Sindh’s charitable organisations liable to government regulation

Lawmakers pass bill setting up a regulatory body to monitor funds, donations received by charities and the like

KARACHI: The Sindh Assembly passed a bill on Friday to keep a check on funds and donations collected by charitable organisations and other institutions to ensure that the money is not used for any criminal or terror activities in the province. Moving the ‘Sindh Charities Registration and Regulation Bill 2019’, Sindh Minister for Parliamentary Affairs Mukesh Kumar Chawla said that the law is being passed to make effective provisions for the registration, administration and regulation of charities, fundraising, collection and the utilisation of such funds by charities and other institutions.

The regulatory body

In the bill, there is a provision for the creation of a commission, titled, ‘Charities, Registration and Regulation Commission’ which will have 12 members, including two MPAs nominated by the Sindh Assembly speaker. The commission will discharge its functions, exercise its powers and conduct its proceedings in the prescribed manner. The minister, adviser or special assistant to the chief minister on social welfare will be the chairperson of the commission and in his absence, it may be any other person nominated by the CM.

The provincial government will designate one of the director-generals ranked at Grade 20 from within the social welfare department as the director-general of the commission. The deputed official will also work as the secretary of the commission - responsible for the administration and implementation of decisions.  According to the law, the commission will maintain public trust and confidence in charities. It will register, regulate, and sanction fundraising of the charities.

K-P to strictly monitor charities

“The commission will ensure that charities and promoters comply with their legal obligations in exercising control and management of the administration of charitable funds,” reads the law. It states that a mechanism for developing a central database for the effective monitoring and evaluation of such organisations, among other technicalities will be developed.

Enacting the law

After the law is implemented in the province, it will be mandatory for all charitable organisation to get registered with the commission. The commission may cancel the registration of such organisations if they commit violations of the provision under this Act or its rules.  “If, after evaluation or audit, the commission is satisfied that any charity has failed to comply with the obligations envisaged under the law then the commission can impose fines, not exceeding one million rupees,” states the law. “If any part of any donations collected for any charitable fund is used for any purpose or object other than the purpose for which it was collected, or is otherwise misapplied or misappropriated in any manner shall be deemed to have committed the misuse, misapplications or misappropriation of the charitable fund and shall be liable to punishment of imprisonment for a term which may extend to one year, but which shall not be less than six months,” it reads.

Besides, the commission may appoint a charity trustee or any officer or office-bearer of a charity within a period of six months, if such charity fails to remove a trustee involved in moral turpitude, dishonesty or deception or if he/she has been adjudged bankrupt.  With regards to the fundraising responsibilities of charity trustees, the law states that a charity trustee shall be responsible for controlling the assets and will work for the protection, proper investment and utilisation of funds ensuring that the charitable funds or property are not misused or allowed to go waste as a result of mismanagement. 

Published in The Express Tribune, November 23^rd, 2019.