Fundraising Commission Agreement Template for Singapore

A Fundraising Commission Agreement is a legally binding contract that governs the relationship between organizations and professional fundraisers or agencies in Singapore. This document establishes clear terms for commission-based fundraising activities while ensuring compliance with Singapore's comprehensive regulatory framework governing charitable and commercial fundraising.

When do you need this document?

You need this agreement when engaging external fundraisers to raise funds on behalf of your organization. This is particularly crucial for charitable organizations operating under the Charities Act 1994, which requires specific compliance measures for fundraising activities. Commercial entities seeking investment or capital through professional fundraisers also require this agreement to meet Securities and Futures Act requirements. The document becomes essential when you want to establish clear commission structures, performance expectations, and regulatory responsibilities. It's also necessary when multiple parties are involved in fundraising campaigns to prevent disputes and ensure proper documentation of the working relationship.

Key legal considerations

The commission structure must comply with Singapore's regulatory requirements, particularly regarding percentage caps and payment terms that align with charitable fundraising guidelines. Your agreement should clearly define whether the fundraiser operates as an independent contractor or employee, as this affects obligations under the Employment Act and Central Provident Fund Act. Include specific clauses addressing compliance with anti-money laundering regulations and donor privacy requirements. The agreement must outline reporting obligations, particularly for charitable organizations that must maintain transparent records for regulatory authorities. Consider including termination clauses that protect both parties while ensuring continuity of fundraising activities. Risk allocation provisions should address potential regulatory breaches and their consequences, including who bears liability for non-compliance with relevant Singapore laws.

Legal requirements in Singapore

Under the Charities Act 1994, charitable organizations must ensure their fundraising agreements comply with registration and reporting requirements administered by the Commissioner of Charities. If your fundraising involves investment products or securities, the agreement must align with Securities and Futures Act licensing requirements and investor protection measures. The Companies Act governs corporate fundraising activities and may require specific disclosures in your agreement. Commission payments are subject to Income Tax Act provisions, requiring proper documentation for tax compliance. If the fundraiser's role could be considered employment, you must comply with Employment Act provisions regarding basic terms and conditions, and Central Provident Fund Act requirements for social security contributions. Your agreement should also address compliance with the Personal Data Protection Act when handling donor information and ensure adherence to any sector-specific regulations that may apply to your organization's fundraising activities.