Charitable Organizations to come under Tighter Inspection

The law makers have decided to keep the charitable trusts asking people for donations under tight supervision. They feel the current laws are not enough to keep a tab on the organizations and a lot of misuse of the funds may be possible.

The officials however state that the current laws are strict enough. Laws like the Inland Revenue Ordinance etc make sure nothing is wrong in the business.

The Liberal Party legislator Miriam Lau Kin-yee stated that the government needs to lay down proper and well framed laws. Currently there are no records and regulations that the government can monitor. It is just going the way it has been since a long time; no new additions and amendments have been introduced. He is quiet concerned about where does all the money actually go. He feels till now a lot of money donated by people for good purposes might have been gone in the wrong hands and the deserving ones have been deprived of its benefits.

Also the donations give tax exemptions, people show huge sum of money as donations and are eligible for heavy tax exemptions which is not a good practice. The government’s tax money is reduced in a big way and thus they need to closely monitor charities.

The government does not wish to inspect the way charitable organizations raise funds. But they will look closely into the matter if an organization as long as long as no more than 10 percent is used to cover administrative costs

Currently the Law Reform Commission is analyzing the framework relating to charities and will soon release a consultation paper this year.