Charitable Funds (Regulation of Collections) Act, 1953

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THE CHARITABLE FUNDS (REGULATION OF COLLECTIONS) 
ACT, 1953 
 
 
 
CONTENTS 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Regulation of private and charitable funds 
4.  Declarations of collections of private funds 
5.  Sanctioning of collection of charitable funds 
6.  Maintenance and audit of accounts 
7.  Misapplication of Funds 
8.  Application of Act VI of 1890 
9.  Powers of sanctioning authority 
10.  Appellate authority 
11.  Revision 
12.  Penalty for contraventions 
13.  Offences cognizable, bailable and non-compoundable 
14.  Prosecution subject to sanction by District Magistrate 
15.  Jurisdiction of Magistrates 
16.  Application of other laws 
17.  Exemptions 
18.  Rules 
19.  Protection of persons acting under this Act 

 
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THE CHARITABLE FUNDS (REGULATION OF COLLECTIONS) ACT, 1953 
1ACT NO. XXXI OF 1953 
[3rd November, 1953] 
An Act to provide for the regulation, administration and accounting of collections of charitable 
donations and for the prevention of frauds. 
 WHEREAS it is expedient to provide for the regulation, administration and accounting of 
collections of charitable donations and for the prevention of frauds ; 
 It is hereby enacted as follows :___  
 1. Short title, extent and commencement. ___ (1) This Act may be called the Charitable 
Funds (Regulation of Collection) Act, 1953. 
 (2) It extends to the 2[Karachi Division]. 
 (3) It shall come into force at once. 
 2. Definitions. ___In this Act, unless there is anything repugnant in the subject or the 
context,___  
(a)  “collect” and “collection” with their grammatical variations and cognate 
expressions mean and include appealing for, receiving, collecting and 
attempting to collect, whether directly or indirectly, any donations whether in 
money or in kind and whether form the public in a public manner or from 
particular individuals or otherwise, for any fund to which this Act applies  ; but 
do not include more advice by any person not himself engaged in making the 
collection; 
(b)  “private fund” means a fund consisting of donations whether in money or in  
kind given by way of charity for the benefit of an individual or a family or a 
group of persons related to each other or connected with each other for some 
purpose, when the aggregate of the donation collected or to be collected in any  
year exceeds or is  likely to exceed in value two hundred and fifty rupees but 
neither exceeds nor is likely to exceeds nor is likely to exceed five thousand  
rupees ; 
(c)  “charitable fund” means any fund consisting of donations whether in money or 
in kind given by way of charity ___  
 
 
1The Act has been applied to Baluchistan with effect on and from the 3rd day of November, 1953, see Gaz. of P., 1955, Pt. I, p. 28; and also extended to 
the Leased Areas of Baluchistan, see the Leased Areas (Laws) Order 1950 (G.G.O. 3 of 1950). 
The Act has been amended in its application to the Province of West Pakistan by W.P. Act II of 1967. 
2Subs. by A.O., 1964, Art. 2 and Sch. 
 
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(i)  for the benefit of an individual or a family or a group of persons related to 
each other or connected with each other for some purpose, when the aggregate 
of the donations collected or to be collected in any year exceeds or is likely to 
exceed in value five thousand rupees ; or 
(ii)  for the benefit of any institution, association, society or undertaking of which  
the sole or a principal object is the establishment or maintenance or benefit of 
a mosque, dargah, orphanage, widow s’ home, educational institution or other 
similar establishment, or the relief of poverty, sickness or distress or any other 
educational, religious, benevolent or philanthropic purpose ; 
(d)  “promoter” fund of a means a person holding himself responsible for the due 
collection, custody, administration and accounting of the donations which it is 
intended or proposed to make for a private or a charitable fund; 
(e)  “collector” of a fund means a person actually engaged in collecting donations 
for a private or a charitable fund ; 
(f)  “recipient” of a fund means an individual, institution, association, society or 
undertaking for whose benefit a pr ivate or a charitable fund is or is to be 
collected; 
(g)  “declaration” means a declaration duly made as prescribed by the promoter or 
promoters of a private or a charitable fund and in force under the rules made 
under this Act, and stating:___  
(i)  the names and addresses of the promoters of the fund ; 
(ii)  the value of the donations which it is intended to collect ; 
(iii)  the names and addresses of the collectors of the fund ; 
(iv)  the names and addresses of the recipients  of the fund : 
(v)  the objects and purpose for which the donations are to be utilized; 
(vi)  the names of the banks or the persons in whose custody the collections 
are to be kept ; 
1[(gg)  “Commissioner” means the Commissioner of the Karachi Division ;] 
(h)  “sanctioning authority ” means a person appointed by the 
1[Commissioner] to be a sanctioning authority for the purpose of this 
Act ; 
(i)  “prescribed” means prescribed by rules made under this Act. 
 
 
1Subs. by A.O., 1964, Art. 2 and sch. 
 
 
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 3. Regulation of private and charitable funds.___ (1) No person shall make any collection 
for any private fund or any charitable fund except in accordance with the provisions of this Act.  
 (2) Nothing in this Act shall apply to any donation made directly to any individual or 
individuals for the personal benefit of such individual or individuals. 
 4. Declarations of collections of private funds. ___ (1) No person shall make any collection 
for any private fund unless___  
(a)  before the commencement of the collection a declaration in respect of the  
private fund has been duly made in the prescribed form and been duly 
delivered by hand or by registered post, acknowledgement due, to the 
sanctioning authority, and  
(b)  his name and address is duly shown as a promoter or collector of the fund in 
the declaration. 
 5. Sanctioning of collection of charitable funds. ___ (1) No person shall make any collection 
for any charitable fund unless before the commencement of the collection a declaration in resp ect of 
the intended collection has been duly made and deli vered to the sanctioning authority, and the 
sanctioning authority has sanctioned the collection in writing.  
 (2) The sanctioning authority may refuse to sanction the collection if the object of the 
collection appears to it to be immoral or contrary to pub lic policy, or if the authority is not satisfied 
with regard to the bona fides  of the persons proposing to make the collection, or if the authority is 
not satisfied with regard to the proper custody of the fund or the due administration of the fund for 
the purpose for which it is to be collected. 
 (3) The sanctioning authority may sanction the collection on such conditions as it may 
consider it necessary to impose for ensuring the proper custody of the fund and its due administration 
and utilization for the objects and purposes of the fund. 
 (4)  When the collection of any fund is intended to be for the benefit of an institution, 
association, society or undertaking, the sanctioning authority, if it considers it necessary, may 
sanction the collection on the c ondition that the institution, association, society or undertaking shall 
be registered under the Societies Registration Act, 1860  (XXI of 1860) , either before the 
commencement of the collection or within a specified period. 
 (5) If the sanctioning authorit y sanctions the collection, it shall issue or cause to be issued 
certificates, in the form and manner prescribed, to persons desirous of making the collection, 
authorising them to make the collection ; provided that the sanctioning authority may refuse to issue 
or to cause to be issued any such certificate, and may cancel any certificate which has been issued, to 
any person, if the sanctioning authority is not satisfied with regard to the bona fides of the person.  
 (6) No person shall collect any donation for any charitable fund unless he is in possession of 
a certificate duly issued to him and in force under sub -section (5) authorising him to make the 
collection. 
 
 
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 6. Maintenance and audit of accounts. ___ (1) Every promoter, collector and recipient of 
every fund or donation to which this Act applies shall maintain or cause to be maintained a true and 
proper account in the prescribed manner of the fund or donation collected. 
 (2) The accounts of all charitable funds shall be audited and submitted to the sanc tioning 
authority in the prescribed manner and at prescribed times or intervals. 
 (3) The sanctioning authority may at any time for reasons to be stated in writing require by 
order any accounts of any charitable fund to be audited or re-audited by a specified auditor at the cost 
of any particular individual or individuals. 
 (4) The sanctioning authority may at any time inspect or cause to be inspected any accounts 
maintained under this section. 
 (5) Any person who dishonestly or frequently tampers with, con ceals or destroys any records 
pertaining to the collection of any fund to which this Act applies shall be deemed to have 
contravened this Act and be punishable accordingly. 
 7. Misapplication of Funds. ___ (1) No part of any donations collected for any priv ate or 
charitable fund shall be used for any purpose or object other than the purpose or object for which it 
was collected, except under the order of a competent court, or in the case of a charitable fund, of the 
Treasurer of Charitable Endowments. 
 (2) No charitable fund in the custody of any persons authorised to hold it shall be transferred 
to any other persons except with the permission in writing of the sanctioning authority or under the 
order of a court. 
 (3) If any part of any donations collected for  any private or charitable fund is used to any 
purpose or object other than that for which it was collected, or is otherwise misapplied or 
misappropriated in any manner, every person concerned with the collection or administration of the 
fund, whether as a  promoter, collector or a recipient, shall unless he proves that the misuse, 
misapplication or misappropriation accurred without his knowledge and that he had used all due 
diligence to prevent such misuse, misapplication or misappropriation, shall be deeme d to have acted 
in contravention of this section and be punishable accordingly. 
 8. Application of Act VI  of 1890. ___Notwithstanding anything contained in the Charitable 
Endowments Act, 1890, hereinafter referred to as “the said Act ” every fund which is a  charitable 
fund for the purposes of this Act shall be deemed to be a charitable endowment and the purpose of 
every such fund shall be deemed to be a charitable purpose for the purposes of the said Act, and the 
said Act shall apply accordingly. 
 9. Powers of sanctioning authority.  ___The sanctioning authority may at any time for 
reasons appearing to it to be sufficient cancel or alter any order made or direction given by it under 
this Act.  
 10. Appellate authority.  ___(1) The 1[Commissioner] may appoint a person to be the 
appellate authority for the purposes of this Act, and when there is no person so appointed, the 
1[Commissioner] shall himself be the appellate authority. 
 
1Subs. by A.O., 1964, Art. 2 and Sch. 
 
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 (2) Any person who is dissatisfied with any order passed or direction given or refusal to make 
any order or give any direction by the sanctioning authority, may within thirty days of the order, 
direction or refusal, appeal against it to the appellate authority, and the appellate authority may 
thereupon make such order as it thinks fit in accordance with this Act.  
 11. Revision. ___The 1[Commissioner]  and when the order sought to be revised is passed by 
the 1[Commissioner] the 2[Provincial Government] may at any time revise any order made by the 
appellate authority or otherwise under this Act and pass such order in accordance with this Act as it 
deems proper. 
 12. Penalty for contraventions.  ___Any person who acts in contravention of any of the 
provisions of this Act or the rules made thereunder or of any order made, direction given or condition 
imposed under this Act shall be punished with imprisonment of either description for a term which 
may extend to six months or with fine or with both. 
 13. Offences cognizable, bailable and non -compoundable. ___An offence punishable under 
this Act shall be cognizable, bailable and non-compoundable. 
 14. Prosecution subject to sanction by District Magistrate.  ___No prosecution under this 
Act shall be commences except with the previous sanction of the District Magistrate.  
 15. Jurisdiction of Magistrates.  ___No court inferior to that of a magistrate of the first class 
shall try an offence under this Act.  
 16. Application of other laws.  ___Save as provided, the provisions of this Act shall be in 
addition to and not in derogation of any other law for the time being in force. 
 17. Exemptions.  ___The 1[Commissioner] may by a general or a special order exempt any 
fund or any person, institution, association, society or undertaking from all or any of the provisions 
of this Act, and the exemption may be made subject to such conditions as the 1[Commissioner] may 
think proper. 
 18. Rules.___ (1) The 1[Commissioner] with the prior consent of the 2[Provincial Government] 
shall by notification in the official Gazette make rules to carry out the purposes of this Act.  
 (2) Without prejudice to the generality of the foregoing power, the rules may provide for___  
(a)  the form and contents of declarations and the verification of statements made 
therein; 
(b)  the periods for which d eclarations shall remain in force and the manner in 
which the periods may be extended or terminated; 
(c)  the form and manner in which receipts for donations may be given and the 
maintenance of proper vouchers for the purposes of the accounts; 
 
1Subs. by A.O., 1964, Art. 2 and Sch. 
2Subs. ibid. 
 
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(d)  the maintenance of proper books of accounts and the auditing of the accounts;  
(e)  the periodical submission of statements of accounts ; 
(f)  the supervision, inspection and examination of accounts ; 
(g)  the payment of charges for forms of declarations, certificates, etc. 
 19. Protection of persons acting under this Act.  ___No prosecution, suit or legal proceeding 
shall bi instituted against any person in respect of anything which is in good faith done or inte nded to 
be done in pursuance of this Act.  
 
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  RI - Date: 14-05-2024