Watchdog steps up pressure on non-transparent Hong Kong charities
Pressure is growing for greater transparency in the surprisingly murky world of charity finances, writes Nora Tong
If it feels as though you rarely venture out on weekends without being tapped for charitable donations by volunteers, you're probably right. Non-profit groups have mushroomed - more than 7,000 organisations are registered as charities with the Inland Revenue Department - and many hit the streets on flag-selling drives.
But with so many groups seeking funds, it can be tough figuring out which cause to give to. Are the organisations all they're cracked up to be and how much of the contribution really goes to people in need?
Bonita Wang Zejin found herself asking these questions a few years ago when a friend, whose birthday was approaching, urged their circle of friends to donate to a charity instead of spending on a gift.
"We had no clue where to donate to," Wang says. "I found it odd there wasn't a platform for the public to find out more about charities, when even for things like eating ice cream, you can go to [online listing] OpenRice for references."
That was how she came to set up the charity watchdog iDonate in December 2010. Wang quit her job as an auditor and manager of a private equity fund and recruited a full-time analyst and a part-time programmer for her iDonate team. Together, they evaluate the operational efficiency and transparency of NGOs based on available data. Information is usually drawn from annual reports, often downloaded from the charity's website, or from audited financial reports purchased from the companies registry information system.
Getting an accurate picture can be tough even for motivated teams like iDonate. There is no central authority that registers and monitors charities, and non-profits are not required to disclose donation amounts or financial information to the public.
