Guidelines on charity shows, Voluntary Welfare Organisations and fundraising

20 Jul 2005

Question No:  153  

Question

Name of the Person: Assoc Prof Ong Soh Khim, Nominated MP

To ask the Minister for Health (a) whether there are any regulatory guidelines for Voluntary Welfare Organisations to carry out large-scale charity shows through the radio and TV media; (b) if there is a myriad of such large-scale charity shows leading to a donation fatigue syndrome in the general public; and (c) if there are any specific guidelines on (i) the methods of soliciting donation in these large-scale charity shows and (ii) controlling the strategies that these large-scale charity shows use to play on the sympathy, greed and fear of the general public towards certain illnesses to make them donate.

Question No:  154  

Name of the Person: Assoc Prof Ong Soh Khim, Nominated MP

To ask the Minister for Health whether the National Council of Social Service has (i) guidelines to prevent Voluntary Welfare Organisations (VWOs) from exploiting cancer and kidney disease patients by wheeling them out in public places and large-scale charity shows for publicity campaigns or "show-casing" them in their donation soliciting campaigns such as mailers; and (ii) guidelines, which VWOs have to adhere to on fund raising activities, that stipulate the percentages of the funds raised that shall go to beneficiaries and expenditures respectively. The Question was originally directed to the Minister for Community Development, Youth and Sports (vide Q.*154 in Notice Paper No. 112 of 2005)

Reply

Reply From MOH

Mr Speaker, with your permission, I would like to take the two questions by Professor Ong Soh Khim, on VWOs' fund-raising activities together. I will focus narrowly on the specific queries. Separately, I will be discussing the broader issues with respect to charities arising from the NKF incident in my Ministerial Statement tomorrow. 

Regulations on Large-scale Fundraising There are rules which guide the organisation of large-scale fund-raising activities. The Media Development Authority's (MDA) Free-to-Air Television Programme Code requires all TV programmes, including charity shows, to observe standards of good taste and decency. In addition, the Common Games Houses Act allows Institutions of a Public Character (IPCs) to conduct no more than one public lottery per year, via charity shows or otherwise. Those which wish to conduct more shows need to apply for waiver. 

Participation of Beneficiaries I can appreciate that some beneficiaries may choose to play a part to help raise funds during charity TV shows. As long as such beneficiaries have voluntarily agreed to appear on such shows, we should respect their decision to do so. At the same time, charitable organisations must also respect the dignity of their beneficiaries.

Cap on Expenses On the use of fund-raising proceeds, IPCs, which are charitable organisations allowed to receive tax-deductible donations, are required under the Income Tax regulations to cap their fund-raising expenses at 30% of total donations received. This is to keep administrative expenses within a reasonable limit. 

Role of Government VWOs should continually communicate to the public the causes for which the funds will be used. They should gauge the appropriateness and frequency of such fund-raising activities, bearing in mind donors' responses and potential donor fatigue. Viewers should carefully decide whether, and how, they wish to respond to these fund-raising methods. It is in this spirit that the Government has not imposed excessive regulations on large-scale fund-raising. 

In May 2004, the Council on Governance of Institutions of a Public Character (CGIPC) recommended a set of guidelines for compliance by VWOs by Jan 2007, as well as an additional set of best practices that VWOs should consider. I would encourage the VWOs to adopt the guidelines as soon as possible, ahead of the compliance timetable, as well as the best practices. These guidelines and best practices include recommendations on the conduct of charity shows, and advice to charities not to stir feelings of guilt in the public who may not wish to donate.