PESHAWAR: The Khyber Pakhtunkhwa cabinet has approved a proposed law to regulate affairs of charities and collection of charitable funds in the province.

The proposed law has made re-registration of the already registered charity organisations mandatory. The cabinet approved KP Charities Act, 2018 in its meeting on Thursday.

The bill defines charity as “any association of persons established for a charitable purpose and includes organisations registered under Voluntary Social Welfare Agencies (registration and control) Ordinance 1961, Societies Registration Act 1860, Companies Act 2017, public-private trust and organisation registered under any law for time being in force.”

According to draft bill, re-registration of charity organisations is mandatory

Section 12 of the bill says that every charity shall get itself registered with the registering authority no later than such date as government may, by notification determine. It says that unless charities are registered under this Act, they would not be allowed to collect funds.

Section 3 of the bill provides for setting up a charitable commission, which will consist of three to five members including its chairperson. The commission will have wide ranging powers including maintaining public trust and confidence in charities, issuing guidance to registering authority, issuing necessary advice to the charities, ensuring effective use of charitable funds, holding inquiry into affairs of charity or funds, alter or set aside sanctions allowed by deputy commissioners to charities, receiving annual audit of charities and instituting mechanism for monitoring and accountability of charities.

Under section 14 of the bill, the commission will maintain a register of charities that will contain details about the organisation. Section 15 (1) of the bill says that all charities will provide to the commission information regarding their objectives, source or sources of income and nature of its spending. However, section 15(2) of the bill empowers the commission to deny registration to any charity.

Section 8 of the bill provides for power to appoint charity trustee. It states that each charity shall be assisted by a trustee to run its affairs, general administration, management and control.

“If a charity fails to appoint a trustee, the commission shall have the powers to appoint such charity trustee in the best public interest,” it adds.

Section 9(1) of the proposed law says that government on its own or on receipt of a request from government or a complaint from anyone, may hold inquiry into affairs of a charity to ascertain whether any charitable funds have been misused, misapplied or there is a breach of trust.

Section 9(2) of the bill states that in case inquiry proves that an offence has been committed, the commission may ask government to take appropriate action against a charity.

Under section 18 of the bill, if a charity operates at provincial level or two or more districts, it would have to register itself with the commission, while in case of operation in a district, the deputy commissioner of the district concerned would be registering authority and assistant commissioner in case such organisation operates at tehsil level. The same authorities will be responsible for granting sanction for collection of charitable funds at provincial, district and tehsil level.

The commission will have powers to cancel or suspend registration of a charity.

The commission will also have powers to undertake periodic evaluation of the charities and it can also order direct audit of charity accounts by a specified auditor.

Section 28(2) of the bill says that any person, who contravenes any provision of this Act, shall be liable to imprisonment extending to six months and fine amounting to Rs100,000.

Published in Dawn, February 4th, 2019