[News]As charity numbers grow, so do doubts
<P><STRONG>As charity numbers grow, so do doubts</STRONG> </P><P><FONT color=#767676>(SCMP)</FONT> 20<FONT color=#767676>/ 08 Mon 00:03AM</FONT> </P>
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<P>Ever wonder how much of your donation to a charity ends up in the pockets of the ones in need? </P></DIV>
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<P>The proliferation of charities in an unregulated environment in recent years has sparked concerns that a large portion of the proceeds generated by some fund-raising activities go towards commercial and political interests. </P></DIV>
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<P>The concerns come as Chief Justice Andrew Li Kwok-nang and Secretary for Justice Wong Yan-lung ask the Law Reform Commission to look into whether Hong Kong needs a law to regulate its fast-growing charity sector. </P></DIV>
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<P>Shih Wing-ching, head of Centaline Property Agency and an active philanthropist, said he had noticed a growing number of charity fund-raisers, selling dolls and handicrafts, dodging the pedestrian traffic in Central. He said he was troubled by the charities affiliated to political parties raising funds on the street. </P></DIV>
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<P>"Whether the funds are to support a visit to an elderly home or other welfare services, the charities cannot deny the fact that these activities are, to a certain degree, held to promote the political party the charity is attached to," he said, adding that the charities should be subject to tighter control. </P></DIV>
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<P>Mr Shih said there were also charities that contracted out their fund-raising without making donors aware that a commercial group would enjoy a share of their donation. </P></DIV>
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<P>"Sometimes you're in a rush and you don't want to appear uncharitable. So you make your donation, knowing there's a good chance you're being cheated." </P></DIV>
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<P>With concerns that unethical practices will ultimately shake public confidence in small charitable groups, charity veterans have embraced the idea of a charity law. </P></DIV>
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<P>Agnes Ting Mei-chu, chief operating officer of World Vision Hong Kong, said: "There should be some sort of regulations targeting charities that keep their foundation fund in the coffers for years, either only organising a few PR events or without doing anything at all." </P></DIV>
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<P>She said the government or a charity commission should require charities to do annual audits and ensure that their work matched the needs of the society. </P></DIV>
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<P>However, Ms Ting warned against excessive, inflexible legislative control. For example, she said while a limit could be imposed on charities' expenditure on administration and promotion, new charities should be given a grace period, as they might need to do more in the first couple of years to make their names known. </P></DIV>
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<P>Loretta Wong Wai-kwan, chief executive of Aids Concern, said that some small charities could not afford to have regular, expensive audits. She said the Law Reform Commission and the government should consider whether they could identify a pool of auditors who were willing to do pro bono work for these groups. </P></DIV>
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<P>Lau Kong-wah, a legislator from the Democratic Alliance for the Betterment and Progress of Hong Kong, said politically affiliated charities should not be discriminated against by any charity law, as they experienced the same financial difficulties as their counterparts. </P></DIV>
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<P>The Hong Kong Council of Social Services will launch its WiseGiving website in October to provide a means for donors to probe the background of specific charities, including how they use their resources. </P>
<P>Refer to <A href="http://hk.news.yahoo.com/070819/187/2dwb3.html">http://hk.news.yahoo.com/070819/187/2dwb3.html</A></P></DIV></DIV>
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