COMMISSIONER OF CHARITIES ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2010
CONTENTS
Message from the Commissioner 1
Vision and Strategies 2
Overview of the Charity Sector 3
Major Developments in 2010 4
Looking Ahead 5
MESSAGE FROM THE COMMISSIONER
2010 saw an encouraging rise in public donations as the economy recovers. Total tax deductible donations to Institutions of a Public Character (IPCs) amounted to $776 million in 2010, an increase of 13% over 2009.
In 2010, we also made amendments to the Charities Act, bearing in mind the need to provide a balanced regulatory framework to facilitate the good work of the sector and to enable the public to continue to donate with confidence. The amendments were made to serve three purposes:
1. To facilitate the work of charities and charity board members, by providing clarity on their roles and responsibilities and to protect them from personal liability if they have acted honestly and in good faith. It is our hope that this will encourage more good and capable individuals to step forward and serve in the sector.
2. To enhance the accountability and governance in the charity sector, by
establishing a broad legislative framework to put in place accounting and
reporting standards for charities and IPCs.
3. To strengthen charity regulations in order to better protect donating public and maintain public confidence in the charity sector. For instance, we introduced a new provision in the Charities Act to penalise those who misrepresent themselves as registered charities or IPCs to gain support from the public.
We continued our efforts to strengthen charities’ governance capabilities.
Together with the Sector Administrators, we carried out 60 governance reviews over the past year to help charities and IPCs identify governance gaps, and develop implementation plans to address them. These were well-received by the charities and IPCs, which took steps to implement the recommendations made. We also conducted 52 field visits, and held small-group dialogue sessions with charities in 2010, to promote good governance practices, and to better understand their charitable work and the issues they face on the ground.
We worked with the Charity Council to refine the Code of Governance,
making them clearer and more relevant to charities. The majority of charities have enhanced their board governance practices, with improvements in their internal controls and processes.
These changes and initiatives have helped charities to be more effective, transparent and accountable to their stakeholders, and enabled the public to continue to donate with confidence. I urge all charities to keep up their good work and I encourage donors to continue to exercise generosity and discernment in their giving. Together, we can create a thriving charity sector with strong public trust and support.
Low Puk Yeong
Commissioner of Charities
