Crowdfunding appeals by investigative journalist Makarios Drousiotis and by President Nikos Christodoulides during his 2023 election campaign do not fall under the law on public collections, Interior Minister Konstantinos Ioannou has said.
Ioannou was answering a written question from AKEL parliament member Konstantinos Konstantinou. As Interior Minister, he is the authority responsible for the 2014 law. Both men had asked the public for support through crowdfunding. Drousiotis sought help with his legal defence at the trial on charges against him in the “Sandy” case. Christodoulides was raising money for the 2023 presidential election.
The law defines a collection as an appeal to the public for charitable, benevolent, religious, environmental or animal welfare purposes, or to put up monuments. “Financial support for an election campaign does not fall within these purposes,” Ioannou said. Crowdfunding was not examined under the law, he said.
“The key legal criterion is the purpose of the appeal to the public,” he added. Collecting money online is not in itself grounds for applying the law or for referring a case to police.
Police referrals
Whether other online fundraising cases are referred to police depends on the facts and law in each case, Ioannou said. The factors include the stated and actual purpose of the collection, the organiser’s identity and authorisation, who actually receives the money, whether what the public was told was accurate, whether a licence was held where one is required, and any signs of fraud, deception, misappropriation or another criminal offence.
The fact that contributions fall under electoral law does not rule out investigating any case where there are signs of a criminal offence, he said.
Campaign funding
Candidates’ income and spending in presidential elections are governed by articles 43 to 55 of the law on the election of members of the House of Representatives. Article 41A of the presidential election law applies those articles to presidential elections with the necessary adjustments. The one difference is that total campaign spending must not exceed one million euros during the campaign period.
The election agent’s report must list, among other things, money and other valuables received for campaign spending, as well as the sponsorships and contributions the candidate received. The Auditor General audits the report under article 52 of the parliamentary elections law.
The ministry intends to study whether any matters need regulating in connection with a European regulation that comes into force in 2027. The regulation covers procedures and due diligence on crowdfunding platforms.
Licensing
Under the 2014 law, anyone wishing to hold a collection must apply at least 30 days in advance. Island-wide collections go to the Interior Ministry, and district or local collections go to the district administrations. A committee examines each application.
Licences can be granted to put up monuments or to help people in Cyprus or abroad. The law covers natural or man-made disasters, the treatment of people on low incomes who have incurable or hard-to-treat illnesses or serious injuries or disabilities, needy families, individuals or minors, and any other case of social need.
