PUNJAB CHARITIES ACT 2018

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THE PUNJAB CHARITIES ACT 2018  
(V of 2018) 
CONTENTS 
  
1. Short title, extent and commencement 
 
2. Definitions 
 
3. The Commission 
 
4. Chairperson of the Commission 
 
5. Chief Executive Officer 
 
6. Functions of the Commission 
 
7. Power to call for record of charities, etc 
 
8. Power to appoint charity trustee 
 
9. Enquiry 
 
10. Employees 
 
11. Appointment of advisers, consultants etc  
 
12. Charities to be registered  
 
13. Exemption 
 
14. Register of charities  
 
15. Application for registration 
 
16. Register to be public document 
 
17. Cancellation of registration 
 
18. Registering authority 
 
19. Sanctioning authority 
 
20. Prohibition on collection 
 
21. Powers of sanctioning authority 
 
22. Residuary powers of the Commission 
 
23. Periodic evaluation of charities 
 
24. Administrative actions  
 
 
 
25. Reports 
 
26. Obligations of charity trustees 
 
27.  Fiduciary responsibilities of charity trustees 
 
28. Accounting records of a charity 
 
29. Accounting of charitable funds 
 
30. Audit and Inspection 
 
31. Misapplication of funds 
 
32. Penalty 
 
33. Cognizance and summary trial 
 
34. Compounding of offence 
 
35. Confiscation 
 
36. Appeal  
 
37. Application of other laws 
 
38. Rules 
 
39. Regulations 
 
40. Indemnity 
 
41. Revision 
 
42. Repeal and savings 
 
43. Repeal 
 
 
 
 
TEXT 
1
THE PUNJAB CHARITIES ACT 2018 
(V of 2018) 
[7 March 2018] 
An 
Act 
to register and regulate charities and collection of charitable funds. 
It is nec essary to make effective provisions for the registration, administration and 
regulation of charities, fund -raising appeals and collection of charitable funds for 
charities and other institutions; and, for other purposes. 
Be it enacted by the Provincial Assembly of the Punjab as follows: 
1. Short title, extent and commencement .– (1) This Act may be cited as the 
Punjab Charities Act 2018. 
(2)  It extends to whole of the Punjab. 
(3) It shall come into force at once. 
2. Definitions.– In this Act: 
(a) “Act” means the Punjab Charities Act 2018; 
(b) “Assistant Commissioner” means the executive officer incharge 
of a Tehsil; 
 (c) “charitable fund” includes the money and goods collected for a 
limited period of time for charitable purpose by a person or 
organization not registered as a charity; 
 (d) “charitable purpose” means the purpose which is for: 
 (i) prevention and relief of poverty;  
 (ii) promotion of education and learning;  
 (iii) provision of health and lifesaving services;  
 (iv) community development;  
 (v) promotion of arts, culture and heritage;  
 (vi) promotion of human rights, conflict resolution and 
reconciliation activities; 
 (vii) promotion of religious and racial harmony;  
 (viii) promotion of diversity and tolerance;  
 (ix) environmental protection and environmental 
improvement;  
 (x) relief of those in need of it by reason of youth, age, ill 
health, or disability; and   
 (xi) such other purposes as the Commission may determine. 
                                                 
1This Act was passed by the Provincial Assembly of the Punjab on 28 February,  2018; assented to by the Governor of the 
Punjab on 7 March 2018; and, was published in the Punjab Gazette (Extraordinary), dated: 8 March 2018, pp. 6329-6336 
 
 
 (e) “charity” means any association of persons which is established 
for a charitable purpose and includes the following:  
(i) an organization registered under the Voluntary Social 
Welfare Agencies (Registration and Control) Ordinance, 
1961 (XLVI of 1961); 
(ii) an organization registered under the Societies 
Registration Act, 1860 (XXI of 1860); 
(iii) an organization registered under the Companies Act, 
2017 (XIX of 2017)  or under any other law for the time 
being in force;  
(iv) an organization registered for charitable purposes under 
any law for the time being in force; and 
(v) a public or private trust. 
  (f) “charity trustee” means the person or persons having the 
general administration, control and management of a charity; 
  (g) “collect” or “collection” means appealing for, receiving, collecting 
or attempting to collect any donations whether in mone y or in 
kind; 
  (h) “collector” means a person actually engaged in collecting 
donations for a charitable purpose; 
  (i) “Commission” means the Charity Commission established under 
the Act. 
  (j) “declaration” means a declaration made by the charity or 
promoter of a charitable fund, stating: 
(i) the names and addresses of the charity or promoter or 
promoters of the fund; 
(ii) the proposed value of the donation; 
(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 purposes for which the fund shall be 
utilized;  
(vi) the names of the banks or the persons in whose custody 
the collection shall be kept; and 
(vii) any other prescribed information. 
(k) “Deputy Commissioner” means the executive officer incharge of 
a district or any other person appointed by the Government as 
Deputy Commissioner for purposes of the Act; 
(l) “Government” means Government of the Punjab; 
(m)  “prescribed” means prescribed by the rules or regulations made 
under the Act; 
(n) “promoter” means a person, other than a charity, responsible for 
collection, custody, administration and accounting of the 
donations for a charitable fund or a charitable purpose; 
 
 
(o) “recipient” means an individual, institution, association, society 
or undertaking for whose benef it a charitable fund is or shall be 
collected; 
(p) “registering authority” means the registering authority mentioned 
in section 18 of the Act; and 
(q) “sanctioning authority” means the authority mentioned in section 
19 of the Act. 
3. The Commission.– (1) The Commi ssion shall consist of not less than three 
and not more than five Commissioners including the Chairperson, as the 
Government may determine. 
(2) A Commissioner shall be a person who is known for integrity, 
expertise, experience and eminence in the field of law, administration, social work or 
any other related field. 
(3) The Government may appoint Commissioners from amongst serving or 
retired civil servants, retired judges and private sector on such terms and conditions 
as may be prescribed and until so prescribed as the Government may determine.  
(4) Subject to the provisions of the Act, the Commission shall discharge its 
functions, exercise its powers and conduct its proceedings in the prescribed manner 
and until so prescribed in the manner the Commission may determine. 
 (5) The term of the office of a Commissioner shall be two years.  
(6) A Commissioner shall perform such functions as may be prescribed or 
assigned by the Commission. 
4. Chairperson of the Commission.– (1) The Government shall appoint one of 
the Commissioners as the Chairperson of the Commission but a Commissioner shall 
not be appointed as Chairperson for more than two consecutive terms. 
(2) The Chairperson and the Commissioners shall be responsible for the 
due discharge of the mandate of the Commission. 
5. Chief Executive Officer.– (1) The Government shall, in consultation with the 
Commission, appoint the Chief Executive Officer of the Commission on such terms 
and conditions as may be prescribed and until so prescribed as the Government may 
determine. 
(2) The Chief Executive Officer shall be responsible for the day to day 
administration of the Commission and shall perform such other functions as may be 
prescribed or assigned by the Commission.  
6. Functions of the Commission .– (1) The Commission  shall perform such 
functions as may be necessary for accomplishing the purposes of the Act. 
 (2) Without prejudice to the generality of the foregoing powers, the 
Commission shall: 
(a) maintain public trust and confidence in charities;  
(b) register charities;  
(c) protect charities and the beneficiaries thereof; 
(d) ensure that charities and promoters comply with their legal 
obligations in exercising control and management of the 
administration of the charitable funds; 
 
 
(e) issue necessary advice to the charities and charity trustees; 
(f) ensure effective use of charitable funds; 
(g) institute a mechanism for effective monitoring and accountability 
of charities, promoters, collectors and recipients; 
(h) hold, if necessary, an enquiry into the affairs of a charity or 
charitable fund; 
(i) alter or set aside sanction of collection accorded by a Deputy 
Commissioner; 
(j) receive and examine annual audit report of a charity or 
charitable fund; 
(k) conduct or cause to be conducted a special audit of a charity or 
charitable fund; 
(l) issue guidelines for proper ac counting, management and 
utilization of a charity or charitable fund; 
(m) issue such directions to the Deputy Commissioners and 
Assistant Commissioners as may be necessary for the due 
discharge of the functions under the Act; and 
(n) perform such other related fun ctions as the Government may 
assign. 
7. Power to call for record of charities, etc .– (1) The Commission may call for 
any record, data or information about a charity, a charity trustee, the beneficiaries of 
a charity, a charitable fund and expenditure on charity by a corporate entity. 
(2) The Commission may seek verification of the financial records from 
financial institutions and may utilize the services of a law enforcing agency for the 
purpose. 
8. Power to appoint charity trustee .– (1) The Commission may appoint a 
charity trustee or any officer or office -bearer of a charity if such charity fails to 
remove a trustee or appoint a new trustee or officer where:  
(a) a trustee or officer has been convicted of an offence involving 
moral turpitude, dishonesty or deception; or 
(b) a trustee has been adjudged bankrupt; or  
(c) the conduct  of a trustee or officer is detrimental to the cause of 
the charity owing to mismanagement or other reasons as may 
be determined by a court or the Commission. 
(2) The Commission shall provide an opportunity of defence and hearing 
to the charity or the person likely to be affected by the decision of the Commission. 
9. Enquiry.– (1) The Commission, on its own motion or on receipt of a request 
from the Government or a complaint from any person, ma y hold an enquiry into the 
affairs of a charity to ascertain whether any charitable funds have been misapplied or 
misappropriated or there is any breach of trust. 
(2) If as a result of enquiry under sub -section (1), the Commission finds 
that an offence has been committed under any law or any trust has been breached, it 
may move a reference to the Government to proceed further in accordance with law. 
 
 
10. Employees.– (1) The Commission may, from time to time, employ persons to 
assist the Commission in the performance of its functions.  
(2) The employees of the Commission shall be paid such remuneration 
and allowances and shall hold their employment on such terms and conditions as 
may be prescribed. 
11. Appointment of advisers, consultants etc.– The Commission may, with the 
approval of the Government, employ such consultants, or technical professionals or 
advisers as may be necessary for the due discharge of its functions under the Act, 
on such terms and conditions as may be prescribed and until so prescribed, a s the 
Government may determine.  
12. Charities to be registered .– (1) Every charity shall get itself registered with 
the Commission not later than such date as the Government may, by notification, 
determine.  
(2) A charity shall not collect charitable fund s or seek collection of the 
charitable funds unless it is registered under the Act.  
13. Exemption.– The Government may, after recording reasons, exempt an 
organization or charity from the provisions of section 12 of the Act, but an 
organization which is n ot registered as a not -for-profit company shall not be so 
exempted. 
14. Register of charities .– (1) The Commission shall maintain a Register of 
Charities in such manner as may be prescribed and until so prescribed as the 
Commission may determine.  
 (2) The Register shall contain: 
(a) the name of every registered charity; and 
(b) such other particulars of, and such other information relating to, 
every such charity as may be prescribed or as the  Commission 
may determine.  
15. Application for registration .– (1) Every organization required to be 
registered under the Act shall provide to the registering authority the information 
regarding the objectives of the charity, the source or sources of income of the charity 
and the nature of its spending, and such other documents or information as may be 
prescribed.  
 (2) The Registering Authority may, for reasons to be recorded in writing, 
refuse registration of an organization if in its opinion the objects of charity stated in 
declaration are not in consonance with the charitable purpose or for any other 
reasonable cause. 
16. Register to be public document .– (1) The Register of Charities shall be a 
public document and shall be open to public inspection at all reasonable times. 
  (2) A person may obtain copies of particul ars of Register of Charities or 
documents supplied by a charity subject to payment of such fee as may be 
prescribed. 
 (3) The Commission shall publish on its website such information in the 
Register as may be necessary to create general awareness about the  work and 
conduct of charities. 
 
 
17. Cancellation of registration .– The Commission may, after affording an 
opportunity of hearing, suspend or cancel the registration of a charity if the 
Commission is satisfied that: 
(a) the organization or association of pe rsons is not furthering any 
charitable purpose; or 
(b) the charity has committed a serious violation of the provisions of 
the Act or the rules. 
18. Registering authority .– (1) The Commission shall be the registering 
authority when the operation of a charity extends to the whole of the Punjab or two or 
more districts. 
 (2) The Deputy Commissioner shall be the registering authority when the 
operation of a charity does not extend beyond the district. 
 (3) The Assistant Commissioner shall be the registering aut hority where 
the operation of a charity extends only to a Tehsil. 
19. Sanctioning authority.– (1) The Commission may sanction the collection of 
charitable funds if the collection is proposed to be made from the whole of the 
Punjab or two or more districts or for a period of more than twelve months. 
 (2) Subject to subsection (1): 
(a) the Deputy Commissioner may sanction the collection of 
charitable funds if the collection is to be made from within a 
district; and 
(b) the Assistant Commissioner may sanction the collection of 
charitable funds if the collection is to be made from within a 
Tehsil. 
20. Prohibition on collection.– (1) A promoter shall not make or solicit collection 
for any charitable fund unless before the start of the collection, he makes a 
declaration in respect of the intended collection and delivers the declaration to the 
sanctioning authority, and the sanctioning authority sanctions, in writing, the 
collection. 
 (2) The sanctioning authority may refuse to sanction the collection under 
this section if it is not satisfied with regard to good faith of the promoter or 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 subject to such 
conditions as it may consider necessary for ensuring the proper custody of the fund 
and its due administration and utilization for the objects and purpo ses of the 
charitable fund. 
 (4) If the sanctioning authority sanctions the collection, it shall issue or 
cause to be issued a certificate for a specified period, to the promoter in such form 
and manner as the Commission may, by regulations, prescribe, aut horizing him to 
make the collection through identified collectors and for identified recipients. 
 (5) The Deputy Commissioner may alter or set aside a sanction of 
collection accorded by an Assistant Commissioner in the district. 
 
 
21. Powers of sanctioning a uthority.– The sanctioning authority may, at any 
time, for sufficient reasons and after affording opportunity of hearing, cancel or alter 
any order made or direction given by it under the Act . 
22. Residuary powers of the Commission .– The Commission may is sue such 
directions to the Deputy Commissioners and Assistant Commissioners as may be 
necessary for achieving the objectives of the Act. 
23. Periodic evaluation of charities .– The Commission shall undertake a 
periodic evaluation of the charities to review the performance of the charity trustees 
under the Act. 
24. Administrative actions.– (1) If, after evaluation or audit, the Commission is 
satisfied that any charity has failed to comply with the obligations envisaged under 
the Act, the Commission may: 
(a) suspend or cancel the registration of that charity under the Act; 
and 
(b) impose fine, not exceeding one million rupees, on the charity or 
organization. 
(2) The Commission shall not take any action under sub -section (1) unless 
the charity or organization is aff orded a reasonable opportunity of hearing and 
showing cause against the proposed action.  
25. Reports.– The Commission shall, from time to time, publish reports, 
highlighting the areas of operations carried out by the Commission and other 
administrative actions taken during the period under report. 
26. Obligations of charity trustees.– (1) A charity trustee shall:  
(a) comply with the terms and conditions of the governing 
instrument which envisages the establishment of the charity 
trustee with the relevant authority; 
(b) coordinate with the other charities operating in the respective 
domain for purposes of consolidated efforts at achieving the 
objectives and targets under the Act; and 
(c) immediately inform the Commission about any change in the 
constituent document of the charity. 
27.  Fiduciary responsibilities of charity trustees .– A charity trustee shall be 
responsible for: 
  (a) controlling the assets of the charity; 
  (b) protection, proper investment and utilization of the charitable 
fund;  
  (c) ensuring that the charitable funds are not used for any purpose 
other than the declared purpose; 
  (d) ensuring that the charitable funds or property is not misused or 
allowed to go waste as a result of mismanagement or for any 
other reasons;  
  (e) the sale, l ease or other disposal of the charity property and 
insurance of the charity property; and 
 
 
  (f) ensuring that no unnecessary encumbrances are created on the 
charity property. 
28. Accounting records of a charity .– (1) The charity trustees shall ensure that 
accurate accounting records are maintained in respect of the charity. 
 (2) The accounting records shall mention all the transactions of the charity 
and shall also reflect on the financial position of the charity. 
 (3) The accounting records shall in particular contain: 
(a) entries pertaining to  all sums of money received and expended 
by the charity each day;  
(b) matters in respect of which the receipt and expenditure takes 
place; and 
(c) the details of assets and liabilities of the charity. 
 (4) The chari ty trustees shall preserve the accounting records for such 
period as may be prescribed. 
 (5) The charity trustee shall prepare annual statement of accounts. 
 (6) If the amount given to a charity in a calendar month exceeds fifty 
thousand rupees, the charit y shall deposit the amount in a dedicated bank account 
and shall provide information of the bank account to the sanctioning authority or the 
registering authority, as the case may be. 
 
29. Accounting of charitable funds .– The charity trustees shall ensure that 
accounting records of a charitable fund are maintained as required under section 28. 
30. Audit and Inspection .– (1) The Commissioner or the sanctioning authority 
may, for reasons to be recorded, direct that the accounts of a charity shall be audited 
or re-audited by a specified auditor at the expense of the charity or the person who 
has applied for the special audit of the charity. 
(2)  The Commission or sanctioning authority may inspect or cause to be 
inspected any accounts maintained under the Act or the rules. 
31. Misapplication of funds .– (1) A charity, promoter, collector or recipient of a 
charitable fund shall not use the fund for any purpose or object other than the 
purpose or object for which it was collected except with the prior permission of the 
Commission. 
 (2) A person authorized to hold charitable fund shall not transfer the 
custody of the charitable fund to any other person except with the prior approval in 
writing of the Commission or the sanctioning authority. 
 (3) If any part of any donations collected for any charitable fund is used for 
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, wh ether as a promoter, collector or a 
recipient, shall unless he proves that the misuse, misapplication or misappropriation 
occurred without his knowledge and that he had used all due diligence to prevent 
such misuse, misapplication or misappropriation, shal l be deemed to have 
committed the misuse, misapplication or misappropriation of the charitable fund. 
 
 
32. Penalty.– (1) Any person who dishonestly or fraudulently tampers with, 
conceals or destroys any records pertaining to the collection of any charitable fund to 
which the Act applies shall be deemed to have contravened the Act. 
 (2) A person who contravenes any provision of the Act or the rules or of 
any order made, direction given or condition imposed under the Act shall be liable to 
punishment of impriso nment for a term which may extend to six months but which 
shall not be less than fifteen days and fine which shall not be less than twenty five 
thousand rupees or more than one hundred thousand rupees. 
33. Cognizance and summary trial .– (1) An offence unde r the Act shall be 
cognizable and non-bailable.  
 (2) A Magistrate of the first class shall conduct the trial of an offence under 
the Act in accordance with the provisions of Chapter XXII of the Code of Criminal 
Procedure, 1898 (V of 1898) relating to the summary trials. 
34. Compounding of offence .– (1) Subject to subsection (2), the  
Commission or any person specifically authorized in this behalf by the Commission 
may, at any stage, compound an offence under the Act subject to the deposit of 
administrative penalty which shall not be less than twenty five thousand rupees.  
 (2) The offence under the Act shall not be compoundable if the accused 
had been previously convicted under the Act or his previous offence had been 
compounded by the Commission or the officer authorized by the Commission. 
35. Confiscation.– A court trying an offence under the Act may order the 
confiscation or recovery of any fund wrongfully collected or misapplied by any person 
in contravention of the Act. 
 
36. Appeal.–  (1) Any person agg rieved by an order or direction of the 
Commission, may within thirty days of the order, prefer an appeal to the Appellate 
Committee. 
 (2) The Government shall, by notification, constitute the Appellate 
Committee consisting of the Chairperson and such members as it may determine. 
 (3) The Committee shall perform its functions in the prescribed manner 
and until so prescribed, the Committee shall regulate its own procedure.  
37. Application of other laws .– The provisions of the Act shall be in addition to 
and not in derogation from any other law. 
38. Rules.– (1) The Government may, by notification, make rules to carry out the 
purposes of the Act. 
 (2) Without prejudice to the generality of the foregoing powers, the rules 
may provide for: 
(a) the form and conten ts of declarations and the verification of 
statements made in a declaration; 
(b) the period for which declarations shall remain in force and the 
manner in which the period may be extended or terminated; 
(c) the form and manner in which receipts for donatio ns may be 
given and the maintenance of proper vouchers for purposes of 
the accounts; 
 
 
(d) the maintenance of proper books of account and the auditing of 
the accounts; 
(e) the periodical submission of statements of accounts; 
(f) the supervision, inspection and examination of accounts; and 
(g) the payment of charges for forms of declarations and 
certificates. 
39. Regulations.– Subject to the Act and the rules, the Commission may, by 
notification, frame regulations to give effect to the provisions of the Act. 
40. Indemnity.– No prosecution, suit or other legal proceedings shall be instituted 
against any person in respect of anything which is, in good faith, done or intended to 
be done under the Act. 
41. Revision.– Subject to section 36, the Government may, at an y time, on its 
own motion or on the application of any aggrieved person, revise any decision or 
direction of the Commission and pass such order in accordance with the Act as it 
may deem proper. 
42. Repeal and savings .– (1) The Charitable Funds (Regulation of Collections) 
Act, 1953 (XXXI of 1953) is hereby repealed. 
 (2) Notwithstanding the repeal of the Charitable Funds (Regulation of 
Collections) Act, 1953 ( XXXI of 1953 ), anything done or action taken under the 
repealed Act, shall have the effect as if the  thing is done or action is taken under the 
Act. 
43. Repeal.– The Punjab Charities Ordinance 2018  (I of 2018) is  hereby 
repealed.