NON-governmental organisations (NGOs) registered with the Companies Commission of Malaysia (SSM) as companies limited by guarantee (CLBGs) must obtain prior approval from the Minister or Registrar of Companies before collecting donations from the public.
SSM said CLBGs were public companies without share capital established on a non-profit basis for specific objectives, including charitable, educational, scientific, artistic and religious activities, as well as other initiatives benefiting society.
It said the liability of CLBG members was limited to the amount they had undertaken to contribute should the company be wound up.
“Under the CLBG Guidelines, those wishing to conduct fundraising activities must first obtain approval from the Minister or Registrar of Companies and comply with the prescribed conditions.
“It is an offence for a CLBG to collect donations from the public without first obtaining the necessary approval,” it said.
SSM said all CLBGs were required to comply with Paragraph 23(d) of the CLBG Guidelines, which prohibits the collection of public donations without approval.
“Failure to comply with the guidelines may result in enforcement action being taken under Section 20E of the Companies Commission of Malaysia Act 2001 (CCMA 2001).
“CLBGs that receive or provide donations are also required to make appropriate disclosures regarding funds or donations received or provided in the notes to their financial statements.
“In addition, CLBGs must maintain detailed records of all funds received or provided, including the names of the individuals or entities involved, the addresses of the parties they transact with, the amount of funds, the date of each transaction and the relevant supporting documents,” it said.
SSM said every transaction must be properly documented, including the retention of bank statements as supporting evidence.
As of July 1, 113 CLBGs had received approval to collect donations from the public.
SSM said each approval was valid for one year from the date it was granted. - September 6, 2026
