Fundraising and lotteries
Organisations operating on the basis of voluntary or neighbourly work may raise funds for their operations through their own work or by running lotteries, etc.
As a general rule, all fundraising requires either a notification to the police department or a permit from the National Police Board. When you organise a small-scale collection of funds, you must notify the police department of a small-scale money collection. A small-scale money collection allows you to collect a maximum of EUR 10,000, and the collection may take a maximum of three months. If the collection is larger, apply to the National Police Board for a permit that is valid for an indefinite period.
A money collection permit may be granted to non-profit organisations and foundations for the purpose of raising funds for public-interest activities. You can also arrange a small-scale collection for purposes other than public-interest activities. For example, such purposes include the collection of funds to help a person or a family in financial difficulties.
However, you may not collect money for business activities or to increase wealth. A group of at least three persons may organise a small-scale money collection. The group does not need to be registered.
If the money collection permit is valid for an indefinite period, the money collections must be reported regularly. Every year, the organisation must submit an annual report and an annual plan for its fundraising to the National Police Board.
Submit the annual report on the collection of money on behalf of the organisation you represent within six months of the end of the financial year. Report the money collections arranged during the financial year, their proceeds and expenses, and the details of how the funds collected have been used.
Also submit an annual plan for the money collections planned for the following financial year. You can submit the plan in connection with the annual report or two months before the start of the following financial year at the latest.
Please note that the obligation to submit an annual report and an annual plan to the National Police Board only applies to money collection permits valid for an indefinite period. Therefore, if you organise a small-scale money collection, you do not need to submit an annual report or an annual plan.
Non-profit associations or foundations may run non-money lotteries to raise funds for their public-interest purposes. As a general rule, this requires a licence granted by the competent authority. If a lottery is arranged within the jurisdiction of a single police department, the licence application should be submitted to that police department. Licence applications for lotteries running across several jurisdictions should be submitted to the National Police Board.
A non-profit association may arrange a small-scale lottery without a separate licence, where the combined sales price of tickets does not exceed EUR 3,000. In such cases, prizes should be given out at the same event where the tickets were sold. The combined value of the prizes must amount to at least 35% of the combined sales price of the tickets. The value of the smallest prize must be at least equal to the price of a ticket. All proceeds from small-scale lotteries must also be used for public-interest purposes.
School classes and similar study groups may run small-scale lotteries to promote studies or recreational activities in support of studies without a separate licence. Such lotteries must be coordinated by an adult.
A lottery organiser must render lottery accounts, which refer to a form submitted to the police to provide information on a lottery operation, including the proceeds of the lottery, how the proceeds will be used, and the costs incurred due to the lottery. In addition, the organiser must draw up a lottery draw record, including a prize list, i.e. a list of winning tickets and prizes. The obligation to draw up lottery draw records and prize lists also applies to small-scale lotteries.
Lottery accounts must be submitted to the licensing authority, i.e. the relevant police department or the National Police Board, within five months of the expiry of the licence. The competent authority will then inspect the accounts. Small-scale lottery accounts must be rendered without delay after the event. However, accounts are not required for small-scale lotteries where tickets have only been sold to members of the organisation running the lottery.
The accounts must be made open to public inspection for a period of two weeks and they must be stored in keeping with the provisions of the Accounting Act.