TODAYonline: "Tighter rules = tighter fists?
Charities welcome stricter regulations but fear a drop in donations from public
Lee U-Wen and Jasmine Yin
u-wen@mediacorp.com.sg
TIGHTER regulations for the charity sector have kicked in but charities fear they might find themselves caught in a Catch-22 situation. While welcoming the Government's initiative to introduce rules, meant to overhaul the charity sector after last year's National Kidney Foundation scandal, charities are also bracing for the backlash from the next exposé, which more often than not results in a fall in public donations.
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Ironically, this fear has surfaced among many voluntary welfare organisations (VWOs) following the introduction of the new regulations in July which require greater accountability and transparency to donors. The enhanced scrutiny could mean more VWOs being exposed for system flaws or irregularities.
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And the negative press that typically follows could deal another body blow to the industry, top VWO officials told Today.
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Among the new regulations: When soliciting funds, a charity is now required to disclose its name, the intended use of the funds, and whether it is using any commercial third-party fund-raiser.
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The worries facing the industry surfaced in interviews conducted by Today with 15 VWOs that serve more than 100,000 beneficiaries from four sectors: Disability; community health; the elderly; and children, youth and family. The respondents included the Society for the Physically Disabled, the Singapore Anti-tuberculosis Association and the Children's Cancer Foundation.
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Handicaps Welfare Association president Chua Kian Sheng said negative publicity would 'definitely be very damaging' to the charity scene. He lamented: 'One question donors or the public would ask is: 'Who's next?' While the new system is effective in throwing up irregularities, the public is not as forthcoming in their donations or support.'
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Experts said that the concern about loss of"
