Act On Collection And Use Of Donations


Published: 2013-03-23

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 Article 1 (Purpose)   print
The purposes of this Act is to promote an advanced donation culture, establish a sound donation collection system, and ensure the proper use of donations, by providing for matters necessary for procedures for the collection and use of donations.
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 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows:
1. The term "donations" means money and other articles collected without any counter-presentation, regardless of their title, including a welcoming donation, congratulatory donation, supporting donation, etc.: Provided, That the following cases shall be excluded therefrom:
(a) Admission fees, occasional payments, membership fees, or money and other articles for the mutual benefit of members collected by corporations, political parties, social organizations, clan organizations or social groups from their members, according to their articles of incorporation, regulations, or rules;
(b) Money and other articles collected by Buddhist temples, churches, Confucian shrines and schools annexed thereto, or other religious organizations from their members to pay expenses for their inherent activities;
(c) Money and other articles collected by the State, local governments, corporations, political parties, social organizations or social groups from their members to donate to their members or third parties;
(d) Money and other articles collected by school-supporting associations, supporters' associations, scholarship funds, or alumni associations from their members to appropriate for expenses incurred for the establishment or management of schools;
2. The term "collection of donations" means any act of making requests, suggestions or recommendations to contribute donations through letters, advertisements or other means to third parties;
3. The term "fund raiser" means a person who has completed the registration necessary for collection of donations under Article 4;
4. The term "fund raiser's employee" means a person involved in the activities of collecting donations under the instruction and request of the fund raiser.
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 Article 3 (Relationship with Other Acts)   print
This Act shall be inapplicable to the collection of donations under the following Acts: <Amended by Act No. 10346, Jun. 08, 2010>
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 Article 4 (Registration for Collection of Donations)   print
(1) Any person intending to engage in the collection of donations prescribed by Presidential Decree, the value of which is at least ten million won, shall prepare a plan for the collection and use stating the following matters to register himself/herself with the Minister of Security and Public Administration, a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province (hereinafter referred to as "registration office"), as prescribed by Presidential Decree. The foregoing shall apply where the person wishes to amend any of the details of the plan for collection and use: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Name, address, citizen registration number, and telephone number of the fund raiser (in cases of a corporation or organization, the name and principal place of business of the corporation or the organization, and the name, address, citizen registration number, and telephone number of its representative);
2. A collection plan clearly stating the purpose of collection, type of donations, target amount of collection, collecting area, method and period of collection, and method of safekeeping collected money and other articles. In such cases, the collection period shall not exceed one year;
3. A detailed plan for expending collected donations, including a statement of estimated expenses for collection, the methods of financing such expenses, the method and period for expending such donations, and other relevant articles;
4. Location of a collection office, if any;
5. Other matters necessary for the collection of donations prescribed by Presidential Decree.
(2) Registrations under paragraph (1) shall be made only for the following activities. In such cases, no registration shall be made with two or more registration offices for the identical business:
1. International aid activities;
2. Relief and aid activities for victims of natural calamities or disasters equivalent thereto (excluding calamities or disasters prescribed by subparagraph 1 (a) of Article 3 of the Framework Act on the Management of Disasters and Safety);
3. Philanthropic activities, including a campaign for helping the poor;
4. The following activities, other than those for profit-making, political or religious purposes:
(a) Activities for the promotion of education, culture, arts or science;
(b) Activities for the promotion of sound economic activities, including consumer protection;
(c) Activities for environmental conservation;
(d) Activities for strengthening the rights of the socially weak;
(e) Activities for the promotion of public health and welfare;
(f) Activities for the international exchanges and cooperation, including the unification between South and North Korea, and peace-building;
(g) Activities for the establishment of the healthy civil society, including citizens' participation and voluntary services;
(h) Other activities conducted for public interest and prescribed by Presidential Decree.
(3) None of the following persons shall be eligible for the registration under paragraph (1):
1. A minor or any person declared incompetent or quasi-incompetent;
2. Any person who was declared bankrupt and has failed to be reinstated;
3. Any person in whose case two years have not passed since his/her imprisonment without labor or heavier punishment sentenced by a court was completely executed or since the decision to waive such sentence has been made (including cases where the execution is deemed to be completed);
4. Any person under the suspension of the execution after sentenced by a court to the stay of execution;
5. Any person in whose case one year has not passed since his/her registration was cancelled pursuant to Article 10 (1) (including the representative or an executive of a corporation or organization when the cause for the cancellation of registration of such corporation or organization has occurred, if any);
6. A corporation or organization whose representative or executive falls under any of subparagraphs 1 through 5.
(4) The registration office shall, upon receiving an application for registration under paragraph (1), examine the details of the plan for collection and use under paragraph (2) and the applicant's eligibility under paragraph (3) before issuing a registration certificate to the applicant.
(5) Upon issuing a registration certificate under paragraph (4), a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province shall, without delay, notify the Minister of Security and Public Administration of such issuance. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
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 Article 5 (Restrictions, etc. on Collection and Receipt of Donations by the State)   print
(1) None of the State, local governments, subordinate agencies thereof, public officials, or corporations and organizations established with an investment or contribution from the State or a local government shall engage in the collection of donations: Provided, That any corporation or organization established with an investment or contribution from the State or a local government prescribed by Presidential Decree may collect donations.
(2) None of the State, local governments, subordinate agencies thereof, public officials, or corporations and organizations established with an investment or contribution from the State or a local government shall receive any donation voluntarily entrusted, except as otherwise provided in any other Act or its subordinate statute: Provided, That in any of the following cases, it may receive such donation:
1. Where the donation is voluntarily entrusted with the designated use and purpose as prescribed by Presidential Decree and successfully undergoes a deliberation by the Deliberative Committee on Donations;
2. Where the donation is received at a fund raiser's request simply to deliver it to the fund raiser;
3. Where a corporation or organization established with an investment or contribution from the State or a local government prescribed by Presidential Decree under the proviso to paragraph (1) receives the donation.
(3) The following organs or local governments shall have the Deliberative Committee on Donations to deliberate on whether to receive any donations voluntarily entrusted under paragraph (2): <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. The National Assembly, the Supreme Court, the Constitutional Court, and the National Election Commission;
2. The Ministry of Security and Public Administration and the organs prescribed by Presidential Decree.
(4) The Deliberative Committee on Donations under paragraph (3) shall have non-governmental persons as its members.
(5) Matters necessary for the formation and management of the Deliberative Committee on Donations other than those provided for in paragraphs (3) and (4) shall be provided by the Regulations of the National Assembly, the Regulations of the Supreme Court, the Regulations of the Constitutional Court, the Regulations of the National Election Commission, the Presidential Decree or the Municipal Ordinance of the local government.
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 Article 6 (Prohibition, etc. on Forced Contribution of Donations)   print
(1) Neither fund raiser nor his/her employee shall force another person to contribute a donation.
(2) A fund raiser's employee shall carry a sign showing that he/she conducts the activities of collection for and on behalf of the fund raiser.
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 Article 7 (Place, etc. for Receiving Donations)   print
(1) Donations shall be received at a place of a State agency, local government, media organization or financial institution, or in other public places.
(2) A fund raiser or his/her employees shall enter the details of donations in their account book and give receipts to donators and notify the donators of the fact that the collection and usage consequences of donations are open to the public pursuant to Article 14 (2): Provided, That the foregoing shall not apply where a donator is unidentifiable due to anonymous donation or other reasons. <Amended by Act No. 10346, Jun. 08, 2010>
(3) An employee of a fund raiser shall hand over received money and other articles as well as the details thereof to the fund raiser within five days after he/she ceases or completes collection of donations.
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 Article 8 (Disclosure of Information about Collection of Donations)   print
The registration office shall disclose any information about the collection and use of donations under Article 7 of the Official Information Disclosure Act.
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 Article 9 (Inspections, etc.)   print
(1) If the registration office deems it necessary to examine whether the collection or receipt of donations violates the provisions of this Act or any order issued under this Act, it may require a fund raiser or his/her employee to submit the relevant documents, account books, or business reports to it, or may have public officials under its control visit the office of the fund raiser or the place where the collection takes place to inspect the account book of the fund raiser: Provided, That where the target amount of the collection of a fund raiser exceeds the amount prescribed by Presidential Decree, the registration office shall inspect the fund raiser at least once during the period of the collection. <Amended by Act No. 10346, Jun. 08, 2010>
(2) A public official performing an inspection under paragraph (1) shall carry and produce his/her identification card to relevant persons.
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 Article 10 (Cancellation, etc. of Registration)   print
(1) If a fund raiser or his/her employee falls under any of the following cases, the registration office may cancel the registration under Article 4 (1); after cancelling the registration, it shall order the fund raiser to return the collected donations to donators:
1. Where the fund raiser has made a registration under Article 4 (1) by fraud or other illegal means;
2. Where the fund raiser has registered the collection of donations for the identical activity with at least two registration offices, in violation of the latter part of Article 4 (2);
3. Where the collection of donations does not follow the plan for collection and use under Article 4 (1);
4. Where the fund raiser has become disqualified due to any cause set forth in the provision of Article 4 (3): Provided, That the foregoing shall not apply where the representative or executive of a corporation or organization falls under Article 4 (3) 6, and the representative or executive is replaced with another person within three months after the cause for cancellation of the relevant registration occurs;
5. Where the fund raiser or his/her employee forces anyone to contribute a donation, in violation of Article 6 (1);
6. Where the fund raiser or his/her employee receives donations at a place not open to the public, in violation of Article 7 (1);
7. Where the fund raiser or his/her employee fails to follow an order to submit related documents under Article 9 (1), or refuses, avoids or obstructs an authorized public official's access to or an inspection into such documents;
8. Where the fund raiser expends the donations for any purpose other than the originally planned purpose of collection, in violation of Article 12 (1), or expends the donations for any purpose similar to the originally planned purpose of collection without approval;
9. Where the fund raiser or his/her employee fails to retain the accounting books and documents specified in Article 14 (1);
10. Where the fund raiser fails to perform the duty to disclose information under Article 14 (2) or makes misrepresentation on the information.
(2) Where the fund raiser ordered to return donations under paragraph (1) is unable to identify donators, he/she shall dispose the donations for a purpose similar to the originally planned purpose of collection subject to approval from the registration office, as prescribed by Presidential Decree. In such cases, the registration office shall grant its approval if the collected money and other articles are to be used for the same business as the originally planned purpose of collection (referring to the business classified under Article 4 (2)).
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 Article 11 (Hearings)   print
Where a registration office intends to cancel the registration of a fund raiser pursuant to Article 10, it shall hold a hearing.
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 Article 12 (Use of Donations)   print
(1) No collected donations shall be expended for any purpose other than the purpose of collection, except where appropriated for the fund raising expenses under Article 13: Provided, That in any of the following cases, the fund raiser may use the donations for a purpose similar to the registered purpose of collection subject to approval from the registration office, as prescribed by Presidential Decree:
1. Where the original purposes of the collected donations are unachievable;
2. Where the collected donations are left after the fund raiser has used the donations for their original purposes.
(2) A registration office shall grant its approval if the intended purpose of the use of collected money and other articles under the proviso to paragraph (1) is for the same business as the originally planned purpose (referring to the business classified under Article 4 (2)).
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 Article 13 (Proportion of Appropriation for Fund Raising Expenses)   print
A fund raiser may, depending on the amount of collected donations, appropriate a portion of the donations that does not exceed any rate prescribed by Presidential Decree, to the extent not exceeding 15/100 of the total amount, for the expenses required for the collection, management, operation and use of the donations, and the submission of a report on the results therefrom.
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 Article 14 (Duty of Disclosure and Accounting Audit, etc.)   print
(1) A fund raiser and his/her employees shall prepare and keep an account books and documents stating the current status of the collection and use of donations, as prescribed by Presidential Decree.
(2) A fund raiser shall disclose the result of collection of donations, when he/she ceases or completes the collection of donations, expends the collected donations, or uses the donations for any purpose other than the originally planned one under the proviso to Article 12 (1), as prescribed by Presidential Decree.
(3) A fund raiser shall, after donations are completely expended, submit to the registration office a report on the status of fund-raising and the details of expenditure accompanied by the auditor's report prepared by a certified public accountant registered under Article 7 of the Certified Public Accountant Act or an auditor defined under Article 3 of the Act on External Audit of Stock Companies, as prescribed by Presidential Decree: Provided, That the submission of the auditor's report may be waived if the amount of collected donations does not exceed the amount prescribed by Presidential Decree.
(4) A Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province shall, upon receiving the report under paragraph (3), inform the Minister of Security and Public Administration thereof. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
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 Article 15 (Delegation of Authority)   print
(1) The Minister of Security and Public Administration may delegate part of his/her authority under this Act to a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or the Governor of a Special Self-Governing Province, as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) A Special Metropolitan City Mayor, a Metropolitan City Mayor, or a Do Governor to whom the authority has been delegated under paragraph (1) may re-delegate part of such delegated authority to the head of a Si/Gun/Gu in accordance with the Regulations of the relevant local government, after obtaining approval from the Minister of Security and Public Administration. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
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 Article 16 (Penal Provisions)   print
(1) The following persons shall be punished by imprisonment for not exceeding three years or by a fine not exceeding 30 million won: <Amended by Act No. 10346, Jun. 08, 2010>
1. Any person failing to make a registration under Article 4 (1) or making a registration by fraud or other illegal means to collect donations;
2. Any person forcing another person to contribute a donation, in violation of Article 6 (1);
3. Any person failing to comply with an order to return collected donations under Article 10 (1);
4. Any person handling donations for a purpose similar to the registered one without approval under Article 10 (2) or for a purpose different from the purpose approved;
5. Any person using donations for a purpose other than the originally planned one, in violation of Article 12 (1), or using donations for a purpose similar to the registered purpose without approval from the registration office;
6. Any person appropriating collected money and other articles for fund-raising expenses exceeding the rates referred to in Article 13;
6-2. Any person failing to comply with the obligation to disclose or releasing a false content under Article 14 (2);
7. Any person failing to submit the auditor's report and a report on the status of fund-raising, attaching the details under Article 14 (3).
(2) The following persons shall be punished by imprisonment for not exceeding one year or by a fine not exceeding ten million won:
1. Any person collecting donations, in violation of Article 5 (1);
2. Any person making a false entry concerning received donations in the accounting book under Article 7 (2);
3. Any person failing to prepare and keep account books and documents under Article 14 (1);
4. Deleted. <by Act No. 10346, Jun. 08, 2010>
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 Article 17 (Joint Penal Provisions)   print
If the representative of a corporation or an agent, employee or servant of the corporation or an individual commits an offense under Article 16 with respect to the business of the corporation or individual, not only the offender shall be punished, but also the corporation or individual shall be punished by a fine under each relevant Article: Provided, That the foregoing shall not apply where the corporation or individual has not neglected to pay due attention and to exercise supervision with respect to the relevant affairs to prevent such offense.
[This Article Wholly Amended by Act No. 9194, Dec. 26, 2008]
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 Article 18 (Fines for Negligence)   print
(1) The following persons shall be punished by a fine for negligence not exceeding five million won:
1. A fund raiser's employee failing to indicate that he/she engages in the activities of collecting donations on behalf of the fund raiser, in violation of Article 6 (2);
2. Any person receiving donations at a place other than public place, in violation of Article 7 (1);
3. Any person failing to comply with an order to submit related documents referred to in Article 9 (1), or any person refusing, avoiding, or obstructing the access or inspections by the relevant public officer.
(2) Fines for negligence prescribed in paragraph (1) shall be imposed and collected by a registration office, as prescribed by Presidential Decree.
(3) through (5) Deleted. <by Act No. 9567, Apr. 1, 2009>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of subparagraph 7 of Article 3 and Article 4 (2) 2 shall enter into force on September 30, 2007.
Article 2 (Transitional Measures concerning Persons Permitted to Collect Donations following Amendment of Former Act)
(1) Any person who has been permitted to collect donations pursuant to the former provisions as at the time the partially amended Donations Collection Regulation Act (Act No. 7908) enters into force shall be deemed to have registered pursuant to the amended provisions of Article 4 (1) of the same Act.
(2) With regard to those deemed to have registered his/her collection of donations pursuant to paragraph (1), the amended provisions of Articles 4 (3) 5 and 11 (1) 4 of the partially amended Donations Collection Regulation Act (Act No. 7908) shall apply to any reason for disqualification that occurs after the same Act enters into force.
Article 3 (Transitional Measures concerning Application for Permission to Collect Donations following Amendment of Former Act)
Any application for permission to collect donations pursuant to the former provisions as at the time the partially amended Donations Collection Regulation Act (Act No. 7908) enters into force shall be deemed the application for registration pursuant to the amended provisions of Article 4 (1) of the same Act. In such cases, a written application for permission to collect donations shall be deemed to be a plan for collection and use pursuant to the amended provisions of Article 4 (1) of the same Act.
Article 4 (Transitional Measures concerning Applicable Provisions for Collection of Donations following Amendment of Former Act)
The former Donations Collection Regulation Act (referring to the one before it is amended by the partially amended Donations Collection Regulation Act (Act No. 7908)) shall apply to the collection of donations for providing relief for disasters pursuant to subparagraph 1 (a) of Article 3 of the Framework Act on the Management of Disasters and Safety until the amended provisions of subparagraph 7 of Article 3 and Article 4 (2) 2 enter into force pursuant to the proviso of Article 1 of Addenda of the partially amended Donations Collection Regulation Act (Act No. 7908) which has been newly inserted pursuant to the Act on the partially amended Regulation of Donations Collection (Act No. 7979).
Article 5 (General Transitional Measures concerning Disposition)
Acts by administrative agencies or acts towards administrative agencies pursuant to the former provisions as at the time this Act enters into force shall be deemed acts by administrative agencies or acts towards administrative agencies pursuant to any provision of this Act corresponding thereto.
Article 6 (Transitional Measures concerning Penalty and Fines for Negligence)
The application of the provisions of penalty or fines for negligence regarding an act before this Act enters into force shall be governed by the former provisions.
Article 7 (Relationship with Other Acts and Subordinate Statutes)
Where the former Act on Collection and Use of Donations or any provision thereof has been cited in other Acts and subordinate statutes as at the time this Act enters into force, this Act or the corresponding provision of this Act shall be deemed cited in place of the former provision if there is a provision corresponding thereto in this Act.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act No. 9194, Dec. 26, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 9567, Apr. 1, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10346, Jun. 08, 2010>
(1) (Enforcement Date) This Act shall enter into force on the date of promulgation: Provided, That the amended provision of the proviso to Article 9 (1) shall enter into force three months after the date of its promulgation.
(2) (Applicability concerning Inspections) The amended provision of the proviso to Article 9 (1) shall apply to fund raisers who make a registration on or after the amended provisons enter into force.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.