Written Answer to Unanswered Oral Question

Probe into Charities that Fail to Comply with Requirements under Code of Governance for Charities and Institutions of Public Character

Speakers

Summary

This question concerns the number of complaints regarding charities' governance failures and the actions taken against them, as raised by Mr Melvin Yong Yik Chye. The Acting Minister for Culture, Community and Youth reported that the Commissioner of Charities receives about 80 feedback reports annually, primarily addressing these through guidance and advisories. Under a "comply or explain" framework, firmer enforcement is reserved for gross misconduct, such as the two Orders issued in 2025 to prohibit certain individuals from fund-raising. These measures, alongside mandatory annual submissions for the 2,400 registered charities, ensure that assets are managed properly and with accountability. The government continues to uphold high governance standards to preserve public trust across the charitable and fund-raising sector.

Transcript

81 Mr Melvin Yong Yik Chye asked the Acting Minister for Culture, Community and Youth in the past three years (a) how many complaints has the office of the Commissioner of Charities received of charities that have failed to comply with governance requirements under the Code of Governance for Charities and Institutions of the Public Character; and (b) of these charities, how many were taken to task.

Mr David Neo: The Charities Act provides the legal framework for the registration of charities, administration and regulation of charities and Institutions of a Public Character (IPCs) and the regulation of fund-raising activities carried on or in connection with charities and other institutions. It seeks to ensure sound administration of charities and IPCs through regulatory oversight and mandatory annual submissions. This is also to ensure that charitable assets are managed properly and that fundraising appeals are conducted with accountability and transparency.

The Code of Governance for Charities and IPCs, on the other hand, serves as a best practices guide covering key areas of governance and management. It consists of tiered guidelines that apply to registered charities based on their IPC status and financial size.

The Code operates on the basis of "comply or explain". While it is not mandatory for charities to adopt and comply with all the guidelines, they are encouraged to do so as a matter of good governance. Where charities are unable to comply with certain guidelines, they should explain the reasons for the non-compliance in their annual submissions to the Commissioner of Charities (COC), which are published on the Charity Portal (www.charities.gov.sg) to promote transparency.

Over the past three years, the Office of the COC received an average of 80 feedback each year relating to fund-raising conduct and charities' governance and internal controls. For context, there are approximately 2,400 charities registered with Ministry of Culture, Community & Youth. The COC will investigate such feedback. In most cases, the breaches or gaps are due to unfamiliarity with the legislative requirements or good governance practices, or due to differences in views amongst members within the charities. The COC works with these charities and fund-raisers to tighten their governance and processes, including issuing advisories and guidance if needed.

Most of our charities operate with integrity and sound governance. For the minority of cases, where there is gross misconduct or mismanagement of a charity, or where improper fund-raising activities are conducted, firmer action is taken. These include the issuance of Orders. For example, the COC issued two Orders in 2025, prohibiting certain individuals from conducting fund-raising appeals as they were either unfit to administer or had failed to ensure proper accountability of the appeals.

The COC will continue to support the development of the charity sector while upholding high standards of governance that preserve trust and accountability across the sector.