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 From Hong Kong's Information Services Department
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October 6, 2009
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Graft

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ICAC issues fund-raising guidelines
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The Independent Commission Against Corruption has launched best-practice guidelines to help 6,000 local charities enhance internal governance, and transparency and accountability in fundraising activities.

 

ICAC Commissioner Dr Timothy Tong today said seven corruption complaints related to fund-raising activities have been received in the past three years with one case resulting in a conviction last year.

 

He said despite the small number of complaints the risk of corruption and other crime involving the management of charities and fund-raising activities should not be underestimated due to the substantial donations made annually.

 

"Charities receiving donations are entrusted by the public to manage and distribute the money for them. These organisations therefore have a duty to ensure good governance and proper internal controls," he said.

 

Charities should adopt best practices, including proper budgeting, good record keeping, regular auditing of accounts, capping administrative expenses, safekeeping donations and publicising audited accounts of fund-raising activities.

 

The Social Welfare Department, Television & Entertainment Licensing Authority and the Inland Revenue Department will help distribute copies of the guidelines to charities upon application for permits, exemptions or licenses.

 

The ICAC Corruption Prevention Advisory Committee has suggested the Government consider introducing a registration system and an overall regulatory framework for charities and fund-raising activities.