2-minute speech on charities (I serve at 2).

Charities play an important role in helping to meet the needs of society. They are often less bureaucratic, more nimble, and can cost less than if the Government were to directly provide the same services.

It is important to understand valid concerns of the Government’s charity partners so they can do a better job.

I recall vividly how former Education Minister, now DPM Lawrence Wong strategically unlocked the highly MOE-controlled reserves of special schools to allow their parent charities to pay for their share of the building costs of the new schools; much to the relief and gratitude of the charities.

Let me name some ways by which Sector Administrators such as MSF, MOE and MOH can better support their charity partners.

1. ON HUMAN RESOURCES. Besides funding competitive salaries of supported staff, consider higher provisions for hiring of foreign staff in services such as day activity centres for the elderly and the disabled and special schools. - so critical as competition for manpower becomes more intense.

2. ON SUPPORTING ESSENTIAL COSTS OF CHARITIES. Subsidise the costs of Corporate Services and Compliance, such as Executive Directors, Finance, HR, IT, and Audit for charities providing essential services for the Sector.

As larger and needed charities get called to do more, they are also being held to higher and higher standards of reporting and accountability; adding to the cost of compliance and management.

3. ON GOVERNMENT DONATION MATCHING SCHEMES. Seek regular feedback on donation matching schemes meant to encourage fundraising. Do not make it harder for charities than it already is.

The Community Silver Trust, for instance, allows for donation matching for only 40% of funds raised, to pay for “Recurrent Operating Expenses”. The remaining 60% can only be matched for “New Projects”. The current CST design shaped some charities to keep thinking of new projects each year to qualify for CST when there are ongoing existing programmes that need to be paid for, such as for the disabled and elderly. Not useful to the charity partners.

In conclusion. the Government can certainly better support charities, one of their key partners in meeting the needs of society. ​​​​​​​

Denise Phua. 3 March 2023