VOLUNTARY WELFARE ORGANISATIONS (Fund-raising activities)

Column No : 1018

VOLUNTARY WELFARE ORGANISATIONS:

(Fund-raising activities): 12.

Assoc. Prof. Ong Soh Khim asked 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.

13.

Assoc. Prof. Ong Soh Khim asked 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.

Mr Khaw Boon Wan: Mr Speaker, Sir, with you permission, I would like to take Prof. Ong Soh Khim's Question Nos. 12 and 13 together on VWOs' fund-raising activities.

Mr Speaker: Yes.

Mr Khaw Boon Wan: Sir, I will focus narrowly on the specific queries. Because, separately, I will be discussing the broader issues with respect to charities arising from the NKF incident in my Ministerial Statement later on.

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 Gaming 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 described as the expense ratio. 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 January 2007, as well as an additional set of best practices that VWOs should consider. I strongly 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.

Assoc. Prof. Ong Soh Khim (Nominated Member): Sir, I have four supplementary questions since both my questions were answered together.

First, I did a count on the number of charity shows that we had in the past. The last show was the NKF Cancer Fund which was carried out in three parts which, effectively, were three charity shows. The coming President's Star Charity is going to be carried out in two parts, which means it is actually two shows. Earlier, in April, we had the NKF Charity Show for kidney dialysis patients. And now we are having the Singapore Cancer Charity Show and we are also going to have NKF Children Medical Fund Charity Show and another Heart Charity Show for the Singapore Heart Foundation. So, on the average, we are having about 10-12 charity shows a year, which is like one per month. In that sense, are the regulations effective in regulating the numbers and the quality of the shows? Are there also regulations to assess the requirements for a charity to put up a show?

Second, if we look at the shows that had been carried out, like what the Minister said, there are guidelines to ensure that the shows are carried out in good taste and so forth. But if we look at it, there are top prizes of $500,000, condominiums and cars to be won. People at the coffee shops are saying that the odds are better than buying lottery. Again, are the regulations effective in this case? Should the gambling Act come in also?

Third, the Minister said that some patients have voluntarily appeared in the shows for publicity. Sometimes what was told to the patients and what eventually was aired on national TV were different. Were these patients briefed in detail of what exactly would come out and how their story would be portrayed on national TV?

Lastly, have these patients been psychologically threatened to come out and participate for the publicity of the charity shows? Otherwise, they would not receive subsidy from their respective charity bodies.

Mr Khaw Boon Wan: Sir, there was a time when I did not have to jot down points and I could still remember. But with passing years, I have to jot down points. Otherwise, I cannot remember when there are so many queries.

First, too many shows. It is hard to judge whether it is too many, too few, once a month, once a week or whatever. The whole thing is self-regulated. If indeed, as Prof. Ong put it, Singaporeans got put off, then surely they would not be watching the shows. When they do not watch the shows, then you know that the shows may not be effective in raising funds. I think it is very difficult for civil servants to decide whether four is too many, three too little or what. Therefore, they have taken a stand whereby the charities make their own decisions because when they stage a show - I am not an expert in this area, but in the last few days I got to understand a little bit more about this subject - big costs are involved. It does not mean that they will always

net it all and have revenue. And if they commit a lot of money and raise too little, they lose money. So, in that sense, it is self-regulated by Singaporeans themselves. At the end of the day, are the shows interesting enough for you to watch? I believe there are many who probably just watch without moving their mobiles. They just take it as an entertainment value. So, I have difficulty, honestly, stating what are the legitimate numbers above which you should not stage all those shows. But, as I stated in my reply, the Act requires that those who want to organise more than one per year, they have to seek permission. Under the Common Gaming Houses Act - I think it is under the Ministry of Home Affairs - each time, they will have to apply.

As to whether there are pressures on patients that they feel obliged to participate, I can only say categorically that it will be totally unethical. If a charity were to say, "Patient, if you don't appear, I will pull the plug on you.", I think that will be totally unethical and unacceptable. And if the patients, having seen themselves on TV after the event, discovered to their horror that they were being presented as such, they could always feedback to me or anybody, and I will take up the case on their behalf.

Mdm Halimah Yacob: Sir, the Minister made reference to the recommendations of the Council of Governance on Institutions of Public Character, which will come into effect in 2007. One of the recommendations of the Council is for the salaries of the top three executives of charities to be revealed. But this was scuttled because there was no support from the charities. Will this be restored in the Council's guidelines now, in view of the recent happenings?

Mr Khaw Boon Wan: Mr Speaker, Sir, I would really prefer to defer such discussions to the next few hours when we will have plenty of time to discuss this particular issue. I also must get myself prepared for the 3 o'clock statement.

Assoc. Prof. Ong Soh Khim: Sir, if I may, I have two supplementary questions related to the answers that the Minister has just given.

Mr Speaker: Make them brief.

Assoc. Prof. Ong Soh Khim: He said that the TV shows are self-regulated. However, given that we only have one national TV and, let us say, I am a visitor from overseas and I stay here for three weeks, and every week I see a charity show, what would be the impression conveyed to a visitor from overseas. [ Interruption. ] Well, it could be that we are a begging nation. So, in that sense, should there be more regulation?

Mr Speaker: Your second question?

Assoc. Prof. Ong Soh Khim: The Minister said that the charity has to apply for permission from MHA to carry out such shows. Can I know what are the factors considered in giving them the permission?

Mr Khaw Boon Wan: First, I must object to the statement that we only have one TV station. Several years ago, as a hobby, I chaired the Singapore Cable TV, and we brought in many channels that there are now so many channels at home that viewers can watch. As to what the visitors will feel, I think she has already heard the reply from the House.

The second question as to what are the criteria by the Ministry of Home Affairs, can the Member please file a Question?