VOLUNTARY ORGANISATIONS (CHARITY SHOPS) REGULATIONS

(CHARITY SHOPS)

SUBSIDIARY LEGISLATION 492.04

VOLUNTARY ORGANISATIONS (CHARITY SHOPS)

REGULATIONS

9th October, 2020

LEGAL NOTICE 390 of 2020, as amended by Legal Notice 425 of

2021.

(1)

The title of these regulations is the Voluntary

Organisations (Charity Shops) Regulations.

(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 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;

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"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.

(1)

These regulations shall apply to all enrolled and

compliant 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 voluntary organisations;

(e)

to generate positive publicity for voluntary

organisations;

(f)

to promote awareness of legitimate charity shops;

(CHARITY SHOPS)

(g)

to support the work of voluntary organisations

(1)

All enrolled and compliant voluntary organisations

may establish a charity shop and shall notify the Commissioner

fifteen (15) days before establishing such charity shop

Provided that the Commissioner shall have the discretion

to grant, refuse or terminate any authorisation to establish such

charity shop

Provided further that the Commissioner shall, in writing,

give justifiable reasons for his decision to refuse or terminate such

authorisation, particularly in case of non-compliance of the enrolled

voluntary organisation with all the requirements established in the

provisions of the Act and these regulations.

(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 the 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)

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 in their premises the words "Charity Shop"

both in the Maltese and the English Language, together with the

(CHARITY SHOPS)

voluntary organisation’s name and the voluntary organisation’s

number.

A shop or stall opened for a period of less than twenty

(20) days in a year shall not be considered as a charity shop for the

purposes of these regulations, but shall nevertheless abide by the

provisions established in the Voluntary Organisations (Public

Collections) Regulations, 2020.

(1)

Annual returns shall be duly filled by

administrators and submitted to the Commissioner in terms of the

Annual Returns Form prescribed in Schedule 1.

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

returns shall include but are not limited to

(a)

the purpose and activities of the charity shop

(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, where the donor is known,

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

Organisations (Annual Returns and Annual Accounts)

Regulations. 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, other income, expenditure, assets and

liabilities for the respective financial year.

(3) In case a voluntary organisation requests items for

donation, administrators shall include clear contact details of the

voluntary organisation establishing the charity shop on all requests

made for donations.

(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

(CHARITY SHOPS)

(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 voluntary organisation.

(2)

The tag shall include

(a)

the name and surname of the person who

operates in the charity shop;

(b)

the identity card number or passport number of

the person who operates in the charity shop;

(c)

the voluntary organisation’s number of the

enrolled and compliant voluntary organisation;

(d)

the name of the charity shop;

(e)

the signature of any administrator of the

voluntary organisation.

(3) Administrators of 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.

(CHARITY SHOPS)

(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 of one (1)

year.

(1)

Any price which is tagged to an item or good

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

shall be aware of the final price.

(2) A charity shop may only exchange items against a

donation and any item which is legally prohibited for sale may not be

exchanged from a charity shop.

(1)

If any voluntary organisation offers the service of

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

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.

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

exchanged for donations shall meet the primary purpose and

objectives of the voluntary organisation.

(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

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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)

An 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 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 authorisation

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

inspection within the premises, at the application stage and at

anytime thereafter, 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

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

terrorism shall apply in their entirety to these regulations.

(1)

Charity shops established and operating prior to

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

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.

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(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 voluntary organisation which is in breach of

these regulations shall be guilty of an offence and shall, on conviction,

be liable to the penalties established under article 31 of the Act.

(2) 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.

(3) Any criminal proceedings against any person shall be

instituted by the Commissioner through the executive police, as

prescribed in the Criminal Code.

(4) 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.

(CHARITY SHOPS)

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

(CHARITY SHOPS)

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

(CHARITY SHOPS)

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,

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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 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).