Review of Rule for 80% of Funds Raised for Foreign Charitable Purposes to be Applied in Singapore

1 Mr Louis Ng Kok Kwang asked the Minister for Culture, Community and Youth (a) whether the Ministry will consider reviewing the 80:20 fund-raising rule requiring at least 80% of funds raised for foreign charitable purposes be applied towards charitable purposes in Singapore; (b) whether a specific list can be provided for fund-raising activities where this rule can be waived; and (c) whether this rule can be waived for more fund-raising activities other than those for immediate disaster relief in other countries.

The Minister of State for Culture, Community and Youth (Mr Alvin Tan) (for the Minister for Culture, Community and Youth): Mr Speaker, the intent of the 80:20 fund-raising rule under the Charities Act is to ensure that donations from our Singapore public are used primarily to benefit locals and to address locals' needs. The intent of this 80:20 rule remains relevant.

Besides appeals in aid of providing immediate disaster or humanitarian relief to other countries, the Commissioner of Charities (COC) also waives this 80:20 rule for certain private fund-raising appeals. It would not be practical to provide a specific list of activities that would be eligible for waiver, as the COC considers a range of aspects in making its decisions, such as the nature of the appeal, target donor groups and beneficiaries, and the safeguards in place to mitigate risks.

But should an applicant wish to apply for a waiver of the rule based on its circumstances, the applicant may put forth its reasons for waiver of the rule in its application for fundraising for foreign charitable purposes permit to the COC. The COC will consider the application on a case-by-case basis.

Mr Speaker: Mr Louis Ng.

Mr Louis Ng Kok Kwang (Nee Soon): Thank you, Sir. I thank the Minister of State for the reply. I understand he cannot provide a specific list. Then, could I ask whether he could at least provide the list of fund-raising activities that have got exemptions in the past few years, not including those for humanitarian disasters? Second, I really hope that the Government can take a more light-touch approach. We can trust Singaporeans to decide who they want to donate to. The Government, I hope, can take a step back but still have the check and balance in place, do audits to make sure that the funds go to the appropriate beneficiaries.

Mr Alvin Tan: I thank the hon Member for his supplementary questions. I want to assure the hon Member that we do actually allow our charities and our organisations to raise funds for foreign charitable causes. In fact, in 2021, COC granted a total 78 permits for organisations to conduct fund-raising appeals for foreign charitable purposes. The COC, as I have mentioned earlier, can, on a case-by-case basis, waive this 80:20 rule, such as for appeals in aid of providing immediate disaster relief and for private donations raised for foreign charitable causes.

In fact, they have done so, including for private appeals and appeals for relief efforts going to causes, such as for COVID-19 in many different countries, for the Malaysian floods in December last year and January this year, and also for Typhoon Rai, which affected and afflicted the Philippines in December.

It is really encouraging to witness, during these challenging times, how Singaporeans have stepped up and also have been moved by foreign charitable causes overseas; and we are helping to facilitate that as well. It really speaks to who we are as a nation and our role in the global community. At the same time, as the Member had suggested, it is important that we provide the necessary safeguards as well as due process to help ensure that the funds go to verifiable and legitimate causes and to mitigate the attendant risks.

In this regard, the COC carries out reviews of the charity regulations on a regular basis. We will consider the Member's feedback and, in fact, welcome the Member's feedback in the next review.