Article 1(Purpose) #
The purpose of this Act is to advance social welfare by encouraging citizens to understand and participate in social welfare activities through collaborative fundraising efforts by the Community Chest of Korea and by efficiently and equitably managing and operating financial resources generated through with voluntary contributions from citizens.
[This Article Wholly Amended on Oct. 22, 2012]
Article 2(Definitions) #
The terms used in this Act are defined as follows:
1. The term "social welfare program" means social welfare program defined in subparagraph 1 of Article 2 of the Social Welfare Services Act;
2. The term "community-based fundraising" means collecting donations under this Act to secure financial resources necessary for supporting social welfare programs and related activities.
[This Article Wholly Amended on Oct. 22, 2012]
Article 3(Basic principles) #
(1) Donations shall be made without coercion.
(2) The financial resources accumulated pursuant to Article 17 (hereinafter referred to as "community chest resources") shall be allocated in a manner that ensures fair satisfaction of welfare needs for each region, organization, eligible person, and program, and shall be managed and operated equitably to meet the purposes under Article 1 and the purposes of use under Article 25.
(3) The allocation of community chest resources accumulated shall be conducted efficiently in accordance with objective criteria, and the outcomes thereof shall be made public.
[This Article Wholly Amended on Oct. 22, 2012]
Article 4(Establishment of the Community Chest of Korea) #
(1) The Community Chest of Korea (hereinafter referred to as the "Community Chest") shall be established to take charge of community-based fundraising programs.
(2) The Community Chest shall be a social welfare corporation defined in subparagraph 3 of Article 2 of the Social Welfare Services Act.
(3) The Community Chest shall be established by preparing the articles of incorporation, obtaining authorization from the Minister of Health and Welfare, and registering such establishment.
[This Article Wholly Amended on Oct. 22, 2012]
Article 5(Programs) #
The Community Chest shall execute the following programs:
1. Community-based fundraising program;
2. Allocation of community chest resources;
3. Operation and management of community chest resources;
4. Investigation, research, publicity, and education and training regarding community-based fundraising;
5. Operation of the Community Chest of Korea chapters under Article 14;
6. Programs for promoting international exchange and cooperation related to community-based fundraising;
7. Collaborative programs with other solicitors of donations;
8. Other programs necessary for achieving the objectives of the Community Chest.
[This Article Wholly Amended on Oct. 22, 2012]
Article 6(Articles of association) #
The articles of association of the Community Chest shall contain the following matters:
1. Its objectives;
2. Its name;
3. Location of the head office;
4. Programs;
5. Executive officers and employees;
6. Board of directors;
7. The composition, operation, etc. of the chapters;
8. Assets and accounting;
9. Public announcement;
10. Amendments to the articles of association.
[This Article Wholly Amended on Oct. 22, 2012]
Article 7(Executive officers) #
(1) The Community Chest shall have the following executive officers:
1. One Chairperson;
2. Three Vice Chairpersons;
3. At least 15 but not more than 20 directors (including the Chairperson, Vice Chairpersons, and Secretary General);
4. Two auditors.
(2) Each executive officer shall hold office for a term of 3 years and may be reappointed only once.
(3) If a successor officer cannot be appointed due to any unavoidable cause, and it impedes the Community Chest's performance of affairs, an executive whose term of office has expired shall perform such affairs until a successor is appointed.
[This Article Wholly Amended on Oct. 22, 2012]
Article 8(Board of directors) #
(1) The Community Chest shall establish a board of directors comprised of directors under Article 7 (1) 3 to resolve on important matters prescribed by the articles of association.
(2) The Chairperson shall convene and preside over meetings of the board of directors.
[This Article Wholly Amended on Oct. 22, 2012]
Article 9(Appointment of executive officers) #
(1) The board of directors shall appoint directors from among any of the following persons; in such cases, at least 4 persons from each category of subparagraphs 1 through 3 shall be included:
1. Persons engaged in economic, media, legal, and medical fields;
2. Persons engaged in labor or religious circles or in civic organizations;
3. Social welfare experts, including persons from academic circles related to social welfare;
4. Any other person with expertise and a commendable reputation.
(2) Matters necessary for the methods for appointing executive officers and their qualification requirements shall be prescribed by the articles of association of the Community Chest.
[This Article Wholly Amended on Oct. 22, 2012]
Article 10(Duties of executive officers) #
(1) The Chairperson shall represent the Community Chest, exercise general supervision over its affairs, and provide guidance and supervision to employees under his or her control.
(2) The auditor shall audit the overall business affairs of the Community Chest, such as its operational status, property status, and accounting.
(3) Matters necessary for the types, methods, timing, etc. of the audit conducted pursuant to paragraph (2) shall be prescribed by the articles of association.
[This Article Wholly Amended on Oct. 22, 2012]
Article 11(Grounds for disqualification of executive officers) #
No person falling under any of the following subparagraphs shall be an executive officer of the Community Chest: <Amended on Apr. 1, 2025>
1. A person falling under any of Article 19 (1) 1, 1-2 through 1-9, 2, and 2-2 through 2-4 of the Social Welfare Program Act;
2. A person for whom 5 years have not passed since he or she was dismissed from office as an executive officer under this Act;
3. A person who was sentenced to a fine of at least 3 million won for committing a crime under Article 347, 350, or 351 (limited to habitual crimes prescribed in Article 347 or 350) of the Criminal Act, and for whom 2 years have not passed since the sentence became final.
[This Article Wholly Amended on Oct. 22, 2012]
Article 12(Administrative organization) #
The Community Chest shall have 1 Secretary General and other necessary employees and organizations to handle its affairs.
[This Article Wholly Amended on Oct. 22, 2012]
Article 13(Branch executive committees) #
(1) In order to deliberate on matters regarding planning, publicity, collection, distribution, and other relevant affairs of the Community Chest, branch executive committees consisting of experts in the relevant fields, citizens' representatives, etc. shall be established.
(2) The Chairperson shall commission the chairperson of a branch executive committee after a resolution of the board of directors from among the directors recommended by at least 1 director, and commission its members upon recommendation of the relevant chairperson and a resolution of the board of directors.
(3) Each branch executive committee shall consist of not more than 20 members, including 1 chairperson; provided, the collection and distribution branch executive committees shall each consist of at least 20 members.
(4) Each branch executive committee member shall hold office for a term of 2 years and may be reappointed; provided, the members of the distribution branch executive committee may be appointed consecutively once.
(5) If the board of directors intends to change matters deliberated upon by a branch executive committee, it shall hear the opinions of the chairperson of the committee and record it in the minutes of the board of directors.
(6) Matters necessary for the operation of branch executive committees shall be prescribed by the articles of association.
[This Article Wholly Amended on Oct. 22, 2012]
Article 14(Chapters) #
(1) A chapter of the Community Chest of Korea (hereinafter referred to as "chapter") shall be established in each Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereinafter referred to as "City/Do") to take charge of community-based fundraising programs at the local level.
(2) A chapter may have its head and establish a necessary organization equivalent to that of the Community Chest.
(3) The Chairperson shall appoint the head of each chapter following a resolution by the board of directors.
(4) Matters necessary for the composition, operation, etc. of a chapter shall be prescribed by the articles of association.
[This Article Wholly Amended on Oct. 22, 2012]
Article 15(Management of chapters) #
(1) The Chairperson of the Community Chest shall provide guidance and supervision to its chapters to improve their operation, and shall endeavor to ensure that they are operated autonomously taking into account the local characteristics.
(2) If the Chairperson of the Community Chest deems that a chapter's operations are significantly unfair, he or she may order the chapter to take corrective measures.
(3) In principle, community chest resources raised by chapters shall be distributed to eligible persons within the relevant City/Do.
(4) The Chairperson of the Community Chest shall receive business plans from each chapter 2 months before the start of each fiscal year and consolidate and coordinate them before reporting to the Minister of Health and Welfare.
[This Article Wholly Amended on Oct. 22, 2012]
Article 16(Organization and operation) #
Except as otherwise provided in this Act, matters necessary for the organization, operation, etc. of the Community Chest shall be prescribed by the articles of association.
[This Article Wholly Amended on Oct. 22, 2012]
Article 16-2(Acquisition of fundamental assets) #
Notwithstanding Article 24 of the Social Welfare Services Act, the Community Chest shall obtain permission from the Minister of Health and Welfare if it intends to acquire fundamental assets under Article 23 (2) of that Act.
[This Article Wholly Amended on Oct. 22, 2012]
Article 16-3(Special applicability) #
Articles 17 (2), 18 (6) and (7), 22-3 (1), and 23 (3) of the Social Welfare Services Act shall apply to permissions, authorizations, reporting, etc. regarding the establishment, operation, etc. of the Community Chest of Korea. In such cases, "Mayor/Do Governor" shall be construed as "Minister of Health and Welfare".
[This Article Wholly Amended on Oct. 22, 2012]
Article 17(Financial resources) #
Expenses necessary for the Chest Community's programs shall be raised through the following financial resources:
1. Donations obtained through community-based fundraising;
2. Cash, goods, or other properties contributed from corporations or organizations;
3. Proceeds from the sale of lottery tickets distributed pursuant to Article 23 (1) of the Lottery Tickets and Lottery Fund Act;
4. Other revenues.
[This Article Wholly Amended on Oct. 22, 2012] (1) The Community Chest may collect and receive donations throughout the year to support social welfare programs and related activities. (1) The Community Chest may collect and receive donations throughout the year to support social welfare programs and other social welfare activities.
(2) Upon collecting and receiving donations pursuant to paragraph (1), the Community Chest shall record the receipt of donations in its account book and issue a receipt to the donor; provided, where it is impossible to ascertain the donor's identity, such as where the donor has not disclosed his or her name, the receipt shall be retained by the Community Chest.
(3) The Community Chest shall indicate the amount of the relevant donations, state that the donations are eligible for tax benefits, and display a serial number on the receipt issued under paragraph (2).
(4) The Community Chest may engage in intensive fundraising within a specified period for enhanced efficiency.
(5) Before engaging in intensive fundraising, the Community Chest shall report the details thereof to the Minister of Health and Welfare 15 days before the collection date, and upon completing the collection, shall report the outcomes thereof to the Minister of Health and Welfare within 1 month from the date the collection is completed.
[This Article Wholly Amended on Oct. 22, 2012]
Article 18-2(Issuance of lottery tickets) #
(1) The Community Chest may issue lottery tickets to raise funds to support social welfare programs or related activities, etc.
(2) If the Minister of Health and Welfare intends to issue lottery tickets under paragraph (1), he or she shall obtain prior approval from the Minister of Health and Welfare with respect to the type, conditions, amount, method, etc. of the lottery ticket.
(3) If the right to receive prize money from a lottery ticket under paragraph (1) is not exercised for 3 months from the payment date, the extinctive prescription shall expire and the prize money for which the extinctive prescription expires shall revert to the community chest resources.
(4) The Act on Special Cases concerning Regulation and Punishment of Speculative Acts shall not apply to the issuance of lottery tickets under paragraph (1).
[This Article Wholly Amended on Oct. 22, 2012]
Article 19(Designation of fundraising counter) #
The Community Chest may designate a media organization as a fundraising counter and may open a fundraising account in the name of the designated media organization to ensure the efficient and fair receipt of donations.
Article 20(Distribution standards) #
(1) The Community Chest shall determine and publicly announce the standards for distributing community chest resources for the following fiscal year, including the following matters, by August 31 of each year:
1. Eligible recipients of community chest resources;
2. Maximum distribution amounts;
3. Period for filing distribution applications and place of submission thereof;
4. Criteria for examining distribution applications;
5. Methods for adjusting distributions in cases of surplus or inadequate resources to be distributed;
6. Required documentation for distribution application;
7. Other matters necessary for distributing community chest resources.
(2) In cases of urgent need for assistance, such as disaster relief and emergency relief, the Community Chest may provide support based on separate distribution standards established in accordance with paragraph (1).
[This Article Wholly Amended on Oct. 22, 2012]
Article 20-2(Distribution to international healthcare support programs) #
The Community Chest may distribute donations to the following programs at a ratio not exceeding 10/100 of the donations not designated pursuant to Article 27 (1), as determined by a resolution of the board of directors: <Amended on Jan. 15, 2019>
1. Programs for improving healthcare conditions in foreign countries, including developing countries, and northern side of the military demarcation line, implemented pursuant to subparagraph 1 of Article 7 of the Korea Foundation for International Healthcare Act;
2. Programs for eradicating major infectious diseases, etc.
[This Article Wholly Amended on Oct. 22, 2012]
Article 20-3(Indication of distributors) #
If the Community Chest distributes community chest resources, it shall indicate that the Community Chest distributes such resources.
[This Article Added on Mar. 21, 2008]
Article 21(Application for distribution) #
(1) A person who intends to apply for distribution to the Community Chest shall submit a distribution application in accordance with the public announcement under Article 20.
(2) When a person who implements an international healthcare support program under Article 20-2 submits an application for distribution under paragraph (1), he or she shall also prepare and submit a business plan, as prescribed by the articles of association.
(3) The distribution application submitted pursuant to paragraph (1) shall be valid only for the relevant fiscal year.
[This Article Wholly Amended on Oct. 22, 2012]
Article 22(Examination of distribution applications) #
(1) The Community Chest shall refer a distribution application received pursuant to Article 21 to the distribution branch executive committee for deliberation on the distribution amounts, order, timing, etc.
(2) The Community Chest shall formulate a distribution plan based on the results of deliberation under paragraph (1).
(3) The distribution plan referred to in paragraph (2) shall ensure that the community chest resources are quarterly distributed in a balanced manner; provided, this shall not apply where one-time support is necessary due to the project's nature.
[This Article Wholly Amended on Oct. 22, 2012]
Article 23(Request for data following distribution) #
The Community Chest may request a person to whom community chest resources are distributed or a person who has applied for the distribution thereof to submit necessary documents or may conduct necessary investigations.
[This Article Wholly Amended on Oct. 22, 2012]
Article 23-2(Evaluation of distribution projects) #
(1) The Community Chest (including its chapters) shall annually evaluate the results of community chest resource distribution and report the results of such evaluation to the board of directors.
(2) The standards for, and details of, evaluation under paragraph (1) shall be prescribed by the articles of association.
[This Article Added on Mar. 21, 2008]
Article 24(Public announcement of distribution results) #
(1) The Community Chest shall publicly announce the results of community chest resource distribution for each fiscal year within 3 months following the completion of the distribution for that fiscal year in at least one nationally distributed daily newspaper.
(2) In addition to the public announcement under paragraph (1), the Community Chest shall notify the distribution results through various methods and media.
[This Article Wholly Amended on Oct. 22, 2012]
Article 24-2(Prohibition of seizure) #
Donations provided to eligible recipients and the right to receive such donations may not be transferred, seized, or offered as security.
[This Article Added on Apr. 1, 2025]
Article 25(Use of financial resources) #
(1) Community chest resources shall be used for social welfare programs and related activities.
(2) In principle, community chest resources secured in each fiscal year shall be disbursed in the relevant fiscal year; provided, this shall not apply where some of the community chest resources for each fiscal year are set aside in cases of urgent need for assistance, such as disaster relief and emergency relief.
(3) Notwithstanding the main clause of paragraph (2), in any of the following cases, some of the community chest resources generated in each fiscal year may be carried over (transferred) to the following fiscal year following a resolution of the board of directors and disbursed in that year:
1. Where it is impracticable to complete expenditure in the relevant fiscal year due to the characteristics of the project for the purpose of fundraising in which community chest resources are donated with the designated purposes, etc. under Article 27 (1);
2. Where a distribution plan for community chest resources extends over at least 2 fiscal years and it is deemed necessary to carry expenditure over to the following fiscal year due to the nature of the project;
3. Where it is difficult to disburse community chest resources generated mostly at the end of the relevant fiscal year during the relevant fiscal year due to any unavoidable cause.
(4) Expenses not exceeding 10/100 of the total amount raised for the immediately preceding fiscal year which are necessary for the collection of donations and for the management and operation of the Community Chest may be used following a resolution by the board of directors.
(5) Matters necessary for the methods for managing and operating community chest resources, and the budgeting, accounting, etc. thereof shall be prescribed by the articles of association.
[This Article Wholly Amended on Oct. 22, 2012]
Article 26(Submission of business plans) #
(1) The Community Chest shall submit a business plan and budget proposal for each fiscal year to the Minister of Health and Welfare no later than 2 months prior to the commencement of the fiscal year.
(2) When preparing a budget proposal, the Community Chest shall include a distribution plan under Article 22 (2), fundraising expenses, the Community Chest's operating expenses, etc.
(3) The Community Chest shall prepare a statement of revenue and expenditure and submit it to the Minister of Health and Welfare within 3 months after the end of each fiscal year. In such cases, an audit report from an accounting corporation under the Certified Public Accountant Act shall be attached thereto.
[This Article Wholly Amended on Oct. 22, 2012]
Article 27(Designated use of donations) #
(1) A donor may designate the area of distribution, intended recipients, or the purpose of use.
(2) If a designation under paragraph (1) is in violation of the purpose and intent of this Act or the Public Official Election Act, the Community Chest shall explain such fact to the donor and request the designation in compliance with the purpose and intent of this Act and the Public Official Election Act, or the withdrawal of the designation. If the donor fails to comply with such request, the Community Chest shall not accept the donations.
(3) If the designation is made under paragraphs (1) and (2), the Community Chest shall use the donations in accordance with the intent of such designation.
(4) The Community Chest may determine matters necessary for the methods of designation and use under paragraph (1) following a resolution by the board of directors.
[This Article Wholly Amended on Oct. 22, 2012]
Article 28(Fiscal year) #
The Community Chest's fiscal year shall be from January 1 to December 31. <Amended on Dec. 5, 2002>
Article 29(Prohibition of use of similar names) #
No person, other than the Community Chest, shall use the name "community-based fundraising" or any similar name.
Article 30(Legal fiction as public officials for purposes of applying penalty provisions) #
Executive officers and employees of the Community Chest and persons engaged in the business of soliciting donations under this Act shall be deemed public officials for purposes of applying Articles 129 through 132 of the Criminal Act.
[This Article Wholly Amended on Oct. 22, 2012]
Article 31(Guidance and supervision) #
(1) The Minister of Health and Welfare shall guide and supervise the Community Chest's affairs, and may, if deemed necessary, order it to submit relevant documents or require public officials under his or her jurisdiction to investigate the status of its operation or to inspect books and other documents.
(2) The relevant public official conducting an investigation or inspection under paragraph (1) shall carry identification verifying his or her authority and documents stating matters prescribed by Decree of the Ministry of Health and Welfare, such as the period and scope of the investigation, persons in charge of the investigation, and related statutes or regulations, and present them to relevant persons. <Amended on Feb. 3, 2016>
(3) Except as provided in this Act, the Framework Act on Administrative Investigations shall apply to the procedures, methods, etc. of the investigation or inspection under paragraph (1). <Added on Feb. 3, 2016>
[This Article Wholly Amended on Oct. 22, 2012]
Article 32(Corrective orders) #
If the Minister of Health and Welfare deems that the Community Chest's operations violate this Act or the articles of association, he or she may take necessary measures by applying mutatis mutandisArticles 22 and 26 of the Social Welfare Services Act.
[This Article Wholly Amended on Oct. 22, 2012]
Article 33(Subsidies) #
(1) The State or a local government may subsidize expenses incurred in collecting donations and in managing and operating the Community Chest.
(2) No subsidies provided under paragraph (1) may be used for any purpose other than the originally intended purposes.
(3) If the Community Chest falls under any of the following subparagraphs, the State or a local government may order it to return, in full or in part, the subsidies already paid:
1.Where it uses the subsidies for purposes other than business purposes;
2. When it receives the subsidies by fraud or other improper means;
3. Where it violates this Act or any order issued under this Act.
[This Article Wholly Amended on Oct. 22, 2012]
Article 34(Relationship to other statutes) #
Except as provided in this Act or the Community Chest's articles of association, the provisions of the Civil Act governing incorporated foundations shall apply mutatis mutandis.
[This Article Wholly Amended on Oct. 22, 2012]
Article 35(Penalty provisions) #
(1) Any of the following persons shall be punished by imprisonment with labor for up to 3 years or by a fine not exceeding 30 million won:
1. A person who compulsorily engages in solicitation, in violation of Article 3 (1);
2. A person who acquires fundamental assets without obtaining permission from the Minister of Health and Welfare, in violation of Article 16-2.
(2) The following persons shall be punished by imprisonment with labor for not more than 2 years or by a fine not exceeding 20 million won:
1. A person who uses expenses incurred in collecting donations and managing and operating the Community Chest in excess of the ratio set by the board of directors pursuant to Article 25 (4);
2. A person who fails to submit a business plan or a budget proposal, in violation of Article 26 (1);
3. A person who fails to submit a statement of revenue and expenditure or an audit report from an accounting corporation, in violation of Article 26 (3);
4. A person who uses the name the Community Chest of Korea or any similar name, in violation of Article 29.
(3) Any of the following persons shall be punished by imprisonment with labor for up to 1 year or a fine not exceeding 10 million won:
1. A person who fails to disclose the results of distribution or falsely discloses such results, in violation of Article 3 (3);
2. A person who fails to record or falsely records the donation receipts in an account book, in violation of Article 18 (2);
3. A person who fails to issue a receipt to a donor, in violation of Article 18 (2);
4. A person who distributes community chest resources without indicating that the Community Chest distributes such funds, in violation of Article 20-3.
[This Article Wholly Amended on Oct. 22, 2012]
Article 36(Joint penalty provisions) #
If the representative of a corporation, or an agent or employee of, or other persons employed by, a corporation or individual commits an offense under Article 35 in relation to the business affairs of the corporation or individual, not only such offender shall be punished, but the corporation or the individual shall also be punished by a fine under the relevant provisions; provided, this shall not apply to cases where such corporation or individual has not been negligent in giving due attention and supervision regarding the relevant business affairs to prevent such offense.
[This Article Wholly Amended on Apr. 28, 2011]
Article 37(Administrative fines) #
(1) A person who fails to comply with an order to submit relevant documents under Article 31 (1) or refuses, evades, or obstructs with an investigation or inspection by a relevant public official shall be subject to an administrative fine not exceeding 5 million won.
(2) Administrative Fines under paragraph (1) shall be imposed and collected by the Minister of Health and Welfare.
[This Article Wholly Amended on Oct. 22, 2012]