S.L. 628.1 Art. 7Non-profit making. 

(1) An association shall be non-profit making.

(2) For the purposes of this regulation and without prejudice to and for the better implementation of article 7A(2)(b) of the Act, an association shall be deemed to be "non-profit making" if:

(a) its statute contains an express provision which excludes the purpose to make profit;

(b) its purposes do not include the promotion of private interests;

(c) except as permitted under this regulation, the First

Schedule to the Voluntary Organisations Act or the Second

Schedule to the Civil Code, no part of the income, capital or property is available directly or indirectly to:

(i) any administrator; or

(ii) any founding member, member, employee, donor or;

(iii) any other private interest; Provided that such income, capital, property or part thereof is administered solely in order to achieve the purpose and objectives for which the association is established.

(3) An association shall continue to be deemed as "non-profit making" notwithstanding it:

(a) obtains a pecuniary gain from its activities when such gain is not received or accredited to its members, but is intended exclusively for the achievement of the purposes and objectives of the association as provided in its statute, and

(b) buys or sells goods or services where such activities are carried out exclusively to fulfil its sole purpose.

(4) The following principles on remuneration shall be applicable to an association:

(a) a founding member, administrator or member may receive remuneration from the association when he is engaged by, or is an employee of the association under a written contract or when he is the provider of any goods or services to the association:

Provided that such remuneration:

(a) shall be strictly attributable to those functions being the subject of the written contract or to the governing provisions relating to goods or services rendered to the association;

(b) shall be in accordance with market levels and market conditions as established in any binding instrument, or as otherwise approved by the Authority, unless the Authority is otherwise satisfied that the administrator has specific skills which meet the needs of the association;

(c) shall not be as such as to prejudice the achievement of the purposes and objectives of the association or its sustainability;

(d) shall not prejudice the achievement of the principal and sustainable purpose and objectives of the association;

(e) shall be recorded in sufficient detail through a written agreement, the details of which are to be approved by the Authority prior to its signing; ORGANISATIONS)

(b) Repealed by Legal Notice 44 of 2026;

(c) an association may reimburse the administrator for any costs incurred by him, if directly related to his work as administrator of the association;

(d) an association shall not:

(i) Repealed by Legal Notice 44 of 2026;

(ii) remunerate any person, whether an employee or otherwise, with a salary, wage or a fee, which is higher than market levels, unless the Authority is satisfied that in that particular case specific conditions apply;

(iii) pay interest or other remuneration on loans acquired in accordance with regulation 9, other than in accordance with market conditions; or

(iv) pay a price for any good or service, acquired or leased, which is higher than the market price for such good or service as established by the Authority.

For the purposes of this regulation, any reference to the "Commissioner" in the Voluntary Organisations Act shall be interpreted to mean the "Authority", and thereby any powers which may otherwise be exercised by the Commissioner shall be exercised by the Authority.