Cap. 492 Art. 12BMandatory enrolment.

(1) Any voluntary organisation shall be required to enrol under this Act in the following cases:

(a) it makes or intends to make public collections; or

(b) it receives or is the beneficiary of grants, sponsorships or other financial aid from the Government or otherwise enjoys the privileges contemplated by this Act, any regulations made thereunder or any other law, or intends to be so eligible; or

(c) it is the beneficiary of any policies supporting voluntary action as these may be developed by the Government or intends to so benefit; or

(d) it receives or is the beneficiary of exemptions, privileges or other entitlements in terms of any law or intends to so benefit;

(e) it does not carry out activities as stated under paragraphs (a) to (d) but has an income of more than twenty-five thousand euro (€25,000) in any one year or has an annual income of more than five thousand euro (€5,000) for three consecutive years: Provided that this paragraph shall not apply in the case of an organisation carrying out purposes and, or activities or having sources of income other than those related to the general public or public sources, even if such organisation has a social purpose, unless this is determined by the Commissioner in writing, of his own motion or on the request of the organisation on the basis of presumed public benefit: Provided further that the obligation to maintain enrolment shall cease to apply if the organisation’s level of income does not meet any of the relevant thresholds for more than three consecutive years;

(f) it does not carry out activities as stated under paragraphs (a) to (d) but it has capital assets of a value exceeding five hundred thousand euro (€500,000)

irrespective of its income in any one year: Provided that this paragraph shall not apply in the case of an organisation carrying out purposes and, or activities or having sources of income other than those related to the general public or public sources, even if such organisation has a social purpose, unless this is determined by the Commissioner in writing, of his own motion or on the request of the organisation on the basis of presumed public benefit: Provided further that the obligation to maintain consecutive years;

(g) the administrators shall be under an obligation to enrol the organisation should it be so required by the statute, whether original or as amended, or in case of an association, if it is so resolved in a general meeting of members or if at least thirty five per cent of its members so request in writing provided that the purpose of the organisation is for a public purpose or benefit.

(2) There shall be a List of Enrolled Voluntary Organisations which shall be maintained by the Commissioner in accordance with this Act and in the manner he may consider appropriate to enable any member of the public to verify the existence of an enrolled voluntary organisation, and to obtain any other information provided by it to the Commissioner.

(3) The obligation to enrol shall arise:

(a) in the case of an established organisation, within ninety (90) days of its establishment but before engaging in any of the activities or prior to receiving any of the benefits referred to in sub-article (1);

(b) in the case of an established organisation, the income of which exceeds any of the income thresholds stated in sub-article (1)(e) or the capital of which exceeds the threshold stated in sub-article (1)(f), within ninety (90) days from the date on which any of the financial thresholds referred to in sub-article (1)(e) or (f) is exceeded, and in any case, prior to receiving any additional benefits referred to in sub-article (1); and

(c) in the cases contemplated in paragraph (g), within ninety (90) days from the relevant decision, resolution or similar event.

(4) It shall be the responsibility of the administrators and, in the case of sub-article (1)(e) and (f), also of any accountant, reviewer or auditor, if any, of a voluntary organisation to ensure compliance with the provisions of this article.

(5) Any accountant, reviewer or auditor, if any, engaged to review the levels of income established in sub-article (1)(e) and, or the capital in sub-article (1)(f), shall notify the administrators in writing, with a copy to the Commissioner, if the duty to enrol arises under this article and the obligation has not been fulfilled by the administrators within the established time limits. In such case, the Commissioner shall notify the administrators with a time limit for enrolment, which shall not be less than ninety (90) days, and the administrators shall be obliged to enrol the organisation within such time limit as notified by the Commissioner.

(6) For the purposes of this article: organisations and any reference to a relevant organisation’s annual income is to be read, in relation to a particular time, as a reference to the organisation’s gross consolidated income in its financial year immediately preceding that time, having regard to all affiliated organisations. "Affiliated organisations" for the purposes of this article comprises any organisation ("parent") together with all organisations set up by the same organisation ("subsidiaries"), other organisations set up by any of the subsidiaries and, any organisations established by the same founders or promoters to achieve the same or complimentary purposes from common efforts, funds or opportunities;

(ii) any cash deposit made with the organisation or any other transfer of funds under terms which indicate that it is not an ordinary commercial arrangement but is intended to operate as a grant or donation to the organisation; and

(iii) membership fees;

(b) "financial aid" shall include any financial aid which is available to the voluntary sector from the European Union.

(7) In the event that the statute of the organisation describes it to be for public purposes, voluntary or non-profit making and the organisation appears to be carrying out any of the activities in sub-article (1)(a) to (d); and -

(a) the statute satisfies many of the requirements as described in this Act for qualifying as a voluntary organisation but also has features or elements in its statute which exclude it from qualifying as such under this Act; and

(b) any administrator, or any other person with the consent, tacit or express, of any administrator, makes any verbal or written public statement that the organisation’s purposes are exclusively for public benefit and that it is non-profit making thereby seeking or encouraging public support, the organisation shall comply with the requirements of this Act and shall enrol within ninety (90) days of the coming into force of this article or within fifteen (15) days of a notice from the Commissioner, unless it withdraws or corrects any misrepresentation and declares in writing not to repeat the same, and amends its statute and other documentation clearly stating that purpose.

Provided that:

(a) should it encounter any obstacles in complying with the above within the said period, it shall apply to the Commissioner for an extension of time to do so; or

(b) if it cannot address any non-qualifying features or elements for reasons which can be justified, it may:

(i) ask the Commissioner for a ruling that it is not obliged to enrol until solutions are found but, if such ruling is given, the organisation shall be prohibited from carrying out any of the activities in sub-article (1)(a) to (d) and, if it does so, the organisation and the administrators shall be guilty of an offence; or

(ii) ask the Commissioner to permit enrolment without full compliance with the provisions of this Act together with a ruling on how the non-qualifying features or elements are to be administered.

(8) When the provisions of sub-article (7) apply and no application is made by an organisation which is deemed by the Commissioner to be subject to mandatory enrolment, the Commissioner may issue an order in writing for the enrolment of such organisation within the time period stated in the order. The organisation may, during the period stated in the order, appeal to the Tribunal which shall:

(a) confirm the Commissioner’s order for the mandatory enrolment of the organisation; or

(b) declare that the organisation is not a voluntary organisation therefore not rendering such organisation subject to mandatory enrolment but also confirming the prohibitions to carry out acts or enjoy the privileges referred to in article 4(4).

(9) Nothing in sub-article (1)(e) or (f) shall prejudice the continuing enrolment of any organisation enrolled prior to the date of the coming into force of this article.

(10) An organisation which is subject to mandatory enrolment in terms of this article for reasons referred to in sub-article (1)(c) or (d) and which has been enrolled for at least five (5) years purpose or public benefit, even if it has a social purpose.

(11) Such organisation shall submit its latest accounts and reports together with the request for exemption and if such request is accepted by the Commissioner, the organisation shall not be entitled to carry out acts or enjoy the privileges referred to in article 4(4) until such time as it remains non-enrolled.

(12) The list of all enrolled voluntary organisations as may from time to time be amended shall be made accessible to the public on demand.