Instances where Rule Had Been Waived for 80% of Funds Raised for Foreign Charitable Purposes to be Applied towards Local Charitable Purposes

1 Mr Louis Ng Kok Kwang asked the Minister for Culture, Community and Youth for each year in the past five years (a) in how many and what percentage of cases have the 80:20 fund-raising rule requiring at least 80% of funds raised for foreign charitable purposes be applied towards local charitable purposes been waived for fund-raising activities; (b) of the cases where this 80:20 rule is waived, what are the top three target donor groups and beneficiaries; and (c) when will the Ministry next review this 80:20 rule.

The Minister of State for Culture, Community and Youth (Mr Alvin Tan) (for the Minister for Culture, Community and Youth): Mr Speaker, I note that the hon Member had also asked a Parliamentary Question (PQ) on the same topic last year, at the 8 March 2022 Parliamentary Sitting. So, I also kindly ask him to refer to our reply given then, as it remains relevant.

In the past five years, the Commissioner of Charities (COC) has, on average, granted about 70 waivers of the 80:20 fund-raising rule each year. More than 70% of the waivers were granted for private appeals such as within schools, churches and other organisations to support charitable work in other countries such as school programmes or missionary work. The majority of the remaining appeals granted waivers were for disaster and humanitarian relief efforts.

For example, in 2022, there were 56 waivers granted for private appeals, while 16 permits granted with waivers were for humanitarian relief, such as for the crisis in Ukraine, and natural disasters such as the Pakistan floods and earthquakes in Afghanistan and Indonesia. More recently, waivers were also granted for appeals supporting relief efforts for the Türkiye–Syria Earthquake.

Mr Speaker: Mr Louis Ng.

Mr Louis Ng Kok Kwang (Nee Soon): I thank the Minister of State for the reply. I should also thank him for meeting up with the non-governmental organisations (NGOs) to discuss this issue and the concerns they have about raising funds. But I think he would also have heard about how difficult it has been for them to get this waiver. For one, I am going to ask whether the Government can be more prescriptive and lay out what are the specific safeguards that are needed in place to mitigate the risks in terms of foreign fund-raising. And second, could I ask when is the next review of the Charities regulations? I know we do that quite regularly.

Mr Alvin Tan: Sir, I thank the Member for his supplementary questions and also, for speaking up for the NGOs, whom we have met, who also generously and candidly shared about their experiences and also their work and their feedback.

Just to take a step back – the intent of the 80:20 rule is to ensure that these funds that are raised from the public are used primarily to benefit locals and also local causes. A concession is made where a proportion of the funds – in this case, 20% – is allowed to flow overseas for charitable purposes. Why? Because it is important o ensure: one, the accountability and transparency of permit holders since public funds are involved; and two, that the external flow of funds for overseas causes to foreign entities are legitimate.

All organisations have to apply for a foreign fund-raising permit from the COC if there is a need to raise funds for a foreign charitable purpose, and to seek waiver of the 80:20 rule where appropriate or when required.

In the case of smaller organisations like some of the NGOs that we met, who may not have enough resources to monitor its partners and affiliates, these organisations may consider partnering with those who are equipped to do so and who already have valid fund-raising permits in place. We do this in order to mitigate risks and also to reduce restrictions faced during the fund-raising process.

I wanted to give the Member an update that, for example, the COC has already issued seven permits thus far for fund-raising efforts for the earthquakes in Türkiye and Syria. The organisations are: the Singapore Red Cross Society, Rahmatan Lil Alamin Foundation Limited, Mercy Relief Limited, Operation Mobilisation Singapore Limited, World Vision International, Bible Society of Singapore, Buddhist Tzu Chi Merit Organization (Singapore) Limited. In fact, COC granted waiver of the 80:20 rule for all of these permits.

Talking about the criteria, well, given that the funds raised will be used to support overseas beneficiaries, permit holders must: first, have in place an anti-money laundering and countering of the financing of terrorism (AMLCFT) policy; two, exercise sensitivity when conducting its fund-raising activities and also not engage in any activities that may undermine the social and racial religious harmony in Singapore; and three, ensure that the funds raised are used by its beneficiaries in conformity with the laws of their respective countries and in a manner that would not affect Singapore's bilateral relations with these countries.

The COC will continue to review the 80:20 policy and will update the Member in due time. We can and have already been, on a case-by-case basis, waiving the rule, as I mentioned in my reply to the PQ and supplementary questions. We thank the Member for his continued support for organisations who are working hard to support worthwhile causes overseas and, also, to Singaporeans and Singapore residents who have contributed to these causes.