at all times during the time

that the shop is open to the public and must be kept in a clean and

legible state.

(5) The tag shall be marked with an expiry period, which

period shall be at the discretion of the Commissioner.

(6) Failure to exchange a tag upon its expiry period, or to

return it to the Commissioner, upon his request, or upon termination

of a collection, shall be subject to a penalty of twenty euro (€20).

(7) Every person shall be responsible for the safe custody of

his tag and shall return the tag to the Commissioner immediately

upon ceasing to be a collector, and in case a tag is lost, the

Commissioner shall issue a declaration to that effect in the Gazette

and one local newspaper.

(1) Any price which is tagged to an item or good shall Sale items.

be made clearly visible to customers or the public in general who

shall be aware of the final price.

(2) Any item which is legally prohibited for sale may not be

sold from a charity shop.

(1) If any voluntary organisation offers the service of Waste

collecting items or goods for reuse or re-sale, such collection shall not collections.

amount to waste collection and such voluntary organisation shall be

exempted from applying for any licence or permit to be considered as

a waste collector and, or a waste facility.

(2) The exemption mentioned in the sub-regulation (1) only

applies if the item or good in question is not listed as a hazardous or

toxic item, or may otherwise cause harm to a person or to the

environment.

The charity shop operator shall not be obliged to provide a

commercial guarantee in terms of article 82 of the Consumer Affairs

Act against the items or goods being sold and such items or goods

shall be bought at the buyer’s risk, provided that such items or goods

are being sold for fundraising purposes.

(1) Donors shall be aware that the items or goods being

donated are being primarily used for a charitable purpose.

(2) A charity shall not enter any agreement which is intended

to go beyond or which materially prejudices the charity purpose or

which hinders the charity from achieving its primary purpose and

objectives.

(1) Administrators of a voluntary organisation shall

ensure that collections of donations are being carried out within the

requirements of the relevant legislation and that the charity shop is

appropriately licensed.

(2) Administrators shall be aware that the donation of goods

for sale shall meet the charity retail objectives and requirements, to

the extent that such donation shall be intended to obtain the primary

purpose and objectives of the voluntary organisation and shall not be

used to increase the income for the charity itself.

(3) Administrators shall also consider the reputation risks to

their charity and to the voluntary sector and of being involved in

activities which might be seen to undermine the purpose and

objectives of the voluntary organisation, or which might substantially

and materially damage the public's trust in the voluntary sector.

(4) Administrators shall be assured that any donations are

received in full conformity with these regulations and the provisions

of the Act.

(1) A licence, permit or authorisation granted to a

charity shop is subject to automatic renewal, provided that the

voluntary organisation is compliant and submits its annual accounts

on an annual basis

Provided that such renewal of licence, permit or

authorisation is subject to the discretion of the Commissioner.

(2) A non-compliant voluntary organisation shall not operate a

charity shop and such charity shop shall remain closed, unless it

becomes compliant within an interim period of one (1) year

Provided that, if the voluntary organisation remains non-

compliant after the lapse of such interim period, the licence shall be

revoked immediately

Provided further that, if the voluntary organisation

becomes compliant within such interim period, it shall be issued with

a compliance certificate by the Commissioner.

(1) The Commissioner or anyone on his behalf has the Review

right of entry at any time in any charity shop to perform an inspection procedures

the

within the premises, at the application stage and at anytime thereafter, Commissioner.

and may ask for any documentation or evidence as he deems fit in

relation to the premises.

(2) Saving the provisions of sub-regulation (1), the annual

accounts of a voluntary organisation shall be subject to such review

procedures as are specified in Schedule 2.

The provisions in articles 7(1)(k) and (l), 8(2), 22B and Miscellaneous

22C of the Act relating to anti-money laundering and financing of provisions.

terrorism shall apply in their entirety to these regulations.

(1) Charity shops established and operating prior to the Transitory

entry into force of these regulations, shall have a period of six (6) provision.

months, to conform with these regulations.

(2) The operations of charity shops established prior to the

entry into force of these regulations, as well as any fines which may

have been issued or imposed on such charity shops prior to the entry

into force of these regulations, and, or any actions or proceedings

which may have been instituted against such charity shops shall

remain valid.

(3) Upon termination of the transitory period referred to in

sub-regulation (1), where a charity shop remains non-compliant with

these regulations, the Commissioner may issue an order that such

premises be closed down, without the necessity of filing any further

action before any court.

(1) Any person that contravenes or is in breach of any of Offences and

the provisions of these regulations shall be guilty of an offence and penalties.

shall, on conviction, be liable

(a)

on a first conviction, to a fine (multa) of not less

than twenty-three euro and twenty-nine cents (€23.29), but not

exceeding one thousand and one hundred and sixty-four euro

and sixty-nine cents (€1,164.69);

(b) on a second or subsequent conviction, to a fine

(multa) of not less than forty-six euro and fifty-eight cents

(€46.58), but not exceeding two thousand and three hundred and

twenty-nine euro and thirty-seven cents (€2,329.37);

(c)

in the case of a continuing offence, to a fine (multa)

of twenty-three euro and twenty-nine cents (€23.29) for every

day during which the offence continues.

(3) The Commissioner shall have the power to impose

administrative sanctions as may be prescribed in respect of an offence

under these regulations by issuing a notice relating to such sanctions

in writing to the offender. Any civil proceedings may be instituted by

the Commissioner according to the circumstances of the case.

(4) Any criminal proceedings against any person shall be

instituted by the Commissioner through the executive police, as

prescribed in the Criminal Code.

(5) Where a notice under this regulation has been issued, the

person against whom such notice has been served may, within twenty-

one (21) days of the service of the notice, accept responsibility for the

offence stipulated in such notice, and within the same period pay the

penalty and, or administrative sanctions indicated in such notice, and

conform with the relative provisions under these regulations, and no

further proceedings may be taken under these regulations in respect

of such offence.

Schedule 1

(Regulation 8)

Annual Returns Form

(for Charity Shops established by a Voluntary Organisation)

Name of Voluntary Organisation: ................................................

Respective Financial year for the twelve month period ending: ..

General Information of the Voluntary Organisation

Address

Postcode

Telephone number(s)

Fax number

E-Mail address/es

Website

CHARITY INFORMATION

Name or type of charity

VAT registration number.

Charity registration documents including

(i)

the purpose and activities of the charity shop

(ii) the names, titles, designated role and addresses of

charity operators

Salaries to directors, managers, members, and, or employees (if

applicable)

Details of the selling items

Receipts to donors specifying the list of goods and items being

donated

ANNUAL ACCOUNTS

Attach as Appendix A

Attach with this annual return a signed copy of the Annual

Accounts submitted by the voluntary organisation.

ANNUAL ACCOUNTS DECLARATION OF

COMPLETENESS AND CORRECTNESS

I hereby confirm that the details provided, including the

attached appendix, are complete and truthful to their contents.

Signature of Administrator

Name of Administrator

Date

Appendix A - Annual Accounts

Schedule 2

(Regulation 17)

Review procedures by the Commissioner

1. The Commissioner has the right to appoint any qualified

person to scrutinise or draw up a report on the accounts of any

voluntary organisation when he deems fit and necessary to do so. This

shall be done without any ulterior notice.

2. Saving the provisions mentioned in the preceding

paragraph, the Commissioner shall, in order to investigate matters or

the conduct of affairs of a voluntary organisation, in terms of the

powers vested in him by means of article 34 of the Act, have the right

to request any information, documents and, or clarifications from the

administrators of any voluntary organisation, as he may deem

necessary in the circumstances.

3. The Commissioner shall also, in terms of article 34 of the

Act, be entitled to request any information from any public or private

entity or authority, or disclose any information to such entity or

authority, for the purpose of investigating matters of a voluntary

organisation, when he has a suspicion that such voluntary

organisation or a member thereof is carrying out any activity relating

to money laundering and financing of terrorism, or any other illicit or

criminal activity as defined in terms of these regulations

Provided that any information requested by the

Commissioner in this regard shall not be divulged to third parties in

terms of these regulations

Provided further that where the Commissioner requests

such information, he shall, upon a demand made by such entity or

authority, provide justifiable reasons thereto, as he may deem

necessary in the circumstances.

4. Saving the provisions of paragraph 3, the Commissioner is

entitled to obtain any information from other entities or authorities,

including but not limited to, the Registrar for Legal Persons, the

Malta Security Service, Jobsplus, the Commissioner of Police, the

Commissioner for Revenue, the Financial Intelligence Analysis Unit,

the Asset Recovery Bureau, the Malta Financial Services Authority

and the Courts of Justice and also to disclose any information to such

other entities or authorities

Provided that such information may include any other

information from the Registrar of Courts and, or the Office of the

Attorney General or the Office of the State Advocate respectively,

relating to any pending criminal or civil proceedings, with particular

reference to any information concerning the attachment, freezing,

confiscation and seizure of assets

Provided further that any privileged information obtained

by the Commissioner upon such request, shall be used exclusively for

the purposes of the powers vested in him in terms of article 34 of the

Act and shall not be made accessible to the public.

5. The Commissioner may also request any member or

administrator of the voluntary organisation, or those claiming or

alleging to be members or administrators of the voluntary

organisation concerned, to submit a conduct certificate issued under

the Conduct Certificates Ordinance, and may refuse to issue an Cap. 77.

enrolment certificate to such member or administrator of the

voluntary organisation, or withdraw any issued enrolment certificate,

if such member or administrator of the voluntary organisation fails to

provide such conduct certificate.

6. Subject to the provisions of article 3(3) of the Conduct

Certificates Ordinance, the Commissioner may, in the course of his

investigations, request a complete record of criminal convictions of

any member or administrator of a voluntary organisation. The

Commissioner may refuse to issue an enrolment certificate, or

withdraw any issued enrolment certificate, if the person to whom the

record of criminal convictions relates refuses to give his consent as

required under article 3(3) of the Conduct Certificates Ordinance.

7. For the purpose of this Schedule and in the course of any

investigation made under article 7(1)(g) of the Act, the Commissioner

shall have the power to summon witnesses and to administer an oath

to any person concerned in the investigation and require them to give

evidence.

8. In the event that such person refuses to produce the

requested information, the Commissioner may impose an

administrative fine not exceeding five hundred euro (€500).

€1.26