Easy To Donate But Where Does The Money Really Go?
Of late, online donation campaigns have become rather widespread, usually conducted by non-governmental organisations or individuals purportedly involved in fundraising activities for charity.
However, reports of the Malaysian Anti-Corruption Commission taking action against individuals and organisations for misappropriating public donations amounting to millions of ringgit have raised questions about the level of transparency among fundraisers.
This is the first of a three-part special report on this issue by Bernama.
Malaysians are a generous lot.
Donations flow abundantly into funds set up by non-governmental organisations (NGOs) or specific persons in the wake of tragedies or disasters, whether affecting individuals or large communities.
With advances in technology and the influence of social media, fundraising has become easier and quicker, eliminating the need to go door-to-door or place donation boxes at specific locations as was the case in the past.
Examples of “successful” donation drives include the RM1 million raised in less than 24 hours to aid victims of the massive floods in Selangor at the end of 2021, and RM97,000 collected in less than 24 hours to support the families of two food delivery riders in 2022, one of whom died while the other was severely injured after being hit by a vehicle.
Both these ad hoc funds were created by a social media influencer who was reportedly transparent and disclosed how the donations were distributed to the beneficiaries.
The generosity of the public and convenience of sophisticated technology are enabling NGOs and individuals to expedite the collection of money to help, among others, war victims in countries like Palestine and Syria; support underprivileged communities within the country; and fund the construction of religious schools and tahfiz centres.
Various platforms are utilised for collecting money, ranging from direct donations into bank accounts belonging to NGOs or specific individuals to crowdfunding methods like JomDonate, KitaFund and GoFundMe.
More often than not, donors find themselves in a bind after making a single contribution as they would continuously receive requests for further donations via text messages or emails from the NGOs or parties concerned.
MISAPPROPRIATION
Their initiatives to help those in need may seem praiseworthy, but then people are sharing troubling stories on social media about certain individuals exploiting such efforts, that is, misusing donations for personal gain including living extravagantly.
Worse still, not all those conducting fundraising efforts reveal how the collected funds are distributed.
In a random survey by Bernama, many respondents admitted they had donated online but never knew if their contributions reached the intended recipients.
The response from most of them was, “It’s okay. That’s between the (donation) collector and God. What matters is that we receive the reward for giving.”
However, not everyone shared this sentiment.
“I want to know where my money is going. It gives me peace of mind to know that it is reaching those in need, not ending up in the donation collector’s pocket. I wouldn’t consent if that was the case,” said a rehabilitation therapist at a health clinic here, who only wanted to be identified as Azfar.
Also frequently emerging on social media are cases of supposed beneficiaries revealing that their names were misused to collect donations they never received.
Clearly, these are not mere allegations. In July, four individuals, including a married couple who are influencers, were charged in court for misusing RM3 million in public donations.
At the end of last year, the public was shocked by reports that the Malaysian Anti-Corruption Commission (MACC) was investigating a prominent charity organisation for allegedly misappropriating public funds meant for Palestinians.
Checks with the police revealed that from 2019 to 2023, 85 fraud cases involving donations and contributions amounting to RM667,845 were recorded. In the first nine months of this year, 10 cases were reported, with losses totalling RM133,369.50.
These statistics may not reflect the full extent of the misappropriation issue as Bukit Aman’s Commercial Crime Investigation Department stated that most cases were reported by NGOs whose names had been used by others to solicit donations.
ADMINISTRATIVE COSTS
Meanwhile, some NGOs contacted by Bernama admitted to deducting a percentage of the donations they collected for various causes, often in the teens, to cover their administrative expenses. Others claimed they are allowed to take up to 30 percent. Some NGOs, however, chose to remain silent on the issue.
Bernama also sought clarification from the Registrar of Societies Malaysia (RoS) on the deduction for administrative costs.
“RoS has issued guidelines permitting (organisations) to use up to 30 percent (of collected donations) for administrative purposes. However, these guidelines are not legally binding,” a RoS spokesman said via WhatsApp.
A check by Bernama on the guidelines and legal framework surrounding fundraising drives, particularly those conducted online, found that currently, there are no specific guidelines or laws to regulate and monitor such activities.
Malaysia currently enforces the House to House and Street Collections Act 1947, which only applies to funds collected by means of visits from house to house or soliciting in streets or other public places. This Act was last reviewed in February 1978.
So, what about donations collected online? RoS itself admitted it has no policy in place with regard to NGO-led donation drives, though registered organisations must submit annual reports, including financial statements, to the department.
From Bernama’s findings, it appears that anyone can conduct fundraising activities without a permit or authorisation from the authorities simply because no one is monitoring them.
As long as they have a “legitimate cause” – such as covering a needy person’s medical expenses or building homes for the underprivileged – they are free to organise donation drives.
NEED TO BE CAREFUL
A random survey by Bernama among members of the public showed most of them viewed the donation issue as a matter of choice, saying that it is entirely up to them whether they want to donate or not.
One of the respondents Siti Azielah Wahi, a private sector employee, said she found online fundraising “incredibly convenient”.
“With just a few emotional photos and videos accompanied by heart-wrenching captions, it’s easy to garner sympathy from many.
“Especially in our culture, which nurtures a sense of care and concern for the less fortunate and encourages sharing. Donating is also effortless – just a few clicks on a smartphone and the money is transferred,” she said.
She also did not discount the possibility of some parties taking advantage of people’s generosity, pointing to the need for campaigns to raise public awareness on the matter.
“Perhaps the authorities could also develop a mechanism that all NGOs and fundraisers must adhere to. This will ensure donation campaigns are legitimate and transparent,” she added.
Siti Azielah, who admits to regularly donating online, said she avoids campaigns involving third parties, where funds are collected on behalf of others.
Masry Che Ani, 50, meanwhile, prefers to donate directly to institutions or individuals in need.
“It’s better to donate directly (to the person in need) or through the mosque in our area. It’s safer this way as we know the (mosque) committee members personally and those managing the donations,” he said.
